TKO Group Chief Operating Officer spoke at the J.P. Morgan’s Global Technology, Media & Communications conference in Boston on Tuesday in which he touted the value of WWE and UFC noting that live sports is the “antidote to churn.”
“Sports is truly the last unifying conversation we all have,” Shapiro proclaimed at the investor conference. As the consummate salesman he spoke about why WWE and UFC differ from traditional sport. He noted that the UFC (and WWE for that matter) is “year-round, global and don’t have an owner’s committee.” He added, “[w]e incentivize our fighters to be part of our team,” in a likely reference to UFC fighters.
He highlighted the fact that half of the TKO demo is, “[y]oung, diverse and open to sports gambling.” Shapiro also boasted about TKO’s young demo includes many that are under 18 (although it was clear that this segment should not be gambling).
There were several other takeaways from the talk. He touted Dana White as the best matchmaker and best promoter in the game. “He gives the fans the fights they want to see.”
Shapiro also spoke about TKO’s entry into boxing. He characterized boxing as “risk free” and stated that they will have 12 fights a year and in addition to that he inferred that they will have a “big card.” He noted that TKO will have an opportunity this fall with the Canelo-Crawford fight taking place at Allegiant Stadium in Las Vegas. White is in charge of the promotion of the fight which will be in September. The “risk free” comment refers to the partnership TKO has forged with Saudi Arabia to promote boxing. The company will handle the daily operations while Turki Alalshikh and the Saudi General Entertainment Authority will provide the investment.
While no real update was given on UFC media rights. Shapiro earmarked how it is well positioned to achieve a robust return for its rights. He indicated that there are no sports rights renewals up until 2028 except for WWE PLEs and UFC media rights. “Sitting in a unique spot,” stated Shapiro about the opportunity. Later during the conference, it was corrected (jokingly) by Liberty Media’s president and CEO Derek Chang that Formula One’s domestic rights are also up for grabs.
Shapiro’s sales pitch for TKO resonates with many fans who recognize the changes made by the company since taking over WWE and UFC. TKO has been much more aggressive in selling inventory for both companies. Notably, Wrestlemania was littered with partners and sponsors which were on the mat, introduced during the broadcast, integrated into the matches (Tiffany Stratton’s entrance as a barbie doll as Mattel being one of the company sponsors) and were direct sponsors of specific matches. The UFC has activated its sponsors including the unique deal with Monster Energy in which it can utilize third parties for space on the center of the Octagon mats.
The boxing endeavor (pun intended) should be interesting to watch not just from what’s going to be in the ring but the business ancillary to the event.
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