Ryan Gravett

Ryan Gravett followed up on the media rights topic, asking about key learnings from the recent round of renewals in the U.S., Latin America, and Asia. He also sought insight into Liberty Media's positioning for upcoming renewals in Europe and whether similar interest from digital players is anticipated in those markets.

Answer

F1 President and CEO Stefano Domenicali stated that F1's media rights position is dynamic, with strong interest and numbers. He emphasized the need to understand whether to continue with traditional broadcasters or move to streaming platforms in specific markets, as each country is different. Stefano highlighted F1's proactive approach in analyzing market evolution and adapting its content delivery strategy, hinting at further announcements soon.

Ryan Gravett asked about the key learnings from F1's recent media rights renewals in the U.S., Latin America, and Asia, and how these insights position the company for upcoming European renewals, including the expected interest from digital players.

Answer

Stefano Domenicali, President and CEO, Formula One Group, highlighted the strong interest and dynamic nature of media rights renewals, emphasizing the need to understand market differences (traditional vs. streaming) for each country. He noted F1's proactive approach to market evolution and hinted at upcoming announcements.

Ryan Gravett asked about the current demand for live events across TKO's portfolio, particularly for WWE, and whether underlying gate revenues are expected to continue growing in 2026, also touching on the World Cup's impact on On Location.

Answer

Mark Shapiro, President and COO, affirmed strong growth in ticket yield and financial incentive packages, reiterating a 2030 FIP target of $380-$420 million. He expressed bullishness on live events, citing increasing demand for appointment viewing and the elasticity across WWE, expecting its success to align with UFC's. Shapiro also highlighted TKO's overall model growth story, strong media rights, global partnerships, and capital allocation plan.

Ryan Gravitt asked about the impact of UFC's audience growth, particularly without the pay-per-view paywall, on conversations with sponsors and potential new partners. He also sought insight into how this shift is expected to influence partnerships growth in 2026, especially concerning commercial inventory.

Answer

CFO Andrew Schleimer stated that sponsors are excited about the increased accessibility of UFC's premium content to a broader fanbase. He emphasized that combining commercial units and inventory from new media rights deals is a meaningful growth lever, reinforcing confidence in the long-term billion-dollar partnership goal. President and COO Mark Shapiro added that TKO is now receiving significant incoming calls from brands interested in portfolio packages across UFC, WWE, and PBR, leveraging Paramount's 75 million-plus global subscribers to potentially reopen existing deals and secure new blue-chip partners.

Ryan Gravitt asked how the anticipated audience growth for UFC, resulting from the removal of the pay-per-view paywall, has influenced conversations with current and potential sponsors. He also sought insight into the expected impact of this change on partnerships growth in 2026.

Answer

Andrew Schleimer, CFO of TKO Group Holdings Inc, noted significant excitement from sponsors regarding the increased accessibility of UFC's premium content to a broader fanbase. He highlighted that combining commercial units and inventory from new media rights deals further bolsters the long-term goal of achieving $1 billion in total company partnership revenue. Mark Shapiro, President and COO of TKO Group Holdings Inc, emphasized that these are 'partnerships' rather than just sponsorships, covering activation, experiential, branded content, and commercial inventory. He pointed out that the wider universe of Paramount Global's 75 million-plus global subscribers (compared to ESPN+'s 25 million) allows TKO to reopen deals with existing partners for increased value and engage in fruitful conversations with new categories, with two major new deals expected by year-end.

Ryan Gravett requested an update on the company's boxing initiative, including its progress, the impact of proposed legislation, and its expected financial contribution heading into 2026.

Answer

Mark Shapiro, COO, President & Director, positioned boxing as a low-risk, high-growth 'fourth tentpole' for TKO, detailing the fee-based structure of the Zufa Boxing JV and separate super fights. Lawrence Epstein, COO of UFC, clarified that the proposed Muhammad Ali Revival Act is designed to add a unified promotional model, not alter the existing law. Andrew Schleimer, CFO, added that TKO will also build long-term firm value through its equity stake in the venture.

Ryan Gravett inquired about the recently announced acquisition of AAA wrestling in Mexico, asking about the biggest opportunities for monetization and integration with WWE and if similar tuck-in opportunities exist globally.

Answer

Mark Shapiro, President and COO, called the deal a "fast ball right down the middle." An unnamed executive highlighted the opportunity to tap into the strong Latino audience and create new stars, noting a recent debut wrestler drove nearly 100 million social media impressions. CFO Andrew Schleimer added that while the short-term financial impact is not meaningful, the strategic goal is to institutionalize the promotion and grow its revenue streams, but noted no other M&A is on the horizon.

Ryan Gravett of UBS asked about the impact from the timing of WWE content deliveries in the quarter and the opportunity for additional programming with Netflix. He also inquired about how to model UFC media rights revenue growth as international markets transition to Netflix.

Answer

CFO Andrew Schleimer clarified the Q4 content delivery impact was purely timing-related and would normalize. He explained that as existing international WWE media deals expire, they roll into the Netflix deal, making TKO economically indifferent in the first year. WWE President Nick Khan confirmed Netflix has a strong appetite for more content, citing a new behind-the-scenes show. President and COO Mark Shapiro added that new event concepts are already generating interest for ancillary content production.

Ryan Gravett from UBS asked for an update on media rights renewal discussions outside the U.S., specifically mentioning Latin America and Asia, and inquired about interest from digital players in those regions.

Answer

Formula One CEO Stefano Domenicali confirmed that the situation is dynamic globally, with emerging competition from streaming players in certain areas. He highlighted that positive developments are expected in key markets such as Japan, other Far East Asian countries, and Brazil, which will have a favorable impact on relationships starting next year.

Ryan Gravett asked for an update on media rights renewal discussions in non-U.S. markets, specifically mentioning Latin America and Asia, and the level of interest from digital players.

Answer

Formula One CEO Stefano Domenicali described the situation as dynamic, noting healthy competition from streaming services is emerging in certain areas. He specifically mentioned that key markets including Japan, others in Far East Asia, and Brazil are expected to see a positive evolution in their media rights relationships starting next year.