The New York Times reports that TKO and the Public Investment Fund of Saudi Arabia are close to creating a boxing league.
Per quotes from the SBJ article it would feature “up-and-coming boxers tied exclusively to the league.” The investment would be made by “Sela,” a subsidiary of the PIF, while TKO “would be a managing partner.” TKO would receive an equity stake and a share of the revenue as part of the deal.
The report indicates TKO “will earn management fees of close to” $30M per year with the Kingdom paying “significantly more in hosting fees to the league than any other country.”
The deal would mean that TKO would get a partnership with the biggest sports investor in the world. The Kingdom of Saudi Arabia is using sports and entertainment as a major pillar of strategy to pivot their economy away from its reliance on oil exports and as a way to “liberalize” society. But, critics have described the efforts as sportwashing.
Payout Perspective:
The deal would loom large for the future of boxing and what it would mean to promoters that have retained key boxing talent. The PIF has tried to consolidate boxing by forging deals with Golden Boy and Top Rank. Many fights emanate from the middle east and the UFC’s foray into Saudi Arabia continues. With its own media rights deal coming up, and that of Top Rank, we might see a bundle of rights for both MMA and boxing. This is an interesting power play that could tilt the power in boxing.
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