Passionate people series: Part 1 – 256 Management

Featured image is on Ivan Mufumba and talented 17 year old swimmer Refiloe Mashao.

In this series of blogs, I write about people I have met who in my opinion are passionate about something and follow it through with action and conviction. I interviewed each of these people with the aim of understanding what makes them tick. Also critical to me was to choose people whose passions are interesting or unique. It is very fashionable for writers to feature big names who have achieved major fame or success, but my approach was a bit different. I wanted to feature people who are on their life’s journeys, who most people would not know or have met. People I think will be household names one day. My first interview was with Ivan Mufumba of 256 Management.

I met Ivan in February 2000. We had both chosen to study at Rhodes University and coincidentally were studying the same thing. Our residence rooms in Winchester House were also next to each other. This meant that I had to live through Ivan’s love for the boy band LFO and also that we soon became good friends. Ivan was a unique student in that he arrived at university aged 16. Originally from Uganda he was built like the proverbial and unless he told you, it is not likely that you would have been able to guess his age. Starting his first undergraduate degree at age 16 was quite an achievement. The other thing immediately noticeable about Ivan was his absolute obsession with sport. He played rugby for his school in Port Sheptone but generally had a deep interest in just about every sport. So strong was his affinity to sports that if any social sporting event were organised within the residence there was a very high chance that Ivan would be selected to captain it. We actually gave him the nickname “Captain” and it has managed to stick since. In our second year of varsity he led our residence to win the inter residence sports trophy for the first time. During my time at Rhodes we won it 3 years in a row. The guy loved sports!

Fast forward 17 years later and Ivan is now a partner at 256 Management, a company that provides management services to talented sports people. Having been friends with Ivan for a long time and knowing a little bit about his journey I decided to strong arm him into sharing some insights about his passion and journey from lowly Rhodes student to having international gold medal athletes as clients. Specifically, however, I was just intrigued by how he had managed to follow his passion in an authentic way and how he had managed to turn it into a viable commercial enterprise. Thankfully, he agreed to talk to me and let me post it all here on 300Paychecks. Enjoy!

1. So what exactly does 256 Management do?

Ivan and his partners manage the commercial and legal affairs of a number of sports stars. They find sponsorship for them from companies, as well as sort out arrangements related to administration and booking for events. The athletes on Ivan’s books earn an income via the sponsorship money that Ivan is able to raise. This frees them up to be able to focus on their preparation on the field. They dont even have to worry about all their bookings and travel for their athletic meetings. What I love the most about 256 Management is that they are supporting sportsmen and sportswomen who are not necessarily mainstream. So for example, they have Paralypians , EFC fighters and a young black swimmer on their books. They have managed to secure events and sponsorship for all their clients. Many of whom would not have any sustainable income without it. For all these services 256 Management charge a fee. Most of the proceeds of any income go straight to the sports person involved, however, a big incentive is for prize money at big events where 256 Management will also get a small portion of the prize money for events that they have managed to enter their clients into.

2. Where did this idea come from?

There are many established sports agents around the world that manage big stars and secure deals for the likes of Ronaldo and Messi so this is not a new industry at all. In South Africa the most prominent is Pro Sports International.For Ivan the tipping point was that in 2015 he noticed via the media that very well known footbal player was really struggling to work out a contract with his club. Ivan found it bizarre that a famous footballer could be treated so badly by his agent. He pitched this idea to his partners and they assisted with funding to get the business off the ground. One of his partners is a lawyer and former athlete and the other has a doctorate in sports nutrition so they all had some link to the sporting world. Their first client was Mpumelelo Mhlongo a Paralympian sprinter and long jumper in the T44 category. Ivan admires Mpulelelo’s talent as someone who has competed on the global stage at the World Para Athletics Championship. However, it is telling that Ivan respects him so much more as a human being with “great values” who views their relationship more as a partnership. Mpumelelo is only 25 but obviously has a very bright future ahead of him. Ivan mentions how he feels like they are building the business together. Currently 256 Management has 13 clients on its books across a spectrum of sporting fields.

3. What does success look like? What is the end game?

Ultimately Ivan wants 256 Management to be a global company. There are a lot of opportunities in the market to do this. However, Ivan is determined to perfect the business model before expanding rapidly. He mentions how critical it is to have the right balance sheet and have sufficient capital to be able to take advantages of opportunities as they come. Ivan says the key is finding the right talent and in his own words, there is a big difference between the top 25% of athletes and the bottom 75%.

There is a big difference between the top 25% of athletes and the remaining 75%

Ivan Mufumba – 256 Management

4. What exactly is the industry like?

As an industry built on relationships, Ivan mentions that being a sports agent is cut throat. Basically, everyone knows each other. In terms of economic model the majority of the income is derived from sponsorships. Sponsorships are heavily dependent on relationships as well as the state of companies in the economy. An additional challenge is also how it is difficult to attract and retain the correct workforce talent. This surprised me considering that it is a very appealing proposition for anyone like Ivan who really enjoys their sports. However, Ivan has waited months to fill vacancies in his organisation as he cannot find young people with the perfect mix of ambition, values and drive for his business.

5. What has been the biggest positive surprise?

Ivan is very proud of the fact that his business has managed to turn a profit within 2 years of being founded. The prevailing stats locally and internaionally indicate that it takes at least 3 years for a business to turn profitable. It took Steve jobs over 2 decades  to become a billionnaire as as example. SAICA mentions that South African startups fail at a rate of about 9 in 10 within their first 2 years so what Ivan has achieved is significant. Ivan attributes this success to adding genuine value to his athlete’s lives. He also humbly always mentions his partners being a big contributor to his success. They have robust discussions around the direction the business should take, but ultimately every engagement makes the business stronger not weaker. In his own words again “The more insights you have, the better the decisions that you make”.

Once the athletes realised we could deliver, it changed a lot”

Ivan Mufumba – 256 Management

6. What has been your biggest negative surprise and your biggest learning?

The biggest negative surprises have all been people related. Ivan believes that many people in the industry are not authentic. While they may be willing to engage with him in business, their agendas are not always aligned to his. He told me a story about a  sponsor who wanted to all the future rights to use one of his athlete’s images, for what equated to a monthly amount for the athlete that was less than minimum wage. He quickly figured out that this sponsor’s agenda was to cast a net out wide to a number of athletes at minmal cost. Ultimately one of them would become a success and, therefore, he would have acquired these rights at very little cost in the future. When it comes to his biggest learning Ivan believes that it is important to know when a relationship has reached its end. His exact words were “If we are going to reach the heights we want, not every client will get us there”. Ivan’s perspective on top athletes is what informs this opinion. He says many are focussed on the now and rarely think about the long term future. Natural, considering their achievements are judged in the present and short term. He says sometimes it feels like some athletes feel like their success can entirely be attributed to them and they are quick to forget those that helped them along the way.

7. What habits have contributed to your success

Ivan encourages people wishing to become sports agents to get a job in formal corporate first. He says his background in negotiating contracts with clients during his first working years in the insurance industry has served him well. This is refreshing considering that many entrepreneurs encourage people to stay away from formal employment.

Ivan also believe on has to constantly expand their mind to remain relevant. He is in the discipline of reading at least one book per month. Even on difficult days he won’t sleep without reading 10 to 15 pages per day. Also important is to learn as much from other industries as possible. He believes that many insights are applicable across industry boundaries.

My favourite line from my chat to Ivan was when he said “If you add value the money will come”. He sees wealth as a by product of value creation, not an end in itself. I am very sure that one day we will k ow a lot more about 256 Management and Ivan Mufumba. Look out for him and remember where you read it first!

Picture above features from left Ivan’s business partner Jason and two clients Mpumi and Zane