Rebecca Adlington OBE – Speakers and Legends
The management of the business and the execution of the Group’s strategic plans are subject to a number of risks.
The key business risks identified affecting the Group are set out below:
Athlete representation is a people business, which relies on its agents to remain within the structure to maximise revenues by maintaining and attracting clients to the TLA roster. If key agents leave this may place risk on future revenues. The compensation structure of the key agents is aligned with the success of the venture. All current agents have been signed to long-term service agreements with restrictive covenants. Principal agents also have a significant portion of their acquisition proceeds tied up in TLA Worldwide shares which aligns their interest with that of the shareholders.
There is the potential for margin erosion through the reduction of agents’ fees. However, the recent MLB CBA agreement and the MLBPA’s stance on agents’ remuneration afford the business protection as does the multi-year contracts already in place.
The Group’s expansion strategy includes selective acquisitions and the availability of debt or equity to fund future acquisitions may be limited or difficult to obtain.
The ability of the Group to deliver incremental revenues through the co-ordination of new business activity is dependent on the availability of senior personnel to help convert leads and cross refer business.