The Ultimate Fighting Championship (UFC) is the world’s premier mixed martial arts (MMA) organization, attracting millions of fans worldwide. But who really owns the UFC, and how much money do they make from it? Let’s take a deep dive into the staggering numbers behind the UFC empire.
1. Who owns the UFC?
Currently, the UFC is owned by Endeavor Group Holdings, a leading entertainment and media conglomerate. Endeavor first acquired a 50.1% controlling stake in the UFC in 2016. By 2021, the company completed its full acquisition, purchasing 100% of the shares and taking the UFC public through an initial public offering (IPO).
2. The ownership history of the UFC
The UFC was founded in 1993, with its first event taking place on November 12. The concept was originally developed by Art Davie, who partnered with martial artist Rorion Gracie to establish WOW Promotions LLC. With an initial investment of $250,000, they sought additional funding and secured $450,000 from Semaphore Entertainment Group (SEG).
However, the UFC soon faced severe backlash, particularly from politicians and sports regulators. As 36 U.S. states imposed bans on No Holds Barred (NHB) fights, the organization struggled financially. In 1995, both Davie and Gracie exited the UFC, selling their 50% stake, leading to the dissolution of WOW Promotions.
With full control over the UFC, Semaphore Entertainment Group (SEG) continued operations but encountered serious financial difficulties. Declining revenues and increased government regulations pushed SEG to the brink of bankruptcy.
At that time, Dana White, then managing several UFC fighters, learned that SEG was looking to sell the company. Recognizing the UFC’s potential, White persuaded his childhood friends, Lorenzo and Frank Fertitta, to purchase the organization.
In 2001, the Fertitta brothers acquired the UFC for $2 million—a relatively small sum compared to its future potential. They implemented significant restructuring, including stricter regulations, higher production values for events, and, most importantly, an active leadership role for Dana White as UFC President. This transformation helped the UFC regain its footing.
Over the next 15 years, the UFC experienced explosive growth, becoming one of the world’s top combat sports organizations. By 2015, the UFC had generated $600 million in revenue, setting the stage for a groundbreaking sale.
In 2016, Endeavor Group Holdings, alongside investment firms, acquired a majority stake in the UFC for $4 billion—one of the most significant transactions in combat sports history. The UFC’s valuation at that time was nearly seven times its 2015 revenue. A year later, Endeavor increased its ownership to 65.9% by acquiring additional shares from other investors.
By 2021, Endeavor took the UFC public through an IPO, raising $1.75 billion. This capital was used to purchase the remaining 34.1% stake, making Endeavor the sole owner of the UFC—cementing its position as the undisputed leader in the global MMA industry.
3. The development process of the UFC
The Ultimate Fighting Championship (UFC) was founded in 1993 by Art Davie, John Milius, and Rorion Gracie. In 1995, ownership of the UFC was transferred to SEG after WOW Promotions was dissolved.
In 1996, UFC expanded beyond the continental United States but soon faced challenges when it was banned in 36 states. In 2001, the Fertitta brothers acquired UFC for $2 million, transforming it into the world’s leading martial arts organization.
In 2011, UFC signed a seven-year broadcasting deal with Fox, significantly expanding its audience reach. By 2016, UFC was acquired by Endeavor Group Holdings for $4 billion.
4. How much money does the UFC make?
UFC is not just a sports competition but also a massive revenue-generating machine. Its revenue streams come from multiple sources, with the most significant being media rights, sponsorships, live events, and consumer products.
According to the latest financial report from TKO Group, UFC generated a total revenue of $1.29 billion in 2023, far surpassing WWE (World Wrestling Entertainment), which only reached $328 million in the same year.
Breakdown of UFC’s 2023 Revenue:
- Media Rights & Content: Accounting for 67.4% of total revenue. This is UFC’s primary income source, driven by broadcasting deals with ESPN, BT Sport, and other platforms.
- Sponsorships & Brand Partnerships: Representing 15.1%, with major partners such as Monster Energy, Crypto.com, and DraftKings.
- Live Events: Contributing 13% of total revenue, with millions of fans willing to pay to watch fights live at major venues like T-Mobile Arena and Madison Square Garden.
- Consumer Product Licensing: Making up 4.4%, including apparel, memorabilia, and UFC-branded merchandise.
With this strong growth, UFC continues to solidify its position as one of the highest-grossing sports organizations in the world.
Beyond being a martial arts league, UFC is also a massive money-making machine for investors. Its current owners have earned billions from the brand, proving its immense market appeal. In the future, UFC is expected to generate even more staggering profits as it continues to expand its global influence.
