UFC’s Strategic Shift in 2025: From APEX to International Locations
As the UFC gears up for an ambitious year ahead, the company is planning to venture away from its Las Vegas APEX facility and stage more international events in 2025. During a recent financial call with investors, TKO Group Holdings Chief Financial Officer Andrew Schleimer revealed that the organization expects to hold fewer events at the APEX in Las Vegas, while increasing the number of international shows. While the exact details of the 2025 calendar are not yet finalized, Schleimer indicated that these international events are expected to generate higher revenue, albeit with a lower margin profile compared to APEX events.
Cost Control and Profit Margins
The financial implications of hosting events at the APEX versus international locations are significant. The UFC has never detailed the exact costs associated with APEX events, but it is widely known that these shows are much less expensive to produce. The APEX facility offers a full production setup within the same building, reducing logistical and operational expenses. In contrast, traveling to different locations across the U.S. and internationally involves higher costs, including travel, accommodation, and setup, which can significantly impact profit margins. Schleimer specifically mentioned that three APEX events in 2025 will be shifted to international locations, although the specific venues have not been disclosed.
The Pandemic and the APEX Solution
The UFC’s decision to use the APEX facility as a primary venue was initially driven by the global pandemic. During this period, the promotion leveraged the in-house facility to host fights without the risk of potential COVID outbreaks. Even after the pandemic subsided, the UFC continued to hold events at the APEX due to the cost efficiency and logistical simplicity. The APEX has become a reliable and cost-effective option for the promotion, allowing it to produce high-quality events with minimal overhead.
Expanding International Presence
The UFC’s expansion into international markets is a strategic move aimed at tapping into new audiences and generating additional revenue. The promotion has already forged a notable partnership with Saudi Arabia, with two events scheduled for 2024 and 2025. This relationship is expected to continue, further solidifying the UFC’s presence in the Middle East. In addition to these events, the UFC has announced plans to return to Montreal for the first time in several years, with UFC 315 scheduled for May. These international shows not only broaden the UFC’s global reach but also provide valuable exposure to new fan bases.
Future Expansion and Broadcast Deals
The full slate of events for 2025 and 2026 has not been announced, but the UFC is currently in negotiations for a new broadcast rights deal that will take effect in 2026. This new deal could potentially influence the number of events held in the coming years. As the UFC continues to expand its footprint, it is likely that the total number of cards in 2025 and 2026 will increase compared to previous years. The promotion’s focus on international expansion and cost control at the APEX reflects a strategic approach to maximizing profitability and global growth.
Looking Ahead
As the UFC prepares for its busy 2025 schedule, the company remains committed to delivering high-quality events while exploring new markets. The shift from the APEX to international locations is not just a financial decision but also a strategic move to enhance the UFC’s global brand. By balancing cost control with the potential for increased revenue from international events, the UFC aims to maintain its position as the premier mixed martial arts organization in the world. As the new broadcast deal and expanded international presence shape the UFC’s future, fans can look forward to a year filled with exciting fights and new opportunities for the sport.
