TKO Group Holdings Q2 Earnings Call Highlights Exclusion of PBR from UFC-WWE Merger
TKO Group Holdings delivered a positive outlook during their second-quarter 2024 earnings call today, highlighting strong revenue growth and plans to introduce a festival atmosphere to future events. However, a notable aspect of the call was the confirmation that Professional Bull Riders (PBR), a profitable entity under Endeavor’s ownership, was deliberately excluded from the TKO merger.
Endeavor, which also owns UFC and WWE, kept PBR separate from the merger at the insistence of Vince McMahon. According to TKO Group executives, McMahon wanted the merger to focus exclusively on UFC and WWE, ensuring that PBR would not be part of the newly formed company. This decision, confirmed during today’s call, explains why the TKO merger centered solely on the two combat sports giants, despite PBR’s strong financial performance.
PBR, which continues to operate independently, remains a lucrative venture for Endeavor. The sport’s premier event, The World Finals, will offer a record-setting $3.13 million in prize money in 2024, a significant increase from the previous year. This underscores PBR’s profitability and its ability to draw significant interest, even as it operates outside the WWE-UFC orbit.
The UFC-WWE merger under TKO Group has been largely beneficial, with both organizations thriving. WWE, in particular, has moved into its new headquarters and is experiencing a period of strong growth. Despite initial layoffs due to redundancies, the merger has proven to be a positive step for the companies involved.
Meanwhile, PBR continues to generate substantial revenue for Endeavor, underscoring its value as a standalone entity. While it operates separately from the festival-like events planned for UFC and WWE under TKO, PBR’s success highlights the diversity of Endeavor’s sports and entertainment portfolio.
