Mark Shapiro, COO of TKO, has defended the company's salary strategy after securing major rights deals with Netflix, ESPN, and other platforms. According to his statements, the company has "resized" the payment structure for fighters and superstars after closing those contracts, something that is already reflected in their numbers and should not generate additional adverse impacts.
During his participation in the Goldman Sachs Communacopia + Technology Conference, Shapiro explained that, after the new deals with ESPN for WWE and with Paramount+, CBS, Peacock, and Sky for UFC, and following the move of Raw to Netflix, the company adjusted the salary composition of its talents. "What I would tell you is that, after our new agreements, we resized the salary composition of our fighters and superstars. That is incorporated in our numbers. So there will be no additional adverse impact regarding how it develops or is distributed," he stated.
The executive added that TKO trusts its current position and highlighted the size of the UFC roster: "We have 600 fighters, for example, in our UFC group."
Shapiro also emphasized the key role of development systems, especially in WWE. "If you look at WWE, 75% of the superstars come from NXT. So they start in our development league and move up. Therefore, the farm system is very important for our strategy," he explained.
On the UFC side, Shapiro pointed out that the company has capitalized on investments in its training centers in Mexico City, Las Vegas, and especially in China. "We are gaining real momentum. So it is an important part of our strategy. It will continue to be," he affirmed.
The executive also mentioned that TKO will continue to be aggressive in seeking monetization opportunities for its talents, both in WWE and UFC, through advertising agreements, marketing partnerships, and bonuses for finishes and "fight of the night."
Shapiro closed his remarks by highlighting the appeal of both brands: "What we see is that the best of the best are signing up and lining up to be part of UFC and WWE. So it's something we're always watching and want to make sure we're extending opportunities, but the strategy is working."
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