Will the UFC-WWE merger impact the individual fighters and businesses? Here are all the changes that are expected under TKO Group

The merger between the UFC’s parent company Endeavor and WWE has culminated in the formation of a new entity, TKO Group Holdings. The shares of this new entity will begin trading on the New York Stock Exchange on Tuesday, September 12, 2023, under the symbol TKO.

While TKO Group Holdings will bring a greater opportunity for both WWE and the UFC to grow and expand by joining forces, is it going to affect the fighters and both businesses individually? Let’s find out!

According to Endeavor, the annualized run-rate cost synergies of the TKO deal will be an estimated $50 million to $100 million. This will include migrating the WWE to Endeavor’s back-office infrastructure. The cost-cutting aspect of the merger will potentially include lay-offs in both WWE and the UFC. However, no information is available at the moment.

The impact, if at all, this merger will have on the fighter pay and other aspects of fighters’ contractual situation or the percentage of revenue shared with fighters is unknown.

In a prepared statement shared with the media, Endeavor CEO Ari Emanuel expressed his confidence in the growth of respective companies following the merger:

“Given their continued connectivity to the Endeavor network, we are confident in our ability to accelerate their respective growth and unlock long-term sustainable value for shareholders. With UFC and WWE under one roof, we will provide unrivaled experiences for more than a billion passionate fans worldwide.” [H/t Variety]

The UFC and WWE individually generated $1.14 billion and $1.29 billion respectively in revenue for 2022 under the newly merged entity's umbrella. The net income stood at $351.8 million. Endeavor believes that the merger will benefit from its expertise in areas like ticket sales, yield optimization, event operations, as well as hospitality and achieve greater milestones of growth.

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A glance at the TKO Group's executive structure

Dana White, the man who built the UFC with the help of others over the last couple of decades, will now be the CEO of the UFC. Lawrence Epstein will occupy the position of COO and senior executive VP. Meanwhile, Nick Khan will serve as the WWE president. Former WWE CEO Vince McMahon will be the chairman of TKO Group, and will own 16.4 per cent share in the company.

The merged entity will have an 11-member board of directors. Ari Emanuel, Vince McMahon, and Nick Khan will be on the board along with other members.