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In today’s episode, we’re looking at the latest updates to the UFC antitrust cases, and the latest TKO financials that were revealed in their latest SEC filing. We also discuss TKO’s earnings call where Mark Shapiro fielded questions and discussed their enduring ties to the Saudis. We also look at some wild ways the UFC is maximizing their value extraction of the White House card. There’s a lot more, so make sure to follow along with our outline as you listen:
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Episode 249 Outline
* Are there any updates to the UFC antitrust cases?
* TKO’s SEC filings came out this week. What did we learn from them about TKO and UFC’s finances?
* Did it give us any information about Zuffa Boxing?
* Mark Shapiro had some interesting comments during TKO’s earnings call. The first one that really caught my eye was his confirmation that the Saudis will not be pulling up their investment stakes in TKO. Is that mostly due to TKO’s very powerful ties to the Trump administration, or because they invested so much into the Paramount/WB deal?
* Do you see any scenario where they might be forced to dump their stake in Zuffa Boxing?
* Once again, Shapiro reinforced the plan to keep their scheduled events in the Middle East on track. Do you think that’s a wise move?
* CFO Andrew Schleimer said that fighter compensation continues to grow as “we would never turn a blind eye to our most meaningful investment.” He only cited the doubling of the bonus structure, so my question is, have you heard whether they’ve made any increases to regular compensation?
* It was reported that UFC has “partner investment” specialty tickets for the White House event. What do we know of them?
* Shapiro also said that UFC was going to take a $30M loss on the White House event. After seeing the value extraction measures they’re taking with this card ($3500 posters, $5K names on canvas, and $1.5M specialty tickets), do you buy into that theory?
* Shapiro said “we don’t buy it” referring to fan criticisms of card quality, both for UFC and WWE, citing their numbers and saying that there are always ebbs and flows. That’s something you’ve said as well, but you also noted that this seems to be an unusually long ebb. Do you still hold to that thought after seeing their latest finances?
* When asked about other promotions having big, one-off events, Shapiro said that everything is competition in combat sports with other events, but didn’t seem to have any concerns about those competitors. Should he be concerned with the competitors?
* MMA Junkie had an article written by MMA manager Alex Davis where he talked about how the UFC has MMA in a state of crisis. Do you agree with him?*Defendant’s motions to seal*