ONE Championship CEO Chatri Sityodtong recently made claims on social media that the mixed martial arts promotion will become profitable and cash flow positive within the next quarter or two. According to his posts, ONE’s revenues will approach $200 million on a run rate basis this year, up around 50% compared to 2022 numbers.
However, these claims of impending profitability seem to directly contradict previous financial reports showing major losses for the Singapore-based company. Over the past few years, the promotion has accumulated over $400 million in total losses while struggling to grow revenues above $70 million annually.
While MMA media is missing out on the business side of saying something like revenue run-rate, Kristie Neo (formerly of dealstreetasia) didn’t miss a beat.
Sityodtong has pushed back against this negative financial reporting, labeling it as “fake news” in a similar fashion to former U.S. President Donald Trump. But the numbers come directly from ONE’s own regulatory filings with the Singapore government’s ACRA agency, equivalent to the U.S. Securities and Exchange Commission. ONE FC has since relocated it’s headquarters from Singapore to Cayman Islands where the financials aren’t so readily available.
Further, Dealstreetasia reported in November of 2023 that ONE FC is looking for another cash injection.
ONE Championship made a fundraising pitch to the Qatar Investment Authority (QIA). This follows QIA’s previous investment of $50 million in ONE’s $150 million funding round in 2021. However, QIA has reportedly been increasingly embarrassed by its involvement due to ONE’s weak financial performance. ONE’s 2021 losses surged by 125% to $111 million, despite a 19.1% revenue growth to $67.7 million.
ONE’s plans to hold its first event in Qatar on December 1, 2023, have been delayed to next year, with an estimated cost of $6 million mostly underwritten by local partners like Media City Qatar, Qatar Airways, and Ooredoo. However, Qatar Airways and Ooredoo have withdrawn their financial support for ONE’s projects in Qatar, although the Qatar Tourism Authority remains supportive.
ONE’s financial struggles are compounded by challenges in raising funds, as global liquidity has dried up and IPO markets remain closed. The company previously attempted an IPO in 2021 through a merger with Gores Holdings, which did not materialize. Critics have highlighted ONE’s questionable accounting practices, including recognizing non-cash components as revenue and an internal asset sale that reported a $341 million profit in 2020.
To improve its financial situation, ONE has undertaken layoffs, reducing its workforce by about 20-30 people over two rounds of job cuts in 2023.
The reigning Featherweight kickboxing champion, Chingiz Allazov, is facing uncertainty regarding his future with ONE Championship as the Featherweight Grand Prix approaches. Allazov has expressed dissatisfaction with the organization, indicating that he and ONE are “not on the same path.” Despite his public discontent earlier this year, ONE Championship has stated that they will not terminate his contract, which runs until December 2026, but will instead attempt to resolve the issues.
The tension between Allazov and ONE intensified when the promotion announced an interim Featherweight title fight between Superbon and Marat Grigorian. Allazov’s team had approved giving up the belt on their own terms, but ONE chose to make the fight for a vacant interim title instead.
Amidst this backdrop, top fighters like Tawanchai, Sitthichai, and Masaaki Noiri have confirmed their participation in the Featherweight Grand Prix. However, Allazov has been notably absent from promotional material related to the tournament.
There’s plenty of other talent which is irritated at ONE FC’s approach.
