On Location Acquisition: Key Details, Impact, and What Comes Next

Endeavor's acquisition of On Location for $660 million marks a significant move in the sports and entertainment industry. This strategic partnership enhances Endeavor's premium hospitality offerings, leveraging On Location's expertise in major events. The deal underscores Endeavor's commitment to expanding its global reach and delivering unparalleled experiences to fans and corporate clients alike.

What Is On Location?

On Location offers premium experiences, tickets, and hospitality packages for sports, music, and lifestyle events. As the official hospitality provider for major events like the Olympic Games, NFL, MLB, and UFC, On Location delivers VIP access, premium seating, and exclusive moments. Their unique selling points include partnerships with major sports leagues and events, providing unparalleled access and premium experiences. The company emphasizes creating "Experiences of a Lifetime" with comprehensive offerings across a wide range of events.

Who Acquired On Location?

Endeavor is a global leader in the sports and entertainment industry, known for owning premium content and representing top talent. The company offers a wide range of services, including talent representation through WME, sports operations and advisory via IMG, and live event experiences through On Location. Additionally, Endeavor provides full-service marketing, sports data, and technology solutions. With a significant market position, Endeavor influences various sectors, from media production to live events, and is committed to social impact and inclusion.

When Was On Location Acquired?

Endeavor acquired On Location on January 2, 2020. This acquisition came at a pivotal time in the industry, aligning with a broader trend of consolidation and strategic partnerships in sports and entertainment. The timing was particularly significant as it occurred just before the global pandemic, which heavily impacted the events and hospitality sectors. Despite these challenges, the acquisition positioned Endeavor to enhance its premium hospitality offerings and leverage major events like the Super Bowl for strategic growth.

Why Was On Location Acquired?

• Market Expansion: The acquisition allows Endeavor to expand its market reach globally by leveraging On Location's existing partnerships and expertise in staging events for sports, music, fashion, and entertainment. On Location's role as an official partner to the NFL, PGA, NCAA, WWE, and Endeavor's UFC further enhances Endeavor's footprint in these sectors.
• Technology Integration: While the articles do not explicitly mention technology integration, the synergy opportunities with Endeavor's multiplatform talent agencies like WME and IMG suggest potential integration of digital and technological resources to enhance hospitality experiences. Additionally, Silver Lake's technological expertise could be leveraged to improve Endeavor's operations and growth potential.
• Competitive Advantage: Endeavor gains a strategic partnership with the NFL, enhancing its portfolio with premium hospitality services. The consolidation of On Location and IMG Events is positioned to "supercharge" consumer experiences within Endeavor's global events portfolio, providing a competitive edge in offering unique, high-quality experiences to consumers and brands. The impressive return on investment for On Location's investors and the strategic positioning of the company within Endeavor's portfolio highlight its competitive advantage in the premium hospitality and travel market.

Acquisition Terms

• Acquisition Price: $660 million
• Payment Method: The transaction involved Endeavor paying $660 million to acquire shares from existing investors, including Bruin Sports Capital, RedBird Capital, and the Carlyle Group. The exact payment method (cash, stock, or combination) was not disclosed.
• Key Conditions or Agreements:
  • The NFL will increase its stake in On Location to 20% and retain its seat on the company's board of directors.
  • Paul Caine has been appointed as the new president of On Location.
  • John Collins, the current CEO of On Location, will remain as an advisor during the transition period.
  • On Location will be integrated into Endeavor's broader portfolio, enhancing its premium hospitality business.
  • Legal advisors for Endeavor are Latham & Watkins, and financial advisors are The Raine Group. Legal advisors for On Location and the NFL are Paul Hastings and Ropes & Gray, respectively.

Impact on On Location

The acquisition of On Location by Endeavor has led to significant changes in its operations and management. Paul Caine has been appointed as the president, while John Collins, the former CEO, will serve as an advisor during the transition. The integration of On Location into Endeavor's broader portfolio, which includes WME, IMG, and UFC, aims to streamline operations and enhance the overall consumer experience. This consolidation is expected to leverage Endeavor's global reach and expertise, particularly in major events like the Super Bowl and New York Fashion Week.

In terms of product offerings and services, the acquisition has allowed On Location to expand its premium hospitality services. The integration with Endeavor's existing operations has enhanced the quality and variety of experiences available to customers. While specific details on employee and customer reactions are limited, the strategic move is anticipated to positively impact customer satisfaction by offering more comprehensive and high-quality event experiences. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.