Who Owns The Ufc Company

Las Vegas-based UFC is an American mixed martial arts (MMA) promotion company. Businessman Art Davie and Brazilian martial artist Rorion Gracie founded the company. In 1993, the UFC held its first MMA event at the McNichols Sports Arena in Denver, Colorado. Lawmakers and the public criticized the violence displayed by UFC fighters. The 1997 backlash led to MMA’s ban in 36 US states. This event slowed down UFC’s growth. [1]

The UFC is the world’s largest MMA promotion firm. The brand produces events globally in 11 weight divisions, including heavyweight, light heavyweight, middleweight, welterweight, lightweight, featherweight, bantamweight, flyweight, and catchweight. Some women fighters engage in strawweight fights. All men’s and women’s categories abide by the Unified Rules of Mixed Martial Arts. In 2023, UFC’s lightweight division had the most fights with 77. As of Jan 2024, Islam Makhachev was the UFC lightweight champion. [2]

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The UFC makes most of its revenue from media rights, such as the ESPN promotion deal. This segment delivered $702.5 million from Jan to Sep 2023. The brand also earns from live events, sponsorships, and consumer products like t-shirts, vests, and mugs. In 2023, the UFC made over $1 billion in revenue within nine months, up from $868.4 million from the same period in 2022. [3]

UFC’s viewership has been increasing for 30 years. 2023 was UFC’s 30th anniversary and marked another successful year inside the UFC Octagon. In 2023, the UFC held 43 events with 520 fights in 21 cities from 8 countries across four continents. With 18,712 attendees, Rozenstruik vs. Almeida in Charlotte, North Carolina, set the highest attendance record for the UFC fight night of all time in the US. But who owns the UFC? [4]

Who is UFC’s Parent Company?

TKO Group Holdings, a global multi-billion-dollar subsidiary of the Endeavor Group Holdings, owns the UFC. Formerly WME-IMG, Endeavor is a leading event promoter and talent management firm founded in 1995 and based in Beverly Hills. In 2016, WME-IMG acquired the UFC for $4.025 billion. The new UFC owner was renamed Endeavor Group. In Jan 2024, Endeavor’s CFO, Jason Lublin, sold 20,832 Endeavor shares worth around $530,590. The sale valued the company’s market capitalization at $7.586 billion. [5]

Endeavor announced plans to merge the UFC and World Wrestling Entertainment (WWE) in Apr 2023. The company formed TKO Group Holdings to manage the UFC-WWE merger. In Sep 2023, Endeavor completed the consolidation of business resources and assets from the UFC and WWE brands under TKO. The move created a new $21.4-billion fighting sports and entertainment powerhouse listed on the NYSE. Endeavor holds a majority stake in TKO, UFC’s parent company. [6]

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Endeavor is a global entertainment, sports, and content company. It owns the UFC, the Miss Universe Organization, the Professional Bull Riders (PBR), and Hollywood talent agency WME. As an Endeavor subsidiary, TKO’s role is UFC-WWE integration to bolster its production efforts, distribution channels, and go-to-market strategies. [7]

Endeavor chose WWE founder Vince McMahon as the new TKO executive chairman and a member of the TKO board of directors. Ari Emanuel became the CEO, and Dana White retained his position as UFC President. In Jan 2024, McMahon resigned from his role after sexual misconduct allegations against him by a former employee. [8]

The UFC’s Ownership History

The UFC was initially owned by WOW Promotions, founded by Art Davie and Rorion Gracie. Davie drafted a business plan and raised funding from investors to start WOW. In Apr 1995, Davie and Gracie disbanded WOW and sold their interest in the franchise to SEG after UFC 5 in Charlotte, North Carolina. The company’s ownership changed hands again in January 2001 when Station Casinos’ executives Frank and Lorenzo Fertitta acquired the UFC for $2 million. The new owners created Zuffa, LLC as UFC’s parent company and appointed their business partner Dana White as the firm’s president. [9]

The UFC expanded its business under the Fertitta brothers, fueled by Dana White’s leadership. The brand added UFC Fight Pass, the UFC Performance Institute, and the UFC GYMs to its portfolio. In Jan 2005, the Fertitta brothers launched The Ultimate Fighter. This show was an instant success and catapulted the UFC into the mainstream media. [10]

Zuffa grew the UFC into a multi-billion-dollar company. In 2016, Zuffa sold the UFC to WME-IMG for $4 billion. WME-IMG rebranded to Endeavor after acquiring the UFC. In Apr 2023, Endeavor formed TKO Group Holdings and merged the UFC and WWE under the new company. TKO combines the UFC, with a $12.1 billion enterprise value, and WWE, worth $9.3 billion, to create a $21.4 billion sports entertainment powerhouse. [11]

Endeavor seeks to expand TKO’s offering to boost growth. In Oct 2023, the group started a formal review to identify strategic alternatives for the company. The group held talks with Boston Red Sox owner Fenway Sports for a PGA Tour investment opportunity in Sep 2023. [12]

UFC’s Ownership Structure

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The UFC had a few shareholders before Zuffa sold the brand to Endeavor in 2016. The Fertittas held 90% of UFC, while UFC President Dana White owned 10%. In 2009, Flash Entertainment subsidiary acquired a 10% stake in Zuffa for $175.7 million, reducing Dana White’s share to 9%. Flash Entertainment retained its 10% minority interest in the UFC. [13]

Endeavor holds a 51% controlling stake in TKO, UFC’s holding company. WWE shareholders and insiders like the McMahon family control the remaining 49%. In Sep 2023, Vince McMahon owned 16.4% of economic interest and 16.4% of voting rights in TKO. However, he sold a portion of his shares before resigning from the company. [14]

Vince McMahon was one of TKO’s top shareholders after the UFC-WWE merged. In Nov 2023, McMahon sold 8.4 million shares, or about a third of his interest, in TKO worth over $713 million. TKO plans to buy shares from McMahon valued at $100 million. TKO CEO Ari Emanuel and COO Mark Shapiro committed to acquiring stock for $1 million each. Other TKO directors agreed to buy shares worth $850,000. This development will shift UFC’s ownership structure. [15]

UFC’s ownership structure extends beyond TKO to include its parent company, Endeavor. Silver Lake Group is Endeavor’s largest institutional shareholder, with 30.61% of the shares. In Jan 2024, Silver Lake announced plans to buy out minority investors. This move can help the firm increase its stake and voting rights in Endeavor, TKO, and UFC. [16]

As of Jan 2024, 99.65% of Endeavor’s float shares were held by institutions. Insiders like the CEO, CFO, Chairman, and UFC President own only 0.74% of shares. Canada Pension Plan Investment is Endeavor’s 2nd largest institutional investor with 7%, followed by Vanguard Group with 4.88%, JP Morgan Chase & Company with 4.13%, Morgan Stanley with 4.09%, and Ameriprise Financial with 3.74%. Other top shareholders include TPG GPA, Millennium Management, and MIC Capital Management UK. [17]

References & more information

1. KN Staff (2024, Jan 29). Exploring the Evolution of Mixed Martial Arts. Khel Now
2. SK Desk (2024, Jan 14). UFC Lightweight – 2024. Sports Keeda
3. Martin, D. (2023, Dec 24). The Business of MMA in 2023: UFC produced over $1 billion in revenue, PFL bought Bellator, and fighters turned to OnlyFans. MMAFighting.com
4. Porter, G. (2023, Dec 21). UFC’s 2023 by the Numbers. UFC.com
5. GuruFocus Research (2024, Jan 26). Endeavor Group Holdings Inc CFO Jason Lublin Sells 20,832 Shares. Yahoo Finance
6. Perman, S. (2023, Sep 12). WWE and UFC officially merge in a $21.4-billion deal. LA Times
7. Sherman, A. (2023, Sep 12). TKO, the newly merged UFC-WWE, aspires to grow beyond fighting. CNBC
8. Guardian Staff (2024, Jan 27). WWE founder Vince McMahon resigns amid sexual misconduct allegations. The Guardian
9. Kawada, J. (2024, Jan 7). A timeline of the UFC’s ownership changes: From Fertittas to Zuffa and beyond. Sports Keeda
10. CF Staff (2023, Jul 23). Who Owns The UFC In 2023? Cheddar Flow
11. PBS Economy Desk (2023, Apr 3). UFC and WWE combine to form a $21.4 billion sports entertainment company. PBS.org
12. Singh, J. (2023, Oct 25). UFC owner Endeavor announces review of strategic options. Market Screener
13. Nash, J. (2023, Dec 8). The lawsuit reveals how UFC owners took hundreds of millions yearly to pay themselves. Bloody Elbow
14. Chaudhury, S. (2023, Sep 13). How much of WWE does Vince McMahon own? Find out the structure of TKO. Sports Keeda
15. Fisher, E. (2023, Nov 10). McMahon Selling $713M in TKO Stock, Ari Emanuel May Be a Buyer. Front Office Sports
16. Shaw, L. (2024, Jan 19). Endeavor Shares Rise on Prospects for Sale to Silver Lake. Bloomberg
17. YF Analysis (2024, Jan 30). Endeavor Group Holdings, Inc. (EDR): Stockholders. Yahoo Finance
18. Featured Image by Derrick Treadwell.

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