Felix Upton on September 15, 2023
WWE and UFC’s merger into TKO Holdings Group under Endeavor’s umbrella is finally complete. Now we will have to see how it changes the futures of so many, but this situation already includes a substantial amount of debt.
Vince McMahon has fine position in the new TKO company is way higher on the food chain than Dana White even with UFC’s previous performance. The new company has a lot of possibilities, but this isn’t the first major deal that Endeavor has been a part of.
The Wrestling Observer Newsletter noted that the biggest concern in this whole TKO situation is how Endeavor’s debt situation is, because they are still in the hole with $3.2 billion in debt after buying the UFC in 2016.
“The biggest concern is that TKO has $3.2 billion in debt because of the money borrowed to purchase UFC in 2016. $2.7 billion of UFC debt is due in 2026, although that could and likely would be refinanced at the time. Refinancing the debt would be more expensive because UFC took out a variable rate loan. In 2022, UFC’s interest rates on the debt increased $37.3 million from 2021. However, Moody’s is considering upgrading the company’s rating even with the increase in debt interest according to Forbes because of the strength of UFC and WWE being merged together.”
WWE and UFC will run as separate businesses, and that especially goes for their media rights deals. That being said, some major cuts are expected very soon. That should help reduce the bottom line in a big way at this point.
The new TKO Holdings Group is set to take off with all the steam and momentum they can right out of the gate. WWE and UFC will also be massive when it comes to cashflow. Through this whole merger, Triple H will also keep his position in WWE as Chief Content Officer.
We will have full coverage of WWE and UFC’s new TKO Holdings Group company. Some big people in the business world seem to be very excited about the future, even though Endeavor is apparently still in a lot of debt after that UFC purchase several years ago.
What’s your take on WWE and UFC’s merger? Will it make both companies better for fans? Sound off in the comments to let us know what you think!
September 15, 2023 7:59 am
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