TKO Merges UFC® and WWE® Live Events Groups
TKO Group Holdings announced the merger of the UFC and WWE Live Events teams into a single unit, called the TKO Live Events Strategy Team. This strategic move aims to drive revenue growth through live event development, ticketing, and fan experiences. Peter Dropick, a key executive with extensive experience in UFC's live event success, will lead the new unit. The initiative aims to leverage the combined global popularity of UFC and WWE to maximize event revenue and operational efficiencies. Both UFC and WWE recorded strong attendance and revenue figures in Q1 2024, with UFC 297 in Toronto and WWE's Royal Rumble and Elimination Chamber setting multiple records. The integration is expected to boost TKO's growth both domestically and internationally by partnering with local governments and enhancing revenue opportunities from site fees.
- TKO merges UFC and WWE live events teams, creating a powerful portfolio.
- New TKO Live Events Strategy Team to focus on revenue growth and fan experiences.
- Peter Dropick appointed to lead the new unit, bringing extensive experience and success.
- UFC and WWE set numerous attendance and revenue records in Q1 2024.
- UFC 297 in Toronto was the highest-grossing arena event in Canada.
- WWE's Royal Rumble and Elimination Chamber events broke attendance and revenue records.
- WrestleMania 40 drew the largest-ever viewership and set a WWE gate record.
- UFC 300 recorded a gate of $16.5 million and set an attendance record at T-Mobile Arena.
- No specific financial figures for the anticipated cost savings or revenue growth were provided.
- Potential risks associated with integrating two large teams into a single unit.
Insights
The merging of UFC and WWE live events into a single integrated unit under TKO Group Holdings is a significant strategic move. Peter Dropick’s leadership in this new role is noteworthy given his successful track record with UFC. By combining their strengths, TKO aims to enhance revenue growth and operational efficiencies.
Revenue Growth Potential: UFC and WWE have both demonstrated strong performance in live events, with record-breaking attendance and revenue figures. This merged strategy team is tasked with capitalizing on these successes, potentially driving even higher revenue through coordinated event scheduling, ticket sales and enhanced fan experiences.
Operational Efficiencies: The integration aims to create operational synergies. This includes leveraging shared resources, such as marketing, logistics and venue management, to reduce costs and drive profitability. By consolidating efforts, TKO can negotiate better terms with venues and sponsors, enhancing their financial position.
Short-term and Long-term Implications: In the short term, investors can expect a positive impact on earnings due to increased efficiency and potential revenue boosts from strategically scheduled events. Long-term benefits include stronger brand positioning and market presence in sports entertainment, setting a robust foundation for sustained growth.
Market Trends: The demand for live sports and entertainment is at an all-time high, as stated by TKO’s CFO. This trend is mirrored in recent attendance records for both UFC and WWE events. Combining the expertise of both organizations could lead to more high-profile, lucrative events, especially with their global fan base.
Fan Experience: Enhancing fan experiences through innovative ticketing and tourism programs is a key strategy. This approach not only boosts immediate revenue from ticket sales but also builds long-term loyalty and engagement through memorable experiences.
Tourism and Local Economies: Partnering with local governments and integrating tourism incentive programs can not only attract larger crowds but also provide economic benefits to host cities. This can strengthen TKO’s relationships with cities globally, ensuring continued support and collaboration for future events.
Combined Unit Produces Hundreds of Live Events Year-Round, Featuring Two of the World’s Most Iconic Sports and Entertainment Properties
The integrated unit, the TKO Live Events Strategy Team, will drive revenue growth strategies across key areas, including live event development and scheduling, tourism incentive programs, ticketing, and fan experiences. This new structure aligns with TKO’s efforts to leverage the power and expertise of both UFC and WWE to maximize event revenue potential and pursue growth opportunities and cost synergies.
Peter Dropick, who has played an important role in driving UFC’s industry leading live event success for nearly two decades, and who is a pivotal member of the senior executive team that has led UFC to five consecutive years of record revenue, has been elevated to lead the integrated unit as Executive Vice President, Event Development and Operations for TKO.
Dropick will work closely with UFC, WWE, and TKO leadership, including UFC President and CEO Dana White, WWE Chief Content Officer Paul Levesque, UFC COO Lawrence Epstein, WWE President Nick Khan, and TKO CFO Andrew Schleimer, to leverage the massive global popularity of UFC and WWE and continue to grow the TKO live events business domestically and internationally.
“Demand for live sports and entertainment has never been stronger, and we believe our portfolio of events will continue to drive the growth of our business,” said Andrew Schleimer, Chief Financial Officer, TKO. “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.”
In Q1 2024, UFC and WWE each set numerous live event attendance and revenue records, helping to fuel TKO’s strong start for the year. UFC sold out all five events with live audiences, including UFC 297 in
Following the quarter’s close, the momentum continued in April, as WrestleMania 40 drew its largest-ever viewership and set a WWE gate record with 145,000 fans over two days at Philadelphia’s Lincoln Financial Field. The next weekend, UFC 300 became one of the highest-grossing events in UFC history, recording a gate of
About TKO
TKO Group Holdings, Inc. (NYSE: TKO) is a premium sports and entertainment company. TKO includes UFC, the world’s premier mixed martial arts organization, and WWE, the recognized global leader in sports entertainment. Together, our organizations reach more than 1 billion households in approximately 210 countries and territories, and we organize more than 300 live events year-round, attracting more than two million fans. TKO is majority owned by Endeavor Group Holdings, Inc. (NYSE: EDR), a global sports and entertainment company.
About UFC®
UFC® is the world’s premier mixed martial arts organization (MMA), with more than 700 million fans and approximately 260 million social media followers. The organization produces more than 40 live events annually in some of the most prestigious arenas around the world while broadcasting to over 900 million TV households across more than 170 countries. UFC’s athlete roster features the world’s best MMA athletes representing more than 80 countries. The organization’s digital offerings include UFC FIGHT PASS®, one of the world’s leading streaming services for combat sports. UFC is part of TKO Group Holdings (NYSE: TKO) and is headquartered in
About WWE®
WWE® is an integrated media organization and the recognized global leader in sports entertainment. The company consists of a portfolio of businesses that create and deliver original content 52 weeks a year to a global audience. WWE is committed to family-friendly entertainment on its television programming, premium live events, digital media, and publishing platforms. WWE’s TV-PG programming can be seen in more than 1 billion households worldwide in 25 languages through world-class distribution partners including NBCUniversal, FOX Sports, TNT Sports, Sony India and Rogers. The award-winning WWE Network includes all Premium Live Events, scheduled programming and a massive video-on-demand library and is currently available in approximately 165 countries. In
View source version on businesswire.com: https://www.businesswire.com/news/home/20240522495809/en/
Media Contacts:
UFC
Chris Bellitti
CBellitti@ufc.com
WWE
Greg Domino
Greg.Domino@wwecorp.com
Source: TKO Group Holdings, Inc.
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