Business Model Drift in the Entourage Sector

by Johnny Debacle

The whole point of being an entourager is a display of power, wealth and ultimately, desirability for procreation. The whole point of being an entouragee is to ogle women and not have to take care of yourself. Thus it concerned us when we read this WSJ piece on the economics of entourages:

Underperforming security guards, personal assistants and coordinators can be fired for offenses like ogling women or falling out of shape. “It’s no different than working for Xerox,” Mr. Ellerbe says.

If you are no longer getting to benefit from the whole point of doing something, is that a long-term viable enterprise?

Recommendation: While there are certainly attractive elements about entourages, especially when modeling the models and female groupies, we are concerned about the burgeoning business model drift. As entourages move the experiences of their core entouragees from that of “ogling women” to that of “working at Xerox” we think there is a significant risk that the entire premise will face significant diminution. That some firms, such as Thomas Howard, are already being forced into outsourcing is another red flag. When we have done sufficient modeling of the models with the help of our own entourage, the Doo-Dilly Gents, we will issue appropriate guidance.

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POSTED: 04/11/08 2:03 PM
Comment (9)


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Comments

  1. gnartard
    April 11th, 2008 | 3:09 pm

    The best line is this:

    “Carmelo Anthony, the 23-year-old small forward for the Denver Nuggets, has a flowchart and presides over biannual meetings of the 10 members of ‘Team Melo.'”

    Wow! One flowchart and two meetings a year? Watch out Xerox, this is serious business!

  2. Sir Charge
    April 11th, 2008 | 3:12 pm

    Team Melo has proposed a hostile takeover of the Team Dime (Mike Bibby) entourage at a premium of two escalades and a pot dealer.

  3. bradpark
    April 11th, 2008 | 3:41 pm

    Have you really done your research on this? Have you taken a field trip up to Xerox factory lately? Working at xerox could be like a weekend at Hedonism for all you know.

  4. Arbitrageur
    April 11th, 2008 | 4:26 pm

    bradpark,

    Have you really done your research on this? ? Have you taken a field trip down to Hedonism? A weekend at Hedonism could be like working at Bear Stearns, but with less S&M, for all you know.

  5. bradpark
    April 11th, 2008 | 4:44 pm

    I take your point although your choice of examples is unfortunate, since I worked at Bear as an analyst and also I went to Hedonism for a three day bachelor party weekend last year. Hedonism definitely > Bear Stearns. But, you are right I definitely got my ass whooped on more at Bear than in Jamaica.

  6. Death Dealer
    April 11th, 2008 | 7:03 pm

    Bear Stearns < Purple Martini < Hedonism

    But,

    Denver < New York < Jamaica

  7. Death Dealer
    April 11th, 2008 | 10:09 pm

    I suggest going long Carmello Anthony a year out but going short his entourage on a January contract. Denver entourages tend to get shot at in Dec/Jan.

  8. Inquisitor
    April 11th, 2008 | 10:32 pm

    And I thought this was going to be about Ari Gold… what a disappointment. Good post anyway though.

  9. JCauto
    April 14th, 2008 | 11:00 am

    Doo-Dilly Gents. I just got that. Nice!