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A Wall Street analyst recently revealed that the UFC could potentially sign a new bumper broadcast deal in 2024 under the TKO Group Holdings banner that would be twice as big as the current deal with ESPN.
In September last year, the UFC and the WWE came together under a corporate merger, and TKO Group Holdings was born. Endeavor Group Holdings maintains 51% ownership, with the other 49% belonging to WWE shareholders.
Ari Emmanuel acts as CEO for both companies, while Vince McMahon has been named the board's executive chairman. Meanwhile, Dana White's position changed from president to CEO of the Ultimate Fighting Championship.
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According to a recent report by Hollywood Reporter via MMA Fighting, TKO Group Holdings could be looking at a massive year ahead. As per Wall Street analyst Eric Handler, both promotions are set to sign blockbuster TV deals that could significantly boost TKO's market value.
The UFC is looking to sign a new broadcast deal in 2024, with its current deal with ESPN set to expire in 2025. While that deal was signed in 2018 and reportedly worth $1.5 billion, Handler estimates the new agreement could be a multi-year contract worth $3 billion. He said:
"A UFC TV deal could be announced by year-end with new contract terms upwards of two times the current value."
Meanwhile, the WWE has already negotiated a new deal for Smackdown and NXT, two of its top programs. There is also a third contract still to come for Monday Night Raw, the longest-running episodic series in TV history.
TKO Group Holdings reports soaring revenues after UFC and WWE merger in first quarterly report
The decision to merge two of the biggest entities in combat sports under the TKO Group Holdings banner has been a profitable one. The company reported its earnings as a public entity for the first time this past November.
According to Proactive Investors, TKO reported an income of $449.1 million in Q3, from July to September for the UFC and part of September for WWE. However, if the wrestling promotion's full quarter earnings were included, the total revenue would've been higher by $235 million.
As per Sports Business Journal, out of $449.1 million in revenue in Q3, $397.5M came from the MMA promotion, while $51.6M came from the WWE. That is 32% higher than last year's from the same period, thanks to higher income from media rights, ticket sales, and sponsorships.
On the other hand, the net profit was $22 million less than it was last year in the same period. This was due to higher operating expenses from the TKO Group Holdings merger.
