To those unfamiliar with fighting entertainment, WWE and the UFC may seem like one and the same: grown men fighting for the entertainment of millions. Now, the uninformed will become even more confused starting on Sept. 12, when the two organizations officially merge together into the newly formed TKO Group.
The deal between Worldwide Wrestling Entertainment and UFC’s parent company, Endeavor, was originally announced back in April 2023. While the merger makes sense when comparing the fanbase of the UFC and the WWE, it still came as a shock to the professional fighting community, as this meant the new company would become the global leader in combat sports.
Selling itself out
Back in 2022, WWE chairman and CEO Vince McMahon was under internal investigation after a $3 million hush-money settlement was discovered, allegedly paid out over an affair with a former WWE employee. The investigation ended up revealing this money was over an affair, but also revealed a number of NDAs signed by various women who accused McMahon of misconduct during their time working under him. McMahon stepped down from his leadership roles in June 2022, and completely retired from the company in October 2022.
By the time of his retirement, the WWE reported nearly $20 million in various unreported payouts made by McMahon between 2006 and 2022, all relating to sexual misconduct claims against him. Following his departure from the company and his daughter taking over the position, WWE started searching for a potential buyer of the company. McMahon returned to the company as an executive chairman to help facilitate the sale. On April 3, 2023, Endeavor and WWE announced their plans to merge the wrestling giant with the parent company of UFC, Zuffa, to form a new parent company that we now know as TKO Group Holdings.
This merger breaks a 70 year legacy, as it will be the first time WWE is not majority owned by the McMahon family. However Vince McMahon will still be involved, as he will serve as executive chair of TKO Group. McMahon also has the right to name 5 of the 11 people on the board, and veto certain actions of the company. He also will own 34 percent stake in the new company, with 16 percent voting interest. Current WWE president Nick Khan will remain president of WWE post merger, and WWE’s head of creative Paul Levesque is also expected to remain with WWE.
No more PPV fights?
For those hoping to get the next UFC fight on their premium cable channel, think again. While the UFC and the WWE will live under the same roof, both organizations will still operate as separate entities. Basically, all that changes is the money you spend on PPV content for WrestleMania and UFC are going to the same parent company now. As of right now, there are no major changes for either company in terms of their content.
However, WWE has another major change coming up. In 2024, their media rights contracts with Fox and USA Network will expire. Negotiations are still happening between all parties, but with the rise of streaming content as well as this new merger, who knows what will happen with the networks. UFC fights are typically available in the U.S. through ESPN Plus, so the WWE may choose to follow in the footsteps of its sister company going forward. Only time will tell how much this merger affects both companies.
