Endeavor and Mediapro cut salaries and staff in emergency measures
Endeavor, the former Hollywood talent agency that has developed into a global entertainment, sport and content company, and Mediapro, the international media rights and production agency, have been forced into temporary layoffs and pay cuts with the coronavirus pandemic significantly hitting their businesses.
In an email to staff, Endeavor chief executive Ari Emanuel said "all parts of our company are feeling the effects" and as a result a global plan is being developed "to protect the business while limiting the impact on as many employees as possible."
Emanuel and executive chairman Patrick Whitesell announced they will forego the remainder of their 2020 salaries. Both were set to earn $4 million this year, according to the terms of their contracts, with Emanuel getting an annual bonus of up to $6 million and Whitesell $2 million.
There will be initial round of layoffs impacting 250 staff employed in jobs in which they cannot work remotely, such as groundskeeping, restaurant and hotel staff at Endeavor's IMG Academy in Bradenton, Florida (pictured).
Endeavor, which owns mix martial arts’ Ultimate Fighting Championship, Hollywood talent agency WME, international sports marketing agency IMG and Professional Bull Riders, is particularly vulnerable to the pandemic because much of its business revolves around sports tournaments, festivals and gatherings which are all on hold.
The company has debt of $4.6 billion, and last week credit ratings agency S&P predicted Endeavor revenue could drop this year by “mid-teens” percentage and the debt could reach a ratio of seven times its earnings, before interest and taxes if the situation worldwide worsens.
Meanwhile, Spain-headquartered Mediapro is to temporarily lay off 1,200 employees and implement the country’s ERTE programme, which was put in place to cover salaries for citizens unable to work during the country’s virus-enforced lockdown.
The average ERTE benefits to be claimed fall between €800 ($876) and €900 per month, and cap at €1,400 per month for families with two or more children. In a note to staff, Mediapro said it will then compensate the remaining difference up to 75 to 100 per cent, depending on the overall salary of each employee.
In addition, Mediapro managers in Spain earning more than €80,000 a year will see salaries reduced by between 15 and 25 per cent. The company’s top executives have all agreed to a 50-per-cent pay cut for the duration of the crisis.
Mediapro, which produces TV coverage for 16 soccer leagues worldwide and has offices in 36 countries, has suspended all production in Spain and abroad.Sportcal