Tinseltown Takes a Sporting Chance
L.A. talent agencies lure sports superstars to boost bottom line.
July 24, 2008— -- Hollywood talent agencies, constantly seeking new clients, have latched onto a new source of wealth: sports stars.
At first glance, it seems a strange pairing. But sports really are just another form of entertainment. Movies and sports both have big-name stars and both make us cry, laugh and even scream out in terror.
The agencies already have most of the big-name Hollywood stars signed up. And while a star is born every minute, there are never enough to pay all the bills.
Enter, stage left, sports stars.
"Hollywood itself is not necessarily a growth business for the talent agencies, so they have been trying to branch out to new fields," said Georg Szalai, business editor at the Hollywood Reporter.
Just this week, baseball superstar Alex Rodriguez became the latest celebrity athlete to sign with a Beverly Hills talent agency. The deal with the William Morris Agency is expected to help A-Rod expand his presence beyond the baseball diamond, bringing him -- and the agency -- millions of dollars from new endorsements. The agency has had a sports division since 2001, and Rodriguez now joins a lineup that includes Serena Williams, Maria Sharapova and Kevin Garnett.
A few blocks away, competitor Creative Artists Agency is also well on its way to becoming a powerhouse in the sports world.
Sign Up for Our RSS Feed and Get the Latest Business Headlines From ABC News
Best known for representing George Clooney, Julia Roberts, Steven Spielberg and Bruce Springsteen, CAA started branching out to sports in early 2006. Its client list now includes brothers Payton and Eli Manning, LeBron James, Derek Jeter, Bode Miller and David Beckham.
CAA doesn't just work out endorsements but also does contract negotiations for its clients. It represented four of the top 10 picks in this year's NFL draft and is working with the New York Yankees on corporate sponsorships of its new stadium.
For the sports stars, this relatively new partnership can mean more money plus the ability to draw on the established resources of these Hollywood agencies. For some that means using their name to start new businesses, maybe outside the sports world. For instance, Magic Johnson is now involved in movie theaters and real estate.
