TKO CFO: ‘UFC 2.0’ has playbook for success

Editor’s note: This article was written by Chris Smith and first appeared in Sports Business Journal, the industry’s leading source of sports business news, events and data.

The launch of TKO Group Holdings was the monumental merger of UFC and WWE, valued at a combined $21 billion. But Andrew Schleimer, who has transitioned from CFO of UFC to the same role with TKO, has instead focused on similarities to when Endeavor first acquired UFC for $4 billion seven years ago. The MMA promotion has tripled in value since then, and Shcleimer expects TKO, which he referred to as “UFC 2.0,” can now pursue a similar strategy.

“We have the playbook, and we benefit now from seven years of integration into Endeavor. So on the back office side, we’ve done this. And on the top line, we’ve done this before,” said Schleimer. “It’s very clear we have the ability to create more content. We have our live events, can expand sponsorship opportunities, expand licensing opportunities.”

Though TKO now exists outside Endeavor, the agency remains its largest shareholder with a 51% controlling interest. Schleimer insisted the new business will continue to benefit from the Endeavor “flywheel” of subsidiaries that can provide services for ticket sales, operations, licensing and more.

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In terms of financial operations, Schleimer highlighted how synergies between UFC and WWE, particularly as live event businesses, will lead to some natural revenue gains. “A meaningful area for growth for both UFC and WWE are site fees, and getting local municipalities or tourism boards to bring live events into certain markets,” he said. “Imagine a scenario where you can program an entire weekend, where you have a WWE live event on a Friday and a UFC live event on a Saturday, and that’s a package of content.”

Speculation over TKO’s media…