TKO Expects To Lose Money On UFC White House Fight

TKO Group Holdings, which formed from a merger between WWE and UFC in 2023, expects a major loss at an upcoming event. 

On TKO's Q4 earnings call (audio via Wrestlenomics), TKO President and COO Mark Shapiro noted the UFC event at the White House is slated to cost upwards of 60 million dollars, with TKO anticipating a loss of about $30 million in return. Still, Shapiro isn't too worried as TKO views it as part of a grander, more successful plan.

"By the time all is said and done with the event, what we play the fighters and the fan fest we're gonna have, that could move north," Shapiro said in reference to the event's cost. "It's definitely not moving south; it could move north. Bottom line is, it's still a moving target. We are working to determine, on a parallel track, a package of inventory, in and around the weekend of events, that we can monetize primarily with corporate partners, [business-to-business] players, which will offset half of the spend. Even if that $60 [million] goes up or rides up on us, we believe we can offset half of the spend. Today, we see it as $60 [million] offsetting $30 [million]"

According to Shapiro, the UFC's White House event, which is set for June 14 on the South Lawn, is considered a long-term investment for TKO as it provides a sample of new fans and casual viewers that will ultimately aid the company in expanding its overall viewership and success on the Paramount+ platform. As of this writing, no fights have been officially announced for the show.