CAA may need outside investment to seal IMG deal – report

Creative Artists Agency may have to hand over majority control to outside investors in order to help finance a bid for rival agency IMG, according to the New York Post.

The US newspaper said that CAA, along with its private-equity backer Texas Pacific Group, is considered the front-runner for IMG in a deal that is set to be worth around $2bn (€1.47bn).

TPG is said to have advised CAA’s management team that it will need to bring in other investors to fund the deal, a move that would dilute CAA’s control over the merged entity.

The newspaper added that there are questions over whether current head of CAA’s management team, Richard Lovett, would run the merged business.

“As the price goes up, what they may need is someone who is focused on running more than the talent business,” a person familiar with discussions said.

IMG distributes rights for numerous sports properties through its IMG Media division.