Ari Emanuel, the corporate powerhouse who serves as CEO and executive chairman of TKO Group Holdings, has reached billionaire status for the first time of his life. Emanuel was added to the Bloomberg Billionaire index for his personal wealth, signifying his vast fortune. In addition to his role with TKO, Emanuel serves as the CEO of Endeavor Group Holdings, who launched TKO (which consists of WWE and UFC) in September 2023.
TKO has nearly doubled in value over the past 12 months, with the share price increasing by 48% over the last year. The company is now valued at over $27 billion, and recently added Professional Bull Riders to its portfolio. While Emanuel isn’t an on-screen figure for WWE, he has been referenced on programming by Dwayne ‘The Rock’ Johnson, who serves as part of TKO’s Board of Directors.
While Emanuel’s fortunes continue to soar, many in TKO have been left feeling drained. This week, it was reported that there are several backstage issues, including an increased workload that can reach up to 60 hours a week. Reducing employee perks has also led to staff members increasingly feeling undervalued. WWE has ditched its previous policy allowing employees to purchase stock with a 15% reduction in price. Complimentary WWE tickets have also been nixed, in another blow to company morale.
With WWE’s female Superstars also having concerns, morale has taken a turn in WWE on the road to WrestleMania 41. Nevertheless, the success of TKO can’t be ignored, while Ari Emanuel will be more than pleased to have reached billionaire status.
WWE has been experiencing a period of record growth and posting unprecedented profits but the benefits of this boom do not seem to be far-reaching within the organization. A new report from Wrestlenomics has chronicled multiple issues that have led to a decline in employee morale behind the scenes since the WWE-UFC merger in September 2023.
A big reason for this merger was to consolidate services under the branding of Endeavor, which resulted in significant layoffs in multiple departments at the time. Since then, the workload for the remaining employees has increased significantly with some people saying that they’re working 50 to 60 hours per week, particularly during the WrestleMania season. In addition to the responsibility in their WWE role, many have also been assigned additional UFC-related tasks.
The compensation for employees has not kept up with the increased workload, however, with multiple staff members saying that they’ve received a meagre 3% cost-of-living raise this year. Many with strong performance reviews, have been told they would not be receiving comparable raises due to budget constraints set by upper management.
The same constraints do not seem to apply to the top brass, however. In addition to bonuses received by top executives at the time of the merger, the nearly 50% increase in Endeavor Group Holdings shares since the time has helped people in administrative positions amass more wealth. The TKO Group Holdings CEO Ari Emanuel has reached billionaire status for the first time thanks to this significant increase in share values this month. This is in stark contrast to the cost-of-living raises given to employees which many argue hardly keeps pace with the rising living costs around the areas of WWE Headquarters in Connecticut and New York
In addition to the limited increase in pay, reducing employee perks has also led to staff members increasingly feeling undervalued, while the management continues to emphasize the value of its workforce in town hall meetings. Some significant perks that have been discontinued include the removal of the peer-recognition initiative called ‘WWE Superstar’, as well as the elimination of complimentary live event tickets for employees.
This decline is in addition to frustration within the talent side, specifically among the female roster members. It’s been reported recently that female talents have been frustrated with their WrestleMania build and a recent WWE departure has left many feeling insecure about their position. You can check out more about it here.
TKO, the parent company of both UFC and WWE is all set to add another sports league to its profile very soon in association with the Kingdom of Saudi Arabia.
The American media conglomerate has been in talks with The Kingdom’s Public Investment Fund to launch a new boxing league according to New York Times. Per the site, Sela, a subsidiary of the Saudi PIF will be the major investor behind this league with TKO serving as the management entity.
Current UFC head Dana White is poised to be the managing partner for this new endeavour. TKO has been offered an equity stake and a share of the revenue in return of their services and they’ll earn a management fee of close to $30 million a year.
While an official statement from TKO on the matter claimed that they had ‘nothing to announce,’ the report suggests that this new partnership could be made official ‘within weeks.’ UFC’s US TV media rights deal with ESPN is set to expire this year and the combat sports giant could try to bundle the rights for the new boxing league with UFC to get it off the ground.
The Saudi government has backed some of the biggest boxing fights of history in recent years. This includes the recent faceoff between Oleksandr Usyk and Tyson Fury which resulted in Usyk being crowned the first undisputed heavyweight champion in more than a generation.
This new league is part of the continuous efforts from the Saudi government to change the country’s image and draw attention away from human rights violations with various sports programs, generally known as sports washing.
TKO Group Holdings, Inc. (NYSE: TKO) showcased a strong financial performance and significant stock price growth throughout 2024. The year marked a successful period for the parent company of WWE and UFC, driven by strategic acquisitions, operational synergies, and investor confidence. Below, we delve into TKO’s key financial highlights and its stock price journey.
Table of Contents
Financial Highlights
TKO Group Holdings, Inc. has updated its guidance for full-year 2024 financial performance, reflecting strong results achieved during the first nine months of the year. Below are the key highlights of TKO Group’s projected full-year performance:
Revenue
TKO Group expects its full-year 2024 revenue to reach the upper end of the range of $2.670 billion to $2.745 billion. This revised target underscores the company’s confidence in its ongoing robust performance across its UFC and WWE segments.
Adjusted EBITDA
The company has also updated its Adjusted EBITDA forecast to the upper end of the range of $1.220 billion to $1.240 billion. This reflects TKO’s strong financial performance and continued operational efficiency.
Free Cash Flow Conversion
TKO Group has reaffirmed its target for Free Cash Flow Conversion exceeding 40% for 2024, emphasizing the company’s ability to effectively convert earnings into cash flow.
Segment Performance
While detailed full-year segment-specific results are not yet available, highlights from Q3 2024 provide insights into the performance of UFC and WWE:
WWE: Revenue surged to $326.3 million in Q3, reflecting significant growth.
UFC: Despite a slight revenue decline in Q3, UFC contributed a solid $354.9 million.
Strategic Initiatives
TKO Group has undertaken several strategic actions to enhance its financial outlook and market position:
Capital Return Program: Implementing measures to reward shareholders.
Asset Acquisition: Announced plans to acquire sports assets valued at $3.25 billion, expected to close in 2025.
Share Repurchase Authorization: Approved up to $2 billion in share buybacks.
Quarterly Dividends: Plans to initiate a dividend program beginning in 2025.
These financial highlights demonstrate TKO Group’s strong market position, driven by the successful integration of UFC and WWE. The company’s updated guidance reflects its ability to deliver solid financial performance while executing strategic initiatives to fuel future growth.
Stock Price Performance
TKO’s stock price reflected the company’s robust performance, beginning the year at $75.35 and closing near $145.64, marking a 93% increase over the year.
Q1 2024
Stock rallied as investors anticipated strong results, starting the year at its lowest point of $75.35.
Q2 2024
• The stock price rose significantly, bolstered by TKO’s strategic acquisitions of PBR, OnLocation, and IMG for $3.25 billion. This expanded TKO’s portfolio and strengthened its market position.
Q3 2024
Following Q3 results in November, the stock saw some volatility. Despite exceeding revenue expectations, the EPS fell short of forecasts.
Q4 2024
A strong year-end rally pushed the stock to $145.64, buoyed by positive analyst ratings and increased price targets from institutions like Citi and Goldman Sachs.
Factors Influencing Stock Performance
Key contributors to TKO’s stock performance in 2024 included:
Strategic acquisitions and portfolio expansion.
Strong quarterly financial results, particularly in revenue and EBITDA growth.
Positive analyst ratings and revised price targets.
Broader market conditions and a favorable investor outlook in the entertainment sector.
Future Outlook
As TKO heads into 2025, the company is poised for continued growth. Analysts project an average annual revenue increase of 8.8% over the next three years, driven by TKO’s market-leading position in sports entertainment and its robust operational strategy. The upcoming Q4 2024 earnings report in February 2025 will provide further insights into the company’s trajectory.
WWE and PowerSlap Mobile will team up next week, with a new mobile game slamming the two together being available next Friday. During the latest episode of SmackDown, it was confirmed that the mobile game is coming and will be available on by Apple’s App Store as will as Google Play. Reigning Power Slap Champion Wolverine and WWE Hall of Famer Rey Mysterio have been confirmed for the game already.
PowerSlap is an American slap-fighting promotion owned by Dana White, the CEO of UFC. Opponents take turns slapping one another in the face and have 60 seconds to recover from a slap and get back into position. Fights can end either via knockout or go to a judge’s decision after three rounds.
PowerSlap has faced criticism due to the severe health risks that competitors put themselves under, CTE researcher and former WWE Superstar Chris Nowinski (whose in-ring career ended due to concussions) observed during a contest one competitor showing signs of serious brain damage after repeated slaps. There have been calls from medical experts and politicians alike to have the show banned.
Merging the worlds of WWE and PoweSlap blends two entities linked to Endeavor, as White is part of TKO Group Holdings due to his role with UFC. Endeavor launched TKO, which merges WWE and UFC in September 2023, and recently brought three other acquisitions into the fold. Stay tuned to SEScoops for the latest on WWE & PowerSlap Mobile as fans eagerly await this new mobile game.
WWE’s stock has demonstrated remarkable growth, mirroring the company’s dynamic in-ring performances. Trading under TKO Group Holdings since its merger with UFC, WWE’s stock reached an all-time high of $139.15 per share this week, marking a 77.23% increase over the past year.
This surge underscores WWE’s robust momentum in both its entertainment offerings and corporate strategies. Over the past month, TKO stock delivered a 19.11% price return and a 27.71% return over six months.
Analyst Perspectives
The stock’s ascent has garnered positive attention from financial analysts. Firms such as Citi, Guggenheim, and Goldman Sachs have issued ‘Buy’ ratings for TKO, reflecting confidence in the company’s long-term financial prospects.
Conversely, Benchmark Capital downgraded TKO shares from ‘Buy’ to ‘Hold,’ citing concerns over potential dilution of growth due to recent acquisitions and corporate activities.
Strategic Developments
This financial milestone coincides with WWE’s strategic expansion into streaming platforms. Starting January 2025, WWE’s flagship program, Monday Night Raw, will transition to Netflix as part of a 10-year deal valued at over $5 billion.
On the legal front, TKO agreed to a $375 million settlement in an antitrust lawsuit filed by UFC fighters. The lawsuit alleged that the UFC restricted fighters’ pay and leveraged its dominant market position to disadvantage other promotions.
Dwayne ‘The Rock’ Johnson has shared his appreciation for being part of WWE once again, amid his commitments to TKO’s Board of Directors. Sitting down with LAD Bible to promote his new movie Red One, Johnson delighted in being able to bring his star power to WWE events.
“Any opportunity I can to go back and not only make appearances, but help to expand the company, whether domestically or globally, I always go back. It’s also part of my obligation that I happily do.”
Johnson is closing in on 30 years as part of WWE after making his in-ring TV debut as Rocky Maivia at Survivor Series 1996. While the company hs changed considerably since then, Johnson remains grateful for all that wrestling has given him.
“I came along in the 90s and wrestled for Vince into the 2000s, so there’s some real connective tissue that goes back generations, and for that I will forever be grateful. It provided me a platform and a way to express myself in ways that nothing else would allow, other than acting.”
Johnson joined TKO’s Board of Directors in January of this year, which the ‘Final Boss’ called “just another way that I could help the company grow.” Whether it’s representing WWE on TKO’s Board or stunning fans with a surprise appearance at WWE Bad Blood, Johnson remains steadfast in his duties to the company.
Stay tuned to SEScoops for the latest on Johnson who continues to electrify, whether it be on the big screen, in the ring, or in the boardroom.
WWE is no longer pursuing the possibility of betting on pre-determined matches, as confirmed by TKO COO Mark Shapiro. Joining CNBC’s Alex Sherman this week to discuss a variety of topics, Shapiro clarified that fans won’t be betting on matches from the Sports Entertainment juggernaut.
“It’s not happening. We’re not doing that. We’re scripted. Years ago, I ran Dick Clark Productions. We had enough of a challenge keeping the American Music Awards and the Golden Globe Award winners under wraps with an auditor that was there.
“We’re not going to be asking Triple H/Paul Levesque, who runs our creative, to keep his scripts so under wraps that we can start sports betting. It just doesn’t jive.”
It was reported back in May that WWE was interested in taking bets on matches, which already happens from third parties like BetOnline. Immediately, there was criticism of the idea, with questions raised about whether it was legal to bet on a result that has been already decided.
Many also questioned how WWE would keep creative plans under wrap to avoid leaks, with concerns that talent wouldn’t know results until too late to make adequate preparations. The Montreal Screwjob was brought up as proof the idea wouldn’t work, given the risk of results changing on the fly in the ring.
WWE allows some wagers on aspects of matches via FanDuel, but for now, betting on results is off the table within the promotion. Instead, fans will have to remain hooked on match results due to the storytelling involved, rather than any financial incentive.
TKO Group Holdings, the parent company of WWE and UFC, is making waves in the sports entertainment industry with a series of high-profile acquisitions. In a strategic move to expand its portfolio and strengthen its position in the premium sports market, TKO has announced a $3.25 billion all-stock deal to acquire Professional Bull Riders (PBR), On Location, and IMG from Endeavor Group.
The Acquisition Details
The deal, valued at $3.25 billion, will see TKO Group acquire three major assets from Endeavor Group:
Professional Bull Riders (PBR)
On Location
IMG
This acquisition is part of Endeavor’s efforts to streamline its assets as it prepares for a potential privatization led by private equity firm Silver Lake.
Professional Bull Riders (PBR)
PBR is a premier bull riding league that boasts an impressive reach:
Over 200 annual live events
Approximately 1.25 million fans
Reaches more than 285 million households
Present in over 65 territories
On Location
On Location is a leading live event company specializing in premium experiences for major sporting events, including:
Super Bowl
Ryder Cup
NCAA Final Four
Over 1,200 sporting events annually
IMG
IMG is a powerhouse in the sports content industry:
Distributes and produces sports content
Manages media rights and brand partnerships
Provides consulting, digital services, and event management
This acquisition significantly enhances TKO’s position in the sports entertainment market. Mark Shapiro, TKO’s Chief Operating Officer, stated, “PBR, On Location, and IMG are industry-leading assets that meaningfully enhance TKO’s portfolio and strengthen our position in premium sports globally.”
Expanded Revenue Streams
The acquisition is expected to boost TKO’s revenue streams through:
Media rights
Live events
Ticket sales
Premium experiences
Brand partnerships
Site fees
Deal Structure and Ownership Changes
As part of the transaction:
Endeavor will receive approximately 26.14 million common units of TKO Operating Co.
Endeavor will subscribe for an equal number of TKO’s Class B shares
Post-deal, Endeavor is expected to own about 59% of TKO
Existing TKO shareholders will retain 41% ownership1
Market Response and Analyst Insights
The market’s initial response to the announcement was mixed:
TKO Group Holdings Inc. shares slumped more than 8% in midday trading on the day of the announcement
However, analysts see potential long-term benefits
Randal Konik of Jefferies noted, “By expanding its presence in the premium sports market, TKO is poised to unlock new revenue streams through media rights, live events, ticket sales, premium experiences, brand partnerships, and site fees.”
Expanded Resources and Synergies
WWE may benefit from increased resources and potential synergies within the expanded TKO portfolio:
Enhanced Media Rights Deals: IMG’s expertise in sports content distribution and media rights negotiations could help WWE secure more lucrative broadcast and streaming deals in the future.
Improved Live Event Experiences: On Location’s premium experience offerings could be leveraged to create higher-end VIP packages for major WWE events like WrestleMania, potentially increasing revenue per attendee.
Potential Shifts in Focus
The acquisition may lead to some changes in TKO’s priorities:
Diluted Attention: With a more diverse portfolio, there’s a risk that TKO’s focus on WWE could be diluted as management attention is spread across multiple properties1.
Strategic Realignment: WWE may need to adapt its strategies to align with TKO’s broader goals across its expanded sports and entertainment portfolio.
Financial Implications
The deal could affect WWE’s financial position within TKO:
Investment Allocation: Resources for WWE initiatives might be impacted as TKO balances investments across its expanded portfolio.
Revenue Growth Opportunities: WWE could benefit from cross-promotion and new revenue streams through partnerships with other TKO properties.
Fan Experience and Costs
The acquisition may influence how fans interact with WWE:
Integrated Experiences: Fans might see more crossover events or promotions involving WWE and other TKO properties.
Potential Cost Increases: There’s a possibility of higher costs for WWE content or events as TKO looks to maximize returns across its portfolio.
It’s been 13 months since WWE and UFC came together under TKO Group Holdings, which aims to bring the very best events in the world of combat sports. Now, TKO has expanded its portfolio with the acquisition of Professional Bull Riders, On Location, and IMG from Endeavor.
In a statement, Ari Emanuel, CEO of TKO and Endeavor said:
“Today’s announcements reflect the continued strength of our underlying business and our commitment to deploying capital through a balanced capital allocation strategy, including through our share repurchase program and quarterly cash dividend program. This underscores our continued focus on delivering sustainable long-term value for our shareholders.”
Professional Bull Riders
Professional Bull Riders is a bull riding league that holds over 200 events annually. The company was launched in 1992 and has hosted events in the U.S. Canada, Brazil, and Australia. Over 800 bull riders from said countries, as well as others hold PBR memberships.
On Location
On Location is a hospitality company that has worked with WWE in recent years to provide luxury packages for premium live events. In addition to WWE, On Location provides packages for the NFL Super Bowl, the NCAA Final Four, the Rose Bowl, and several music events.
IMG
IMG packages and sells media rights and brand partnerships and like On Location, has worked with WWE over the years. IMG has also partnered with the NFL, the English Premier League, and the NHL.
TKO has already seen its influence play out on WWE and UFC, with stars from each side appearing on the other’s programming. Time will tell if we start seeing bull riders on Monday Night Raw, but TKO Group Holdings is proving to be a force to be reckoned with in the live entertainment market.
Randy Orton is pleased to be a part of WWE’s new era under TKO and is glad that those brought into TKO ‘get’ the goals of the Sports Entertainment juggernaut.
A 22-year veteran of WWE’s main roster, Orton has seen plenty of changes over his tenure but perhaps the biggest have come over the past 12 months. In September of 2023, TKO Group Holdings officially launched with the merging of WWE and UFC. Mere months later, Vince McMahon resigned from WWE for the second time and seemingly for good, due to the allegations against him in Janel Grant’s lawsuit.
Speaking with Sportskeeda, Orton reflected on the changes we’ve seen. The Viper was pleased that those brought in to TKO have been able to understand their assignment.
“All the opportunities he [Vince McMahon] gave me, it’s nice having him out of there and it’s nice having his son-in-law Triple H running the game. Nick Khan’s great. Everybody in TKO that’s come in, stepped in, they seem to get it, and it’s just a different era.”
It’s hard to dispute the idea that TKO has shifted WWE in a positive direction. While WWE had already been doing extremely well from a business sense, the launch of TKO has taken the promotion to new heights. Premium Live Events breaking records have become increasingly common, including WrestleMania 40, the first Showcase of the Immortals of the TKO era.
These changes have also been felt within WWE from a creative sense as Superstars are given more leeway than under the McMahon administration. Production changes, thanks to Kevin Dunn’s Replacement Lee Fitting, have also been praised by fans. With this in mine, WWE’s new era certainly appears to be a bright one, one that Randy Orton is pleased to be a part of.
WWE has let go of more of its staff following the recent TKO Group Holding announcement. It was revealed this morning that TKO has decided to merge WWE and UFC live event teams to create more corporate synergy. WWE and UFC have begun collaborating more and are looking to host events in the same city.
While TKO is focused on combining the strengths of both companies, it has led to WWE firing longtime staff members. A few hours after TKO’s announcement, Fightful Select reported that WWE had fired several employees. At this time, talent is not involved in these cuts.
The report shared that one of the employees let go from WWE was Senior Vice President Of Entertainment Relations Kristen Prouty. She worked for the company for over two decades, and Fightful noted that she played an essential role in getting WWE United States Champion Logan Paul signed.
WWE or TKO has yet to release a statement on the recent firings. While it’s possible the cuts could be unrelated to the TKO announcement today, the timing is very interesting.
More On WWE Shakeups After Merging With UFC
After WWE and UFC merged last year, wrestling fans have been curious about how it would affect WWE moving forward. Fans have seen both WWE and, notably, UFC star Michael Chandler appear on opposite programming during live shows.
TKO is slowly trying to utilize WWE and UFC to generate profitable live event results.
A recent example is WWE NXT’s next premium live event, Battleground, taking place at the UFC Apex Facility in Las Vegas, Nevada, on June 9. Tickets have gone on pre-sale on AXS, and the venue looks to add a different experience that could make it appealing to WWE fans.
Another example of WWE and UFC showing their strength is the UFC advertising bundle packages for an upcoming UFC Fight Night event and a Friday Night Smackdown show at the KFC Yum! Center Arena in Louisville, Kentucky, next month.
TKO will likely try to find more ways to unify the assets of WWE and UFC. However, the hope is that more longtime WWE employees aren’t fired due to these changes.
TKO, the parent company of WWE and UFC has taken another step towards synchronicity with the merging of the Live Event teams of both companies.
WWE and UFC will have their live events overseen by one unit, described in a statement as “one of the strongest live events portfolios in all of sports and entertainment.” Andrew Schleimer, Chief Financial Officer of TKO, shared what this merger hopes to achieve.
“The newly integrated TKO Live Events Strategy Team will focus on creating operational efficiencies and developing strategies to leverage the broader economic benefits we bring to host cities, including partnering with local governments and maximizing revenue opportunities from site fees.”
The merger is just the latest sign of WWE and UFC being connected now that both are under the TKO umbrella. WWE Superstars can often be found at UFC events with CM Punk, Montez Ford, Bianca Belair, Rey Mysterio, and Randy Orton all being spotted since the merger in September 2023. Similarly, UFC fighter Michael Chandler appeared on the February 19 edition of WWE Monday Night Raw and used his time on the show to call out Conor McGregor.
WWE has been doing incredible business since merging with UFC to form TKO Group Holding. After the official formation on September 12, 2023, WWE has achieved groundbreaking deals, including their $5 billion deal with Netflix. While their flagship show, Monday Night Raw, will stream exclusively on the streaming service in January 2025, it seems Netflix may have more plans for WWE.
TKO Chief Operating Officer and President Mark Shapiro recently spoke about the future of WWE at the annual J.P Morgan Global Technology, Media, and Communications Conference. In his speech, he touched on WWE’s deal with Netflix, and there are discussions of doing documentaries on WWE superstars. He also noted that the popular streaming service may do a behind-the-scenes series with WWE, like Netflix’s Formula 1: Drive to Survive.
Postwrestling’s Andrew Thompson transcribed the following quotes from Shapiro.
“…I think the very first genre you’ll see out of WWE in terms of ancillary programming will be a Drive to Survive show. That’s contemplated for the first season, and we’ll also do some documentaries, probably on a few of our superstars, said Shapiro. He continued, “Our current deal is up at the end of the year for WWE, but I would expect to see a Drive to Survive-type show next year to go along with the first of our live telecasts.”
WWE legend The Undertaker recently floated an idea about WWE legends having roasts on Netflix after the success of NFL great Tom Brady’s live show. Shapiro shared that the streaming service does seem to have more roasting events planned for the future. However, it’s unclear if Netflix wants to do a WWE-style roast when Monday Night Raw joins the service in 2025.
TKO President On WWE’s Next Deal With Saudi Arabia
Along with a promising update on the WWE’s deal with Netflix, Shapiro also commented on the company’s agreement with Saudi Arabia. WWE will host their upcoming King and Queen Of The Ring premium live event on May 25 at the Jeddah Super Dome in Jeddah, Saudi Arabia. The TKO president shared that an expansion of the WWE deal with the country in the next 6 to 12 months.
“You’ve seen us monetize site fees with the likes of Saudi Arabia for WWE. You can look for us to expand our current deal in the next 6-12 months. Very happy with M.B.S. (Mohammed bin Salman) and the partnership we have there. We have two events a year, but we’re already in discussions,” said Shapiro.
The TKO President also mentioned that WWE President Nick Khan is leading the conversation with Saudi Arabia to host more events in the country. The current deal is expected to end in 2028. It’s unclear how long the company wants to extend its contract with Saudi Arabia, but TKO isn’t slowing down and is continuing to seek lucrative deals for WWE.
The blockbuster move will see Raw leave traditional broadcast television in favor of streaming in perhaps the biggest change to WWE content since the launch of the WWE Network in 2014. Speaking at the JPMorgan Global Technology, Media and Communications Conference Monday, TKO COO Mark Shapiro revealed that WWE has already tested a major PLE on the streaming giant.
“We did a test in April in New Zealand, for WrestleMania. We aired WrestleMania on Netflix in New Zealand. No promotion, no marketing whatsoever. No press release. Nobody knew it was happening because we were all nervous that it wouldn’t necessarily work so well. [It was] kind of the guinea pig trial.
“Well it went off without a hitch, that’s the good news. But secondly, the gravy on top of that was we were the highest-rated program that night on all of streaming and linear. So a great story for us.”
Mark Shapiro, President & COO, Endeavor Group Holdings Inc, talks airing this year's Wrestlemania on Netflix in New Zealand.https://t.co/NXPWX6Xhqb
Fans outside the United States will have an even sweeter deal when the Netflix deal comes into effect this coming January. In addition to receiving Raw, they will also receive SmackDown, WWE NXT, and Premium Live Events as part of the ten-year deal.
WWE’s Netflix deal marks a serious step for the company that has previously dominated the airwaves in more traditional formats of broadcasting. It’s not just the Netflix deal that reflects a change from the norm. WWE recently began hosting its new WWE Speed show exclusively on Twitter. A filing for WWE Vault, perhaps another new show, has recently been filed.
WWE Premium Live Events will eventually return to being hosted on Sunday under TKO Group Holdings, according to UFC President Dana White.
White appeared at the post-show press conference following the UFC Fight Night event in St. Louis. When asked about plans for UFC and his Power Slap promotions to host events over the same weekend, White shared news about the change for WWE’s Premium Live Events.
“We already have those dates set up right now, where Power Slap goes [on] Friday and UFC goes [on] Saturday. And then you’re going to see Friday Power Slap, Saturday UFC, and Sunday WWE. You’ll start seeing that stuff too.”
Dana White: You're gonna see Friday Power Slap, Saturday UFC and Sunday WWE. You'll start seeing that stuff too.#UFCStLouispic.twitter.com/rfc2aJ6OpJ
For decades, WWE hosted PLEs on Sundays. The change came thanks to WWE President Nick Khan who felt that “big sports events were better on Saturday nights.” Speaking on the Recode Media podcast with Peter Kafka, Khan discussed the success of the move.
“We think the ticket sales are reflective of that [success.] We have a big big audience coming out on Saturday and a big gate to go along with it.”
More Changes to WWE PLEs
It’s unclear when WWE will make the move back to Sunday nights, but this isn’t the only change from the normal plans for PLEs. In recent years, the promotion has embraced hosting events outside North America. In addition to the bi-annual Saudi Arabia shows, WWE has hosted events like Clash At The Castle in Cardiff, Wales, Money in the Bank in London, England, and Backlash France. in Lyon. WWE’s next European event will be WWE Clash At The Castle: Scotland in Glasgow this coming June, with WWE Bash In Berlin set for August.
The first quarter earnings of 2024 for TKO Group Holdings with WWE emerging as the higher-earning brand within the new company.
In the 2024 Q1 earnings report, it was revealed that TKO made $629.7 in the quarter, but also suffered a net loss of $249.5 million. Much of this net loss comes from TKO settling an antitrust lawsuit against UFC. The plaintiffs alleged that UFC was an illegal monopsony that suppressed fighter wages and stifled rival promotions. The lawsuit represented more than 1,200 individuals and was settled for the sum of $335 million.
UFC’s revenue for the 2024 Q1 saw the MMA juggernaut earn $313 million, slightly behind WWE’s revenue of $316.7 million. During the time frame, UFC hosted its UFC 300 event, which drew a gate of $16.5 million to Las Vegas’ T-Mobile Arena.
Not to be outdone, WWE hosted WrestleMania 40, which proved to be the company’s highest evening event in history. The company also locked down a lucrative ten-year deal with Netflix to bring Raw to the streaming platform.
Future Plans
With these reports in, TKO has increased its target for revenue for 2024 from $2.61 billion to $2.685 billion. In a statement, TKO CEO Ari Emanuel was optimistic about what’s to come.
“These positive developments, along with the strength in our underlying businesses, give us more conviction than ever in the combination of UFC and WWE, and in TKO’s ability to deliver sustainable long-term value for shareholders.”
Clearly, WWE’s merger with UFC in September 2023 has proven to be a lucrative venture for both companies. With WWE embarking on a new era (one that has distanced itself from Vince McMahon,) it remains to be seen how the company’s future will be shaped as part of TKO.
WWE could soon be hosting the Royal Rumble or even WrestleMania in Saudi Arabia, if the nation’s big plans for TKO Group Holdings come to fruition.
Since 2018, the company has hosted major shows from Saudi Arabia as part of the nation’s ‘Saudi 30’ vision to bring mainstream Western entertainment to the kingdom WWE is paid handsomely for these events In November 2022, a report revealed that the eight events in Saudi Arabia at the time had earned WWE more than the first 38 WrestleManias.
Turki Alalshikh, Saudi Arabia’s General Entertainment Authority Chairman, tells ESPN that an ‘enhancement’ of the current deal between WWE and Saudi Arabia will be revealed later this month. He stated their desire to host WrestleMania or the Royal Rumble in Saudi Arabia, but did not specify if hosting either would be part of the forthcoming announcement.
They also want to host major UFC pay-per-views. “We will do big things with the UFC and TKO,” Alalshikh said.
UFC 306 will take place this September in Las Vegas but will feature plenty of promotional material for the annual Riyadh Season of entertainment. Alalshikh explained that Saudi Arabia has plans for WWE and UFC, both of whom fall under TKO Group Holdings.
WrestleMania in Saudi Arabia?
Talk of WrestleMania in Saudi Arabia comes at an interesting time in the event’s history. Both John Cena and Cody Rhodes have advocated for the first non-North American WrestleMania to happen in the UK, an idea that has been supported by recently-reelected London Mayor Sadiq Khan. With that said, WWE President Nick Khan has stated that the ‘Big 4’ events will remain in North America for the time being.
Will Saudi Arabia’s work with TKO bring WrestleMania to the nation?
There’s also the question of how a Saudi Arabian WrestleMania will be received by fans. Initial events as part of this deal faced serious backlash as women were banned from competing. That has since changed though women wear outfits that cover their entire bodies in accordance with the nation’s standards. Ultimately, the money Saudi Arabia is willing to pay could bring WrestleMania to the nation, but this will be a decision that should not be made without careful consideration.
Aljamain Sterling could have a future in the world of WWE after the fighter pulled off an impressive piledriver at the milestone UFC 300 event.
At the April 13, 2024 event in Paradise, Nevada, Sterling faced off on the preliminary card against Calvin Kattar. As seen in the clip below, Sterling hit a move resembling a piledriver during their fight.
The pair went to three five-minute rounds. Sterling won the fight via unanimous decision. He is currently #2 in the UFC bantamweight rankings.
WWE & UFC Crossover
Ahead of the show, Triple H promoted UFC 300 as did the official WWE Twitter account in the latest piece of cross-promotion between the two companies who operate under TKO.
WWE featured a big UFC 300 booth at the WWE World convention over WrestleMania weekend in Philadelphia, PA. The exhibit had a punching bag in which attendees could have their power measured.
Several WWE Superstars have competed in both the UFC and WWE. Ronda Rousey and Brock Lesnar both held gold in both promotions and both headlined pay-per-views for each company, including WrestleMania. Shayna Baszler and Matt Riddle also made their names in the Octagon before stepping into the squared circle.
WWE themes and entrances have also been used at UFC events. Israel Adesanya made headlines when he had an Undertaker-inspired entrance at UFC 276 that caught the attention of the WWE Hall of Famer himself. More recently, Adesanya was spotted training with Damage CTRL’s Dakota Kai.
Expect to see more synergy between the two companies this year as the newly formed TKO Group settles in and they explore new opportunities in the world of entertainment.
The Vince McMahon era is indeed coming to an end as the ex-WWE Chairman’s remaining shares in TKO Group Holdings have been listed for sale.
A filing published on April 12 revealed that 8,021,405 TKO shares belonging to Vince McMahon had been registered for sale. This allows for the shares to be bought and sold with less administrative friction. This move doesn’t necessarily mean that Vince will be selling all of his shares, although he might. Should every share be sold, it would mean that McMahon has no official stake in TKO Group Holdings.
This move comes mere days after McMahon sold 1.642 million shares to Endeavor while TKO purchased 1.853 million shares. These two sales earned McMahon an approximate $293 million.
McMahon unloaded 5.35 million shares in early March and sold 3.48 million more shares that same month. With his 8,021,405 shares, McMahon retains a 4.7% stake in TKO.
A New Era Dawns
McMahon’s selling of shares comes at a pivotal time for WWE as the promotion continues to distance itself from the former Chairman. Over WrestleMania week, there was a lot of talk of a ‘new era’ in WWE with Stephanie McMahon calling this the ‘Paul Levesque Era’ during WrestleMania 40: Sunday.
It’s hard not to notice this ‘new era’ both on WWE programming and behind the scenes. WWE’s changes to its on-screen production have been praised by fans who appreciate the new style of Lee Fitting who has replaced company veteran Kevin Dunn. Behind the scenes, Dan Ventrelle has left WWE as the company’s Head of Talent Relations with Triple H and Shawn Michaels overseeing both talent and talent development.
Dwayne Johnson was awarded 96,558 shares of TKO Group Holdings Class A common stock on Sunday, April 7, the day after returning to the ring at WrestleMania 40. The shares are valued at approximately $9.4 million.
According to a new financial filing, the previously restricted stock units vested upon “completion of certain services described” in his Independent Contractor Services and Merchandising Agreement dated January 22, 2024. He joined TKO’s 13-person Board of Directors the following day.
That agreement allows WWE to use The Rock’s name, image and likeness for up to ten years in exchange for approximately 400,000 shares of TKO stock currently valued at approximately $39 million.
According to Sportico, the first 25% of shares were awarded in January when the deal was completed. The next 25% will be awarded at the end of the year. Another 25% distributed monthly throughout 2025 and the remaining 25% was the completion of the ‘certain services.’
Endeavor has said that it would not consider a sale of its majority interest in TKO Group Holdings, which consists of both WWE and the UFC. TKO is not party to this transaction and will remain a publicly traded company, the companies said on Tuesday.
While TKO is not expected to be directly involved with this move, the company is seeing a benefit from the change. After news of Endeavor’s privatization was announced, stock in the WWE company rose significantly. It had been trading at $86.66 a share before the news broke and rose to $90.78 a share within 90 minutes of the announcement.
TKO Group Holdings
TKO was officially launched in September 2023. It was announced back in April 2023 that Endeavor was to acquire WWE as part of a historic $9.3 billion deal. The merger of WWE and UFC into TKO did not come without casualties as over 100 employees were let go last year in efforts to synchronize the two sports promotions. WWE would host its first wave of talent releases post-TKO launch that same month.
Speaking at the Morgan Stanley conference, TKO’s COO Mark Shapiro addressed McMahon’s departure and his recent offloading of TKO stock. Shapiro made it clear that TKO did not participate in the sale. Shapiro added that McMahon does not work for TKO, does not go to the offices and is not coming back to the company.
Plans for Branding
Over the past year, WWE has seen an increase in branding usage on camera at WWE events. During the conference, Shapiro said that “not to criticize Vince McMahon” but he believes WWE didn’t utilize enough branding opportunities in arenas. UFC, the other half of TKO, uses arguably too many, according to Shapiro, who said that WWE will continue to use sponsors on WWE ring assets.
WWE RAW & Netflix
In January 2025, Monday Night Raw will move to Netflix in a blockbuster deal that will mark the end of WWE’s flagship show on broadcast television. Shapiro said that “not in my wildest dreams” did he expect Netflix for the Raw deal, and that the conversation was originally about WWE NXT. Shapiro credits WWE President Nick Khan and TKO CFO Andrew Schleimer for negotiating the deal.
What’s to Come?
Shapiro was pleasantly surprised by the buzz that this year’s Royal Rumble and Elimination Chamber events made. Looking ahead, he said fans can expect celebrities from the William Morris-Endeavor (WME) agency at WrestleMania. Partnering with Fanatics for WWE World is going well, and can be considered a blueprint for future projects.
Vince McMahon’s story with WWE may be over after he resigned from his position. That being said, the company still made him a very rich man, with the ability to cash out his massive stockpile of assets, and he decided to cash in on some of those options today.
McMahon recently sold 5,350,000 shares of TKO, worth around $412 million. It’s unclear why he needs the money, but he’s certainly getting a nice windfall of cash from this exchange.
Vince McMahon Unloading Stock
In a recent filing, it has been disclosed that Vince McMahon has sold a significantly large portion of his shares in the company. The filing reveals that McMahon has divested 5,350,000 shares of TKO, amounting to a total value of approximately $412 million.
Following this transaction, McMahon’s remaining stake in TKO stands at around 15 million shares, which corresponds to approximately 9% of the total outstanding TKO stock. This move indicates a substantial reduction in McMahon’s ownership interest in the company, although he still retains a significant portion of TKO shares.
Vince McMahon still has a ton of stock, but it’s not enough where he can re-insert himself into the WWE fold as he did before. The fact that he is selling even more stock would also give an idea that he has no intention to come back in the same way.
NEW FILING: Vince McMahon sells 5,350,000 TKO shares, a value of $412 million.
After the transaction, he has about 15 million shares, or about 9% of all TKO stock. pic.twitter.com/SropbXk5Dg
McMahon resigned from his position with the company after Janel Grant’s lawsuit included damning allegations of sex trafficking and so much more. Now, we will have to see if anything happens with that lawsuit, or if they decide to settle out of court.
Vince McMahon helped build WWE into what it became today, but he no longer has an active hand in the company’s product. It remains to be seen if he will hold onto every bit of TKO stock he has left, but he’s certainly not opposed to selling some of it.
SEScoops will have more updates on this story as they are available.
During TKO’s recent 2023 fourth quarter earnings call, Mark Shapiro was asked about the McMahon situation and a potential impact on TKO. Shapiro made clear that TKO has continued to distance itself from the 78-year-old McMahon.
“He’ll do whatever he’s going to do, and we’re all on the sideline. We’ll have a look, we’ll see. We have no idea on timing. We’re not having any discussion with him. He’s given us no point of view on his motive or his plans to sell or not sell, or if he does, how much. So, we’re going to wait around and find out just like you.”
Shapiro did not specifically address the allegations against McMahon. Ari Emanuel, the CEO of both Endeavor and TKO Group Holdings, did not comment on McMahon.
What’s Next for TKO?
With McMahon gone, Ari Emanuel has replaced the 78-year-old as the Executive Chair of TKO. Emanuel already serves as the company’s CEO. Steven R. Koonin has been appointed the Lead Independent Director of the McMahon allegations and how it relates to TKO. Both appointments came into effect as of February 22.
