TKO Group Holdings is preparing for a significant financial hit tied to an upcoming UFC event at the White House.
During TKO’s fourth quarter earnings call, President and COO Mark Shapiro addressed the projected costs of the June 14 event, which will take place on the South Lawn. According to Shapiro, the show could cost north of $60 million, with the company currently anticipating a loss of roughly $30 million.
“By the time all is said and done with the event, what we play the fighters and the fan fest we’re gonna have, that could move north,” Shapiro said regarding the overall cost. “It’s definitely not moving south; it could move north. Bottom line is, it’s still a moving target. We are working to determine, on a parallel track, a package of inventory, in and around the weekend of events, that we can monetize primarily with corporate partners, [business-to-business] players, which will offset half of the spend. Even if that $60 [million] goes up or rides up on us, we believe we can offset half of the spend. Today, we see it as $60 [million] offsetting $30 [million].”
Despite the projected loss, TKO does not view the event as a failure. Instead, executives see it as a strategic play aimed at long term brand growth. The company believes the White House setting will attract new fans and casual viewers, which could help expand UFC’s reach and boost overall engagement, including on the Paramount+ platform.
As of now, no fights have officially been announced for the card. However, the scale of the venue and the cost commitment signal that TKO views the event as a statement piece rather than a traditional revenue driven show.
TKO was formed in 2023 through the merger of WWE and UFC under Endeavor’s umbrella. This White House event represents one of the most high profile ventures since that merger, even if it comes with a short term financial loss.
