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Thread: UFC lawsuits and scandals

  1. #16
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    awkward

    Some U.F.C. Fighters Have Ties to a Chechen Leader Loyal to Putin
    Ramzan Kadyrov, the leader of Chechnya, is facing U.S. sanctions and accused of brutal abuses. Yet some fighters and others who work with the U.F.C. have kept ties with him.


    Ramzan Kadyrov, the leader of the Russian republic of Chechnya, speaking to about 10,000 troops in the regional capital of Grozny.Credit...Associated Press
    By Karim Zidan and Kevin Draper
    April 15, 2022, 5:00 a.m. ET
    Sign up for the Russia-Ukraine War Briefing. Every evening, we'll send you a summary of the day's biggest news. Get it sent to your inbox.
    Khamzat Chimaev’s victory last weekend in a bruising fight served as a declaration in mixed martial arts: Chimaev, an undefeated welterweight, is quickly becoming the Ultimate Fighting Championship’s next superstar.

    Yet as his mystique has grown through exciting bouts and promotional spectacle, the same U.F.C. that builds fighters into pay-per-view headliners has sidestepped a problem for Chimaev and others in the sport: the relationships with Ramzan Kadyrov, the strongman leader of Chechnya whose personal businesses have been constrained by the U.S. government.

    Hours before his bout on Saturday, Chimaev, 27, posted a picture on his Instagram story that showed him chatting by video with Kadyrov, who has been accused of gruesome human rights abuses and is a close ally of President Vladimir V. Putin of Russia. Chimaev, who was born in Chechnya and moved to Sweden when he was 18, has long been lavished with praise and luxury by Kadyrov, who has hosted him at parties and once gave him a Mercedes-Benz.


    Khamzat Chimaev, upper right, posted a screenshot to Instagram of a videochat he had with Kadyrov.
    In 2017, the U.S. Treasury issued sanctions that blocked U.S. citizens and people present in the United States from doing business with Kadyrov. Several of his associates and some of his businesses were similarly punished in 2020. One of his most visible business pursuits, one that has intertwined repeatedly with the U.F.C. and other combat sports organizations, has been mixed martial arts, including his gym, Akhmat MMA.
    The measures against Kadyrov and Akhmat MMA are broad, designed to prohibit “any contribution or provision of funds, goods or services by, to or for the benefit of any blocked person or the receipt of any contribution or provision of funds, goods or services from any such person,” according to the Treasury’s Office of Foreign Assets Control.

    Chimaev’s picture on Saturday included a caption with the phrase “Akhmat Sila,” a battle cry popular among Kadyrov loyalists that translates to “Akhmat Power.” Akhmat is a variation of the name of Kadyrov’s father, which Kadyrov uses in numerous ways in Chechnya to brand businesses, streets and other things.

    Chimaev’s manager and agent did not respond to messages requesting comment.

    Kadyrov has many ties to combat sports athletes.

    Numerous athletes and others in the world of mixed martial arts have ties to Kadyrov, who has supplied Chechen soldiers to support the Russian forces fighting in Ukraine. He has been one of the most fervent supporters of the war and has pushed for taking control of Kyiv, Ukraine’s capital. In one of his recent addresses, Kadyrov said that Chechen soldiers would first “liberate” Donetsk and Luhansk, “and then we will take Kyiv next.”

    Before the war, he was accused of brutal human rights abuses, including kidnapping, torturing and killing L.G.B.T.Q. people in Chechnya.

    Athletes training with his Akhmat MMA gym have fought regularly in U.F.C. bouts for years. American fighters have traveled to Chechnya, visiting Kadyrov and interacting with his athletes. Some American fighters have even fought in Kadyrov’s fighting league, Absolute Championship Akhmat.


    An Absolute Championship Akhmat mixed martial arts tournament in 2020 in Moscow.Credit... Natalya Kazhan/Kommersant/Sipa USA
    And after the U.S. Treasury’s guidance and Russia’s invasion of Ukraine, little changed, although Kadyrov’s most visible displays with fighting celebrities have slowed.

    “There are a number of people involved in an M.M.A. fight, any of whom could be in violation if they are providing or receiving goods, services or funds from Akhmat,” said Shahroo Yazdani, a lawyer at Price Benowitz who specializes in sanctions cases.

    In a statement to The New York Times, the U.F.C. said it had “no contractual relationship or any commercial dealings with Ramzan Kadyrov or any of his family, associates or affiliated companies that have been designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control.”

    The U.F.C. said that its fighters were independent contractors and that it entered into contracts with them directly, without intermediaries. The organization also said it had no affiliation with Akhmat MMA and that it was in compliance with all laws and regulations. (The Times first asked the U.F.C., which is owned by the sports and entertainment conglomerate Endeavor, about Kadyrov in 2021. The U.F.C. reiterated its written statement when asked about him after Russia invaded Ukraine and again this week after Chimaev’s fight.)

    Details are often murky about how mixed martial arts fighters are paid, since their contracts with organizations like the U.F.C. are usually private. In general, fighters are responsible for arranging their own training and promotion through agents, managers and coaches. The sanctions put pressure on these arrangements while raising wider questions about how they are applied, especially to people who are not American citizens and who often fight outside the United States.
    “Treasury is aware of Kadyrov’s ongoing interest in M.M.A. and will continue to take action as appropriate,” a spokeswoman for the Treasury Department said in a statement.

    The U.F.C. has long cultivated a brash, rebellious image, embracing the brutality of combat sports, pushing the boundaries of propriety and the law and eschewing much of the button-down visage displayed by other major sports leagues.

    Since Russia’s invasion, major sports leagues worldwide have distanced themselves from Russian owners, teams and athletes, while the U.F.C. has maintained its broadcast partnership with a Russian state-controlled media company and prominently featured Russian athletes in its events.

    But the ties to Kadyrov in mixed martial arts are different from what other sports have had to confront.

    Chimaev was once represented by Ali Abdelaziz, a manager. He is one of the most powerful figures in mixed martial arts and has had numerous ties to fighters who have trained or appeared at Akhmat MMA. Abdelaziz, 44, a U.S. resident who was born in Egypt, represents four of the five fighters affiliated with Akhmat MMA on the U.F.C. roster. At least seven other fighters managed by Abdelaziz, including the current U.F.C. welterweight champion, Kamaru Usman, have visited Kadyrov’s M.M.A. gym in Russia.

    Abdelaziz did not respond to messages seeking comment, but he has said in the past that he doubts that Kadyrov committed human rights violations, stating that he “doesn’t believe anything the media says.”

    Kadyrov has called Chimaev his favorite fighter and once boasted that he persuaded Chimaev not to retire after a serious case of Covid-19. Last year, Chimaev was present when Kadyrov issued a death threat to a 15-year-old Chechen teenager who had spoken out against his regime.
    “You won’t sleep at night. You’ll be writing your will,” Kadyrov said during a live Instagram stream aimed at the teenage dissident. “I will destroy you.”
    continued next post
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  2. #17
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    continued from previous post

    ‘I want to say hello to my country.’


    Chimaev after his unanimous decision victory over Gilbert Burns at U.F.C. 273.Credit...James Gilbert/Getty Images
    After his victory against Gilbert Burns on Saturday in a bout that many observers praised as the best U.F.C. fight so far in 2022, Chimaev grabbed a microphone from the commentator Joe Rogan after an interview and said, “I want to say hello to my country.” He then spoke in Chechen.

    “Brother, I know you’re watching from home,” Chimaev said. “I said that today I would finish quickly, but today it did not work out. Thank you, brother. God bless you. I know you’re watching this fight. Thanks to all Chechens. God bless you.”

    It is not explicitly clear whom Chimaev was referring to. Chechens, including Kadyrov, often use the word “brother” as a term of respect for people who are not their direct siblings. Chimaev also has an older brother, Artur.

    The Chechen word is “vasha.” Kadyrov has addressed Chimaev with it, and Chimaev addressed Kadyrov directly with it after the fight in a comment on Instagram. “Thank you brother. God bless you. Akhmat is power. Chief Champion,” Chimaev said.
    Whomever Chimaev was referring to during the U.F.C. broadcast, the fight and the in-ring interview were not seen by mixed martial arts fans in Poland. Polsat, which showed the rest of the U.F.C. 273 card, declined to broadcast the fight between Chimaev and Burns because of Chimaev’s post showing his video chat with Kadyrov.

    “This is a clear signal of mutual support, and with Ukraine under attack from Russia, the post is simply provocative,” Polsat said in a statement.

    The Treasury sanctions have created confusion in the M.M.A. world.

    The Treasury Department does not make public the vast majority of enforcement actions it takes, but Jamal El-Hindi, a lawyer at Clifford Chance who spent two decades at the Treasury Department, said the sanctions against Kadyrov and his businesses were far-reaching. They prohibit U.S. citizens and green card holders, as well as anybody on U.S. soil, from interacting with Kadyrov and his businesses.

    El-Hindi and other lawyers said sanctions and their enforcement were broad, flexible and opaque precisely because they were designed to be primarily a foreign policy tool.

    “The purpose of sanctions is to affect foreign policy and have impact,” El-Hindi said. “To the extent that an enforcement action against somebody who violated sanctions will aid in the foreign policy goal, that is the driver for doing the enforcement.”

    Before the latest restrictions, in December 2020, dozens of U.F.C. fighters and combat sports celebrities visited Akhmat MMA facilities and attended fights alongside Kadyrov at his invitation. His previous guests included celebrities like the actor Steven Seagal and the boxer Floyd Mayweather Jr., and former U.F.C. champions like Frank Mir and Khabib Nurmagomedov.

    Over the past 15 months, however, there has been a slow, sporadic retreating of Akhmat MMA from the combat sports world in the United States. Fewer fighters have been publicly photographed at Akhmat gyms. YouTube pulled down Akhmat MMA’s page last year, saying it had done so because of “compliance actions.” Meta, the parent company of Facebook and Instagram, suspended Akhmat MMA’s Facebook and Instagram pages after The Times inquired about them in March.


    “Thank you brother. God bless you. Akhmat is power. Chief Champion,” Chimaev said in an Instagram comment.Credit...Instagram
    One of the notable exceptions is Usman, who was shown in an Instagram video alongside Kadyrov’s teenage son at the boy’s birthday party in November 2021 — nearly a year after the Treasury Department cracked down on Kadyrov’s fight club. During a previous visit to Akhmat MMA, in November 2020, Usman sparred with the boy and took a picture wearing a sweater with the gym’s slogan, “Akhmat Sila.”

    Usman did not respond to a message seeking comment sent to his manager, Abdelaziz.

    The lack of clarity over the interpretation and enforcement of the Treasury rules has led to confusion in the mixed martial arts world.

    Brett Cooper, an American journeyman mixed martial artist who is scheduled to fight in the Professional Fighters League in May, learned about the December 2020 sanctions against Absolute Championship Akhmat when he landed in Russia days before a scheduled fight that month. After his manager spoke to a lawyer, Cooper pulled out because he believed he could be prosecuted for receiving money from an organization owned by Kadyrov.

    But Cooper now says he believes he got bad advice and should have fought. “I was cutting weight and probably didn’t make the most clearheaded decision,” he wrote in an email. “In hindsight I should have just competed anyway.”

    According to Mansur Sadulaev, the founder of Vayfond, a Chechen human rights organization in Sweden, Kadyrov becomes close to athletes by showering them with luxury cars and homes, then uses them for propaganda.

    Kadyrov has long used sports, particularly his combat sports businesses, to rub shoulders with fighters and present himself as a benevolent, sports-loving leader rather than an autocrat with a long record of human rights abuses.
    “All these athletes are direct accomplices of Kadyrov’s cruel crimes,” Sadulaev said in an email.

    Kadyrov’s ownership of Akhmat MMA allows him to go far beyond merely associating with athletes. He uses it to express Chechen machismo and has directly tied mixed martial arts to his military forces. Some fighters who train at Akhmat MMA also moonlight as soldiers, blurring lines between athleticism and militarism.

    Mohsen Zarkesh, a lawyer who specializes in Treasury sanctions, said the circumstances “are definitely problematic, not just for the U.F.C. but also the entire M.M.A. world.”

    Kasia Pilat contributed reporting.
    Kevin Draper is a sports business reporter, covering the leagues, owners, unions, stadiums and media companies behind the games. Prior to joining The Times, he was an editor at Deadspin. @kevinmdraper
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  3. #18
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    UFC fighter’s Chinese flag snatched away during in-ring victory celebration in controversial move

    Bryan Ke
    2 days ago

    An Ultimate Fighting Championship (UFC) employee reportedly snatched a Chinese flag that was draped over Li Jingliang’s shoulder as he paraded inside the Octagon after his win against Russian fighter Muslim Salikhov at UFC Long Island on Saturday.

    The 34-year-old Chinese mixed martial artist tried to protest and reclaim the flag after it was taken away by the official, but failed.

    Many on social media were outraged by the new UFC policy, which was enacted in May just days after Russia’s invasion of Ukraine.

    “It’s a dumb policy when they are putting the fighter’s flag next to their names during fight walkouts and introductions,” one Twitter user wrote.

    “Stupid rule for no flags,” another user commented. “Just because he’s from China doesn’t mean he agrees with their government, political decisions etc. Let the man represent his upbringing and homeland where he made it out of, in order to become an MMA star in the biggest organization in the world.”

    An Ultimate Fighting Championship (UFC) official reportedly snatched a Chinese flag that was draped over Li Jingliang’s shoulder as he was celebrating his TKO win over Russian fighter Muslim Salikhov last weekend.

    Li, also known as “The Leech,” was parading around the Octagon after defeating Salikhov with a second-round TKO in UFC Long Island on Saturday when a UFC employee was suddenly spotted approaching the 34-year-old MMA fighter and ripping away his country’s flag.

    The Chinese fighter’s efforts to reclaim his country’s flag failed, sparking outrage on Twitter, with one user pointing out the inconsistency of the new UFC policy.

    “It’s a dumb policy when they are putting the fighter’s flag next to their names during fight walkouts and introductions,” the Twitter user wrote.

    “Stupid rule for no flags,” another user commented. “Just because he’s from China doesn’t mean he agrees with their government, political decisions etc. Let the man represent his upbringing and homeland where he made it out of, in order to become an MMA star in the biggest organization in the world.”

    Speaking to reporters before the fight via an interpreter, the Chinese mixed martial artist said Salikhov is a big name in China after the Russian mixed martial artist defeated several Chinese fighters.

    “He basically owns all the Sanda awards, especially the 2008 Sanda exhibition fight,” Li continued. “So the media has been broadcasting our fight in China because it’s very big in China, me vs. Muslim.”



    It is unclear why the UFC banned its fighters from parading their flags after their matches in May. In a UFC 274 post-match press conference, UFC President Dana White briefly responded to reporters regarding the policy, stating: “You guys know why. Let’s not even play that f*cking game.”

    The new UFC policy came just days after Russia’s invasion of Ukraine on Feb. 24.

    Li’s recent win came months after a disappointing loss to Swedish fighter Khamzat Chimaev in October 2021. Before his victory against Salikhov, Li was ranked No. 14 in the official UFC welterweight rankings. Saturday’s performance could reportedly help Li bounce back from his last defeat.



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  4. #19
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    Ufc+wwe

    This is slightly OT for UFC-lawsuits-and-scandals. It's spot on for Professional-Wrestling

    Endeavor’s UFC, WWE to Merge; Ari Emanuel to Serve as CEO, Vince McMahon as Executive Chair
    “This is a once-in-a-lifetime opportunity to bring together two leading pureplay sports and entertainment companies," says Endeavor CEO Ari Emanuel of the new “$21 billion-plus" juggernaut.

    BY GEORG SZALAI, ETAN VLESSING
    APRIL 3, 2023 3:58AM

    COURTESY OF WWE

    Endeavor Group Holdings and sports entertainment powerhouse WWE made things official on Monday, unveiling a definitive agreement to form a new, publicly listed company consisting of two “iconic, complementary” global sports and entertainment brands: UFC and WWE. Endeavor will hold a 51 percent controlling interest in the new company, with existing WWE shareholders owning a 49 percent interest.

    The new company will be led by Endeavor CEO Ari Emanuel as CEO, who will also continue in the same role at the remaining Endeavor business, which includes talent agency WME and the likes of IMG. WWE executive chairman and majority shareholder Vince McMahon will serve as executive chairman of the newly created firm, while Mark Shapiro will be president and chief operating officer of both Endeavor and the new company. Dana White will continue in his role as president of UFC, with WWE CEO Nick Khan holding the same president title as White but at WWE. The board of directors of the new firm will consist of 11 members who will be appointed at a later date, with six to be named by Endeavor and five designated by WWE.

    Since going public in 2021, Endeavor has looked to build out its sporting events business, mostly through UFC and to a lesser degree via PBR.

    The deal is expected to close in the second half of the year. “Together, UFC and WWE will have global reach, impressive scale and omnichannel distribution,” the companies said. “On a combined 2022 fiscal year-end basis, UFC and WWE achieved revenue of $2.4 billion and a 10 percent annual revenue growth rate since 2019.”

    “We see significant operating synergies throughout the ecosystem,” Endeavor CFO Jason Lublin told an investors presentation that was webcast on Monday morning. He pointed to a combined $1 billion cost base, excluding direct operating expenditures, “half of which we believe are addressable.”

    Endeavor, which also owns WME-IMG, saw its top execs keen to argue purchasing the UFC in 2016 for $4 billion as part of an aggressive push into content ownership had paid off well and investors could expect the same as WWE was now absorbed into the mix.

    Lublin predicted the UFC and WWE merger will secure $50 million to $100 million in annual operating synergies, in part by following the earlier acquisition model for UFC which delivered $70 million in cost synergies and similarly integrating WWE into Endeavor’s global infrastructure.

    Endeavor also expects significant growth across a host of revenue areas, including from domestic and international media rights for UFC and WWE that are up for renewal just as streaming platforms increasingly show interest in sport rights.

    Most of the WWE revenue still comes from media rights, and UFC’s exclusive media rights deal with ESPN was signed in 2019 and will be renegotiated in two years time. “The UFC and WWE both have valuable media rights through our world class IP. We have a track record of success in media rights opportunities and we have upcoming media rights renewals at both companies on the horizon,” Endeavor president Mark Shapiro told the investors presentation.

    Ahead of those media rights renewal talks, Endeavor will create more content for UFC and WWE, increase the number of live events, bolster sponsorship licensing. “We also are exploring unique direct-to-consumer, go-to market possibilities,” Shapiro said.

    The newly combined UFC and WWE entity is also expected to grow its profitability by increasing sponsorship licensing and premium hospitality revenues by leveraging Endeavor’s sports and media infrastructure, which includes the WME talent agency.

    The new publicly traded company’s ticker symbol will be TKO, which is short for “technical knockout” in combat sports.

    “This is a once-in-a-lifetime opportunity to bring together two leading pureplay sports and entertainment companies that operate in the most attractive parts of the media ecosystem,” Emanuel said during the investor presentation. He pointed to Vince McMahon and his team’s track record of innovation and shareholder value creation, as Endeavor had represented WWE for 23 years.

    “We know this business and are confident in what Endeavor can deliver to unlock even more growth and profitability. This transaction is a natural evolution of the strategy we’ve been refining and successfully executing for the past decade, a rare and compelling opportunity to grow our global business,” he added about bringing UFC and WWE together.

    Added McMahon in a statement that accompanied the announcement of the transaction: “Given the incredible work that Ari and Endeavor have done to grow the UFC brand — nearly doubling its revenue over the past seven years — and the immense success we’ve already had in partnering with their team on a number of ventures, I believe that this is without a doubt the best outcome for our shareholders and other stakeholders.”

    He also highlighted: “Together, we will be a $21-plus billion live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity. The new company will be well-positioned to maximize the value of our combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster our strong stable of brands.”

    McMahon returned to the sports entertainment company early this year, with WWE unveiling that it would explore a sale. In June of 2022, he had “retired”voluntarily stepped back” from the firm amid a misconduct investigation by its board. The probe focused on allegations that McMahon had sexual relationships with employees at the company and subsequently paid the women millions of dollars in severance packages, along with non-disclosure agreements. The company said in November that the investigation had concluded.

    The price tags underlying the UFC-WWE deal will also draw investor attention. It puts an enterprise value of $12.1 billion on UFC and $9.3 billion on WWE, thereby getting into the “$21 billion-plus” territory. The transaction also puts a price of approximately $106 per share on WWE, before any post-closing dividend.

    UFC and WWE will each contribute cash to the new company so that it holds approximately $150 million. Both sports and entertainment companies will then distribute the remaining cash on their balance sheets to Endeavor and WWE’s existing shareholders, respectively.

    The transaction has been unanimously approved by both companies’ boards of directors. The deal is still subject to the satisfaction of customary closing conditions, including regulatory approvals.

    Endeavor shares were unchanged in pre-market activity as of 8 a.m. ET, while WWE’s stock was down 6 percent.
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  5. #20
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    Class action

    Martial arts fighters' wage lawsuit against UFC can proceed as class action
    By Mike Scarcella
    August 9, 20231:25 PM PDTUpdated 7 days ago


    Christopher Hanewinckel-USA TODAY Sports Acquire Licensing Rights

    Summary
    Law Firms
    Antitrust lawsuit seeks up to $1.6 billion in damages
    Class consists of more than 1,200 current and former UFC fighters

    Aug 9 (Reuters) - A U.S. judge in Nevada on Wednesday said a group of martial arts fighters suing the Ultimate Fighting Championship for alleged suppression of their wages can move forward as a class action seeking damages estimated at between $811 million and $1.6 billion.

    U.S. District Judge Richard Boulware's decision grants class-action status to more than 1,200 fighters who competed in live professional UFC-promoted mixed martial arts bouts in the U.S. between December 2010 and June 2017.

    The plaintiffs contend Nevada-based Zuffa, which does business as the UFC, abused its market power to acquire or block rival promoters and used exclusive contracts to keep fighters within the UFC. The plaintiffs alleged the UFC suppressed fighters' bout compensation.

    "The UFC pays its fighters only 20% of its event revenues, when boxing and other major sports pay well above 50%," said Eric Cramer, chairman of Berger Montague, who is a lead attorney representing the class.

    UFC lawyer William Isaacson of Paul, Weiss, Rifkind, Wharton & Garrison said Zuffa planned to challenge the certification order in an appeal. The UFC has denied any antitrust violations.

    "This is just one step in a long legal process," said Isaacson, who called the lawsuit "legally and factually meritless."

    The UFC touted what it called "a healthy and competitive MMA market which benefits athletes, promoters, and fans alike."

    In his 80-page order, Boulware said the plaintiffs had established that "members of the Bout class suffered economic injury as a result of defendant's anti-competitive conduct."

    The court has not ruled on class certification in a separate lawsuit that involves fighters in bouts from mid-2017 to the present.

    Boulware's Wednesday ruling denied certification of a second class that would have been made up of every fighter whose identity the UFC used in licensing and promotional materials.

    The court set a status conference for Aug. 21. No trial date has been set.

    The case is Le v. Zuffa LLC, U.S. District Court for the District Of Nevada, No. 2:15-cv-01045.

    For the class: Eric Cramer of Berger Montague; Benjamin Brown of Cohen Milstein Sellers & Toll; and Joseph Saveri of Joseph Saveri Law Firm

    For Zuffa/UFC: William Isaacson of Paul, Weiss, Rifkind, Wharton & Garrison

    Reporting by Mike Scarcella; editing by Leigh Jones
    This looks like one to watch...
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  6. #21
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    TKO Group

    Again, this is slightly OT for UFC-lawsuits-and-scandals. It's spot on for Professional-Wrestling

    Endeavor Closes UFC, WWE Merger, Creating Powerhouse Firm TKO Group
    Georg Szalai and Alex Weprin
    Tue, September 12, 2023 at 6:00 AM PDT·5 min read



    Endeavor Group Holdings’ mixed martial arts promotion UFC and the sports entertainment powerhouse WWE are now officially a tag team, closing a mega-combination that they had unveiled in early April.

    “We’re ready to fire out of the gate,” says Mark Shapiro, Endeavor’s president and COO, who will hold the same title at the combined company, TKO Group. With the companies combined, Endeavor and its leadership team will “now have a much stronger and firmer seat at the table. But our first mission is to fully capitalize on this insatiable demand for premium content and live events.”

    The new, publicly listed company, whose stock will be trading on the New York Stock Exchange, consists of two “iconic, complementary” global sports and entertainment brands, UFC and WWE, and is officially called TKO Group Holdings. Its ticker symbol, TKO, is also a reference to the short version of the term “technical knockout” that is used in combat sports. Endeavor owns a 51 percent controlling interest in the new company, with existing WWE shareholders owning a 49 percent interest.

    Endeavor CEO Ari Emanuel will step into the ring as the CEO of TKO, while also keeping the same title at Endeavor, which includes talent agency WME and the likes of IMG. WWE executive chairman and majority shareholder Vince McMahon serves as executive chairman of the newly created firm. Mark Shapiro is president and COO of both Endeavor and TKO. Dana White will be CEO of UFC, with WWE CEO Nick Khan pinning down the new title of president of WWE.

    Shapiro tells The Hollywood Reporter the executives have traveled frequently between the UFC’s Las Vegas headquarters and the WWE’s new HQ in Stamford, Connecticut, “to communicate, ideate, collaborate. And I would say there’s very much a meeting of the minds on the opportunity that exists.”

    On a combined basis, UFC and WWE hit 2022 revenue of $2.4 billion and a 10 percent annual revenue growth rate since 2019, Endeavor had previously highlighted. Since going public in 2021, it has been building out its sporting events business, mostly through UFC and to a lesser degree via PBR. Endeavor acquired UFC in 2016 for $4 billion.

    The merger creating TKO will secure $50 million to $100 million in annual operating synergies, Endeavor has said, but some analysts have argued that could be conservative (“We think there’s potentially more once we get into real due diligence,” Shapiro says, noting the potential for production synergies like satellite trucks and camera equipment). The game plan is to follow the championship example set by the UFC takeover, which delivered $70 million in cost synergies within two years of Endeavor’s ownership. As such, it is expected that WWE will be integrated into Endeavor’s global infrastructure.

    Endeavor also expects growth in domestic and international media rights for UFC and WWE that are up for renewal just as streaming platforms increasingly show interest in sports rights. It also plans to create more content, increase the number of live events, boost premium hospitality revenue and bolster sponsorship licensing.

    “We will be wringing out cost synergies, but at the same time identifying those areas that are under-monetized or where revenue synergy significantly exists,” Shapiro says. “And that’s happening across our domestic and international media rights, our sponsorship and global partnerships, our product licensing, enhancing our live events, through ticket yield, venue fees and premium experiences, and then just overall expanding internationally, all of these businesses and doing it with a halo of the Endeavor flywheel, which cannot be underestimated the influence and impact that will bring.”

    As for the rights talks, Shapiro says conversations have already begun relating to WWE Raw and Smackdown rights, which are coming up for renewal with NBCUniversal and Fox next year.

    “We’re having very encouraging conversations with several players and platforms at the moment on WWE Raw and Smackdown,” Shapiro says. “We’re cautiously optimistic. We’re, in many ways, being valued as a unicorn because we’re year-round. WWE is a full-calendar sports and entertainment platform with significant engagement, strong reach and attractive demos. And that bodes well for these conversations, and I believe that we’ll have results that are in line with market expectations.”

    Outside the business prospects for the new behemoth, McMahon is one controversial part of the deal. The wrestling mogul returned to WWE early this year after having, in June 2022, “voluntarily stepped back” from the company amid a misconduct investigation by its board. The probe focused on allegations that McMahon had sexual relationships with employees at the company and subsequently paid the women millions of dollars in severance packages, along with nondisclosure agreements. The company said in November that the investigation had concluded.

    Wall Street analysts have focused on the business outlook, though, touting much potential for Endeavor’s new mixed martial arts and sports entertainment titan. “With the media industry increasingly fragmenting, there is clearly scarcity value for premium IP companies,” Bank of America analyst Jessica Reif Ehrlich wrote in an Aug. 28 report. “We believe TKO reflects an opportunity to own a quasi-sports league with robust year-round programming, and an attractive financial profile that offers sizable revenue/cost savings.”

    Reiterating her “buy” rating and $32 price target on Endeavor’s stock, she highlighted: “We continue to view Endeavor as a collection of highly compelling assets that each, individually, have exposure to favorable secular tailwinds within the media and entertainment industry. The announcement of share repurchases, the commencement of a dividend, continued de-levering as well as the recent IMG [Academy] sale and UFC/WWE deal are all strong signals that management is committed to driving shareholder value.”
    Gene Ching
    Publisher www.KungFuMagazine.com
    Author of Shaolin Trips
    Support our forum by getting your gear at MartialArtSmart

  7. #22
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    UFC v Bud Light

    UFC faces boycott calls after announcing tie-up with Bud Light reportedly worth $100M
    By Shannon Thaler
    Published Oct. 25, 2023, 10:03 a.m. ET

    UFC is facing calls for a boycott after the mixed martial arts league announced on Tuesday that it inked a major sponsorship deal with Bud Light.

    The tie-up with Anheuser-Busch’s beleaguered brew — which has been slammed with sharp sales declines since its fleeting, ill-fated campaign in April with transgender influencer Dylan Mulvaney — is reportedly worth more than $100 million, according to MMA Fighting.

    “UFC BOYCOTT IS ON,” one user shared to X following the announcement, which will see Bud Light’s logo on fighting rinks and in marketing materials as of January.

    “Time to double down on the #BoycottBudLight and now #BoycottUFC,” another posted, while yet another chimed in: “Dumb move.”

    “Bud Light [and] Anheuser-Busch are marketing MORONS, to try this,” another furious user posted of the six-year deal. “It’s like picking at a scab, it’s going to leave a scar.”

    Since Mulvaney’s fateful posts in April, Bud Light has been dethroned as the No. 1 beer in the US, losing its top spot to Modelo Especial, which experienced double-digit growth thanks to Bud Light’s demise.


    Six months after Bud Light tapped transgender influencer Dylan Mulvaney for a social media campaign, the beer — and all of the companies it affiliates itself with — is still facing calls for a boycott.
    Getty Images

    Anehuser-Busch has fought back with advertising dollars, with campaigns featuring NFL’s headline-making tight end Travis Kelce and big-time sponsorships. In response, critics on social media have demanded a boycott of companies Bud Light has affiliated itself with.

    “Should the UFC have signed a deal with Bud Light? imo [in my opinion]. No,” one user shared. “Will Bud Light recover? Unlikely.”

    “Go woke go broke!” an additional user wrote, echoing the sentiment that first circulated social media when Bud Light aligned itself with Mulvaney in an ill-fated attempt to move on its from “fratty” image, enraging Americans who claimed the beer pointlessly injected politics into its brand.

    Another user on X wondered how popular Spotify podcaster and MMA announcer Joe Rogan would respond to news of the partnership, as he’s publicly called Mulvaney “mentally ill” and an “attention *****,” though he defied the Bud Light boycott on an episode of “The Joe Rogan Experience” by cracking open a can of the brew amid the backlash.


    Mulvaney shared her controversial posts with Bud Light to her social media on April 1. The Anheuser-Busch-made beer has since lost its No. 1 best-selling spot to Mexican lager Modelo.
    Instagram


    Bud Light on Tuesday inked a six-year sponsorship deal with the UFC reportedly worth more than $100 million.
    Zuffa LLC via Getty Images
    “Can’t wait to hear how Joe Rogan tries to worm his way through this announcement. He supported the BL boycott, but is attached to UFC at the hip,” the X user shared.

    Rogan has yet to publicly comment on the partnership, which is a type of reunion for Bud Light and the UFC, which were engaged in a sponsorship deal before 2019.

    Modelo has served as the UFC’s primary beer sponsor for the past four years.

    Representatives for Bud Light and the UFC did not immediately respond to The Post’s request for comment.
    Maybe they should pick up White Claw...
    Gene Ching
    Publisher www.KungFuMagazine.com
    Author of Shaolin Trips
    Support our forum by getting your gear at MartialArtSmart

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