TKO Brass leaves the door open for $2.3 Billion Las Vegas Sphere despite Dana White’s disapproval
WWE/UFC parent TKO Group sees Q3 profits - says with Dana White's no-no, 'MSG' Sphere is done, but 'Sphere' Abu Dhabi could be it.
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Dana White and Co. can see profits despite TKO's Q1 pause on LV 'Sphere' (Source: X)
With third-quarter revenues soaring, Ari Emanuel’s TKO Group beat some Wall Street estimates today. However, the Street was not too happy with the 52% increase in windfalls. It sent the shares down more than 4% in after-hours trading. TKO Group Holdings continued its year-on-year growth with two major deals on the horizon, but there’s more to be made. Consequently, Noche UFC at Sphere is done, but ‘Sphere’ itself, isn’t. Despite Dana White’s no-no, brass is leaving the doors open on it.
Headlined by UFC 306 at the Sphere in Las Vegas, UFC’s quarter generated $354.9m. Down from $397.5m due to three fewer events. The Sphere also cost $20 million to produce, adding slightly to UFC’s expenses. But produced the venue’s and UFC’s highest-grossing event with a record $21,829,245+ gate output!
The year’s Noche pay-per-view (PPV) card was to be one-and-done due to a restrictive pause on lux venue billings. Dana White himself said so many times. However, on the company’s earnings call, TKO president and COO Mark Shapiro suggested Sphere Abu Dhabi.
Dana did say no more events at the Sphere in Vegas, but that doesn’t mean we can’t go to Abu Dhabi. So, I’m looking forward to pursuing that when that gets built, probably two decades from now.
Mark Shapiro during via the TKO Group Financial call
Revenues reflect an increase of $274.7 million from WWE — to $326.3 million. This was partially offset by a decrease of $42.6 million from UFC to the said $354.9 million. Dissecting revenue — an intense dip in media rights and content revenue was evident. But the UFC ‘Sphere’s stint, with funding from His Excellency Turki Alalshikh, was one for ages.
Mark Shapiro:
— Jed I. Goodman © (@jedigoodman) November 7, 2024
Dana did say no more events at the Sphere in Vegas, but that doesn't mean we can't go to Abu Dhabi. So, I'm looking forward to pursuing that when that gets built, probably two decades from now. pic.twitter.com/8fNRI7uGwF
The haptic media feedback and media package in itself was something to behold. With similar Saudi GEA funding and DCT Abu Dhabi influence, UFC grind can do it further. A second Sphere arena is to be built in the capital of the United Arab Emirates, Abu Dhabi. Yet another live sporting event under UFC didactics could be one for ages.
What’s next in 2025 for TKO and UFC?
The start of 2025 will bring some major growth drivers for TKO: the company’s global deal with Netflix for WWE will come into effect. Boosting media rights sales, seeking to complete its $3.25 billion all-stock deal to acquire IMG, On Location, and Professional Bull Riders. Alongside, UFC remains its hottest commodity in the face of the looming broadcast deal, as does White’s dreams.
GEA Chairman Turki Alalshikh/DCT Abu Dhabi notables funding pay-per-view (PPV) cards at venues might not be a regular thing. But with the upcoming broadcast rights expansion in mind, TKO is not saying no to Dana White’s boxing and venue dreams. Some of those dreams might see big funding in the future.
Dana White is a man with a complex cog in the nog. White turned one-time boxing promoter for The Money Fight: Mayweather Jr. vs. McGregor, 2017. He also recently telecasted the Dublin 3Arena #WalshRunowski fight night live on UFC Fight Pass. Some boxing ventures or TV-testing reality shows might just be in the books.
White may have plans to move into boxing in the same way as Power Slap. It counts TKO CEO Ari Emanuel as an investor — but the promotion is not directly linking to TKO Group Holdings. There was a venue pause with profit motive on roadshows and country-pandering. But TKO remains in a wait-and-see mood for minimum exposure/maximum rewards.
Sphere Abu Dhabi can also be a hot spot next. It will emulate the size of the original spot and will have similar haptic entertainment tech. While reluctant to MMA/UFC broadcasts at Sphere, White can broaden it or even start a boxing venture similar to his slap-fighting sanction league at the new Sphere.
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