UFC’s Revenue Hits Record Highs Following Merger

The UFC has reported strong finances for the first half of 2023, with total revenues of $611.9 million, a 16% increase year over year. Media rights covered most of that, with a $50 million YoY increase to $438.5 million. Live event revenue soared 57% to $63.7 million, sponsorship revenue increased 12%, and consumer product licensing revenue went up 9%. However, fighter pay was down $32.8 million for the year despite the spike in both revenue and profits, which underscores an industry-wide problem in combat sports and mixed martial arts where revenue isn’t shared equitably.

UFC finances from the TKO S-1 filing today: pic.twitter.com/htop7Mcf4e

— John S. Nash (@heynottheface) September 15, 2023

The UFC’s full 2022 fiscal year reported record revenue of $1.14 billion, up from $1.03 billion for 2021, with total operating expenses decreasing by $45 million to $595.7 million. Net income increased from $272.3 million to $387.2 million, a 34% increase that will be even higher if UFC’s fiscal trends extend to the second half of the year. However, fighter pay was down $32.8 million for the year despite the spike in both revenue and profits.

Endeavor, the parent company of the UFC, recorded a revenue total of $1.6 billion for the fiscal first quarter of 2023, with its owned sports properties. The UFC’s valuation has almost tripled from $4.1 billion in 2016 to $12.1 billion in 2022. The UFC and WWE merged in a $21 billion deal, forming a new, publicly listed company that will be 51% owned by Endeavor and 49% by existing WWE shareholders. Together, UFC and WWE achieved revenue of $2.4 billion on a combined 2022 fiscal year-end basis, with a 10% annual revenue growth rate since 2019.

The UFC’s strong finances for the first half of 2023 are a positive sign for the company, but the issue of fighter pay remains a concern. The UFC’s revenue has been increasing, but fighter pay has not been increasing at the same rate. This underscores an industry-wide problem in combat sports and mixed martial arts where revenue isn’t shared equitably. The UFC and other organizations need to address this issue to ensure that fighters are fairly compensated for their work.