Potential UFC IPO A Sign Of Change In MMA Outfit's Business Approach

Among the key elements of Endeavor's majority ownership stake in the UFC "includes agreements between the various stakeholders that offer insight into the mixed martial arts leader's past, present and potential future," including provisions in which UFC "could be spun out for its own IPO," according to Josh Gross of THE ATHLETIC. The UFC "currently remains private." But from now until Aug. 18, 2021, an IPO of the UFC "can be issued per the approval of two of the directors designated by Endeavor, Silver Lake Partners or KKR 'if the valuation in the offering achieves a specified valuation.'" After Aug. 18, 2021, either Endeavor, Silver Lake Partners or KKR "can exercise a demand right to go public." UFC President Dana White said that this year the UFC is "in line to break its record for ticket sales, one of several signs the company's overall business is trending skyward." The single-entity UFC would "appear to control more of its destiny than other sports properties" (THEATHLETIC.com, 6/7).