Thoughts on Miss Universe Rumors Being Sold

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…

Endeavor: Facts, Figures and Financial Woes

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.

THE TIMELINE
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.

Related articles on this topic:
IMG|WME in Financial Trouble, Miss Universe Pageant Survival in Question
How Much is the Miss Universe Pageant Worth?

SOURCES:
* https://pitchbook.com/profiles/company/53004-70
* https://nypost.com/2019/05/23/endeavor-group-owner-of-miss-universe-pageant-and-ufc-files-for-ipo/
* https://labusinessjournal.com/news/2020/may/01/endeavor-credit-rating-gets-another-downgrade/
* https://www.wsj.com/articles/endeavor-plans-coronavirus-driven-staffing-cuts-11587581112
* https://www.sportbusiness.com/news/endeavor-lays-off-250-staff-with-more-cuts-to-come/
* https://variety.com/2020/film/news/wme-endeavor-layoffs-1234586781/
* https://www.digitalmusicnews.com/2020/04/23/endeavor-cuts-furloughs-slashes-employees/
* https://fortune.com/2020/05/13/endeavor-reports-of-our-demise-are-greatly-exaggerated/
* https://nypost.com/2019/09/26/ari-emanuels-entertainment-company-is-pulling-its-ipo/
* https://variety.com/2020/biz/news/endeavor-pay-cuts-ari-emanuel-patrick-whitesell-1203551733/
* https://www.latimes.com/entertainment-arts/business/story/2019-09-26/endeavor-lowers-it-ipo-price-range-ahead-of-its-market-debut

IMG|WME in Financial Trouble, Miss Universe Pageant Survival in Question

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.

HAIL ARI FULL OF DEBT

Endeavor currently has an astonishing $4.6 billion in long-term debts and overall liabilities totaling $7.2 billion. With a large chunk of its business is on live events like the Miss Universe pageant, the current coronavirus pandemic puts it in a more precarious state that it has raised questions about Endeavor’s ability to survive. Continue reading “IMG|WME in Financial Trouble, Miss Universe Pageant Survival in Question”

IMG/ MUOrg to Franchise Holders: No to Simultaneous Queens

Another major game-changer is said to take effect immediately this year…

The MUOrg  and IMG are said to have informed the owners of the national franchises not to have two simultaneous national titleholders in the same calendar year. If this happens, one will not be able to attend Miss Universe. *This is the reason why the Señorita Colombia is being postponed from this November to March of 2017. In a news report by Las Noticias Cartagena, 
Raimundo Angulo, president of the National Beauty Contest (Señorita Colombia), confirms that the changes reflect “the new guidelines for sending the representative of our country at Miss Universe Pageant.” Specifically, IMG, does not allow two national queens to exist simultaneously.
And with the stipulation that only a crowned queen (runners up are not allowed to compete unless the main winner is dethroned) is to be able to compete, it puts into shade the possible participation of entries that were crowned last year. The possibility that girls crowned prior to the year they are to compete in Miss Universe may not be allowed supposedly to join.


This would place the pageant participation of Mariam Habach in jeopardy as Keysi Sayago would automatically be the lady sent to compete for Miss Universe come January 2017, if this is indeed effective immediately. We are hoping for more updates on this matter as this news develops. 

SOURCES:
http://www.eltiempo.com/entretenimiento/cine-y-tv/concurso-nacional-de-la-belleza-se-hara-en-marzo/16725521

http://www.lasnoticiascartagena.com/reinado-belleza-aplazado-no-va-noviembre/