While TKO Group Holdings Inc. President and COO Mark Shapiro is looking forward to the bow of "WWE Raw" on Netflix Inc. on Jan. 6, 2025, the executive also has eyes on penning new deals in 2025.
TKO, a sports and entertainment company, comprises the mixed martial arts organization Ultimate Fighting Championship (UFC) and the professional wrestling juggernaut WWE. It is majority-owned by the global sports and entertainment company Endeavor Group Holdings Inc.
TKO Group Holdings' current deals with Walt Disney Co.'s ESPN (US) for UFC and NBCUniversal Media LLC for World Wrestling Entertainment LLC's Premium Live Events expire at the close of 2025.
Speaking at the UBS Global Media and Communications Conference in Manhattan, Shapiro said as UFC rights come to market, TKO is looking to derive maximum revenue for the property and strike deals that benefit the brand. The COO said Disney/ESPN has been a highly supportive partner and marketer of UFC, as was FOX Sports, the franchise's previous US rights holders.
Among the factors that TKO is weighing are broadcast TV's role in providing expansive reach for sports; streaming's continued growth in live sports, including the upcoming launch of ESPN's flagship streaming service next summer; UFC's year-round programming lineup; and the sports' appeal among viewers aged 18 to 34 years. Shapiro said TKO is also open to adding more UFC events.
As a model, TKO will be looking at the Netflix pact for "Raw," which he called "a transformative deal for us and the industry." Under the deal, valued at more than $5.0 billion over a 10-year frame, Netflix will be the exclusive home of "Raw" in the US, Canada, the UK and Latin America, among other territories, with additional countries and regions to be added over time.
Netflix has gained international rights to other WWE shows, including "Smackdown" and "NXT," and other large events such as "WrestleMania." NBCU's USA (US) is the current cable home to "Raw," with a five-year deal valued at more than $1.3 billion that does not include international rights.
Shapiro said TKO and Netflix are working on marketing plans to trumpet the franchise. Those plans include collaborating on a flanking series in the vein of Netflix's "Drive to Survive" show that helped boost awareness of Formula 1 drivers and the racing franchise in the US.
Relative to NBCU, it holds rights to Premium Live Events (PLEs) in the US until the end of 2025. Shapiro talked about the monthly cards, which extend to "WrestleMania" and "SummerSlam," among others, that stream on Peacock. These hold a unique appeal to prospective rights holders, he said, given their monthly cadence lends itself to companies looking to add or retain subscribers. Conversely, Shapiro anticipates that some companies may have an interest in offering a handful of PLEs, perhaps around key promotions.
The company is also open to adding more live events in the ring. "WrestleMania was a big hit for us to expand. As you look at all these PLEs, depending on the partner, I think there is absolutely an opportunity to advance some of them to two days," Shapiro told conference attendees.
Shapiro said TKO will speak with NBCU during its exclusive negotiation period during the first half of 2025. He also anticipates holding discussions with other suitors.