Who Owns UFC & How Much Money Does It Make?

The Ultimate Fighting Championship (UFC) was initially founded by Art Davie, John Milius, and Rorion Gracie in 1993, but in 2001, the UFC’s current president, Dana White, and the Fertitta Brothers bought the UFC for $2 million and later sold it in 2016 for over $4 billion.

The UFC is an American mixed martial arts (MMA) promotion company based in Las Vegas, Nevada. It is owned by TKO Group Holdings, a majority-owned subsidiary of Endeavor Group Holdings. It is the largest MMA promotion in the world as of 2023.

This article will examine the UFC’s ownership history and how much money it generates.

Who owns UFC? A look at ownership history

UFC is currently owned and operated by Endeavour Group Holdings, which has held a 50.1% majority stake since 2016 and became 100% UFC owners in 2021 after Endeavor (EDR) took the company public with an IPO. The UFC was founded in 1993, and the first event took place on November 12.

For the first event, Art Davie and associates established WOW Promotions LLC and then secured $250,000. Afterward, they partnered with Semaphore Entertainment Group (SEG), and they invested $450,000. Following its early success, 36 states banned NHB fighting due to intense criticism. WOW Promotions was then dissolved in 1995 after Davie and Rorion Gracie sold their 50% stake.

After the sale, Semaphore Entertainment Group operated the UFC for another 6 years but faced financial struggles. Dana White, who was then managing UFC fighters, heard about the sale and the financial struggles and then advised his childhood friends, the Fertitta brothers, to buy the company. In 2001, the Fertitta brothers purchased the UFC for $2 million, marking the second sale and change of ownership in eight years.

In 2016, Endeavor Group Holdings, along with other investment firms, acquired a majority stake in the UFC in a $4 billion deal, valuing the company at nearly seven times its 2015 revenue of $600 million. A year later, Endeavor renamed itself and bought out minority shareholders, leaving them with 65.9% ownership.

In 2021, Endeavor went public, then raised $1.75 billion and acquired the remaining 34.1% of UFC shares. This made Endeavor the sole owner of the UFC.

UFC’s timeline up to Endeavor’s acquisition

• 1993 – UFC was founded by Art Davie, John Milius, and Rorio Gracie.
• 1995 – WOW Promotions was disbanded, and Davie and Gracie sold their interest in the franchise to SEG.
• 1996 – UFC had its first event outside the continental United States, and UFC was later banned in 36 states.
• 2001 – the Fertittas brothers bought the UFC for $2 million
• 2011 – Fox and UFC announced a seven-year broadcast deal.
• 2016 –  UFC was sold to Endeavor Group Holdings.

How much money does UFC make?

It is worth noting that the UFC’s revenue streams are diverse, with pay-per-view revenue being a significant contributor.

The Ultimate Fighting Championship (UFC) has been a profitable venture since its inception. According to a report by MMA News, the UFC generated a total revenue of 1.14 billion in 2022, a 20% increase from the previous year. The same report also states that the UFC generated $305.2 million in the second quarter of 2023, marking a 14% increase from the same period in 2022.

UFC generated $1.14 billion in revenue in 2022, with the majority coming from media rights and content. Source: TKO Group Holdings via the SEC

The bottom line

After early struggles, the UFC has become an MMA juggernaut following two key sales – first to the Fertitta brothers in 2001 and then to Endeavor for $4 billion in 2016. The promotion has seen immense growth under these new owners and investors, generating over $1.3 billion in annual revenue. Once nearly banned in most states, the UFC is now a must-see viewing across the globe, proving changing ownership can revive a struggling company given the right vision and resources.

If you are interested in learning more about the ownership histories of other prominent companies, make sure to read the Who owns WhatsApp article