Will There Be Any Changes In the Main Roster After the WWE And UFC Merger Closing
How will the UFC-WWE merger affect fighters and businesses? Let’s explore the anticipated changes brought about by TKO Group.
The merger of the UFC’s parent company, Endeavor, and WWE has resulted in the creation of a new entity known as TKO Group Holdings. This new entity’s shares will start trading on the New York Stock Exchange on September 12, 2023, using the symbol TKO.
While TKO Group Holdings promises increased growth and expansion opportunities by uniting WWE and the UFC, the big question is how it will impact individual fighters and both businesses. Let’s delve into the details.
According to Endeavor, the merger is expected to yield annualized cost savings ranging from $50 million to $100 million. This includes moving WWE operations to Endeavor’s existing back-office infrastructure. As for the cost-cutting aspect, it might involve staff reductions in both WWE and the UFC, although specifics are currently unavailable.
The potential effects on fighter pay and contractual terms, as well as the revenue share with fighters, remain uncertain.
Endeavor CEO Ari Emanuel, in a statement to the media, expressed confidence in the future growth of both companies:
“Given their ongoing connection to the Endeavor network, we believe we can accelerate their growth and create lasting value for shareholders. With UFC and WWE together, we will offer unparalleled experiences to over a billion passionate fans worldwide.” [Source: Variety]
Under the umbrella of the newly merged entity, the UFC and WWE individually generated $1.14 billion and $1.29 billion in revenue, respectively, in 2022. The net income reached $351.8 million. Endeavor expects that the merger will benefit from its expertise in various areas, including ticket sales, yield optimization, event operations, and hospitality, and achieve greater growth milestones.
Now, let’s take a look at the executive structure of TKO Group:
Dana White, who played a pivotal role in building the UFC over the past couple of decades, will now serve as the UFC’s CEO. Lawrence Epstein will assume the position of COO and Senior Executive VP. Nick Khan will take on the role of WWE President. Former WWE CEO Vince McMahon will become the Chairman of TKO Group and will retain a 16.4% ownership stake in the company.
The merged entity will have an 11-member board of directors, which will include Ari Emanuel, Vince McMahon, Nick Khan, and other members.
