The UFC reported record revenues of $1.3 billion in 2023, a 13% increase from the previous year, driven by significant growth in live events, media rights, content fees, and sponsorship revenue.
2023 was a banner year for the UFC. The company’s full-year financial report showed record revenues, with significant growth in live events and sponsorships.
TKO Group Holdings, the parent company of UFC and WWE, released the year-end financial disclosure. It revealed substantial gains for the MMA promotion throughout the year.
The UFC generated $1.3 billion in revenue, a 13% increase from 2022. The fourth quarter alone brought in $282.8 million, up from $271.7 million during the same period in 2022.
The revenue boost? A $76.2 million increase in media rights and content fees, a $42.6 million surge in live events revenue, and a $29.5 million bump in sponsorship revenue.
Live event revenue saw a massive 34% increase, reaching a record $168 million in 2023. This was across 43 events, with ticket revenues and site fees driving the increase.
Sponsorship revenue also hit a record, growing by 18% to $196 million. After signing a multi-year deal with Bud Light to become the official beer of the promotion, sponsorships are expected to jump again in 2024.
Media rights and content still brought in the most revenue, with $870.6 million for the year. This was due to broadcast deals like the UFC’s partnership with ESPN, up from $794.4 million in 2022.
TKO CEO Ari Emanuel was thrilled with the record financial performance in 2023. He said, “TKO is off to a strong start following record financial performance in 2023 at both UFC and WWE.”
Emanuel also mentioned the transformative deal to bring WWE’s Raw to Netflix starting in 2025. He highlighted the expansion of their international footprint in important growth markets.
Looking ahead, TKO is targeting revenue between $2.575 and $2.65 billion for UFC and WWE combined in 2024.
WWE signed a massive 10-year, $5 billion deal to take WWE Raw to Netflix starting in 2025. This was after a separate broadcast deal to move Smackdown to the USA Network. The UFC is next, with negotiations for a new broadcast rights deal starting later this year. The current contract with ESPN ends in 2025.
Some speculate the UFC could seek a deal worth double the current contract, potentially exceeding $3 billion. However, the UFC also faces a class action antitrust lawsuit filed by several ex-fighters. They’re seeking damages between $894 million and $1.6 billion, with the case set to start on April 15, 2024.
WWE faced its own controversy in 2023. A lawsuit was filed against company founder Vince McMahon, alleging sexual assault and abuse. This led to his resignation from the company, where he previously served as executive chairman over TKO. McMahon remains a sizable stockholder in TKO, despite selling off $700 million worth of his holdings last year.