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 an enormous yr forward in 2025.
New monetary disclosures had been launched on Wednesday with the UFC income dropping 11 % — $42.6 million to $354.9 million — primarily resulting from one much less pay-per-view and two much less Combat Night time 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 in the course of the third quarter in 2024 in comparison with 2024, the UFC nonetheless stayed virtually useless even when it got here to reside occasion income resulting from a rise in general ticket gross sales yr over yr.
Whereas the UFC reported a loss in income for the quarter, TKO Group Holdings — the guardian firm for UFC and WWE — nonetheless elevated general income by 52 % — $232.1 million to $681.2 million. That enhance was because of WWE with $242.7 million in income.
“TKO’s stable third quarter outcomes mirror continued power throughout UFC and WWE, significantly in reside occasions and model partnerships,” TKO CEO Ari Emanuel mentioned in a press launch together with the monetary outcomes. “In gentle of this continued momentum, we now anticipate 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 accumulate industry-leading sports activities belongings that can energy our profile, give us higher scale, strengthen our place within the sports activities market, and speed up returns for shareholders. Simply over a yr since UFC and WWE got here collectively to kind TKO, our conviction on this enterprise is as robust as ever.”
The newest monetary disclosure additionally famous the conclusion of considered one 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 about 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 continues to be pending.
The subsequent yr is anticipated to be large for TKO with WWE kicking off an enormous 10 yr, $5 billion deal to maneuver its flagship collection Monday Night time 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 anticipated 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 yr. Most consultants consider the UFC is in for an enormous enhance in general 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 following three years.
It’s attainable that the UFC probably triples its broadcast rights deal from the one struck with ESPN that was initially value $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).
