Patrick Whitesell’s Next Act

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Recently, Patrick Whitesell resigned as a prominent talent agent, guiding the careers of stars such as Ben Affleck, Matthew McConaughey, and Angelina Jolie. However, he shows no signs of reminiscing or feeling sentimental about it.

As I reflect on my career, I can’t help but acknowledge that the completion of building my company marks a significant milestone, almost like the conclusion of a chapter in my life. However, I prefer to view this as the beginning of my next act. In an exclusive interview with The Hollywood Reporter, I shared my thoughts for the first time since the $25 billion deal by Silver Lake that took Endeavor private was sealed, which led to my departure from the agency. Now, I’m embarking on two exciting new ventures: one being a sports management company in the NFL, which is a spin-off from WME, and another being a sports, media, and entertainment investment platform, backed by a $250 million investment from Silver Lake private equity. I’m eagerly looking forward to this new journey!

He mentioned that the defining moment in his career was the successful merger with William Morris back in 2009, which ultimately formed William Morris Endeavor (WME) Entertainment. This mergence skyrocketed him and co-CEO Ari Emanuel to the top echelon of the industry’s influential leaders. He added that this merger served as a springboard for all our subsequent company achievements, and he aspired to replicate such success, though in a unique manner.

As I converse with Whitesell, there’s a palpable drive within him that shines through, even at the ripe age of 60 and with a substantial fortune in the hundreds of millions (he received a $100 million cash payment, and will retain approximately $266 million in equity post-acquisition). This ambition seems to be fueled by his desire to construct an empire independent from Emanuel’s influence, moving beyond his now former partnership.

Whitesell was open to talking about his recent endeavors, the significant and at times challenging evolution of the entertainment sector that led him to immense wealth, as well as the rise of sports becoming the primary cultural phenomenon today. However, he chose not to touch upon the widespread speculations concerning the supposed strife in his partnership with Emanuel, or how such issues could have potentially factored into his departure.

Patrick Whitesell and Ari Emanuel had an enduring business relationship, one of the most successful in their industry. However, it’s important to note that this partnership has come to an end, marking a divorce, according to a manager who knows both men well and is privy to the town’s most whispered secrets. Whitesell joined Endeavor Talent Agency as a partner in 2001, moving from CAA, where he became Emanuel’s counterpart ever since. Despite their contrasting personalities as indicated by the Meyers-Brigg scale, they managed to maintain a productive and profitable partnership for nearly two decades. Lately, though, tensions between them have escalated.

According to various reports, the tension between the two men didn’t stem from a single incident but rather a collection of disagreements that grew during Emanuel’s leadership of Endeavor as a public company. One of these disagreements revolved around the choice to hire Lloyd Braun to manage the agency in 2019, a decision that Whitesell reportedly didn’t back, according to several sources. As one manager put it, “They’ve handled themselves like mature adults who have children, and they found a way to separate without causing too much conflict.

Personally speaking, an unexpected move that seemed to ease the tension was when Silver Lake co-CEO Egon Durban decided to purchase a 7.5% share in Las Vegas Raiders in November. This acquisition necessitated Endeavor to relinquish the WME Sports’ football representation department, which comprises eleven agents and approximately a hundred athlete and coaching clients. To my delight, I jumped at the chance to seize this opportunity and establish it as a standalone company. The football business wasn’t something I had planned for or expected. But when it presented itself, I became incredibly enthusiastic about it for multiple reasons.

In recent times, it’s hard to find anyone criticizing Whitesell for aiming for a new beginning, focusing on sports and live events. The entertainment industry has been grappling with an economic downturn marked by layoffs numbering in the tens of thousands due to factors such as the shift to streaming, the COVID-19 pandemic, and labor strikes. The industry that Whitesell and his peers helped transform starting in the 1990s is hardly recognizable today. As he puts it, “The era of blockbuster shows like E.R. and Friends is long gone. But what impact has this had on scheduled TV? Everyone’s talking about how live experiences are crucial, and in that aspect, the NFL stands as the most prominent sports property globally.” Whitesell plans to fund the company himself, with aspirations to create an equity pool for his agents and employees. “I believe there is a massive opportunity to assist athletes and our clients in growing businesses beyond football,” he adds.

Whitesell is funding the WME Football project personally to ensure it doesn’t violate any NFL or union ownership regulations that could be imposed. The $250 million Silver Lake has invested in Whitesell’s platform can’t be used for his sports management company; these ventures must operate independently. Last year, the NFL eased its ownership rules to permit private equity to hold up to 10% of a team, and by letting go of WME’s football clientele, Silver Lake has complied with these regulations, allowing Durban to keep his stake without breaking league rules.

However, the union representing football players, the NFL Players Association, has its unique standards regarding conflicts of interest and hasn’t yet commented on the division of WME Football. The situation might be problematic for the union because Whitesell still holds a significant amount of Endeavor stock, according to someone familiar with the NFLPA’s agency rules. When asked about potential future issues with the NFL or the players association, Whitesell stated, “I don’t foresee us doing anything that will violate NFL regulations.” The spokesperson for the NFLPA declined to comment further, stating only that they were aware of the new arrangement and were looking into it.

In terms of my investment strategy, I’m interested in making minority investments across various industries, but I’m not ruling out the possibility of investing in a management company. However, it’s not something I’m actively seeking at this time. You might have noticed that some people are consolidating management companies now, but that’s not my aim. As for Endeavor, I own a stake in it, and there’s one restriction I follow: if I decide to invest in a production company, I can’t go beyond the 20% ownership cap set by the state for agencies. But aside from that, there are no other limitations to my investments.

As a gamer, I stepped into the game of corporate takeovers around 2011, following Emanuel’s lead with Endeavor. We embarked on a quest to acquire iconic entertainment entities, from the Professional Bull Riders to the Frieze Art Fair. Whitesell was my trusted companion throughout this journey, witnessing both our triumphs and missteps. He noted that these experiences served as a test of leadership and culture.

For instance, when we took over the global sports and media company IMG in 2013, we faced a leadership void following the recent demise of its chairman and CEO, Ted Forstmann. “We entered a situation where there was much to do at the top,” Whitesell said. “It required placing the right people in the right positions, sometimes shifting existing team members to different roles and bringing in new blood. That was quite the challenge to pull off that acquisition successfully.”

Contrast that with our 2016 acquisition of the UFC. “We were fortunate because of the groundwork laid by the Fertitta brothers and Dana White,” he said. “We bought a flourishing company with a strong culture, which has continued to prosper. Dana and many others are still at the helm today.” Ideally, we’d want more companies that already possess such an ideal setup.

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2025-03-26 18:25