The Miss Universe organization, Endeavor Group Holdings, Inc., has filed earlier this month for another IPO. This would be the second time that Endeavor would file for an IPO after a failed attempt two years ago due to low investor demand.
The LA Times reported that the “IPO collapse was a rare stumble for Endeavor leader Ari Emanuel, whose ambition is to make Endeavor into a global entertainment juggernaut. The IPO was supposed to help fuel its ascent by raising cash to chip away at its $4.6-billion debt (at the time of the planned IPO) and fund future acquisitions.” And NBC stated that the “company generated sales of $3.48 billion and posted a net loss of $625.3 million last year. Revenue was more than $1 billion lower than in 2019 due to pandemic shutdowns“.
2020 was a hard year for pageantry. So it is no shocker that a number of the news-makers on this list are on the negative aspect of pageantry.
Here’s the list of 7 news-making headlines that shocked and shaped the pageant industry this past year…
7. A Question of Decency in Pageants – how far can candidates go bare before they are called out for too much exposure? That was one of the hottest topics that was taken out of context by a number of pageant pages on Instagram. During the height of the Miss Universe Philippines pageant, a number of candidates posed in too provocatively styled shoots and swimsuit photographs which prompted a huge debate between pageant admins. And with strong arguments from opposing views, some pageant admins and personalities fought for each of their sides. Unfortunately none of the candidates who posed provocatively even made top 5.
6. Fake Scandal Video and Images Propagated by Catriona’s Detractors – this year we saw both Indonesian trolls and Filipino pageant haters spread malicious images and spliced videos of Catriona Gray online. It was such a huge headline that Catriona decided to go to the National Bureau of Investigations to file a case against those that propagated these fake and doctored images and videos.
5. Changes in Miss Universe National Directors – in a movement that started in 2019, the year saw more changes in leadership for several more MU franchises. Colombia, Spain, Guatemala followed the change in franchise ownership and/or leadership from 2019’s Venezuela, Puerto Rico, Thailand and the Philippines. And with the rumored new ND for the USA with former Miss USA Crystle Stewart, 2020 truly saw the “in with the new and out with the old” in franchise ownership.
4. Miss Earth’s Successful Virtual Pageant – when it was announced that the Miss Earth pageant will continue its 20th edition with a virtual pageant, a number of fans raised concerns. ME was the only Alpha pageant to stage their competition this year… Miss Universe is to hold their 69th edition in the first trimester next year while both Miss International and Miss World cancelled their pageants and will return in 2021.
3. Miss Universe Philippines Leakages – newbie pageant with newbie personnel running the organization; that was evident with the numerous leakages and slip ups that marked the first year of the organization. They started off with huge promise that would later be marred with information leaks that could only come from within their own organization. From the schedules, design of the new crown, stage design and concept, down to the actual winners of the competition, were all leaked days and/or hours before the culmination of the pageant activities. Even as they are sequestered and quarantined in a location far from the capital, numerous insider info continued to leak from within the org. Which even included the video of the crowning of the new MU-Philippines hours before the finals was finished.
1. Covid19 Pandemic – no other news is bigger than the corona virus pandemic that gripped the entire world in 2020. Due to its nature, live events are cancelled and it basically eradicated the pageant schedules this year.
We’ve heard the rumors before: Trump is gonna buy the Miss Universe pageant back, the Kardashians will be the new owners, Ryan Seacrest purchased the pageant from Endeavor, etc…
Now it’s making the rounds all over again on social media following the comments from one of the key people from CHI, revealing that the pageant was already sold.
We saw this coming from a mile away since we learned about the financial woes of the Miss Universe pageant’s parent company, Endeavor (formerly IMG|WME) early this year. We even gave a timeline of how their financials fell apart in an article. Who are we kidding? Endeavor currently has an astonishing $4.6 billion in long-term debts and overall liabilities totaling $7.2 billion. A company with that much debt is bound to sell their assets sooner or later…
At this point do we even care? The pageant has been rumored to be passed like a toy from one donation bin to another… Personally, we just wanted a consistently good show from year to year like it used to in the 80’s-90’s. New ownership or not.
If the Miss Universe pageant has truly been sold, then brace yourselves pageant fans. NEW doesn’t automatically translate to BETTER. The new owners might exercise more controls than previous owners have. It could mean changes in leadership and organizational structure as well. So there are many unknown factors to consider in this development. All of which pageant fans like us are powerless spectators of what is to unfold before us…
What do you think about this new “development”? Do you even care who the new owners are? Let us know on the comments below…
The Miss Universe pageant’s parent company, Endeavor (formerly known as WME|IMG) is in a financial quandary.
Here’s how to make sense of all of these financial woes…
THE FACTS COMPANY NAME: Endeavor Group Holdings, formerly known as William Morris Endeavor Entertainment (WME or WME-IMG) – Endeavor also leads a group which owns the Ultimate Fighting Championship and owns the Miss Universe pageant. It is headed by CEO Ari Emanuel and executive chairman Patrick Whitesell. INDUSTRY: Entertainment Industry (talent management, live entertainment, sports, etc…) FOUNDED: – William Morris Agency was founded in New York in 1898. – The Endeavor Talent Agency was launched in 1995. – WMA and the Endeavor Talent Agency announced that they were forming William Morris Endeavor in 2009. – WME and Silver Lake announced the acquisition of IMG for $2.4 billion in 2013. – WME-IMG reorganized in October 2017 with the parent company being renamed from WME-IMG to Endeavor. PRIMARY HEADQUARTERS: 9601 Wilshire Boulevard, Beverly Hills, California 90210, United States OWNERSHIP STATUS: Privately Held (backing) FINANCING STATUS: Private Equity-Backed NUMBER OF EMPLOYEES: estimated between 5,000 to 10,000
NOTES ON FINANCES: Endeavor’s revenue was $3.61 billion in 2018 with a net income of $100.1 million after adjustments. Recent filings as of 2018-2019, the company is saddled with $4.6 billion of long-term debt, with total liabilities of $7.2 billion and $830.9 million in cash assets.
In December 18, 2013, WME announced the acquisition of IMG for $2.4 billion. The following years to come between 2015 to 2016, the company acquired several sports-related companies and events like the Professional Bull Riders, Ultimate Fighting Championship, as well as literary agency Rabineau Wachter Sanford & Gillett and the Miss Universe pageant.
May 24, 2019 – Endeavor Group files for IPO (Initial Public Offering). An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance.
September 26, 2019 – Endeavor cancelled its planned IPO that was set for September 27. The cancellation was due to weak IPO demand.
March 25, 2020 – the company laid off around 250 staff as the sports and film industries continue to be on shut down amid the global spread of the Covid-19 pandemic.
April 2020 – S&P Global Inc. dropped its credit ratings for WME|IMG and Endeavor. – Endeavor is cutting, furloughing, or slashing the pay of one-third of its approximately 7,500 employees – The pay reductions will proportionately increase according to base salary, from 5% to 30%. – CEO Ari Emanuel and Patrick Whitesell, Endeavor’s executive chairman, are to give up the remainder of their 2020 salaries.
April 27, 2020 – Endeavor decided to cut about one-third of its staff.
May 7, 2020 – WME announced that it would lay off or furlough roughly 20% of its work force.
May 11, 2020 – Moody’s Investors Service Inc. downgraded its outlook for Beverly Hills-based WME IMG Holdings to negative from stable, and lowered the company’s credit rating.
The Miss Universe parent company Endeavor, suffered another setback as its credit ratings has been downgraded to a “substantial risk”.
Endeavor, formerly IMG|WME, has its S&P credit rating lowered. It has been downgraded from B to CCC, which means that the company is currently vulnerable and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments. The credit rating agency also changed the company’s outlook to negative.
S&P Global Ratings (previously Standard & Poors) is an American credit rating agency that publishes financial research and analysis on stocks, bonds, and commodities. S&P developed the standard rating scale used to rate both short- and long-term debt.