The Action Network’s Darren Rovell revealed that sources have told him Rich Paul’s agency, Klutch Sports Group, “is in talks to partner” with one of the biggest talent agencies, William Morris Endeavor.
After leaving CAA in 2012, Rich Paul formed Klutch and focused on representing NBA players on contract negotiations. When long-time friend LeBron James allowed Klutch to rep him, nearly two dozen others followed suit including Draymond Green, Ben Simmons, J.R. Smith, Anthony Davis and John Wall.
While it’s not known what the terms are, Rovell did say that Klutch “is not for sale” and will not result in WME absorbing Klutch. Since both companies would be independent from each other, a potential partnership between Klutch and WME would favor both sides. Considering neither company is a direct competitor, this opens up an avenue for both entities to get involved into something they haven’t been previously into.
For Klutch, who has mainly focused on contract negotiations, being able to name drop WME is certainly crucial when enticing NBA players to sign with them. In this day and age, a pro athlete who only focuses on what they do on the court is someone who isn’t fully taking advantage of their marketing potential. If they have interests outside the court that they would like to do either while they’re still playing or setting up for a second career after retirement, WME would be there to help them with that.
For WME, they get a pipeline within the NBA and that is a lucrative part of the industry that they haven’t been associated with. Considering their competitor, CAA, does both marketing and player contract negotiations, this is an opportunity for WME to get in on the contract negotiation side of the industry. Not to mention, they will be able to capitalize on the marketing power of not only some of the most recognizable athletes in the United States, but the entire world.
Essentially, what this partnership would do is eliminate the middleman and eliminate the possibility that someone would sign with one company but not the other. LeBron and Draymond are represented by Klutch and WME independent of each other but a partnership would pretty much make signing for WME automatic for anyone represented by Klutch. That could bring a potential conflict of interest because it’s taking away an avenue of competition for the client to seek the best deal they can, but considering there are many other agencies, it should still be a situation where a client can leave for someone else if that situation arises.
