UFC Posts Best Financial Year In Company History

It was quite a year for the world’s largest MMA promotion in its new life as a wholly-owned subsidiary of the sports and entertainment conglomerate Endeavor Group Holdings. After a delayed IPO in 2019, Endeavor’s second attempt at a public offering succeeded last April, and as part of that transaction it obtained full equity ownership of its premier portfolio asset, the UFC.

Endeavor held its quarterly earnings call earlier today and CEO Ari Emanuel confirmed what had been trending all year: The UFC achieved the best financial year in the fight promotion’s history. While specific UFC financial information wasn’t disaggregated from its operating segment, Endeavor’s Owned Sports Properties brought in a total of $1.1 billion in revenue and $538 million in Adjusted EBITDA. The UFC is believed to comprise the lion’s share of the Owned Sports Properties segment, with some estimates of 2021 revenues in the $900 billion range and Adjusted EBITDA in the upper $400-millions.

While Emanuel and Endeavor CFO Jason Lublin were careful not to provide too many UFC specifics, they made sure to highlight key drivers of the promotion’s growth. The company is currently in the middle of a domestic broadcast and pay-per-view (PPV) distribution rights deal with ESPN running through the end of 2025, but sponsorships, international media rights, and commercial PPV all helped lead the UFC to a historic year.

In the third quarter of 2021, sponsorship revenue was up 59% relative to pre-pandemic 2019 and the promotion saw its best quarter for commercial PPV sales since the onset of the pandemic. For 2021 as a whole, UFC sponsorship revenues reached record highs and 14 new international media rights deals were signed with an average annual increase of 94% over prior contract terms. To top it off, all nine PPV events with an audience sold out, coming off a 2020 where most PPV shows couldn’t have a crowd in attendance.

Lublin captured the essence of the UFC’s outlook when he noted its “continued momentum” would drive Endeavor’s Owned Sports Properties segment in 2022. And important international markets like Brazil, the UK, and Scandinavia will all have media rights up for renewal.

Endeavor executives were upbeat and optimistic on the “tailwinds” in the sports and entertainment landscape, and rightfully so. The UFC just had its best financial year ever, its domestic media rights are locked in for three more years, and Endeavor appears to be fulfilling its plan of “using our best practices to drive sponsor revenue” and negotiating higher rights fees.