Beverly Hills-based talent agency Gersh is acquiring Madrid-based sports representation firm You First in a major expansion that marks the firm’s entry into the highly competitive business of working with athletes.
The deal, announced Tuesday, doubles the agency’s staff to more than 600 people.
Additionally, the pact expands Gersh’s footprint to 22 offices in 14 countries. You First has more than 1,000 clients, including Spanish soccer player Fabián Ruiz and NBA player Jarrett Allen. Prior to the acquisition, Gersh did not represent athletes, but rather focused on actors, directors, writers and other talent.
“It felt essential for the agency to grow, change and evolve, and growth into the sports representation vertical was a central pillar and focus of where we felt we wanted to take the agency,” said managing partner Steve Gersh in an interview. “The area that we were where we felt there were the strongest tailwinds and biggest opportunity for growth, not only domestically but globally, was in sports and sports representation.”
Financial terms of the deal were not disclosed.
You First Chief Executive Juan Aísa said the Gersh partnership allows his business to offer “greater support for clients.” Aísa will join Gersh’s board and continue to run You First, while Steve Gersh will lead Gersh Sports, the agency said.
“Together, we’re building an ecosystem that goes beyond sports and entertainment representation to foster innovation and create new opportunities for global expansion,” Aísa said in a statement.
The deal comes after many agencies and management firms were impacted by last year’s dual Hollywood strikes. Those same companies are adapting to an entertainment industry in which athletes, actors and other celebrities are embarking on various business endeavors, which span social media videos, sports, music, TV and film.
Agencies, including WME owner Endeavor and Creative Artists Agency, evolved by growing and diversifying.
Gersh said that his agency is profitable and is looking at other potential acquisition opportunities.
“This is the start of the journey, not the end,” Gersh said.
Last year, the Gersh agency took on an investment from private equity firm Crestview Partners in an effort to grow the representation business. Crestview has a 45% ownership stake in Gersh, which was founded in 1949.
The You First acquisition is the second purchase in Gersh’s recent expansion. In January, the agency bought A3 Artists Agency’s digital and alternative content departments.
In addition to representing athletes, You First works with sports leagues and major brands such as Formula 1 and Starbucks on marketing campaigns.