TKO Group President and COO Mark Shapiro appeared at JPMorgan’s Global Conference this week. During the conversation, he talked about one of the company’s fastest-growing revenue line: financial incentive packages, or FIPs. These deals involve governments and private entities paying TKO to bring UFC, WWE, and Zuffa Boxing events to their regions.
Shapiro openly described the strategy behind those agreements.
“We have freemium content that is in demand,” he said. “And as such, there needs to be government and private financial incentives that reflect the economic and cultural impact we bring to these cities and regions. And that’s where the rubber meets the road.”
TKO has projected between $380 million and $420 million in FIP revenue by 2030, with the company expecting to surpass $300 million this year alone.
When asked how TKO evaluates the tradeoffs of hosting events in smaller or politically controversial markets, Shapiro admitted the process is far from exact.
“There’s not a lot of science to the weight part of the question,” he said, explaining that the company balances brand considerations, audience growth, and the size of the financial package being offered.
Among the recently announced deals are partnerships involving Arizona, Philadelphia alongside Governor Josh Shapiro, and Baku, Azerbaijan. Shapiro also noted that long-time partners Saudi Arabia and Abu Dhabi are actively seeking even more events.
“Abu Dhabi already has a lot of UFC, but here they are looking for more. Saudi already has a lot of WWE, and here they are looking for more,” he said. “So it’s a robust marketplace.”
Saudi Arabia and Abu Dhabi have faced extensive criticism from human rights organizations over issues including restrictions on political dissent, women’s rights, and the imprisonment of journalists and activists. Critics have frequently labeled these partnerships as examples of sportswashing, where governments use major sporting events to improve their international image. Shapiro did not address those concerns during the conference.
Instead, he summarized the motivation behind the partnerships in simple terms.
“That region in particular is very focused on showing the world they’re still open for business,” he said.
