Latest news with #Sela
The Independent
5 days ago
- Business
- The Independent
Dana White cut from Canelo-Crawford promotion?
UFC supremo Dana White is no longer promoting the forthcoming mega fight between Terence Crawford and Saul 'Canelo' Alvarez. An announcement on The Ring 's website states that the event, now set for 13 September in the US, will be promoted by Saudi firm Sela and not TKO Boxing, as was originally announced two weeks ago. Turki Alalshikh wrote on X: "We have confirmed the promoter for Canelo vs. Crawford will be Sela for Riyadh Season. The broadcaster we have not decided yet, but the date will be Saturday 13th September. More details soon." The principals behind the match between Crawford and Canelo have been shifting for some time. The fight had originally been planned for Allegiant Stadium in Las Vegas but is now homeless (five spots are being considered in three cities) as there are football games planned that weekend in that venue. Six days ago, Alalshikh said on Twitter that he would announce 'at the right time' when and where the fight would be held. Despite this, the kick-off press conference is due to be held in Riyadh within the next few weeks. Now, it seems that TKO Boxing, which was formed when the UFC and the WWE merged last year, has lost a flagship show. The Jeddah-based Sela organises sports and hospitality events within Saudia Arabia. It is owned by the government-funded Public Investment Fund. Back in March, the firm announced that it was working in a multi-year partnership with both Alalshikh and TKO Boxing. According to its own website, Sela has played a 'pivotal role' in Crawford-Madrimov in Los Angeles and Joshua-Dubois in London. It is also the lead sponsor of Newcastle United. The usually verbose White has remained silent on his apparent ousting from the Crawford-Canelo fight promotion. At the time of writing, the last posts on his Instagram and Twitter accounts were from two days ago. Likewise, his latest Facebook post is from yesterday and was merely an update of his cover photo to promote UFC Fight Night: Blanchfield vs Barber at the end of the month.
Yahoo
6 days ago
- Business
- Yahoo
WWE-UFC Merger: Right Combination for Global Knockout?
TKO Group Holdings (TKO, Financial) could be the most exciting name in entertainment that you are not paying enough attention to. Growing from the merger between Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE), this sports-entertainment behemoth entered the new year swinging, with increasing revenue, expanding global audience, and a newly earned S&P 500 ticket. Warning! GuruFocus has detected 5 Warning Sign with TKO. But what makes it really interesting for the investors is the numbers. Earnings are whopping, margins are widening, and the big plays, such as Meta and Saudi Arabia's Sela, are queuing up at the door. Yes it is overvalued, but scratch the surface and you will find a global empire in the making with muscle and momentum. Let's jump into how it all adds up and why TKO may be a knockout investment in your portfolio. TKO Group Holdings is headquartered in New York and launched in 2023. The company is stirring sports and entertainment scene with a powerhouse portfolio topped by WWE and UFC. These legendary brands power TKO's worldwide appeal with exciting live shows, reality programming, and digitally delivered content across platforms including UFC FIGHT PASS. Beyond the screen, TKO mines merchandising with games, apparel, and collectibles, and in collaboration with the top names such as ESPN and Netflix (NFLX, Financial) broadens its global fan base. As a part of Endeavor Group Holdings (EDR, Financial) TKO is not just riding the wave, it's creating it. TKO started 2025 with solid performance, and to be honest, it's tough not to be impressed. First-quarter revenue for the company came in at $1.27 billion, a decent 4% increase year-over-year with both WWE and UFC demonstrating strong form. WWE was a star, up 24% to $391.5 million, due to increased SmackDown and hype before WrestleMania 41 in Europe. UFC wasn't that far behind either, increasing 15% to $359.7 million with the help of overseas events, increased fees in media, and new partnerships. Adjusted EBITDA was strong at $417.4 million, up 23% with WWE and UFC both expanding their margins, WWE showing 50% and UFC a healthy 63%. Net income turned into the black at $165.5 million, a gargantuan improvement on last year's loss, largely because there was no $335 million UFC legal charge that dragged down the previous period. Even with a few headwinds at IMG, where revenue was down 13% because of less desirable Super Bowl sites and loss of FA Cup rights, TKO is still bullish. The company has recently acquired IMG, On Location, and Professional Bull Riders (PBR), and brought them under its guidance. The full-year revenue projections now stand between $4.49 billion and $4.56 billion. Overall, TKO's first quarter tells the story of a company actively growing its empire in sports and entertainment. The company's current surge is due to a set of well-planned actions that may help it grow steadily on various levels. Below are the main factors that are boosting investors' confidence: S&P 500 Inclusion: Joining the S&P 500 is one of the biggest catalysts for TKO at this point. Being included in the index gives legitimacy in the larger market. Even if TKO comes in as stock number 496, it doesn't make a difference. S&P status allows passive purchase from the world's biggest funds, like Vanguard, BlackRock, State Street, all of which track the index. These funds now have to purchase TKO shares in order to remain in balance, and this will represent a constant flow of demand. It won't happen overnight as rebalancing schedule is varied and the effect will be gradual. But after getting in, TKO now receives a positive effect of that ongoing, automatic flow of capital. It is the type of structural support that can help to support long-term price strength, something especially valuable in volatile markets. Strategic partnership fueling tech and combat sports: TKO is on an expansion streak and it's nailing it in tech, sports, and global reach. The UFC's new multiyear partnership with Meta is a highlight, not just a brand placement. It's a massive submergence of Meta AI, Quest headsets, and even smart glasses into the fan experience. Dana White says it is a game-changer and he could be right. Live events and partnerships driving high-margin growth: Meanwhile, TKO is entering the boxing ring, literally, with a new promotion that it has formed with Saudi Arabia's Sela, supported by the mighty Public Investment Fund. This move is a bold departure from UFC and WWE and leverages the existing fan base of TKO while cashing in on Saudi Arabia's deep pockets and eagerness for global sports. With Dana White and Nick Khan in the Executive team, the promotion is in safe hands. They both have a track record of success from the UFC and WWE, particularly in Saudi events. It's a coming venture that will change the world's perception of boxing, and give TKO another avenue for success. Add to that a big play in Australia, where Perth is becoming a hotbed for UFC and WWE events through 2026. Due to an expanded partnership with the Western Australian Government, the city will host five key events this year, including a UFC Fight Night at RAC Arena later this year. It's a clear indication that TKO is going big in international expansion, exporting its blockbuster shows to new global fans, and strengthening ties in one of the most important Asia-Pacific markets. Media rights driving a recurring revenue engine: WWE's flagship programs, RAW and SmackDown are shows with huge weekly TV viewership and live audiences that can reach the tens of thousands. These are the main events of WWE in which the top-tier talent performs. They are made possible by big agreements with top media houses, so they keep providing recurring revenue for years to come. UFC, too, has a prosperous deal with ESPN, that both monetizes its major events and helps the brand be promoted across ESPN's various platforms. Because interest in live sport and premium content is growing worldwide, TKO's collection of media rights is proving to be a versatile and profitable asset. But WWE isn't stopping there. In March 2025, it rolled out Evolve on Tubi (FOX), and LFG on A&E (Disney), both platforms to put the spotlight on up-and-comers from the Indies (ID) and Next-In-Line (NIL) college athlete pools. Although ratings are not yet in, the move is evidence of WWE's efforts to control all stages of a wrestler's career, from an unknown hopeful to WrestleMania headliner. It is more about manufacturing stars as compared to just finding them. Further talent development: TKO is making big moves by expanding its WWE talent pipeline. WWE has been on top of the pro wrestling scene for decades, but its hold on talent development becomes stronger and smarter. Below RAW and SmackDown sits NXT, the developmental league of the company. It is like AAA baseball, which is still serious business, but more playing with raw talent. NXT airs once a week in front of a few hundred fans while hundreds of thousands watch online. Beginning of a dividend: Let's move to the next catalyst. Whether a company can pay a dividend, even a small one, has been one of the long-running litmus tests for many investors. It is a gesture of sound financial position and a vote of confidence by the management on the company's earning capacity. Although the current dividend yield is not that impressive at 0.95%, it is still a modest gesture. The company announced a quarterly dividend of $0.38, yielding an annual payout of $1.52 and a payout ratio of only 17.08%, which leaves a lot of room for growth if the management decides to do so. TKO started to pay a cash dividend on a quarterly basis, from its first ex-date on 14th March 2025, and first payment on 31st March. This is equivalent to a $75 million payout from the firm, which is close to a little under 15% of their current treasury cash. Taken together, these catalysts are a measure of TKO's transformation from a combat sports leader to a worldwide sports-entertainment juggernaut. With international expansion, stronger control of talent, and monetization with the help of structural market support, TKO is well-positioned for long-term growth. Let's now discuss the company's valuation. TKO Group's valuation certainly catches the eye, although not necessarily and entirely in a good way. If you look at the numbers, the stock looks expensive. For the non-GAAP trailing P/E ratio, it is over 50 times when compared to a sector median of approximately 12. Even going forward, it remains up near 46. That is more than triple the price most of its peers are trading at. A similar situation is with GAAP earnings. The multiples are through the roof, which means that investors are making huge bets on future performance. The enterprise value metrics tell a similar story. TKO's EV/EBITDA is at about 30 times on a trailing basis compared with only 10 for the sector median. Even forward-looking, it's still elevated. In plain terms, investors are currently forking out a significant premium for each dollar of earnings before interest, taxes, depreciation, and amortization. But then, here's the curveball. The PEG ratio based on non-GAAP forward earnings is a modest 0.16 times. That's quite a low number, and usually indicates the stock may be a bargain if the earnings growth really takes off. It's a big if, though, and that's the catch. So overall, TKO is priced as a firm that has something to prove in a major way. However, the twist is that analysts believe that it just might. Earnings are expected to ramp up fast in the next few years as you will see in the next heading. This optimistic prognosis could be used to rationalize the current premium and pull those valuation multiples downto earth. Notwithstanding its high valuation, the growth narrative of TKO is grabbing attention of analysts, and the numbers through 2027 are encouraging. From 2025, earnings-per-share are projected to jump to $3.50, which is an astonishing 357.08% YOY increase, providing the post-merger benefit of IMG, On Location, and PBR. In the same year, the revenue is expected to rise to $4.47 billion, an increase of almost 59%. This is a solid indication that the market is confident in TKO's scaling ability and varied revenue streams. Source: Consensus EPS estimates (Seeking Alpha) This will rise to a further $5.75 by 2026, with revenue at $5.75 billion. Although the EPS growth retards to a healthy 14.63%, it indicates a ripening expansion phase in which the synergies from the acquisitions start to provide more sustainable profitability. Analysts are also expecting TKO's valuation to normalize as well with forward P/E falling from 47.05x in 2025 to around 24x in 2026. Source: Consensus Revenue estimates (Seeking Alpha) Going into the year 2027, the story changes slightly. EPS is expected to be fairly stable at $6.6, while the revenue is anticipated to drop slightly to $5.46 billion or 5% decrease. That dip could be down to cyclical factors or more comps from a blockbuster prior year, but three analysts still expect good earnings and a forward P/E of 23.8x, and confidence is thus still there. To sum it up, analysts view TKO as a high-growth entertainment beast through 2026, with some possible normalization by 2027. As opposed to its industry peers, TKO Group is not the only one with a premium valuation, but it does stand out. Live Nation (LYV, Financial) and Liberty Media's Formula One Group (FWONK, Financial) both come with high multiples, but TKO's are just as high, if not higher, in some places. For example, TKO's forward P/E non-GAAP (FY1) is 45.94 times, lags LYV's 67.14 times and FWONK's 51.71 times. Two years down the line, TKO starts to appear more sensible with a forward P/E (FY2) of 27.94 times, and LYV and FWONK still higher at 47.86 and 44.00 respectively. On an EV/EBITDA basis, TKO changes hands at 29.80 trailing, which is more expensive than LYV's 18.18 but much cheaper than FWONK's 42.94. Therefore, though TKO appears expensive today, its future seems better. TKO's PEG ratio is impressive here. It is an incredibly low 0.16 times on a forward non-GAAP basis, much lower than LYV 6.12 and FWONK 2.51 times, which indicates that the analysts are expecting a much higher earnings growth in comparison with valuation. In layman terms, all three companies are charging premium prices, but TKO seems to have a more defined path toward growing into its valuation, assuming that its growth projections hold up. Source: Author generated based on historical data TKO Group enjoys an excellent run having gained 15.24% year-to-date and 56.5% in a year. Momentum is evidently on its side, and Wall Street appears to be of the same mind. There are 19 analysts that have provided 12-month price targets for ADS, with a mean target of $174.89, implying about 6.3% upside from the current $164.5. The estimates are wide, from an optimistic $220 to a more conservative $115, both reflecting excitement and ambiguity about TKO's peculiar post-merger path. So, how much do we expect from here? With the estimated 357% increase in EPS next year, and strong double-digit growth for the next two years, the company seems to be entering a period of rapid earnings normalization. Revenues are also poised to rocket, and valuation multiples will be under pressure to contract as profitability will be brought back to the premium price. Bearing all of that in mind, I think that a realistic 12-month price target for TKO could be anywhere between $185$190. That calls for a mild 12.515.5% upside, not too aggressive but one that attests to better fundamentals and rising confidence in investor, whilst allowing for potential obstacles to post-merger execution. One positive sign for TKO investors is the high rate of insider buying. Most companies usually experience a constant flow of insider selling, which is usually because of pre-planned stock sales or profit taking. However, in the case of TKO, surprisingly, the number of insider buys has been quite high. In the last three years, the insiders have bought approximately 13 million shares but sold almost 17 million. That's buying rate of about 76% over selling which is quite high compared to the rest of the public companies where buying is negligible or does not exist. Even more importantly, there have been no insider sales in the last 3 months while there are still purchases. This pattern indicates a sense of confidence from management and the key stakeholders. Although insider activity in isolation does not dictate where the stock will go in the future, regular buying, particularly in a high-growth, high-valuation setting such as TKO suggests that insiders believe there is some potential present. Another promising indication for TKO investors is the attention it is getting from recognized institutional and hedge fund investors, so called gurus. Consistent guru buying has been exhibited in the chart over the last three years with a surge in late 2023 and early 2024 while the stock price rose progressively. Names, such as Renaissance Technologies (Trades, Portfolio) (Trades, Portfolio) , Ray Dalio (Trades, Portfolio) (Trades, Portfolio) , and Mario Gabelli (Trades, Portfolio) (Trades, Portfolio) , don't simply buy into hype; they're associated with value-conscious strategies. Notably, Ray Dalio (Trades, Portfolio) (Trades, Portfolio) acquired additional 26.8% of the shares, and Louis Moore Bacon (Trades, Portfolio) (Trades, Portfolio) decided to make a bold move by increasing his stake by 1625%. Such conviction is impressive. Although there has been some selling along the way, the quantity of buys has regularly been equal to or greater than the sales. This mixed activity isn't unusual; portfolio rebalancing is a common activity in the management of funds. What matters is that a good number of top-tier investors remain or increase their positions even at higher prices. This is an indicator of the confidence in TKO's future and this confidence being supported by some of the brightest in the market. Though there is much to like about TKO's long-term growth story, there are a few red flags to watch out for. A short-term issue that the company faces is the speculation about TKO's possible inclusion into the S\&P 500. Although that may increase visibility, these events are likely to draw speculative trading that typically results in short-term price spikes followed by a correction. It is a two-edged sword that might create volatility in the short run. Another risk to be considered is the company's dividend strategy. While TKO has the cash to cover payouts, it's currently paying out more than it's generating in net profits. That's doable for the time being, but unless the profits jump up a lot, they might have to go into reserves more frequently, which is not something they can do forever. TKO-EDR merger achieved increased leverage for the company. With substantial debt, Endeavor paid for the merger, leaving TKO with over $3 billion in long-term debt post-merger. That puts a lot of pressure on the balance sheet. Even though stable contracts with media firms cushion the fall, having this kind of leverage means earnings must stay on track. It's a cost investors should take seriously. Finally, valuation is possibly the biggest risk. The stock is priced for perfection, with multiples far above market average. That can work if growth does not slacken. However, if the earnings do not increase to meet expectations, then the stock is likely to experience a painful correction. TKO Group is finding its feet in all areas, combining sports, entertainment, tech, and world conquest into a powerful growth vehicle. The company's strong Q1 results, the UFC and WWE momentum that is booming, and a constant stream of catalysts position the company to have a hard-to-ignore story. Yes, the valuation is expensive, but analysts and even insiders are making large bets that future earnings will catch up very quickly. Throw in increasing institutional interest and a burgeoning dividend, and you have high-risk, high-reward play with massive potential. That being the case, this is not a stock to buy and leave. Execution risk is real and the premium pricing allows for little room to make mistakes. For investors who are willing to stay tuned in and have the stomach for a little volatility, TKO could be a main-event performer in the making. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
22-05-2025
- Miami Herald
Man stole mail to get personal information in $1.8M scheme in CA, feds say
A man accused of stealing at least $1.8 million in a mail and identity theft scheme targeting residents of a wealthy California community is headed to prison, officials said. Oren David Sela, from North Hills, was sentenced to about five years behind bars after pleading guilty to one count each of aggravated identity theft and bank fraud, the U.S. Attorney's Office for the Central District of California said in an April 22 news release. The 36-year-old also must pay more than $1.8 million in restitution, prosecutors said. McClatchy News reached out to his attorney April 23 and was awaiting a response. Sela targeted people, including the elderly, in and around Beverly Hills from 2021 to 2023, prosecutors said. He 'stole mail to obtain debit cards, bank account numbers, Social Security numbers, and other personal identifiable information,' and used that information 'to gain access to their online bank and financial accounts,' prosecutors said. He sometimes got control of victims' phone numbers through SIM-swapping to get around two-factor authentication, according to prosecutors. Sela had debit or credit cards from victims' accounts issued to him and opened fraudulent accounts in their names, prosecutors said. In all, he stole at least $1.81 million, according to prosecutors. 'He defrauded numerous banks and at least 62 individual victims, including various elderly victims,' prosecutors said, adding that he often used the money to buy 'expensive goods for himself, including, for example, a nearly $17,000 watch.' In a court filing, Sela's attorney wrote that Sela struggled with addiction, leading to 'the series of misdeeds that ended with the indictment filed in this case.' But, he's now 'been sober for the longest period he has been in his adult life, and has gained insight and clarity that he lacked when his primary motivation was to satisfy the needs posed by his addiction,' the filing said. North Hills is about a 26-mile drive northwest from downtown Los Angeles.
Yahoo
12-05-2025
- Yahoo
How SIM swapping led to a $1.8M cyber fraud case
A San Fernando Valley, California, man has been sentenced to more than five years in federal prison after orchestrating a massive fraud operation that targeted dozens of victims, many of them elderly. Oren David Sela, 36, stole mail, hijacked phone numbers through SIM swapping, and used victims' identities to drain bank accounts, stealing over $1.8 million. Here is how the scheme worked and what you can do to avoid becoming a victim of a similar attack. Join The FREE CyberGuy Report: Get my expert tech tips, critical security alerts, and exclusive deals — plus instant access to my free Ultimate Scam Survival Guide when you sign up! SIM swapping is a form of identity theft where a scammer tricks a mobile carrier into transferring your phone number to a new SIM card they control. Once they hijack your number, they can intercept text messages, including verification codes, and gain access to your bank accounts, emails and more. There are two common ways scammers pull off SIM swaps: Read On The Fox News App Social engineering: They impersonate you and contact your phone carrier's customer support, claiming their phone was lost or stolen. They then convince the carrier to activate a new SIM card with your number. Insider threats: In some cases, scammers bribe or trick employees at mobile carriers into switching the number without following proper verification steps. Once they control your phone number, they can: Receive all your incoming calls and texts Reset passwords on your email, bank, and social media accounts Bypass security alerts sent to your phone Lock you out of your own accounts SIM swapping turns your phone number into a master key for stealing your identity and money. How To Avoid Malicious Sim Swapping Scam Between November 2021 and October 2023, Sela stole mail from homes in Beverly Hills, California, and nearby neighborhoods. He collected personal information, including: Debit and credit card details Bank account numbers Social Security numbers Driver's licenses Using this information, Sela carried out SIM swapping attacks to bypass two-factor authentication (2Fa) protections. This allowed him to: Break into victims' online banking and financial accounts Open new fraudulent accounts in the victims' names Transfer money into intermediary accounts he controlled Order new debit and credit cards linked to the victim accounts Sela made hundreds of fraudulent withdrawals and transfers. He attempted to steal nearly $2.6 million and successfully stole at least $1.8 million. Sela often spent the stolen money on luxury goods, including a nearly $17,000 watch. In 2022, he was arrested in Beverly Hills and found with nearly $25,000 in cash, various pieces of expensive jewelry, and numerous fraudulent debit and credit cards belonging to elderly victims. Despite this arrest, Sela continued committing fraud. During two subsequent searches of his properties in 2022 and 2023, law enforcement discovered more than $70,000 in cash, stolen mail, fraudulent identification documents, and banking information linked to dozens of victims. In October 2024, Sela pleaded guilty to bank fraud and aggravated identity theft. On April 22, 2025, he was sentenced to 61 months in federal prison and ordered to pay $1,818,369 in restitution. Fbi Warns About New Extortion Scam Targeting Sensitive Data Two-factor authentication provides an extra layer of security, but it is only effective if the attacker cannot access your phone. When scammers hijack your phone number, they can intercept 2FA codes sent by text and quickly take control of your accounts. Once inside your email or banking app, they can: Reset passwords Move money Lock you out Open new lines of credit in your name They do not even need your password if they can control your number. What Is Artificial Intelligence (Ai)? What Exactly Is A Data Breach And Why Should I Care? Take these important steps to secure your information: 1. Monitor your accounts: Regularly review your bank statements, credit card statements, and financial accounts for unauthorized activity. Report any suspicious transactions immediately. 2. Lock your SIM card: Set a PIN on your SIM card through your mobile carrier. Without it, your number cannot be moved without your permission. 3. Be cautious about sharing personal information: Limit the amount of personal information you share online, especially on social media. Scammers often use small details like birthdays, pet names, or locations to guess security questions or impersonate you. 4. Place a fraud alert: Contact one of the three major credit bureaus (Equifax, Experian, or TransUnion) and request a fraud alert. This makes it harder for identity thieves to open new accounts in your name. 5. Check your credit reports: Obtain free copies of your credit reports and review them carefully for suspicious activity. If you find errors or signs of fraud, report them right away. 6. Freeze your credit: A credit freeze prevents new accounts from being opened in your name without your consent. It is free to set up and does not affect your credit score. 7. Use an authenticator app, not SMS for two-factor authentication: Use apps like Microsoft Authenticator or Google Authenticator instead of relying on text message codes, which can be intercepted if your phone number is stolen. 8. Strengthen your passwords: Create strong, unique passwords for each account. Consider using a password manager to generate and store complex passwords securely. Get more details about my best expert-reviewed Password Managers of 2025 here. 9. Invest in identity theft protection: Identity Theft companies can monitor personal information like your Social Security Number (SSN), phone number, and email address and alert you if it is being sold on the dark web or being used to open an account. They can also assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals. See my tips and best picks on how to protect yourself from identity theft. 10. Be cautious of phishing attempts and use strong antivirus software: Watch out for emails, texts, or calls asking for personal information. Always verify the source before providing sensitive details. Installing antivirus software on all your devices can help protect you by blocking malicious links, detecting phishing attempts, and stopping malware before it can steal your private information. Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android and iOS devices. If scammers can steal your phone number, they can steal your money, your accounts, and even your identity. SIM swapping is a serious threat because it gives criminals a shortcut around your strongest defenses. Take action today to protect your phone, your accounts, and your personal information. A few small steps can make the difference between staying safe and facing a devastating financial loss. Have you ever been targeted by a SIM swapping scam or identity theft? Let us know by writing us at For more of my tech tips and security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Ask Kurt a question or let us know what stories you'd like us to cover. Follow Kurt on his social channels: Facebook YouTube Instagram Answers to the most-asked CyberGuy questions: What is the best way to protect your Mac, Windows, iPhone and Android devices from getting hacked? What is the best way to stay private, secure and anonymous while browsing the web? How can I get rid of robocalls with apps and data removal services? How do I remove my private data from the internet? New from Kurt: Try CyberGuy's new games (crosswords, word searches, trivia and more!) CyberGuy's Exclusive Coupons and Deals Best gifts for Mom 2025 Copyright 2025 All rights article source: How SIM swapping led to a $1.8M cyber fraud case
CNBC
24-04-2025
- Business
- CNBC
CNBC Sport: Saudi push into boxing looks different than other investments
It's no secret that Saudi Arabia has been investing in various corners of global sports. The Saudi Public Investment Fund's foray into sports has at times been splashy — namely in golf and the ongoing saga of whether LIV Golf will merge with the PGA Tour. But the Saudi-backed subsidiary Sela's recent venture into boxing has a different vibe to it. In March, Turki Alalshikh, the chairman of Saudi Arabia's General Entertainment Authority and an outspoken boxing fan, teamed up with TKO Group and Sela for a multi-year partnership to create a new, global boxing promotion platform. Investors and industry insiders have welcomed the venture with the expectation it could help revolutionize a sport that has long been fragmented compared with other top leagues, especially from the media rights perspective. Sela is an entertainment conglomerate that touts its place as the lead sponsor of English Premier League team Newcastle United Football Club (find Sela on the front of team jerseys), and being part of projects involving Formula E and the Italian Super Cup. It's also one of PIF's many portfolio companies that invests on behalf of the government fund. "I have heard some rumors for a while that Saudi investors were interested in boxing because it's such a fractured marketplace," said Shirin Malkani, co-chair of the sports industry group at Perkins Coie. "It's the right kind of dysfunction, which creates an opportunity. The media rights alone are ripe for thoughtful consolidation." It's that backdrop – and the focus on media rights – that gave Sela a different opportunity when entering the sport. Rather than go it alone or go to market traditionally to find a deal partner, Sela sought out TKO to form the partnership, according to people familiar with the deal. Lawyers from Latham & Watkins and Clifford Chance led the charge in forming the partnership, the people said. The CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox. Subscribe here to get access today. The thinking was that UFC President and CEO Dana White and WWE President Nick Khan would lead the boxing company operationally, the people said. Namely, the two could use their track record to ink lucrative media rights deals, similar to what they've done with the UFC and WWE, one of the people said. Last year TKO's Chief Operating Officer Mark Shapiro told CNBC Sport he thought that Netflix would be at the table when the combat sports company can begin negotiating its TV deal – for which it's reportedly targeting a $1 billion valuation. UFC's exclusive negotiating window with Disney ended on April 15. WWE already has a deal with the streamer. The release in March highlighted that White and Khan would anchor the leadership for the platform, providing day-to-day operational expertise, management and oversight. Representatives from TKO and PIF declined to comment. While TKO wasn't previously in boxing, it's firmly in the world of professional fighting through the UFC and WWE. Plus, the company's connection with Saudi Arabia has grown, as the WWE hosts live events there, and the UFC recently got into the mix, too. Turki Alalshikh has been public about his boxing interests – he was also quick to dispel rumors that the new league was intended to eliminate other promoters or officials currently in boxing, per Ring Magazine. Sela has also already hosted international boxing events. As the deal was only announced about a month ago, little to anything has gotten off the ground, the people said. Media rights negotiations have yet to kick off, and creating a schedule would likely follow that, they added. "It's smart for them to partner with TKO both on the operational side and for media rights, where TKO is very sophisticated," Malkani said. While there are existing boxing promotions, a behemoth doesn't yet exist in the space. This has presented an opportunity to combine, different from the Saudis' leap into golf, when PIF created a rival league to the PGA Tour. Following the public clash between the PGA Tour and LIV Golf – which included LIV courting players with hefty payouts and lawsuits filed on both sides – the two made the shocking announcement on CNBC in 2023 that they had agreed to merge. While a framework agreement was inked, a deal has not yet come to fruition – and the twists and turns have been heavily reported in the media. The talks have gone quiet, but the agreement is not dead, people close to the deal said. But one of the weakest spots for LIV had been its media rights strategy and deals – something PIF may be able to avoid in the boxing realm with the TKO partnership. LIV had inked deals with Nexstar's CW Group in the past, but struggled to bring big audiences. More recently LIV announced a multi-year media rights deal with Fox Sports in the U.S. – days after naming Scott O'Neil, formerly CEO of Merlin Entertainments and Harris Blitzer Sports & Entertainment – as its new CEO. With NFL CFO Christine Dorfler and CRO Renie Anderson ...
