Chime to take over Coe consultancy firm in multi-million pound deal
Saturday, 27 October 2012
October 27 - International sports marketing group Chime Communications is set to take over the management consultancy firm of Sebastian Coe in a deal that could earn the London 2012 chairman £12 million ($19.3 million/€14.9 million).
Coe's firm, the Complete Leisure Group Limited (CLG), owns all the rights to his income streams over the next 15 years including commissions, royalties and consulting income.
The deal means Chime, which made over £30 million ($48.3 million/€37.3 million) from a number of contracts on London 2012, will acquire Coe's 93 per cent interest in CLG.
The deal is also set to see Coe become chairman of Chime's sports marketing arm, CSM Sport & Entertainment, with the current chairman Alan Pascoe to become President.
"Lord Coe is a hugely respected figure in the global sports market and he will bring enormous value to CSM's international capabilities," said Chime chief executive Christopher Satterthwaite.
The deal will see Chime will pay an initial £1.5 million ($2.4 million/€1.9 million) in cash together with deferred consideration payable over the period to March 2017 on the achievement of various financial targets, which is set to give Coe around £12 million ($19.3 million/€14.9 million).
"I am delighted to be joining such a dynamic group with such a breadth of sporting interests and skills," said Coe.
"I hope my experience will help develop this exciting new business and I am looking forward to the challenge."
The 56-year-old, double Olympic 1,500 metres champion, is projected to be worth £1.5 million ($2.4 million/€1.9 million) in 2013 through ambassadorial and consulting contracts, his contract with Nike, after-dinner speeches and media work.
This annual income is expected to grow to £2.5 million ($4 million/€3.1 million) in 2015.
Chime expects Coe's involvement to be worth over £9 million ($14.5 million/€11.2 million) in profit to the group.
The deal comes as Coe prepares to be elected British Olympic Association (BOA) chairman next month, a position for which he is the only candidate.