TLA Worldwide PLC TLA Baseball Offseason and Earn-out Update (5444Y)
March 06 2017 - 1:00AM
UK Regulatory
TIDMTLA
RNS Number : 5444Y
TLA Worldwide PLC
06 March 2017
6 March 2017
TLA Worldwide plc
("TLA" or the "Group")
TLA Baseball Offseason and Earn-out Update
TLA Worldwide plc (AIM: TLA), a leading athlete representation
and sports marketing business, is pleased to report that its
Baseball division has negotiated a total of $237m in offseason
contracts, on behalf of its clients, (2016 offseason: $174m) to
date which the Group expects to increase further as the offseason
contract period comes to an end. This is a record performance for
the Baseball division and highlights its strong position following
the investment made in 2016. Offseason contracts are calculated
before any performance based incentives which may be earned by
TLA's Baseball clients in 2017 and beyond.
TLA has also agreed to amend the earn-outs and extend the
employment agreements (the "Agreements") for the principals of LS
Legacy Sports LLC ("Legacy") and Peter E. Greenberg and Associates
Ltd ("PEG") as described below. The Agreements were entered into on
4 March 2017.
TLA acquired the leading baseball representation businesses,
Legacy and PEG, in December 2011 and November 2012, respectively,
forming the Group's Baseball division. Both entities are wholly
owned subsidiaries of the Group and for the year ended 31 December
2015 the Baseball division generated operating income of $13.8m and
headline EBITDA of $6.8m.
The original earn-outs with the principals of Legacy and PEG
covered the five-year period following their acquisitions. These
have been replaced with amended and extended earn-out arrangements
covering additional five-year periods. The payments to Legacy and
PEG under these arrangements are payable in cash and conditional on
the combined Baseball division achieving certain EBIT targets over
the period up until 2021 for Legacy and 2022 for PEG. Upon
achievement of the escalating Baseball EBIT hurdles, the total
consideration for the principals of Legacy and PEG under the
earn-outs is capped at $7.2m.
As a result of the amendment and extension to the Legacy and PEG
earn-outs, the total deferred consideration on the Group's balance
sheet, which as at 30 June 2016 was $9.8m, is expected to increase
by approximately $0.7m.
In addition, the Legacy and PEG employment extensions bring them
in-line with the employment extensions agreed with the key
principals of The Agency Sports Management which was acquired by
the Group in 2011. TLA has now extended its employment agreements
with the principals of these three businesses who will remain at
TLA for at least another five years.
Given the investment made to date and the resultant offseason
activities, the Board believes that the Agreements are a positive
development for the Group and will ensure that the Baseball
principals remain incentivised and committed to deliver on the
Baseball growth plans over the coming years.
Mike Principe, CEO of TLA, said: "The future success of our
Baseball division is based on our investment in high quality people
and we are excited about the prospects of this division having
secured key personnel over the long term. The negotiation of at
least $237m in offseason contracts is a record performance for TLA
Baseball and this, combined with the right people in place for
years to come, gives the Board confidence that the Baseball
division is in a strong position to deliver on its growth
plans."
Related party transaction
The Legacy principals, being Greg Genske, Brian Peters and Scott
Parker, are deemed to be related parties under the AIM Rules and
therefore their participation in the arrangements described above
represent a related party transaction.
In accordance with AIM Rule 13, the Board of Directors
(excluding Greg Genske who is a related party) consider, having
consulted Numis (the Group's nominated adviser) that the terms of
the transaction are fair and reasonable insofar as TLA's
shareholders are concerned.
Enquiries:
TLA Worldwide
------------------------------------------------------
Bart Campbell, Executive Chairman
Michael Principe, Chief Executive
Officer +1 212 645 2141
------------------------------------ ----------------
Numis Securities
------------------------------------------------------
Nick Westlake and Oliver Hardy +44 20 7260
(Nomad) 1000
------------------------------------ ----------------
Christopher Wilkinson (Broker)
------------------------------------ ----------------
Luther Pendragon
------------------------------------------------------
+44 20 7618
Harry Chathli, Alexis Gore 9100
------------------------------------ ----------------
About TLA Worldwide
TLA Worldwide is a leading athlete representation, event
management and sports marketing group quoted on AIM-LSE in London.
The Group derives revenues from long-term agency relationships with
many prominent U.S. and international sports stars, broadcasters
and media personalities associated with major sports including the
MLB, NFL, NBA, PGA tour, AFL and Olympians and Cricketers. In
addition, it also provides a range of services in respect of media
consultancy, sports sponsorship and event creation and ownership,
including the International Champions Cup tournament in Australia.
TLA Worldwide serves its clients from 10 locations worldwide
including its offices in London, UK; New York, Newport Beach and
California, USA; Melbourne, Perth, Adelaide and Sydney, Australia.
For more information, please visit www.tlaworldwide.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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