UFC’s Saudi challenge may be less than a body blow

Endeavor group

22/09/2023 10:29

(The authors are Reuters Breakingviews columnists.  The
opinions expressed are their own.)
    By Karen Kwok and Streisand  Neto
       LONDON, Sept 22 (Reuters Breakingviews) - After its WWE
merger, the mixed martial arts promoter’s $15 bln parent TKO
faces a smack from Saudi-backed PFL. But the latter is targeted
more at non-US fans, a lesser market for UFC. Saudi may also
struggle to scale up enough to deliver the knockout blow it
managed with golf.
    Full view will be published shortly.
    Follow @karenkkwok and @NetoStreisand on X
  
    
    CONTEXT NEWS
    WWE struck a new five-year partnership deal with Comcast’s
NBCUniversal for rights to air its show “Friday Night
SmackDown”, the companies said on Sept. 21.
    The deal comes out to an average of $287 million per year, a
total value of over $1.4 billion, CNBC reported citing people
familiar with the matter. The new agreement is a 40% increase
from a five-year deal with Fox struck in October 2019 for $205
million per year.
    Shares in TKO Group, the combination of World Wrestling
Entertainment and Ultimate Fighting Championship, began trading
on the New York Stock Exchange on Sept. 12. They closed down
14.8% at $86 on Sept. 21.
    SRJ Sports Investments, a company owned by Saudi Arabia’s
Public Investment Fund, has acquired a minority equity ownership
stake in the Professional Fighters League, the companies said on
Aug. 30. The investment is worth more than $100 million,
Sportico reported citing sources. On the day shares in Endeavor,
which owns 51% of TKO, fell 9.3%.
    SRJ will also become an investor in a new regional league,
PFL MENA, due to launch in 2024, as well as supporting PFL’s
expansion in Saudi Arabia and the wider MENA region.
Additionally, SRJ and PFL will develop and host the PFL PPV
Super Fights mega-events in Saudi Arabia.

 (Editing by George Hay and Oliver Taslic)
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