ONE Championship, one of Asia’s largest sports media properties, has recently come under scrutiny for its reported revenue figures. The company claimed to have made significant revenue gains, with a reported revenue of around $80 million for 2022. However, it has been revealed that the actual revenue for 2022 was likely only around $5-8 million.
Despite losing hundreds of millions, ONE is always on the verge of profitability within 1-2 years, every year. Amazing! https://t.co/2cB2XlaoB5 pic.twitter.com/AtiQIrTozF
— Anton Tabuena (@antontabuena) November 20, 2023
In 2021, ONE Championship suffered losses of $111 million, while its revenue reached $67.7 million, up 19% year-over-year. The company’s financial documents indicated that broadcasting revenue contributed more than $50.1 million to the total, with more than 97% of its total revenue consisting of the transfer of goods or services ‘over time’.
Despite these losses, ONE Championship has expressed confidence in its future profitability. The company expects to turn a profit within the next three years, with its chief financial officer, Chatri Sityodtong, stating that the business model is “inherently profitable” and that “revenue will grow very quickly” once it has strong brand recognition and content to attract viewers in overseas markets
The discrepancy between the reported and actual revenue figures has raised concerns about the transparency and accuracy of ONE Championship’s financial reporting. This has led to questions about the company’s financial health and its ability to achieve profitability in the near future.
The situation has also prompted discussions about the potential impact on investors and stakeholders. With ONE Championship seeking another round of funding from Qatar investors, the accuracy of its financial reporting becomes crucial for potential investors evaluating the company’s financial performance and prospects.
This all comes out after it’s been reported that the UFC, which is considered to be the biggest organization in all of MMA, is reported to be making record numbers in revenue by the end of 2023. Making it the most profitable year in the history of the UFC. However, the UFC is having to deal with an anti-trust lawsuit from former and current UFC fighters who are suing for damages stemming from the UFC building a monopoly to pay unfair wages between 2011 and 2016.
The world of mixed martial arts is still growing and becoming more mainstream which in turn has put these organizations under scrutiny when it comes to their financials, fighter pay, and incentives. It remains to be what will happen but 2024 will sure be an interesting year.
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