Freakonomics – 544. Ari Emanuel Is Never Indifferent

Intro

In this episode of the Freakonomics podcast, host Stephen J. Dubner interviews Ari Emanuel, the CEO of Endeavor, a global sports and entertainment firm. Emanuel shares insights into his upbringing, career, and the challenges he has faced in the industry. He also discusses the impact of COVID-19 on Endeavor and the future of the entertainment and sports industries.

Main Takeaways

A Family of Change and Activism

• Ari Emanuel’s parents were not a boring family, and there was always change in their lives.
• His mother was a civil rights activist, and his father was a pediatrician who sued the city of Chicago for allowing the use of lead paint.
• Ari Emanuel’s parents taught their children to not be indifferent in anything they do, which is something that has stuck with Ari throughout his life.

The Emanuel Brothers

• Ari Emanuel’s brothers are Zeke, the oncologist and medical ethicist who helped write the Affordable Care Act, and Ram, the politician and former chief of staff to President Obama, who is now the US ambassador to Japan.
• Ari Emanuel’s family was extremely competitive, and his father once asked him why he wasn’t like his brothers, which made Ari angry but he has since gotten over it.

From Mail Room to CEO

• Ari Emanuel started in the mail room of CAA, but is now the most famous agent in the world and CEO of Endeavor, a global sports and entertainment firm.
• He is considered one of the best negotiators in Hollywood and one of the fiercest advocates if he’s on your side.
• He helped package the hit HBO series Entourage and inspired its most entertaining character, an agent named Ari Gold.

Endeavor’s Acquisitions and Partnerships

• Emanuel is a deal-making machine and has acquired several companies, including IMG, the Miss Universe franchise, and a sports betting tech firm called OpenBet.
• Endeavor has made several acquisitions and partnerships over the years, including the Professional Bullwriters League, the Freeze Art Fair, UFC, WWE, and more.
• Immanuel plans to turn the fighting empire into a new publicly traded company called TKO, which will be majority owned and controlled by Endeavor.

The Impact of COVID-19 and the Future of Endeavor

• Endeavor was hit hard by the COVID-19 shutdown due to their reliance on live sports and entertainment, but the UFC was one of the first events to come back with Fight Island in the UAE.
• Endeavor faced challenges due to COVID-19 shutdown and reliance on live sports and entertainment.
• Endeavor tried to buy Formula One, but the timing was not right.

Summary

A Family of Change and Activism

Ari Emanuel’s upbringing in a family that valued activism and change shaped his approach to life and work. His parents’ teachings to not be indifferent have been a guiding principle for him throughout his career.

The Emanuel Brothers

Ari Emanuel’s brothers, Zeke and Ram, have also achieved success in their respective fields. The family’s competitiveness has driven Ari to excel, even though he initially felt pressure to measure up to his brothers’ accomplishments.

From Mail Room to CEO

Ari Emanuel’s journey from starting in the mail room of CAA to becoming the CEO of Endeavor is a testament to his negotiation skills and determination. He has played a significant role in packaging successful TV series and has become a renowned figure in Hollywood.

Endeavor’s Acquisitions and Partnerships

Endeavor, under Ari Emanuel’s leadership, has made strategic acquisitions and partnerships to expand its reach in the sports and entertainment industries. The plan to turn the UFC into a publicly traded company demonstrates Endeavor’s ambition and vision.

The Impact of COVID-19 and the Future of Endeavor

Like many companies in the sports and entertainment industries, Endeavor faced significant challenges due to the COVID-19 pandemic. However, the UFC’s successful return with Fight Island showcased Endeavor’s ability to adapt and innovate. The company’s future plans, including the exploration of virtual experiences, indicate its commitment to staying relevant in a changing landscape.

Conclusion

Ari Emanuel’s journey from a mail room employee to the CEO of Endeavor is a testament to his negotiation skills, determination, and ability to adapt to changing circumstances. Despite the challenges posed by COVID-19, Endeavor continues to thrive and innovate in the sports and entertainment industries, positioning itself for future success.