Variety reports that WME-IMG is receiving an investment of $1.1 billion via a Canadian pension fund and a Singaporean sovereign wealth fund. The deal, arranged by WME-IMG and Silver Lake Partners, will make it possible to buy out some minority partners in the UFC.
In a letter to investors, it stated that in addition to buying out some minority shares in the UFC, it will allow some of WME-IMG’s senior management and investors to cash out. The money will also be used to further acquisitions for the company.
Payout Perspective:
The report did not indicate which minority interests would be bought out or which senior management/investors would be cashing out. I would expect the influx of capital to be geared toward acquisitions and payouts rather than infrastructure for its existing properties (i.e., don’t look for the money to pay fighters or build out the company). The report stated that the money will relieve pressure on going public which will enable it to maintain control.
Leave a Reply