Tag: TKO Group

UFC parent company TKO Group will pay $335 million to settle antitrust lawsuit over fighter pay

UFC parent company TKO Group to pay $335 million to settle antitrust lawsuit over fighter payTKO Group Holdings, the parent company of the UFC, has agreed to pay $335 million to settle a decade-old…

UFC parent company TKO Group to pay $335 million to settle antitrust lawsuit over fighter pay

TKO Group Holdings, the parent company of the UFC, has agreed to pay $335 million to settle a decade-old lawsuit filed by fighters who accused the promotion of violating antitrust laws.

Between December 2014 and March 2015, five individual lawsuits were filed with fighters claiming that the UFC violated the Sherman Antitrust Act. Those suits were then consolidated into a single case with the chief complaint being that the promotion had abused its monopoly power to limit fighters’ pay.

UFC settlement in antitrust suit

UFC fighters Cung Le, Nate Quarry, and Jon Fitch filed the initial complaint with Brandon Vera, Luis Javier Vazquez, and Kyle Kingsbury later joining them. In all, 1,200 fighters were being represented in the suit.

After being granted class certification in August, a trial date was set for April 15 with the UFC facing damages up to $1.6 billion. Instead, the UFC will avoid a costly trial with the $335 settlement which will be payable in installments over a period of time.

“The terms will be memorialized in a long-form agreement and then submitted to the court for approval,” TKO said in a statement, adding that it anticipates the settlement amount will be deductible for tax purposes. The company noted that a judge must sign off on the agreement before it becomes official.

The UFC’s Parent Company isn’t out of the woods yet

Once news of the settlement broke, shares in TKO jumped up by 7%. However, TKO’s headaches are far from over. After merging the UFC and World Wrestling Entertainment under the TKO Group banner last year, the company has seen a slew of legal issues come its way.

TKO merges UFC and WWE

Most recently, a lawsuit was filed against WWE founder and former TKO Group chairman Vince McMahon who was accused of sexually abusing and trafficking a former employee of the pro wrestling empire. McMahon resigned from his position with the company shortly after.

Vince McMahon with Ari Emanuel

In November 2023, TKO shareholders reportedly filed a class action suit claiming that the $21 billion merger of the UFC and WWE was the result of a “sham sales process.”

Vince McMahon resigns from TKO Group and WWE amid assault and trafficking allegations, issues statement

Vince McMahon resigns from WWEVince McMahon, executive chairman of the board of TKO Group Holdings and founder of sports entertainment juggernaut World Wrestling Entertainment, has…

Vince McMahon resigns from WWE

Vince McMahon, executive chairman of the board of TKO Group Holdings and founder of sports entertainment juggernaut World Wrestling Entertainment, has resigned from his position at both companies.

The news comes according to an internal memo obtained and confirmed by CNBC.

“Vince McMahon has tendered his resignation from his positions as TKO Executive Chairman and on the TKO Board of Directors. He will no longer have a role with TKO Group Holdings or WWE,” said Nick Khan, president of the WWE.

On Thursday, The Wall Street Journal revealed that McMahon was the subject of a federal lawsuit after a former employee had accused him of sexual assault and trafficking her to other executives and WWE Superstars within the company.

Vince McMahon Issues Statement on Resignation

McMahon vehemently denied the allegations in a statement where he also announced his exit from all executive roles with TKO Group and WWE.

“I stand by my prior statement that Ms. Grant’s lawsuit is replete with lies, obscene made-up instances that never occurred, and is a vindictive distortion of the truth,” McMahon said in response to the allegations. “I intend to vigorously defend myself against these baseless accusations, and look forward to clearing my name.”

“However, out of respect for the WWE Universe, the extraordinary TKO business and its board members and shareholders, partners and constituents, and all of the employees and Superstars who helped make WWE into the global leader it is today, I have decided to resign from my executive chairmanship and the TKO board of directors, effective immediately,” the former Chairman of the Board added.

The lawsuit filed by Janel Grant alleges that McMahon directed her to have sex with a WWE Superstar and other men, including John Laurinaitis, the company’s former head of talent relations and general manager.

After her release from the company in January 2022, McMahon had Grant sign an NDA promising to pay her $3 million to keep quiet about their relationship but only made an initial payment of $1 million. Grant’s suit seeks to void a nondisclosure agreement.

In July 2022, it was revealed that McMahon had paid out $12 million to four women over 16 years to suppress allegations of sexual misconduct and infidelity. He resigned from WWE leadership posts in mid-2022 amid an internal investigation but returned in early 2023.

WWE icon The Rock links up with the UFC, appointed to promotion’s TKO Group board of directors

The Rock appointed to TKO Group board members links up with the UFC WWETKO Groups Holdings has officially appointed The Rock to its Board of Directors earlier today.  Last September, WWE and…

The Rock appointed to TKO Group board members links up with the UFC WWE

TKO Groups Holdings has officially appointed The Rock to its Board of Directors earlier today. 

Last September, WWE and the UFC completed a monumental merger to create a $21.4 billion sports entertainment company. The group, named TKO, is headed by CEO Ari Emanuel and Executive Chairman Vince McMahon while Dana White now serves as the UFC’s CEO.

TKO group enlists The Rock

As of today, Dwayne Johnson — otherwise known as The Rock, holds a seat on the board of directors. Johnson is one of the most recognisable faces in the world, taking Hollywood by storm following his legendary career in the WWE and has also been involved in several other successful business ventures.

In a press release today, The Rock had this to say – 

“My grandfather, High Chief Peter Maivia, and my dad, Rocky ‘Soulman’ Johnson, would’ve never thought this day would come. Which is why I’m very humbled to have a seat at the table that has decades of history and family legacy for me. A table that my family helped to build. Being on the TKO Board of Directors, and taking full ownership of my name, ‘The Rock’, is not only unprecedented but incredibly inspiring as my crazy life is coming full circle.

“At my core, I’m a builder who builds for and serves the people, and Ari is building something truly game changing. I’m very motivated to help continue to globally expand our TKO, WWE, and UFC businesses as the worldwide leaders in sports and entertainment — while proudly representing so many phenomenal athletes and performers who show up every day putting in the hard work with their own two hands to make their dreams come true and deliver for our audiences. I’ve been there, I’m still there and this is for them.”

How can Dwayne Johnson improve the TKO Holdings Group?

UFC CEO Dana White Takes Credit For WWE’s Production Improvements: ‘A Lot Of Influence…’

Dana White recently claimed responsibility for the noticeable enhancements in WWE’s production quality. Last September, the UFC and WWE united to form a formidable force in the world of combat sports: TKO Group Holdings. Since their merger, the c…

Dana White recently claimed responsibility for the noticeable enhancements in WWE’s production quality. Last September, the UFC and WWE united to form a formidable force in the world of combat sports: TKO Group Holdings. Since their merger, the company has thrived, reaching new levels of success and redefining industry standards. WWE fans have experienced a […]

Continue Reading UFC CEO Dana White Takes Credit For WWE’s Production Improvements: ‘A Lot Of Influence…’ at MMA News.

UFC Revenue Up By Almost $100 Million At Midpoint Of 2024

TKO Group Holdings, under the banner of Endeavor, has recently unveiled the financial results for UFC and WWE in the second quarter of 2024, illustrating a remarkable upward trajectory. The UFC and WWE joined forces last September, giving rise to a new powerhouse in sports and entertainment: TKO Group Holdings. Since their unification, the business […]

Continue Reading UFC Revenue Up By Almost $100 Million At Midpoint Of 2024 at MMA News.

TKO Group Holdings, under the banner of Endeavor, has recently unveiled the financial results for UFC and WWE in the second quarter of 2024, illustrating a remarkable upward trajectory.

The UFC and WWE joined forces last September, giving rise to a new powerhouse in sports and entertainment: TKO Group Holdings. Since their unification, the business has been flourishing and reaching new heights.

According to a recent report by journalist John S. Nash, TKO Group generated an impressive $851.2 million in total revenue. The company also reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $420.9 million, alongside a net income of $150.7 million.

As per the report, the UFC experienced remarkable growth in the second quarter of 2024, with revenue soaring by 29% to $394.4 million. This impressive performance marks a half-yearly increase of $95.5 million compared to 2023. Adjusted EBITDA rose by 23%, totaling $231.9 million for the quarter ending June 30.

This revenue boost was primarily driven by a substantial increase in media rights, which reached $250.6 million, along with higher content revenue. Additionally, the UFC saw increased income from live events thanks to an extra event held during the quarter. Sponsorship proceeds also significantly improved, with an increase of $15.5 million.

Endeavor CEO Ariel Emanuel Reflects on TKO Q2 Earnings Growth

Endeavor CEO Ariel Emanuel, who also leads TKO Group, recently shared his insights on the company’s impressive upward growth in the second quarter of 2024 in a statement released to the public.

“TKO generated strong financial results in the quarter, highlighted by record quarterly revenue and adjusted EBITDA,” Emanuel said. “In light of this continued momentum, we are raising our full-year 2024 guidance for the second quarter in a row. The strength of our underlying business continues to give us great conviction for TKO’s ability to deliver sustainable long-term value for shareholders.”

[h/t Inside the Ropes]

In a strategic shift, Endeavor chose to go private after three years as a public company this past April, positioning TKO Group as its sole publicly traded entity. Endeavor’s initial 51% stake in TKO has since risen to 53.6%.

However, it’s not all smooth sailing for the combat sports conglomerate. Last month, a judge rejected a $335 million settlement in a class-action lawsuit filed by former UFC fighters, setting the stage for a trial. If the case proceeds, the financial repercussions for the company could far exceed the proposed settlement amount.

Continue Reading UFC Revenue Up By Almost $100 Million At Midpoint Of 2024 at MMA News.