By Jason Powell, ProWrestling.net Editor (@prowrestlingnet)
TKO executives hosted a conference call pertaining to the company’s first quarter financial report that was released on May 8, 2024 at TKOgrp.com. The following are the WWE related highlights of the call. Refresh the page for the latest updates.
-TKO Senior VP of Investor Relations Seth Zaslow read through the legalities and then turned things over to the hosts.
-The call was hosted by CEO, Ari Emanuel, President and COO Mark Shapiro, and CFO Andrew Schleimer.
-Emanuel opened things up with his prepared statement. He touted having in-ring advertising for the first time in WWE and the success of WrestleMania XL. In addition to pointing out the success of UFC events, Emanuel also spoke of the Royal Rumble setting an attendance record at Tropicana Field, and the string of sellouts that WWE had around WrestleMania XL. He said UFC will be bringing an event to Perth, Australia on the heels of WWE Elimination Chamber.
-Emanuel said WrestleMania XL streamed on Netflix in New Zealand and was the top viewed show on the streaming platform for four days despite no advertising ahead of time.
-Schleimer spoke about WrestleMania 41 being held in Las Vegas, Nevada. He said site fees continue to be a priority. He also mentioned NXT Battleground being held at the UFC Apex. Schleimer read through the highlights of the earnings report for UFC and WWE.
-They opened up the line for calls while noting that Emanuel would not be taking part in the Q&A session.
-The first caller as Shapiro about the NBA television rights rumors and what those massive rumored numbers mean for TKO. Shapiro said he left ESPN nearly 19 years ago. He said he’s been hearing since then that there’s a ceiling on sports rights. Shapiro said they had a lot of pushback on that when they did the Raw and Smackdown negotiations with Emanuel and Nick Khan. Shapiro pointed to other major sports rights deal. He said they feel good about things heading into their UFC rights negotiations. He compared UFC to the old days when the NFL was on Sunday and Monday and said they have the same level of scarcity.
-A caller was asked about TKO’s desire to expand outside UFC and WWE and whether they see a quantity of opportunities and whether there are other sports they feel they could grow organically. Shapiro spoke about how he and Emanuel have been interested in MotoGP for a long time. He said it lines up with WWE and UFC in terms of being nearly year-round. Shapiro said they don’t have a strong presence in the United States and that’s why they saw opportunity, but ultimately MotoGP opted to go with Liberty Media. Shapiro spoke about how premium sports are in high demand. He said they will be disciplined in whatever they chase. He said they must have long term growth opportunities with multiple levers of growth.
-The subject of TKO growing their relationship with Saudi Arabia was brought up by the caller, who asked how many events they could run there. Shapiro said they have a strong and healthy relationship with The Kingdom thanks to WWE doing two events there per year. He said those relationships were tied to Vince McMahon and people wondered if the deal could be in jeopardy. He credited Nick Khan with stepping in and said the relationship is strong. He said they currently plan to do two annual events in Saudi Arabia for now. Shapiro said Dana White was tentative and only wanted to commit to doing one event, but things have gone well enough that they already have plans to stage another UFC event there next year. He said the relationship is good across the board and said they have had good experiences and they intend to build on that if it continues as such.
-The next caller asked if they hope to keep their media rights exclusive or with multiple partners. Shapiro said they would see what happens when they get there. He said they have a three month window with UFC and Disney in mid-January. Shapiro said they are not looking to get away from them or reduce their commitment, but they have a window and will do what’s in the best interest of UFC going forward.
-The subject of sponsorship came up. Shapiro said they don’t get into specifics regarding the pricing, but he touted the success of WrestleMania and said NBC and Comcast were very happy with the results. He said WrestleMania continues to expand in every way and called it “the jewel of WWE” when it comes to sponsorship. Shapiro touted the Budweiser deal with UFC and said there is a possibility of expanding it into WWE. He said they are doing a better job of selling with NBC and ESPN and it will work to their advantage long term if their partners are happy.
-The caller questioned why they don’t bring more events on the road if they are in such high demand as opposed to running so many events at UFC Apex. Schleimer spoke of finding the right mix and said they haven’t found it yet, but they are looking at the numbers. Shapiro said if they err on one side, it will be on going on the road. He said UFC was built on going region to region while introducing a new sport to a global fanbase. He said they know it’s not the same to have a couple hundred fans at a fight at UFC Apex.
-The next caller asked about live events and whether they see the most growth in attendance or site fees. Shapiro said the quarter has been gangbusters for them and they want to maintain that. He said their business is brisk across the board. He said site fees are becoming the norm. He said when they take the show on the road, they will need subsidies and/or cash to bring events to your city. He said they are seeing the site fees increase in year two. He touted upcoming UFC events and said The Sphere is a one and done event and said it will be very expensive to produce. He also said UFC will be going back to Madison Square Garden in the fall. Shapiro also touted their strong relationship with Comcast and NBCU for them getting $25 million run Raw on USA Network in the fourth quarter. They wrapped up the call shortly thereafter.
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