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Endeavor acknowledges dispute with MLBPA over minor league teams could impact business – The Athletic

Editor’s note: This story has been updated to include Endeavor’s statement that the total price of all six teams includes the cost of buying other companies.

Sports and entertainment agency Endeavour, which has quickly entered the business of owning minor league baseball teams, has raised the possibility that there is a risk that it may have to exit the business. baseball agency or minor league ownership, according to its annual report filed with securities regulators Wednesday.

Although this is a remote possibility, as companies often list in these reports a series of risk factors and alternative scenarios that may not occur, it is significant that the company noted the objection. of the Major League Baseball Players Association to his alleged co-ownership of a baseball. agency and minor league teams.

Endeavor could still reach an agreement with the union, but the fact that the MLBPA dispute is reported in this way underscores that the union’s concern about Endeavor’s strategy is not going away.

“Recently, the Major League Baseball Players’ Association indicated that it believed that certain sports agents employed by Endeavor’s subsidiary, WME Sports LLC, were subject to a conflict of interest due to club ownership (of minor league) by Diamond Baseball Holdings (DBH) … and threatened to decertify these sports agents, which is disputed by Endeavour,” the annual report, or Form 10-K, states. on our business and could include a sale of our baseball agency business or a sale of DBH.”

DBH is the Endeavor unit that owns the minor league teams.