TKO Group Holdings is close to finalizing a deal with Saudi Arabia to create a new boxing league starting in 2025. The league will be managed with no financial risk for TKO, which aims to leverage its leadership and expertise in the sport while focusing on its core UFC and WWE businesses. Plans include hosting significant boxing events within this framework, addressing the sport’s fragmented state in the U.S.
TKO Group Holdings, owners of UFC, are approaching an agreement to establish a new boxing league set to launch in 2025. During a financial call, TKO’s COO Mark Shapiro confirmed ongoing negotiations with Saudi Arabian entities to secure funding for the initiative. This venture, which won’t require additional capital from TKO, will position them as the league’s producer and promoter, with a guaranteed fee structure.
Shapiro detailed that the agreement would ensure TKO manages all daily operations for the boxing league, earning a base fee of $10 million, and potential equity could be earned based on performance metrics over the next five years. With talks presently intensifying, Shapiro highlighted a recent meeting with Saudi representatives in London, indicating significant progress.
The deal would allow TKO to run the boxing league without financial risk during its inception, maximizing its operational expertise without fiscal exposure. TKO also plans to host several large-scale boxing events in the coming years as part of this agreement, further expanding its footprint in combat sports.
Notably, Shapiro emphasized Saudi Arabia’s influence on boxing, stating that their funding has facilitated high-profile matches previously considered unfeasible. He believes that TKO’s leadership could effectively enhance boxing’s visibility and management in the U.S., addressing long-standing fragmentation within the sport.
Recognizing the global and American interest in boxing, Shapiro cited the incredible viewership for recent boxing events as evidence of the sport’s viability. He stated, “There’s an audience for boxing and there’s a dearth of boxing on the national platform.”
While delving into boxing, TKO remains committed to their primary revenue drivers, UFC and WWE. Shapiro reassured stakeholders of their continued focus on these platforms while remaining selective in exploring additional ventures to ensure they contribute positively to shareholder value.
Addressing previous comments about the Ali Act, a law aimed at protecting boxers’ rights, Shapiro acknowledged the Act’s shortcomings but clarified TKO’s intention to refrain from lobbying for legislative changes. Instead, the focus is on creating opportunities for boxers and advancing the sport without direct interference in legal frameworks.
TKO Group Holdings is nearing a deal to launch a new boxing league in partnership with Saudi Arabia, set for 2025. TKO will oversee operations without financial risk while enhancing boxing’s presence in the sports market. The leadership’s expertise could rejuvenate boxing in the U.S. amidst ongoing critiques of existing regulations like the Ali Act, highlighting a commitment to prioritize core business interests while exploring selected opportunities for growth.
Original Source: www.mmafighting.com
