TKO Group Holdings Inches Closer to Launching New Boxing League in 2025
The TKO Group Holdings, which owns the UFC (Ultimate Fighting Championship), is making significant strides toward launching a new boxing league in 2025. During a recent financial call with investors, TKO president and chief operating officer Mark Shapiro revealed that the company is in advanced talks with Saudi Arabia to fund this ambitious project. Shapiro indicated that the deal would involve executives from both UFC and WWE running the league, with TKO taking on the role of producer, promoter, and day-to-day operator. The financial terms of the deal include a fee of $10 million for TKO, with the potential for additional equity over a five-year period, contingent on meeting certain milestones. Notably, TKO will not be providing any capital or taking on financial risks, making it an attractive venture for the company.
Inside the Negotiations with Saudi Arabia
The negotiations with Saudi Arabia have been progressing rapidly, with TKO sending a delegation to London to meet with Saudi representatives. The meeting, led by Andrew Schleimer, TKO’s chief financial officer, and including Nick Khan from WWE and Lawrence Epstein from UFC, has brought the parties closer to finalizing the deal. Shapiro emphasized that these talks are at an advanced stage and that the company is confident about reaching an agreement soon. The deal would see TKO handling all operational aspects of the new boxing league, including organizing and promoting fights, while Saudi Arabia provides the necessary funding. This arrangement allows TKO to leverage its expertise without incurring financial risk, a strategy that aligns with the company’s focus on value creation.
Mega-Cards and Superfights in the Pipeline
Beyond the new boxing league, Shapiro also hinted at plans for a series of high-profile mega-cards. These events, which would likely take place in 2025 and 2026, are expected to feature some of the biggest names in boxing. TKO will be responsible for promoting and producing these events, which could draw significant viewership and media attention. The company is eyeing at least four such mega-cards, with two scheduled for 2025 and two for 2026. These events could be standalone or part of the new boxing league, but they will undoubtedly add to the excitement and prestige of the sport.
The Role of Saudi Arabia in Modern Boxing
Saudi Arabia has been a game-changer in the world of boxing, thanks to the funding provided by the country’s General Entertainment Authority, led by Turki Al-Sheikh. The kingdom has hosted several major boxing events in recent years, bringing together top fighters and generating significant interest. The financial backing from Saudi Arabia has made it possible to stage fights that were once considered almost impossible. Shapiro believes that the partnership with TKO can further enhance the growth of boxing by bringing in the expertise of UFC CEO Dana White and WWE president Nick Khan. Their leadership and experience could help streamline operations and elevate the sport’s profile globally.
Revitalizing Boxing in the U.S.
Shapiro is optimistic about the potential to revitalize boxing in the United States. Despite the sport’s historical challenges, including fragmentation and poor management, there is still a strong audience for boxing. The Tyson vs. Jake Paul event on Netflix in 2024 is a testament to this, attracting 100 million viewers worldwide and 40 million in the U.S. alone. Shapiro believes that with the right strategy and leadership, boxing can once again become a dominant force in American sports. The new boxing league and mega-cards are steps in this direction, aiming to bring boxing back to the forefront of the sports landscape.
Focus on Core Businesses and Strategic Expansion
While TKO is exploring new opportunities in boxing, Shapiro emphasized that the company’s primary focus remains on its core businesses: UFC and WWE. The recent acquisition of Endeavor assets, including IMG, On Location, and PBR, has further strengthened the company’s position. TKO is committed to integrating these new assets to support UFC and WWE, while also considering other value-accretive opportunities. The new boxing league fits into this strategy, offering a balanced approach to expanding the company’s reach and creating long-term value for shareholders. Shapiro and the TKO leadership team are confident that their expertise and disciplined approach will ensure the success of this new venture.
