When it comes to TKO Group Holdings’ dominance of combat sports, the company formed via the merger between UFC and WWE is looking to tighten its grip.
During an earnings call on Thursday, TKO president and chief operating officer Mark Shapiro revealed that the company is nearing a partnership with Saudi Arabia on a boxing promotion. TKO already has deep ties to Saudi Arabia via WWE and UFC, with Shaprio sharing that TKO officials met with the Saudis in London this past week about finalizing the deal.
“When it comes to other opportunities, we’re going to — we intend to be selective, disciplined, thoughtful, but we will consider other opportunities to create long-term value for our shareholders as they present themselves, but they must be value accretive,” Shapiro said. “When you look at boxing, it checks the boxes of all of that. It’s thoughtful. It’s the right strategic place for us to be. We have experts in [WWE president] Nick Khan and [UFC president] Dana White, among others that can drive that business. We can be selective in terms of how we participate. And whatever we do, we will not take risk and it will definitely be value accretive.”
The former ESPN executive went on to confirm: “I will tell you that we are close on an agreement with the Saudis on the creation of a boxing league.”
Shapiro also noted the flaws in the current boxing landscape, including the “Ali Act,” which was implemented in 2000 to protect the rights of boxers, but has received criticism for the manner in which it has attempted to regulate the sport. He also cited the success of the Jake Paul-Mike Tyson event on Netflix — which TKO has a relationship with via WWE — as evidence of the popularity the sport is still capable of obtaining.
As for how the league would operate, Shapiro said that TKO “would be the producer, the promoter and responsible for all day-to-day operations of the venture” in addition to receiving a $10 million fee. And while the company won’t be fronting any capital for the promotion, it would have a path to equity over the course of a five-year period based on obtaining certain incentives.
Other specifics remain unclear, including the promotion’s name and which boxers it might be targeting. But after being whispered about in recent months, it was certain notable to hear Shapiro speak so candidly about TKO’s plans for boxing, with an official announcement seemingly imminent.