"Tom Stultz anticipates little change in the near future as Host Communications settles into its new role as a division of the New York-based global sports, entertainment and media goliath, IMG.
"It should be business as usual. IMG is buying Host to have a platform to grow its collegiate business, and by being the first one in the rights business that they acquired, at least initially it should be business-as-usual at all of our locations as well as here in Lexington," explained Stultz, whose desk nameplate now reads senior vice president and managing director of IMG College Sports under a deal worth $74.3 million that was consummated in mid-November.
Triple Crown Media, Inc. (Nasdaq: TCMI) announced on Nov. 12 the sale of its Host Communications, Inc. businesses to IMG. Triple Crown will use proceeds from the sale of Host to pay down its debt, according to company officials.
In his new role, Stultz will now oversee Host's multimedia rights, publishing and association management.
"The association business will flourish under IMG," Stultz commented on a division of Host whose staff had been uncertain about the implications of the sale. The division handles the operations of the National Tour Association, the International Spa Association, American Volleyball Coaches, the International Coach Association and Quest International Users Group. "They (IMG) don't have an association management division, so this gives us a nice platform to grow. IMG has 60 offices in over 30 countries, so it gives us some expertise on how to take our associations internationally even more than we have. They also have great contacts on the sponsorship and event management side that should help us."
Stultz said Host's headquarters with 175 employees will remain in Lexington. IMG, owned by the investment firm of Forstmann Little & Co., has global headquarters in New York with 3,000 employees worldwide.
Originally a talent management business, the company now represents a stable of big-name professional athletes, including Indianapolis Colts quarterback Peyton Manning, who played for UT, pro golfer Tiger Woods and pro tennis player Maria Sharapova.
IMG was purchased for $750 million in 2004 from the estate of founder Mark McCormack of Cleveland. According to IMG spokesman Jim Gallagher in New York, the company has since experienced enormous growth. "IMG now distributes more than 11,000 hours of sports, documentaries, comedy, drama and children's content," he noted. "We also represent the broadcast rights to many of the premier sporting events in the world and have the largest archive with more than 215,000 hours of sports footage."
The company also operates IMG Academies, described in an IMG press release as "the world's largest and most advanced multi-sport training and educational facilities."
In addition to Kentucky, Host brings to the IMG table the promotional, marketing and broadcasting rights to others among the nation's most prestigious athletic programs, including Texas, Tennessee, Michigan, Nebraska and Kansas.
By acquiring Collegiate Licensing Co. (CLC) in May, IMG picked up licensing rights to nearly 200 colleges, conferences and bowl games.
Stultz acknowledged that speculation in the press about additional consolidation in collegiate sports marketing is justified. "I do believe it's inevitable. It makes perfect sense," he said.
Stultz said the collegiate marketplace is hot and it's growing. "The only thing that stood in the way of it being even bigger than it already is is the fact that you're competing with major league baseball, the NFL, the NBA, where you can go and buy sponsorships on a national basis and activate in major markets around the country. If there is consolidation in the collegiate world, you'll have that same ability to buy nationally, but you'll be able to activate in very specific communities around fan bases that are incredibly loyal. So the ability to buy nationally and activate locally all across the country — that is something that's highly desirable. If we're able to pull that off together, I think that will work very well for our sponsors and for our partner universities."
Host's main claim to fame is its broadcast of University of Kentucky sports. "We've been longtime partners with Host, and it's been a fine partnership for both sides. IMG being a global leader certainly helps. I think it only strengthens the partnership and sets the course for the future," said Rob Mullens, deputy director of UK Athletics. ""Fortunately, we have one of the best multimedia rights deals in the country with our partner Host. When you have a global partner like IMG with so much knowledge and being an industry leader, it strengthens that position."