Was it All a Bait and Switch?

It’s been over three months since Casey Wasserman informed his staff in a memo that he felt “distracted” by his appearance in Epstein’s records, which led him to start selling the agency named after him.

This announcement seemed to stop a wave of clients from abandoning Hollywood figures, particularly musicians like Dave Chappelle and soccer star Abby Wambach. It also quelled the calls from officials urging the 51-year-old to resign as chairman of LA28.

However, some sources familiar with the sale process suggest that Wasserman might be intentionally derailing the bidding to buy time and lessen the fallout from emails linked to Ghislaine Maxwell, a convicted sex trafficker and Epstein associate.

“What’s clear to me, and it’s been evident for about two weeks, is that he really doesn’t want to sell,” said someone acquainted with the finances. “He has no intention of going through with it.”

According to sources, approximately 14 firms, primarily private equity groups, have submitted non-binding offers for the agency, which has assets across music, sports, and brand consulting, including Brillstein Entertainment Partners.

Currently, three bidders remain, with Permira leading the pack. New Mountain Capital isn’t too invested in entertainment, while UTA/EQT private equity is still on the list but may just be a tool in the process since UTA cannot acquire a management company due to regulations.

Wasserman seems reluctant to part with any parts of the agency; after all, he believes the whole is worth more than its individual pieces.

There’s a general agreement among private equity experts that there’s a significant disconnect between Wasserman’s estimated worth of the company and its actual valuation. He thinks it should fetch between $3.5 billion and $4 billion, which a knowledgeable source called “ridiculous.” A more grounded estimation would be somewhere between $2.5 billion and $3 billion, possibly even $2.75 billion.

Most bidders have either dropped out or proposed lower offers than Wasserman is looking for. His music division, which includes big names like Coldplay, Ed Sheeran, and Kendrick Lamar, has seen more success through acquisitions than through organic growth, according to insiders.

Interestingly, Wasserman might have shifted goals during the process. One private equity source mentioned that he now tells bidders they “need to be persistent” if they want a successful purchase. It seems that Permira and New Mountain are among the few bidders that could work out a deal that allows Wasserman to remain involved, while others looking for a clean break have been pushed aside.

Initially, up to nine private equity firms expressed interest, along with several superagents, including Patrick Whitesell through his Win Sports group. Although companies like WME and Range also showed interest, the number of serious contenders has shrunk significantly, leading some to think it’s a strategic move.

Wasserman possesses 25% of the rebranded company now known as The Team but holds the ultimate say on potential acquisitions. Providence Equity Partners, which owns 60%, can’t compel him to sell. The difference between selling for $2.5 billion versus $3.5 billion is about $250 million. “He’s still in a strange situation,” remarked one insider.

The unique structure of the deal with Providence might explain Wasserman’s control in this bidding scenario. When Providence invested in his growing business back in 2022, they agreed that the company wouldn’t be sold until 2029. Before the Epstein scandal, it seemed Wasserman’s plan was to navigate the Olympics, take a victory lap, and then offload his stake in the company by 2028.

People involved in the current buyout suspect Wasserman is merely attempting to present himself as a motivated seller, while ultimately, he might back away from the whole process.

“I think he’s become overly confident in its valuation,” noted someone familiar with the financials, “and he really believes he can pull it from the market, lay low, and regroup while no one’s watching.”

A representative for Wasserman did not provide comments. However, some familiar with the sale disputed this view, asserting that interest is still high and that negotiations of this magnitude take considerable time, which can cause delays.

Wasserman previously addressed Maxwell’s emails in a statement to the New York Times: “I deeply regret my interactions with Ghislaine Maxwell that took place more than 20 years ago, long before her horrific crimes became public. I’ve never had a personal or business relationship with Epstein.” He expressed regret for being associated with anyone involved.

Permira opted not to comment, and Mountain View didn’t respond to requests for statements.