In light of Endeavor Group Holdings’ financial success, CEO Ari Emanuel has come to the defense of the UFC.
The media and entertainment conglomerate attributes much of its recent progress to acquiring the UFC about five years ago. The UFC was sold to Endeavor for a hefty price tag of $ 4 billion. Despite the lingering challenges brought on by a global pandemic, the entertainment entity went public for $ 24 per share in late April. In mid-August, following the latest quarterly earnings report, the company was boasting of its booming economic strength.
Due to athletes pursuing the UFC, the company has been forced to disclose details of their respective compensation structure. It has been revealed that the combat sports company pays around 16% to 18% of its revenue to its athletes. However, most sports companies share the revenue at a much higher level, on the order of almost 50% in 2021.
After drawing attention to Conor McGregor at the top of Forbes’ list of the world’s highest paid athletes, CEO Emanuel defended the salary structure in an appearance at the Goldman-Sachs Communacopia conference.
“They just did a recent study on the highest paid athletes. The number one athlete was a UFC fighter, ”Emanuel said at the conference. Ari Emanuel said. “They are making money on the fight kits, the paid marketing opportunities we create for them with our sponsors, the NFTs income, and we are investing money in a performance institute to rehabilitate them,” [focus on their] diet, etc.
Many have argued that McGregor’s wealth is a by-product of his business ventures outside of the Octagon. Ari Emanuel insists the playing field has never been so rich in opportunity. The CEO of Endeavor is confident that UFC revenue next year will reach even higher heights as a growing number of streaming services continue their assault on the North American market.
What do you think of Ari Emanuel defending the UFC fighters pay structure?