The UFC skilled a uncommon lower in income for the third quarter in 2024 however TKO Group Holdings as a complete nonetheless earned a revenue with a large 12 months forward in 2025.
New monetary disclosures have been launched on Wednesday with the UFC income dropping 11 p.c — $42.6 million to $354.9 million — primarily on account of one much less pay-per-view and two much less Battle Evening occasions in comparison with the identical time interval in 2023. The income loss from media rights was $50.4 million however that was partially offset by a rise in sponsorship income, which was up $10.2 million.
Regardless of holding three fewer occasions throughout the third quarter in 2024 in comparison with 2023, the UFC nonetheless stayed nearly useless even when it got here to dwell occasion income on account of a rise in total ticket gross sales 12 months over 12 months.
Whereas the UFC reported a loss in income for the quarter, TKO Group Holdings — the mum or dad firm for UFC and WWE — nonetheless elevated total income by 52 p.c — $232.1 million to $681.2 million. That improve was due to WWE with $242.7 million in income.
“TKO’s stable third quarter outcomes replicate continued power throughout UFC and WWE, significantly in dwell occasions and model partnerships,” TKO CEO Ari Emanuel mentioned in a press launch together with the monetary outcomes. “In mild of this continued momentum, we now count on to ship on the higher finish of our full-year 2024 steering vary for each income and Adjusted EBITDA.
“Moreover, two weeks in the past we introduced the authorization of a strong capital return program and an settlement to amass industry-leading sports activities property that may energy our profile, give us better scale, strengthen our place within the sports activities market, and speed up returns for shareholders. Simply over a 12 months since UFC and WWE got here collectively to kind TKO, our conviction on this enterprise is as sturdy as ever.”
The most recent monetary disclosure additionally famous the conclusion of one in every of two UFC antitrust lawsuits after a settlement was reached and preliminary approval was handed down by the courts. Underneath phrases of the settlement, TKO is ready to pay out $375 million to settle the primary of the lawsuits with a $125 million cost already put into escrow in October with the remaining $250 million anticipated to be paid in 2025.
A second antitrust lawsuit towards the UFC remains to be pending.
The subsequent 12 months is predicted to be large for TKO with WWE kicking off a large 10 12 months, $5 billion deal to maneuver its flagship sequence Monday Evening Uncooked to Netflix whereas Smackdown goes to USA Community. WWE’s different program titled NXT already started airing on the CW in a separate deal that was beforehand closed.
In the meantime, the UFC is predicted to start negotiations on a brand new TV deal in early 2025 as the present contract with ESPN involves a detailed on the finish of subsequent 12 months. Most specialists imagine the UFC is in for an enormous improve in total media rights, particularly with the MMA promotion as the one main sports activities property up for grabs for potential TV or streaming companions for the subsequent three years.
It’s doable that the UFC doubtlessly triples its broadcast rights deal from the one struck with ESPN that was initially price $1.5 billion over 5 years (an extra two years was finally added together with ESPN taking up pay-per-view broadcasts for the UFC).
