TKO Group Holdings, the owners of UFC, are close to finalizing a deal with Saudi Arabia to launch a new boxing league in 2025, which they will manage without financial risk, while also planning mega-events and ensuring their core focus remains on UFC and WWE.
The UFC’s parent company, TKO Group Holdings, is on the brink of launching a new boxing league in 2025. Exciting times ahead! During a recent investor call, Mark Shapiro, TKO’s president and COO, shared some juicy details. Negotiations are heating up with Saudi Arabia to fund this venture. Interestingly, this initiative involves executives from both the UFC and WWE but won’t require any financial input from them.
Shapiro spilled more beans: “We’re close to sealing a deal with the Saudis for a boxing league. TKO would handle production, promotion, and daily operations, earning over $10 million without investing capital.” Talk about a sweet deal! Plus, there’s potential for equity gains over five years if certain milestones are hit.
It sounds like things are moving fast. TKO anticipates finalizing the deal soon, especially after intense discussions in recent days. A delegation recently jetted off to London for crucial meetings with Saudi representatives. Andrew Schleimer (CFO), Nick Khan (WWE head), and Lawrence Epstein (UFC chief) were all there. Big names making big moves!
This arrangement lets TKO manage every aspect of the boxing league without financial risk as it kicks off. But wait, there’s more! Shapiro hinted at mega-cards slated for 2025 and 2026 as part of the agreement. These events promise to be massive.
Shapiro elaborated: “We’ll run our own league with regular fights year-round. Plus, we’ll promote and produce four superfights—two each year.” These might be standalone events outside the league, but TKO will still rake in fees as promoters and producers.
Saudi Arabia has already shaken up boxing with major events in Riyadh, thanks to funding from its General Entertainment Authority led by Turki Al-Sheikh. Now, TKO aims to further revolutionize the sport with insights from UFC CEO Dana White and WWE president Nick Khan.
Boxing still captivates audiences worldwide, particularly in the U.S., according to Shapiro. He cited the massive viewership of a Netflix event featuring Mike Tyson and Jake Paul as proof of boxing’s enduring appeal.
While venturing into boxing, TKO remains committed to its core moneymakers—the UFC and WWE. Shapiro emphasized that their primary focus is maintaining value for these flagship brands while exploring new opportunities selectively.
Boxing aligns strategically with TKO’s goals. With experts like Nick Khan and Dana White at the helm, they can navigate this space thoughtfully without taking unnecessary risks.
As TKO nears a deal for the boxing league launch, Shapiro addressed past comments by CEO Ari Emanuel regarding potential changes to the Ali Act—a law offering protections for boxers. Emanuel suggested it hindered boxing’s growth due to inconsistent enforcement.
Despite mentioning the Ali Act, Shapiro assured that TKO isn’t lobbying for legislative changes but acknowledges room for improvement in boxing’s current system. “The Ali Act has flaws,” he said. “We see an opportunity to enhance boxing in America.”
Ultimately, TKO isn’t actively involved in legislative efforts surrounding the Ali Act but recognizes immense potential in revitalizing boxing—a promising venture indeed!