In a significant development for the sports entertainment industry, Group One Holdings, the powerhouse behind the mixed martial arts brand One Championship, has successfully secured a fresh round of funding Bloomberg reports. The company has raised at least $50 million from a group of investors, including the Qatar Investment Authority (QIA).
This latest financial injection values Group One at a minimum of $1.35 billion, maintaining a similar valuation to its previous funding round in 2021. The company’s representative confirmed the fundraising but refrained from disclosing specific details about the amount or participating investors.
Group One, which positions itself as a competitor to Endeavor Group Holdings Inc.’s Ultimate Fighting Championship, has been making strategic moves to expand its global reach. In 2022, the company forged a multiyear partnership with Qatar’s BeIN Media Group, securing broadcast rights across the Middle East and North Africa. Additionally, Group One inked a deal with Amazon.com Inc.’s Prime Video to showcase at least a dozen events annually in the United States and Canada.
Hua Fung Teh, co-founder and president of Group One, expressed optimism about the company’s financial trajectory, stating, “The company is on the verge of profitability after a decade of investing in the global brand, live events, world-class athlete roster and broadcast partnerships.”
The sports media platform has been exploring the possibility of an initial public offering (IPO) in the United States, awaiting favorable market conditions.
ONE Championship CEO Chatri Sityodtong claimed the MMA promotion will become profitable and cash flow positive in the coming quarters this past summer, projecting revenues to reach $200 million on a run-rate basis, a 50% increase from 2022.
However, these optimistic predictions contradict past financial reports showing ONE has accumulated over $400 million in losses, with revenues previously struggling to exceed $70 million annually. Sityodtong dismissed negative financial reports as “fake news,” despite official regulatory filings reflecting substantial losses.
Further complicating matters, ONE’s fundraising efforts, such as seeking investment from the Qatar Investment Authority, face challenges due to the promotion’s poor financial performance and a delayed event in Qatar. Additionally, internal tension is rising as featherweight champion Chingiz Allazov expressed dissatisfaction with ONE, signaling growing discontent among top fighters.
ONE also appears to be laying off a part of the work force.
Been hearing rumors about a round of layoffs at ONE for a bit now. Now that the affected employees themselves are public about it, safe to say it’s happening.
Seems like a repeat of mid-2020 where they had a round of layoffs + new investments concurrently. pic.twitter.com/9Vgt4pF81k
— Jonathan of Kowloon & Cotai (@GlobeSvcs) October 16, 2024
During the recently UFC class action lawsuit, ONE FC star, Sage Northcutt issued a statement explaining that he would like the settlement to be approved as he has limited earnings. Northcutt details he believes the settlement is an excellent outcome, especially as he has fought only once in the past five years and lacks a steady income. Receiving settlement funds would be transformative for him, allowing him to secure financial stability and buy a home near his training camp in Northern California.
DECLARATION OF SAGE NORTHCUTT:
1. My name is Sage Northcutt. I am over the age of 18, and the facts set forth below are
based on my personal knowledge and experience.
2. I am a class member in this case. I understand that this case was brought to help recover
damages to compensate fighters for their allegedly anti-competitive underpayment by the
UFC and injunctive relief to prevent the UFC from underpaying and exploiting its
fighters in the future.
3. I also understand that only the damages claims were certified as a class action, and that
the injunctive relief claims are no longer a part of this case (although they remain part of
the related, later-filed case brought against the UFC by Kajan Johnson, Clarence
Dollaway, and Tristan Connelly).
4. I submit this Declaration in support of the proposed $375 million settlement, which I
believe is an excellent result for the fighters and should be approved.
5. During the Le Class Period, I fought in 5 UFC bouts.
6. As a professional fighter, I have only had one fight in the last five plus years and have not
earned a steady income. Receiving settlement funds now would truly be life-changing
money for me and for other members of the class. It would put me on firmer financial
footing and allow me to purchase a home near my training camp in Northern California.
7. I understand that the expert economists retained by plaintiffs and the class estimate the
damages from the UFC’s conduct at roughly 2.5 times the settlement amount, and that the
amount of any jury award would be tripled under the antitrust laws. I also realize,
however, that the UFC could prevail at trial (or on appeal), resulting in no recovery at all,
and that even if the fighters prevailed at trial (and on appeal), the jury could award an
amount less than the economists’ estimates.
8. I also understand that the UFC has publicly vowed to appeal any trial verdict against it,
and that the entry of any judgment in the case and resolution of those appeals could take
several years. So even if the fighters won at trial and on appeal, any recovery would
likely be delayed for several years.
9. For me, a significant recovery in the near future is much more appealing than the
possibility of a larger recovery several years from now, especially in light of the
possibility that there would be no recovery at all if this settlement were not approved. In
my situation, a bird in the hand truly does beat two (or three, or even nine) in the bush.
10. I have a deep interest in and concern for the future of the sport of mixed martial arts. I
understand that the Johnson case contains a claim for injunctive relief, and that that case
is not settling at this time. In this way, the current settlement is the best of both worlds.
�e fighters can recover now for injuries in Le going back nearly fourteen years, while
also preserving the possibility of obtaining changes to the UFC’s business practices going
forward.
11. For me, the $375 million settlement currently before the Court would be an enormously
successful result. It would make a significant difference in my life and my financial
stability.
12. I enthusiastically support this settlement, and I sincerely hope for its swift approval.
I declare under penalty of perjury that the foregoing is true and correct. Executed on
October 3, 2024.
/s/ Sage Northcutt
