Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 09, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | ENDEAVOR GROUP HOLDINGS, INC. | |
Entity Central Index Key | 0001766363 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-40373 | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, State or Province | CA | |
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Class A Common Stock, par value $0.00001 per share | |
Trading Symbol | EDR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Address, Address Line One | 9601 Wilshire Boulevard | |
Entity Address, Address Line Two | 3rd Floor | |
Entity Address, City or Town | Beverly Hills | |
Entity Address, Postal Zip Code | 90210 | |
Entity Tax Identification Number | 83-3340169 | |
City Area Code | 310 | |
Local Phone Number | 285-9000 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 284,019,250 | |
Common Class X [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 185,433,757 | |
Common Class Y [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 235,299,672 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 2,030,255 | $ 1,560,995 |
Restricted cash | 259,334 | 232,041 |
Accounts receivable | 760,518 | 615,010 |
Deferred costs | 165,545 | 255,371 |
Assets held for sale | 0 | 885,633 |
Other current assets | 200,541 | 204,697 |
Total current assets | 3,416,193 | 3,753,747 |
Property and equipment, net | 630,035 | 629,807 |
Operating lease right-of-use assets | 361,512 | 373,652 |
Intangible assets, net | 1,601,477 | 1,611,684 |
Goodwill | 4,530,728 | 4,506,554 |
Investments | 492,721 | 298,212 |
Other assets | 326,721 | 260,861 |
Total assets | 11,359,387 | 11,434,517 |
Current Liabilities: | ||
Accounts payable | 527,406 | 558,863 |
Accrued liabilities | 460,428 | 524,061 |
Current portion of long-term debt | 82,649 | 82,022 |
Current portion of operating lease liabilities | 59,910 | 59,743 |
Deferred revenue | 496,577 | 651,760 |
Deposits received on behalf of clients | 242,411 | 216,632 |
Liabilities held for sale | 0 | 507,303 |
Other current liabilities | 129,413 | 105,053 |
Total current liabilities | 1,998,794 | 2,705,437 |
Long-term debt | 5,621,429 | 5,631,714 |
Long-term operating lease liabilities | 351,695 | 363,568 |
Other long-term liabilities | 421,011 | 402,472 |
Total liabilities | 8,392,929 | 9,103,191 |
Commitments and contingencies (Note 17) | ||
Redeemable non-controlling interests | 242,534 | 209,863 |
Shareholders'/Members' Equity: | ||
Additional paid-in capital | 1,696,851 | 1,624,201 |
Retained earnings (accumulated deficit) | 22,921 | (296,625) |
Accumulated other comprehensive loss | (49,428) | (80,535) |
Members' Equity: | ||
Total Endeavor Group Holdings, Inc. shareholders' equity | 1,670,349 | 1,247,046 |
Nonredeemable non-controlling interests | 1,053,575 | 874,417 |
Total shareholders' equity | 2,723,924 | 2,121,463 |
Total liabilities, redeemable interests and shareholders' equity | 11,359,387 | 11,434,517 |
Common Class A [Member] | ||
Shareholders'/Members' Equity: | ||
Common stock value | 2 | 2 |
Common Class B [Member] | ||
Shareholders'/Members' Equity: | ||
Common stock value | 0 | 0 |
Common Class C [Member] | ||
Shareholders'/Members' Equity: | ||
Common stock value | 0 | 0 |
Common Class X [Member] | ||
Shareholders'/Members' Equity: | ||
Common stock value | 1 | 1 |
Common Class Y [Member] | ||
Shareholders'/Members' Equity: | ||
Common stock value | $ 2 | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Net of allowance for doubtful accounts | $ 61,731 | $ 57,102 |
Common Class A [Member] | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 275,698,529 | 265,553,327 |
Common Stock, shares outstanding | 275,698,529 | 265,553,327 |
Common Class B [Member] | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 0 | 0 |
Common Stock, shares outstanding | 0 | 0 |
Common Class C [Member] | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 0 | 0 |
Common Stock, shares outstanding | 0 | 0 |
Common Class X [Member] | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 176,967,757 | 186,222,061 |
Common Stock, shares outstanding | 176,967,757 | 186,222,061 |
Common Class Y [Member] | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 235,415,621 | 238,154,296 |
Common Stock, shares outstanding | 235,415,621 | 238,154,296 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | $ 1,473,763 | $ 1,069,582 |
Operating expenses: | ||
Direct operating costs | 694,641 | 546,392 |
Selling, general and administrative expenses | 540,206 | 381,113 |
Insurance recoveries | (993) | (19,657) |
Depreciation and amortization | 65,994 | 67,236 |
Total operating expenses | 1,299,848 | 975,084 |
Operating income | 173,915 | 94,498 |
Other (expense) income: | ||
Interest expense, net | (59,272) | (68,351) |
Tax receivable agreements liability adjustment | (53,497) | 0 |
Other income (expense), net | 459,941 | (3,215) |
Income before income taxes and equity losses of affiliates | 521,087 | 22,932 |
(Benefit from) provision for income taxes | (17,234) | 5,085 |
Income before equity losses of affiliates | 538,321 | 17,847 |
Equity losses of affiliates, net of tax | (20,655) | (15,471) |
Net income | 517,666 | 2,376 |
Less: Net income attributable to non-controlling interests | 198,120 | 27,246 |
Less: Net loss attributable to Endeavor Operating Company, LLC prior to the reorganization transactions | 0 | (24,870) |
Net income attributable to Endeavor Group Holdings, Inc. | $ 319,546 | |
Basic | $ 1.19 | |
Diluted earnings per share | $ 1.16 | |
Weighted Average Number of Shares Outstanding, Basic | 268,489,176 | |
Weighted Average Number of Shares Outstanding, Diluted | 443,038,617 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 517,666 | $ 2,376 |
Change in unrealized gains/losses on cash flow hedges: | ||
Unrealized gains (losses) on forward foreign exchange contracts | 184 | (1,358) |
Reclassification of gains to net income for forward foreign exchange contracts | (786) | 0 |
Unrealized gains on interest rate swaps | 48,194 | 15,076 |
Reclassification of losses to net income for interest rate swaps | 7,333 | 7,384 |
Foreign currency translation adjustments | (648) | (4,550) |
Reclassification of foreign currency translation gains to net income for business divestiture | (127) | 0 |
Total comprehensive income, net of tax | 571,816 | 18,928 |
Less: Comprehensive income attributable to non-controlling interests | 218,615 | 27,246 |
Less: Net loss attributable to Endeavor Operating Company, LLC prior to the reorganization transactions | 0 | (8,318) |
Comprehensive income attributable to Endeavor Group Holdings, Inc. | $ 353,201 | $ 0 |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Interests and Shareholders'/Members' Equity (Unaudited) - USD ($) $ in Thousands | Total | Members' Capital [Member] | Accumulated Other Comprehensive Loss Income [Member] | Noncontrolling Interest [Member] | Parent [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Redeemable Stock [Member] | Redeemable Stock [Member]Noncontrolling Interest [Member] | Nonredeemable Non-controlling Interests [Member]Noncontrolling Interest [Member] | Common Class A [Member] | Class X Common Stock [Member] | Class Y Common Stock [Member] |
Beginning balance at Dec. 31, 2020 | $ 963,976 | $ 468,633 | $ (190,786) | $ 277,847 | $ 22,519 | $ 168,254 | $ 686,129 | ||||||
Comprehensive (loss) income | 21,026 | (24,870) | 16,552 | (8,318) | (2,098) | 29,344 | |||||||
Equity-based compensation expense | 9,450 | 3,444 | 3,444 | 6,006 | |||||||||
Distributions | (8,842) | 718 | (718) | (8,124) | |||||||||
Accretion of redeemable non-controlling interests | 271 | 271 | 271 | (271) | |||||||||
Establishment and acquisition of non-controlling interests | (2,888) | 560 | 560 | 2,888 | (3,448) | ||||||||
Ending balance at Mar. 31, 2021 | 982,993 | $ 447,320 | (174,234) | 273,086 | $ 22,519 | 168,773 | 709,907 | ||||||
Beginning balance at Dec. 31, 2021 | 2,121,463 | (80,535) | 1,247,046 | $ 1,624,201 | $ (296,625) | 209,863 | 874,417 | $ 2 | $ 1 | $ 2 | |||
Beginning Balance (shares) at Dec. 31, 2021 | 265,553,327 | 186,222,061 | 238,154,296 | ||||||||||
Comprehensive (loss) income | 567,580 | 33,655 | 353,201 | 319,546 | 4,236 | 214,379 | |||||||
Equity-based compensation expense | 48,875 | $ 1,127 | 45,522 | 45,522 | 3,353 | ||||||||
Distributions | (351) | 351 | |||||||||||
Accretion of redeemable non- controlling interests | (27,308) | (27,308) | (27,308) | 27,308 | |||||||||
Establishment and acquisition of non-controlling interests | 0 | ||||||||||||
Acquisition of non-controlling interests | 5,100 | 1,346 | 1,346 | 3,754 | |||||||||
Issuance of Class A common stock due to exchanges | 9,233,445 | (9,254,304) | (2,738,675) | ||||||||||
Issuance of Class A common stock due to releases of RSUs | 911,757 | ||||||||||||
Equity reallocation between controlling and non-controlling interests | (2,548) | 49,861 | 52,409 | (49,861) | |||||||||
Tax receivable agreements in connection with exchanges | 681 | 681 | 681 | ||||||||||
Non-controlling interests for sale of businesses | 7,884 | 7,884 | |||||||||||
Ending balance at Mar. 31, 2022 | $ 2,723,924 | $ (49,428) | $ 1,670,349 | $ 1,696,851 | $ 22,921 | $ 242,534 | $ 1,053,575 | $ 2 | $ 1 | $ 2 | |||
Ending Balance (shares) at Mar. 31, 2022 | 275,698,529 | 176,967,757 | 235,415,621 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 517,666 | $ 2,376 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 65,994 | 67,236 |
Amortization and write-off of original issue discount and deferred financing cost | 5,099 | 7,139 |
Amortization of content costs | 9,848 | 10,730 |
Loss (gain) on sale/disposal and impairment of assets | (1,108) | 2,539 |
Gain on business divestiture | (478,641) | 0 |
Equity-based compensation expense | 50,856 | 16,491 |
Change in fair value of contingent liabilities | 790 | 4,572 |
Change in fair value of equity investments with and without readily determinable fair value | (1,851) | (5,205) |
Change in fair value of financial instruments | 6,915 | 16,482 |
Equity losses of affiliates | 20,655 | 15,471 |
Net provision for (benefit from) allowance for doubtful accounts | 5,128 | (352) |
Net loss (gain) on foreign currency transactions | 8,487 | (2,966) |
Distributions from affiliates | 2,009 | 1,202 |
Tax receivable agreements liability adjustment | 53,497 | 0 |
Income taxes | (25,787) | (4,782) |
Other, net | (442) | 88 |
Changes in operating assets and liabilities - net of acquisitions and divestiture: | ||
Increase in receivables | (157,050) | (76,788) |
(Increase)/decrease in other current assets | (4,960) | 12,578 |
Increase in other assets | (37,183) | (189,401) |
Decrease in deferred costs | 87,278 | 41,390 |
(Decrease)/increase in deferred revenue | (153,627) | 51,170 |
Decrease in accounts payable and accrued liabilities | (92,547) | (19,196) |
Increase/(decrease) in other liabilities | 58,660 | (16,526) |
Net cash used in operating activities | (58,098) | (70,830) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions, net of cash acquired | (64,168) | (425) |
Purchases of property and equipment | (21,840) | (9,313) |
Proceeds from business divestiture, net of cash sold | 649,706 | 0 |
Proceeds from sale of assets | 110 | 16,513 |
Investments in affiliates | (18,708) | (954) |
Other, net | (361) | 1,789 |
Net cash provided by investing activities | 544,739 | 7,610 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from borrowings | 7,037 | 132,982 |
Payments on borrowings | (21,528) | (193,669) |
Distributions | (351) | (5,173) |
Redemption payments related to pre-IPO units | (7,067) | (7,177) |
Acquisition of non-controlling interests | 4,600 | (500) |
Payments of contingent consideration related to acquisitions | (1,697) | (1,778) |
Other, net | (137) | (2,528) |
Net cash used in financing activities | (19,143) | (77,843) |
Change in cash, cash equivalents and restricted cash balances held for sale | 28,736 | 0 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 319 | (1,171) |
Increase (decrease) in cash, cash equivalents and restricted cash | 496,553 | (142,234) |
Cash, cash equivalents and restricted cash at beginning of year | 1,793,036 | 1,190,333 |
Cash, cash equivalents and restricted cash at end of period | $ 2,289,589 | $ 1,048,099 |
DESCRIPTION OF BUSINESS AND ORG
DESCRIPTION OF BUSINESS AND ORGANIZATION | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | 1. DESCRIPTION OF BUSINESS AND ORGANIZATION Endeavor Group Holdings, Inc. (the "Company" or "EGH") was incorporated as a Delaware corporation in January 2019. The Company was formed as a holding company for the purpose of completing an initial public offering ("IPO") and other related transactions in order to carry on the business of Endeavor Operating Company, LLC (d.b.a. Endeavor) and its subsidiaries (collectively, "Endeavor" or "EOC"). As the sole managing member of Endeavor Manager, LLC ("Endeavor Manager"), which in turn is the sole managing member of EOC, the Company operates and controls all the business and affairs of Endeavor, and through Endeavor and its subsidiaries, conducts the Company’s business. The Company is a global sports and entertainment company. Prior to the IPO, Endeavor was owned by WME Holdco, LLC (which is referred to as "Holdco" herein and is principally owned by executive employees of the Company), affiliates of Silver Lake (which are collectively referred to as "Silver Lake" herein), and other investors and executive employees of the Company. Initial Public Offering On May 3, 2021, the Company closed an IPO of 24,495,000 shares of Class A common stock at a public offering price of $ 24.00 per share, which included 3,195,000 shares of Class A common stock issued pursuant to the underwriters’ option to purchase additional shares of Class A common stock. This option to purchase additional shares of Class A common stock closed on May 12, 2021. Reorganization Transactions Prior to the closing of the IPO, a series of reorganization transactions was completed. Subsequent to the closing of the IPO, several new and current investors purchased in the aggregate 75,584,747 shares of Class A common stock at a price per share of $ 24.00 . Then, through a series of transactions, EOC acquired the equity interests of the minority unitholders of Zuffa, which owns and operates the Ultimate Fighting Championship. This resulted in EOC directly or indirectly owning 100 % of the equity interests of Zuffa. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Subsidiary or Equity Method Investee [Line Items] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for reporting interim financial information and should be read in conjunction with the Company’s consolidated financial statements and accompanying footnotes in our Annual Report on Form 10-K for the year ended December 31, 2021. Certain information and note disclosures normally included in the annual financial statements have been condensed or omitted from these interim financial statements. The interim consolidated financial statements as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 are unaudited; however, in the opinion of management, such interim consolidated financial statements reflect all adjustments, consisting solely of normal and recurring adjustments, necessary for a fair statement of its financial position, results of operations and cash flows for the interim periods presented. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying disclosures. Significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, allowance for doubtful accounts, the fair value of acquired assets and liabilities associated with acquisitions, the fair value of the Company’s reporting units and the assessment of goodwill, other intangible assets and long-lived assets for impairment, consolidation, investments, redeemable non-controlling interests, the fair value of equity-based compensation, tax receivable agreements liability, income taxes and contingencies. Management evaluates these estimates using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s consolidated financial statements in future periods. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 3. RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU addresses issues identified as a result of the complexity associated with applying GAAP for certain financial instruments with characteristics of liabilities and equity. The amendments in this update were effective for public entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The adoption did not have a material effect on the Company’s financial position or results of operations. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. Adoption of the expedients and exceptions is permitted upon issuance of this update through December 31, 2022. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method. This ASU clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets, expanding the scope of this guidance to allow entities to apply the portfolio layer method to portfolios of all financial assets, including both prepayable and nonprepayable financial assets. The amendments in this update are effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption will not have a material effect on the Company’s financial position or results of operations. In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the accounting guidance on troubled debt restructurings (TDRs) for creditors in ASC 310-40 and amends the guidance on "vintage disclosures" to require disclosure of current-period gross write-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. For entities that have already adopted ASU 2016-13, the amendments in this update are effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption will not have a material effect on the Company’s financial position or results of operations. |
ACQUISITIONS AND DIVESTITURE
ACQUISITIONS AND DIVESTITURE | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DECONSOLIDATION | 4. ACQUISITIONS AND DIVESTITURE 2022 ACQUISITIONS Diamond Baseball Holdings In January 2022, the Company acquired four additional Professional Development League clubs (the "PDL Clubs"), which are being operated under the Diamond Baseball Holdings ("DBH") umbrella. DBH will support the PDL Clubs' commercial activities, content strategy and media rights. The combined aggregate purchase price for these four acquisitions was $ 64.2 million. The Company incurred $ 0.6 million in transaction related costs in connection with these acquisitions. The costs were expensed as incurred and included in selling, general and administrative expenses in the consolidated statement of operations. The goodwill was assigned to the Owned Sports Properties segment. The weighted average life of finite-lived intangible assets acquired for these four PDL Clubs is 18.7 years. The results of these four PDL Clubs have been included in the consolidated financial statements since the dates of acquisition. For the three months ended March 31, 2022 , these four PDL Clubs' consolidated revenue and net loss included in the consolidated statement of operations from the acquisition dates were $ 0.2 million and $ 1.0 million, respectively. Preliminary Allocation of Purchase Price The acquisitions were accounted for as business combinations and the preliminary fair values of the assets acquired and liabilities assumed in the business combinations are as follows (in thousands): Accounts receivable $ 89 Other current assets 491 Property and equipment 4,403 Right of use assets 7,270 Other assets 103 Intangible assets: Customer relationships 1,960 Other 35,410 Goodwill 25,487 Accounts payable and accrued expenses ( 93 ) Other current liabilities ( 56 ) Operating lease liability ( 9,470 ) Deferred revenue ( 1,426 ) Net assets acquired $ 64,168 2022 DIVESTITURE In February 2021, the Company signed a new franchise agreement and side letter (the "Franchise Agreements") directly with the Writer’s Guild of America East and the Writer’s Guild of America West (collectively, the "WGA"). These Franchise Agreements included terms that, among other things, prohibited the Company from (a) negotiating packaging deals after June 30, 2022 and (b) having more than a 20% non-controlling ownership or other financial interest in, or being owned or affiliated with any individual or entity that has more than a 20% non-controlling ownership or other financial interest in, any entity or individual engaged in the production or distribution of works written by WGA members under a WGA collective bargaining agreement. As a result, in the third quarter of 2021, the Company began marketing the restricted Endeavor Content business for sale and such assets and liabilities were reflected as held for sale in the consolidated balance sheet as of December 31, 2021. The sale of 80% of the restricted Endeavor Content business closed in January 2022. The Company received cash proceeds of $ 666.3 million and divested $ 16.6 million of cash and restricted cash on the date of sale. The retained 20% interest of the restricted Endeavor Content business is reflected as an equity method investment as of March 31, 2022 and was valued at $ 196.3 million at the date of sale. The fair value of the retained 20% interest of the restricted Endeavor Content business was determined using the market approach. The key input assumption was the transaction price paid for the Company's 80% interest in the restricted Endeavor Content business. The Company recorded a net gain of $ 463.6 million, inclusive of a $ 121.1 million gain related to the remeasurement of the retained interest in the restricted Endeavor Content business to fair value and $ 15.0 million of transaction costs, in other income (expense), net during the three months ended March 31, 2022. The restricted Endeavor Content business was included in the Company’s Representation segment prior to the sale. |
SUPPLEMENTARY DATA
SUPPLEMENTARY DATA | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTARY DATA | 5. SUPPLEMENTARY DATA Accrued Liabilities The following is a summary of accrued liabilities (in thousands): March 31, December 31, 2022 2021 Accrued operating expenses $ 286,576 $ 302,024 Payroll, bonuses and benefits 113,938 162,688 Other 59,914 59,349 Total accrued liabilities $ 460,428 $ 524,061 Allowance for Doubtful Accounts The changes in the allowance for doubtful accounts are as follows (in thousands): Balance at Additions/Charged Balance at Beginning (Credited) to Costs Foreign End of of Year and Expenses Deductions Exchange Period Allowance for doubtful accounts Three Months Ended March 31, 2022 $ 57,102 $ 5,699 $ ( 571 ) $ ( 499 ) $ 61,731 Supplemental Cash Flow The Company’s supplemental cash flow information is as follows (in thousands): Three months ended March 31, 2022 2021 Supplemental information: Cash paid for interest $ 47,038 $ 41,726 Cash payments for income taxes 7,751 7,709 Non-cash investing and financing activities: Capital expenditures included in accounts payable and accrued liabilities $ 11,639 $ 5,924 Establishment and acquisition of non-controlling interests — 2,888 Accretion of redeemable non-controlling interests 27,308 ( 271 ) Tax receivable agreements in connection with exchanges 681 — Investment in affiliates retained from a business divestiture 196,345 — Accrued redemption of units in other current liabilities — 3,733 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 6. GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying value of goodwill are as follows (in thousands): Owned Sports Properties Events, Experiences & Rights Representation Total Balance — December 31, 2021 $ 2,741,048 $ 1,266,144 $ 499,362 $ 4,506,554 Acquisitions 25,487 — — 25,487 Foreign currency translation and other 142 ( 1,488 ) 33 ( 1,313 ) Balance — March 31, 2022 $ 2,766,677 $ 1,264,656 $ 499,395 $ 4,530,728 Intangible Assets The following table summarizes information relating to the Company’s identifiable intangible assets as of March 31, 2022 (in thousands): Weighted Average Gross Accumulated Carrying Amortized: Trade names 17.3 $ 990,126 $ ( 305,384 ) $ 684,742 Customer and client relationships 6.5 1,337,226 ( 1,023,960 ) 313,266 Internally developed technology 3.4 121,173 ( 73,612 ) 47,561 Other 15.3 177,947 ( 46,131 ) 131,816 $ 2,626,472 $ ( 1,449,087 ) $ 1,177,385 Indefinite-lived: Trade names $ 336,437 $ — $ 336,437 Owned events 87,655 — 87,655 Total intangible assets $ 3,050,564 $ ( 1,449,087 ) $ 1,601,477 The following table summarizes information relating to the Company’s identifiable intangible assets as of December 31, 2021 (in thousands): Weighted Average Gross Accumulated Carrying Amortized: Trade names 17.3 $ 991,021 $ ( 291,326 ) $ 699,695 Customer and client relationships 6.7 1,344,783 ( 1,012,509 ) 332,274 Internally developed technology 3.9 120,175 ( 66,939 ) 53,236 Other 14.3 142,657 ( 44,608 ) 98,049 $ 2,598,636 $ ( 1,415,382 ) $ 1,183,254 Indefinite-lived: Trade names $ 340,029 $ — $ 340,029 Owned events 88,401 — 88,401 Total intangible assets $ 3,027,066 $ ( 1,415,382 ) $ 1,611,684 Intangible asset amortization expense was $ 42.9 million and $ 45.7 million for the three months ended March 31, 2022 and 2021 , respectively. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | 7. INVESTMENTS The following is a summary of the Company’s investments (in thousands): March 31, December 31, 2022 2021 Equity method investments $ 373,417 $ 196,423 Equity investments without readily determinable fair values 118,379 101,124 Equity investments with readily determinable fair values 925 665 Total investments $ 492,721 $ 298,212 Equity Method Investments As of March 31, 2022 and December 31, 2021, the Company held various investments in non-marketable equity instruments of private companies. As of March 31, 2022, the Company’s equity method investments are primarily comprised of the restricted Endeavor Content business, Learfield IMG College, and Sports News Television Limited. The Company’s ownership of its equity method investments ranges from 20 % to 50 % as of March 31, 2022. As of March 31, 2022 , the Company’s ownership in Learfield IMG College was approximately 42 %. The Company’s share of the net loss of Learfield IMG College for the three months ended March 31, 2022 and 2021 was $ 21.5 million and $ 18.8 million, respectively, and is recognized within equity losses of affiliates in the consolidated statements of operations. In January 2022, in connection with the Company's sale of 80 % of the restricted Endeavor Content business, the Company retained 20% ownership in the restricted Endeavor Content business. The investment is accounted for as an equity method investment. The Company’s share of the net loss of the restricted Endeavor Content business for the three months ended March 31, 2022 was $ 2.9 million and is recognized within equity losses of affiliates in the consolidated statement of operations. Equity Investments without Readily Determinable Fair Values As of March 31, 2022 and December 31, 2021, the Company held various investments in non-marketable equity instruments of private companies. For the three months ended March 31, 2022 and 2021 , the Company performed its assessment on its investments without readily determinable fair values and recorded an increase of $ 1.9 million and none , respectively, in other income (expense), net in the consolidated statements of operations. The increase was due to observable price changes. No investments were sold during the three months ended March 31, 2022. For the three months ended March 31, 2021, the Company sold investments for net proceeds of $ 4.8 million and recorded related gains of $ 2.6 million. Equity Investments with Readily Determinable Fair Values As of March 31, 2022, the Company had three investments in publicly traded companies. During the three months ended March 31, 2022 , the Company did not sell any investments in publicly traded companies. During the three months ended March 31, 2021, the Company sold two investments in publicly traded companies for total net proceeds of $ 11.5 million. As of March 31, 2022 and December 31, 2021, the Company’s equity investments with readily determinable fair values were valued at $ 0.9 million and $ 0.7 million, respectively. For the three months ended March 31, 2022 and 2021, the Company recorded (losses) gains of $( 0.2 ) million and $ 5.2 million, respectively, due to the change in fair value in other income (expense), net in the consolidated statements of operations. See Note 9 for additional information regarding fair value measurements for these equity investments. The Company recorded no gains or losses on disposals/sales for the three months ended March 31, 2022 and 2021 . |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Financial Instrument Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | 8. FINANCIAL INSTRUMENTS The Company enters into forward foreign exchange contracts that economically hedge certain of its foreign currency risks, although hedge accounting does not apply or the Company elects not to apply hedge accounting. In addition, the Company enters into interest rate swaps to hedge certain of its interest rate risks on its debt. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions. Prior to the sale of the restricted Endeavor Content business, the Company also entered into forward foreign exchange contracts to hedge its foreign currency exposures on future production expenses denominated in various foreign currencies (i.e., cash flow hedges). As of March 31, 2022 , the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 12 months from March 31, 2022) (in thousands except for exchange rates): Foreign Currency Foreign US Dollar Weighted Average British Pound Sterling £ 21,066 in exchange for $ 28,499 £ 0.74 For forward foreign exchange contracts designated as cash flow hedges, the Company recognized net gains (losses) in accumulated other comprehensive income (loss) of $ 0.3 million and $( 1.4 ) million for the three months ended March 31, 2022 and 2021 , respectively. The Company reclassified a $ 0.8 million gain into net income for the three months ended March 31, 2022 in connection with the sale of the restricted Endeavor Content business and is included in the gain as described in Note 4. The Company did not reclassify any gains or losses into net income for the three months ended March 31, 2021. For forward foreign exchange contracts not designated as cash flow hedges, the Company recorded a net loss of $ 1.3 million and $ 0.2 million for the three months ended March 31, 2022 and 2021, respectively, in other income, net in the consolidated statements of operations. In certain circumstances, the Company enters into contracts that are settled in currencies other than the functional or local currencies of the contracting parties. Accordingly, these contracts consist of the underlying operational contract and an embedded foreign currency derivative element. Hedge accounting is not applied to the embedded foreign currency derivative element. The Company recorded a net gain (loss) of $ 0.5 million and $( 11.4 ) million for the three months ended March 31, 2022 and 2021, respectively, in other income, net in the consolidated statements of operations. In addition, the Company has entered into interest rate swaps for portions of its 2014 Credit Facilities and other variable interest bearing debt and has designated them cash flow hedges. For the three months ended March 31, 2022 and 2021 , the Company recorded gains of $ 47.7 million and $ 15.1 million in accumulated other comprehensive income (loss) and reclassified losses of $ 7.3 million and $ 7.4 million into net income, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 9. FAIR VALUE MEASUREMENTS The fair value hierarchy is composed of the following three categories: Level 1 —Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 —Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 —Inputs to the valuation methodology are unobservable and significant to the fair value measurements. The following tables present, for each of the fair value hierarchy levels, the Company’s assets and liabilities that are measured at fair value on a recurring basis (in thousands): Fair Value Measurements as of March 31, 2022 Level I Level II Level III Total Assets: Investments in equity securities with readily determinable fair values $ 925 $ — $ — $ 925 Interest rate swaps — 8,846 — 8,846 Forward foreign exchange contracts — 2,423 — 2,423 Total $ 925 $ 11,269 $ — $ 12,194 Liabilities: Contingent consideration $ — $ — $ 25,957 $ 25,957 Interest rate swaps — 2,130 — 2,130 Forward foreign exchange contracts — 12,408 — 12,408 Total $ — $ 14,538 $ 25,957 $ 40,495 Fair Value Measurements as of December 31, 2021 Level I Level II Level III Total Assets: Investments in equity securities with readily determinable fair values $ 665 $ — $ — $ 665 Forward foreign exchange contracts — 2,529 — 2,529 Total $ 665 $ 2,529 $ — $ 3,194 Liabilities: Contingent consideration $ — $ — $ 26,900 $ 26,900 Interest rate swaps — 48,427 — 48,427 Forward foreign exchange contracts — 13,363 — 13,363 Total $ — $ 61,790 $ 26,900 $ 88,690 There have been no transfers of assets or liabilities between the fair value measurement classifications during the three months ended March 31, 2022. Investments in Equity Securities with Readily Determinable Fair Values The estimated fair value of the Company’s equity securities with readily determinable fair values is based on observable inputs in an active market, which is a Level 1 measurement within the fair value hierarchy. Contingent Consideration The Company has recorded contingent consideration liabilities in connection with its acquisitions. Contingent consideration is included in current liabilities and other long-term liabilities in the consolidated balance sheets. Changes in fair value are recognized in selling, general and administrative expenses. The estimated fair value of the contingent consideration is based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The changes in the fair value of contingent consideration were as follows (in thousands): Three Months Ended March 31, 2022 Balance at December 31, 2021 $ 26,900 Payments ( 1,733 ) Change in fair value 790 Balance at March 31, 2022 $ 25,957 Foreign Currency Derivatives The Company classifies its foreign currency derivatives within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments (Note 8). As of March 31, 2022 and December 31, 2021 , the Company had $ 0.4 million and $ 2.3 million in other current assets, none and $ 0.2 million in assets held for sale, $ 2.0 million and none in other assets, $ 5.8 million and $ 4.5 million in other current liabilities, none and $ 0.4 million in liabilities held for sale, and $ 6.6 million and $ 8.5 million in other long-term liabilities, respectively, recorded in the consolidated balance sheets related to the Company’s foreign currency derivatives. Interest Rate Swaps The Company classifies its interest rate swaps within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments (Note 8). As of March 31, 2022 and December 31, 2021 , the Company had $ 8.8 million and none in other assets, and $ 2.1 million and $ 48.4 million in other long-term liabilities, respectively, recorded in the consolidated balance sheets related to the Company’s interest rate swaps. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | 10. DEBT The following is a summary of outstanding debt (in thousands): March 31, December 31, 2022 2021 2014 Credit Facilities: First Lien Term Loan (due May 2025 ) $ 2,778,515 $ 2,786,048 Zuffa Credit Facilities: Zuffa First Lien Term Loan (due April 2026 ) 2,833,017 2,840,767 Other debt ( 2.86 %- 14.50 % Notes due at various dates through 2031 ) 159,828 159,010 Total principal $ 5,771,360 $ 5,785,825 Unamortized discount ( 24,081 ) ( 26,077 ) Unamortized issuance costs ( 43,201 ) ( 46,012 ) Total debt $ 5,704,078 $ 5,713,736 Less: current portion ( 82,649 ) ( 82,022 ) Total long-term debt $ 5,621,429 $ 5,631,714 2014 Credit Facilities As of March 31, 2022 and December 31, 2021 , the Company had $ 2.8 billion outstanding under a credit agreement that was entered into in connection with the 2014 IMG acquisition (the "2014 Credit Facilities"). The 2014 Credit Facilities consist of a first lien secured term loan (the “First Lien Term Loan”) and a $ 200.0 million secured revolving credit facility (the "Revolving Credit Facility"). The financial debt covenant of the 2014 Credit Facilities did not apply as of March 31, 2022 and December 31, 2021 as the Company had no borrowings outstanding under the Revolving Credit Facility. The Company had outstanding letters of credit under the 2014 Credit Facilities totaling $ 19.6 million and $ 23.8 million as of March 31, 2022 and December 31, 2021, respectively. Zuffa Credit Facilities As of March 31, 2022 and December 31, 2021 , the Company has $ 2.8 billion outstanding under a credit agreement that was entered into in connection with the 2016 Zuffa acquisition (the "Zuffa Credit Facilities"). The Zuffa Credit Facilities consist of a first lien secured term loan (the "Zuffa First Lien Term Loan") and a secured revolving credit facility in an aggregate principal amount of $ 205.0 million, letters of credit in an aggregate face amount not in excess of $ 40.0 million and swingline loans in an aggregate principal amount not in excess of $ 15.0 million (collectively, the "Zuffa Revolving Credit Facility"). The Zuffa Credit Facilities are secured by liens on substantially all of the assets of Zuffa. The financial debt covenants of the Zuffa Credit Facilities did not apply as of March 31, 2022 and December 31, 2021 as Zuffa had no borrowings outstanding under the Zuffa Revolving Credit Facility. Under the Zuffa Credit Facilities, Zuffa had $ 10.0 million and no outstanding letters of credit as of March 31, 2022 and December 31, 2021, respectively. Other Debt On Location Revolver The On Location ("OL") revolving credit agreement contains a financial covenant that requires OL to maintain a First Lien Leverage Ratio of Consolidated First Lien Debt to Consolidated EBITDA, as defined in the credit agreement, of no more than 3 -to-1. The Company is only required to meet the First Lien Leverage Ratio if the sum of outstanding borrowings on the Revolving Credit Facility plus outstanding letters of credit exceeding $ 2.0 million that are not cash collateralized exceeds forty percent of the total Revolving Commitments as measured on a quarterly basis, as defined in the credit agreement. As of March 31, 2022, the Company was in compliance with the financial debt covenants. OL had no letters of credit outstanding under the revolving credit agreement as of March 31, 2022 and December 31, 2021. Receivables Purchase Agreement As of March 31, 2022 and December 31, 2021 , the debt outstanding under these arrangements was $ 46.2 million and $ 50.5 million, respectively. Zuffa Secured Commercial Loans As of March 31, 2022 and December 31, 2021 , Zuffa was in compliance with its financial debt covenant under the Zuffa Secured Commercial Loans. 2014 Credit Facilities and Zuffa Credit Facilities The 2014 Credit Facilities and the Zuffa Credit Facilities restrict the ability of certain subsidiaries of the Company to make distributions and other payments to the Company. These restrictions do include exceptions for, among other things, (1) amounts necessary to make tax payments, (2) a limited annual amount for employee equity repurchases, (3) distributions required to fund certain parent entities, (4) other specific allowable situations and (5) a general restricted payment basket. As of March 31, 2022, EGH held long-term deferred tax benefits of $ 122.6 million in other assets and a tax receivable agreements liability of $ 191.2 million, of which $ 41.2 million is in other current liabilities and $ 149.9 million is in other long-term liabilities. As of December 31, 2021 , EGH held long-term deferred tax benefits of $ 61.5 million in other assets and a tax receivable agreements liability of $ 133.8 million, of which $ 41.2 million is in other current liabilities and $ 92.6 million is in other long-term liabilities. Otherwise, EGH has no material separate cash flows, assets or liabilities other than the investments in its subsidiaries. All its business operations are conducted through its operating subsidiaries; it has no material independent operations. EGH has no other material commitments or guarantees. As a result of the restrictions described above, substantially all of the subsidiaries’ net assets are effectively restricted in their ability to be transferred to EGH as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021 , the Company’s First Lien Term Loan under the 2014 Credit Facilities and Zuffa’s First Lien Term Loan under its Credit Facilities had an estimated fair value of $ 5.5 billion and $ 5.6 billion, respectively. The estimated fair values of the Company’s First Lien Term Loan under the 2014 Credit Facilities and Zuffa’s First Lien Term Loan under its Credit Facilities are based on quoted market values for the debt. Since the First Lien Term Loan under the 2014 Credit Facilities and Zuffa’s First Lien Term Loan under its Credit Facilities do not trade on a daily basis in an active market, fair value estimates are based on market observable inputs based on quoted market prices and borrowing rates currently available for debt with similar terms and average maturities, which are classified as Level 2 under the fair value hierarchy. |
REDEEMABLE NON CONTROLLING INTE
REDEEMABLE NON CONTROLLING INTERESTS | 3 Months Ended |
Mar. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | |
REDEEMABLE NON-CONTROLLING INTERESTS | 11. REDEEMABLE NON-CONTROLLING INTERESTS On Location In connection with the acquisition of OL in 2020, the Company entered into an Amended and Restated Limited Liability Company Agreement of Endeavor OLE Parent, LLC ("OLE Parent") with 32 Equity LLC ("32 Equity"). The terms of the agreement provide 32 Equity with certain rights to put its common units in OLE Parent to the Company upon a termination of the Commercial License Agreement ("CLA") or at its option at any time following the Lockup Period as defined. The Company also has certain call rights to require 32 Equity to sell its common units in OLE Parent to the Company upon a termination of the CLA in the event aforementioned put rights are not exercised. The put/call price is an amount equal to fair market value and the exercise of these put/call rights may give rise to an obligation of the Company to make a premium payment to 32 Equity in certain circumstances. At any time following the Lockup Period, 32 Equity will be entitled to a $ 41.0 million premium payment from the Company if both (i) 32 Equity or the Company exercise the put/call rights described above or there is a sale or IPO of OLE Parent and (ii) certain performance metrics based on average OL gross profit or NFL related business gross profit are achieved. The $ 41.0 million premium payment will also be payable if, prior to January 2, 2026, a sale or IPO of OLE Parent occurs or if 32 Equity exercises its put rights following a termination of the CLA due to an OL event of default (in which case the $ 41.0 million premium payment may be subject to proration). The $ 41.0 million premium payment was recognized as a separate unit of account from the non-controlling interest. The non-controlling interest was recognized at acquisition based on fair value of $ 65.2 million. During the three months ended March 31, 2021, the redeemable non-controlling interest was adjusted for certain net assets that were contributed during the period. In June 2021, the Company and 32 Equity agreed to fund a combined $ 40.0 million to OL. This amount was f unded via a pro-rata capital contribution from the Company and 32 Equity of $ 34.6 million and $ 5.4 million, respectively. No further capital contributions are contracted for future periods. As of March 31, 2022 and December 31, 2021 , the estimated redemption value was $ 69.3 million and $ 57.9 million, respectively. See Note 18 for related transactions that closed subsequent to March 31, 2022. China In June 2016, the Company received a contribution of $ 75.0 million from third parties in a newly formed subsidiary of the Company that was formed to expa nd the Company’s existing business in China. This contribution gave the non-controlling interests holders approximately 34 % ownership of the subsidiary. The holders of the non-controlling interests have the right to put their investment to the Company at any time after June 1, 2023 for fair market value. As of March 31, 2022 and December 31, 2021 , the estimated redemption value was $ 119.5 million and $ 107.5 million, respectively. See Note 18 for related transactions that closed subsequent to March 31, 2022. Zuffa In July 2018, the Company received a contribution of $ 9.7 million from third parties (the "Russia Co-Investors") in a newly formed subsidiary of the Company (the "Russia Subsidiary") that was formed to expand the Company’s existing business in Russia and certain other countries in the Commonwealth of Independent States. The terms of this contribution provide the Russia Co-Investors with a put option to sell their ownership in the Russia Subsidiary five years and nine months after the consummation of the contribution. The purchase price of the put option is the greater of the total investment amount, defined as the Russia Co-Investors’ cash contributions less cash distributions, or fair value. As of March 31, 2022 and December 31, 2021 , the estimated redemption value was $ 9.7 million. Frieze In connection with the acquisition of Frieze in 2016, the terms of the agreement provide the sellers with a put option to sell their remaining 30% interest after fiscal year 2020. The Company also has a call option to buy the remaining 30% interest after fiscal year 2020 or upon termination of employment of the sellers who continued to be employees of Frieze after the acquisition. The price of the put and call option is equal to Frieze’s prior year’s EBITDA multiplied by 7.5 . As of March 31, 2022 and December 31, 2021 , the estimated redemption value was below the carrying value of $ 23.2 million and $ 23.8 million, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 12. EARNINGS PER SHARE Basic earnings per share is calculated utilizing net income available to common stockholders of the Company divided by the weighted average number of shares of Class A Common Stock outstanding during the same period. T he computation of basic and diluted earnings per share and weighted average shares of the Company’s common stock outstanding for the period presented below: Three Months Ended March 31, 2022 Basic earnings per share Numerator Consolidated net income $ 517,666 Net income attributable to NCI (Endeavor Operating Company) 170,943 Net income attributable to NCI (Endeavor Manager Units) 27,177 Net income attributable to EGH common shareholders $ 319,546 Denominator Weighted average Class A Common Shares outstanding - Basic 268,489,176 Basic earnings per share $ 1.19 Three Months Ended March 31, 2022 Diluted earnings per share Numerator Consolidated net income $ 517,666 Net income attributable to NCI (Endeavor Operating Company) 5,407 Net income attributable to EGH common shareholders $ 512,259 Denominator Weighted average Class A Common Shares outstanding - Basic 268,489,176 Additional shares assuming exchange of all Endeavor Profits Units 4,219,455 Additional shares from RSUs, Stock Options and Phantom Units, as calculated using the 2,863,781 Additional shares assuming exchange of all Endeavor Operating Units and Endeavor Manager Units 167,466,205 Weighted average number of shares used in computing diluted earnings per share 443,038,617 Diluted earnings per share $ 1.16 Securities that are anti-dilutive for the three months ended March 31, 2022 Stock Options 2,512,767 Unvested RSUs 1,268,888 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 13. INCOME TAXES EGH was incorporated as a Delaware corporation in January 2019. It was formed as a holding company for the purpose of completing an IPO and other related transactions. As the sole managing member of Endeavor Manager, which is the sole managing member of EOC, EGH operates and controls all the business and affairs of EOC, and through EOC and its subsidiaries, conducts the Company’s business. EGH is subject to corporate income tax on its share of taxable income or loss of EOC derived through Endeavor Manager. EOC is treated as a partnership for U.S. federal income tax purposes and is therefore not subject to U.S. corporate income tax. However, certain of EOC’s subsidiaries are subject to U.S. or foreign corporate income tax. In accordance with ASC Topic 740, each interim period is considered integral to the annual period and tax expense is generally determined using an estimate of the annual effective income tax rate ("AETR"). The Company would record income tax expense each quarter using the estimated AETR to provide for income taxes on a current year-to-date basis, adjusted for discrete items, if any, that are noted in the relevant period. In accordance with the authoritative guidance for accounting for income taxes in interim periods, the Company computed its income tax provision for the three months ended March 31, 2022 and 2021 based upon the AETR. The (benefit from) provision for income taxes for the three months ended March 31, 2022 and 2021 is $( 17.2 ) million and $ 5.1 million, respectively, based on pretax income of $ 521.1 million and $ 22.9 million, respectively. The effective tax rate is ( 3.3 )% and 22.2 % for the three months ended March 31, 2022 and 2021 , respectively. The tax expense for the three months ended March 31, 2022 differs from the same period in 2021 primarily due to the release of a $ 56.5 million valuation allowance on deferred tax assets offset by additional tax expense of $ 34.2 million primarily related to increased income during the current period. Any tax balances reflected on the March 31, 2022 balance sheet would be adjusted accordingly to reflect the actual financial results for the year ending December 31, 2022. The Company’s effective tax rate differs from the U.S. federal statutory rate primarily due to partnership income not subject to income tax; state and local income taxes; withholding taxes in foreign jurisdictions that are not based on net income; and income subject to tax in foreign jurisdictions which differ from the U.S. federal statutory income tax rate as well as the relative amount of income earned in those jurisdictions. As of March 31, 2022 and December 31, 2021 , the Company had unrecognized tax benefits of $ 41.4 million and $ 40.0 million, respectively, for which we are unable to make a reasonable and reliable estimate of the period in which these liabilities will be settled with the respective tax authorities. The Company records valuation allowances against its net deferred tax assets when it is more likely than not that all, or a portion, of a deferred tax asset will not be realized. The Company evaluates the realizability of its deferred tax assets by assessing the likelihood that its deferred tax assets will be recovered based on all available positive and negative evidence, including historical results, reversals of deferred tax liabilities, estimates of future taxable income, tax planning strategies and results of operations. During the three months ended March 31, 2022, the Company released an additional $ 56.5 million valuation allowance on deferred tax assets due to the expected realization of certain tax benefits based on estimates of future taxable income. The Company has determined the remaining net deferred tax assets at EGH, exclusive of deferred tax liabilities associated with indefinite lived intangibles, will not be realized and as a result, has recorded a valuation allowance as of March 31, 2022. Tax Receivable Agreements In connection with the IPO and related transactions, the Company entered into TRAs with certain persons that held direct or indirect interests in EOC and Zuffa prior to the IPO ("TRA Holders"). The TRAs generally provide for the payment by EGH of 85 % of the amount of any tax benefits that EGH actually realizes, or in some cases is deemed to realize, as a result of (i) increases in EGH’s share of the tax basis in the net assets of EOC resulting from any redemptions or exchanges of LLC Units, (ii) increases in tax basis attributable to payments made under the TRAs, (iii) deductions attributable to imputed interest pursuant to the TRAs and (iv) other tax attributes allocated to EGH post-IPO and related transactions that were allocable to the TRA Holders prior to the IPO and related transactions. As noted above, during the three months ended March 31, 2022, the Company released a valuation allowance of $ 56.5 million. In connection with the expected realization of certain tax benefits including deferred tax assets, the Company recorded an additional $ 57.3 million TRA liability. With the exception of the above, the Company has recorded a full valuation allowance with respect to the remaining deferred tax assets subject to the TRA. If the existing valuation allowance recorded against deferred tax assets is released in a future period as a result of having sufficient taxable income, among other criteria, or other ta x attributes subject to the TRAs are determined to be payable, additional TRA liabilities may be recorded. If the relevant criteria are met in 2022, the Company would release a valuation allowance and record the associated TRA liability, each of which we would expect to be material. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 14. REVENUE The following table presents the Company’s revenue disaggregated by primary revenue sources for the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 Owned Sports Properties Events, Experiences Representation Total Media rights $ 156,965 $ 163,121 $ — $ 320,086 Media production, distribution and content 2,300 85,224 73,743 161,267 Events and performance 137,424 577,468 — 714,892 Talent representation and licensing — — 199,171 199,171 Marketing — — 84,407 84,407 Eliminations — — — ( 6,060 ) Total $ 296,689 $ 825,813 $ 357,321 $ 1,473,763 Three Months Ended March 31, 2021 Owned Sports Properties Events, Experiences & Rights Representation Total Media rights $ 177,653 $ 323,126 $ — $ 500,779 Media production, distribution and content 2,187 84,713 58,923 145,823 Events and performance 103,641 131,771 — 235,412 Talent representation and licensing — — 146,745 146,745 Marketing — — 43,241 43,241 Eliminations — — — ( 2,418 ) Total $ 283,481 $ 539,610 $ 248,909 $ 1,069,582 In the three months ended March 31, 2022 and 2021, there was revenue recognized of $ 17.4 million and $ 13.1 million, respectively, from performance obligations satisfied in prior periods. Remaining Performance Obligations The following table presents the aggregate amount of transaction price allocated to remaining performance obligations for contracts greater than one year with unsatisfied or partially satisfied performance obligations as of March 31, 2022 (in thousands). The transaction price related to these future obligations does not include any variable consideration. Years Ending Remainder of 2022 $ 1,197,201 2023 1,405,785 2024 1,106,909 2025 1,001,196 2026 151,097 Thereafter 583,010 $ 5,445,198 Contract Liabilities The Company records deferred revenue when cash payments are received or due in advance of its performance. The Company’s deferred revenue balance primarily relates to advance payments received related to advertising and sponsorship agreements, event advanced ticket sales and performance tuition. Deferred revenue is included in the current liabilities section and in other long-term liabilities in the consolidated balance sheets. The following table presents the Company’s contract liabilities as of March 31, 2022 and December 31, 2021 (in thousands): Description December 31, 2021 Additions Deductions Acquisitions Foreign Exchange March 31, 2022 Deferred revenue - current $ 651,760 $ 651,266 $ ( 806,155 ) $ 1,321 $ ( 1,615 ) $ 496,577 Deferred revenue - noncurrent $ 62,155 $ 4,141 $ 6,871 $ — $ ( 120 ) $ 73,047 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 15. SEGMENT INFORMATION As of March 31, 2022 , the Company has three reportable segments: Owned Sports Properties, Events, Experiences & Rights, and Representation. The Company also reports the results for the "Corporate" group. The profitability measure employed by the Company’s chief operating decision maker for allocating resources and assessing operating performance is Adjusted EBITDA. Segment information is presented consistently with the basis for the year ended December 31, 2021. Summarized financial information for the Company’s reportable segments is shown in the following tables (in thousands): Revenue Three Months Ended March 31, 2022 2021 Owned Sports Properties $ 296,689 $ 283,481 Events, Experiences & Rights 825,813 539,610 Representation 357,321 248,909 Eliminations ( 6,060 ) ( 2,418 ) Total consolidated revenue $ 1,473,763 $ 1,069,582 Reconciliation of segment profitability Three Months Ended March 31, 2022 2021 Owned Sports Properties $ 148,741 $ 145,549 Events, Experiences & Rights 132,483 39,050 Representation 101,705 61,483 Corporate ( 68,480 ) ( 46,616 ) Adjusted EBITDA 314,449 199,466 Reconciling items: Equity earnings of affiliates ( 3,749 ) ( 3,334 ) Interest expense, net ( 59,272 ) ( 68,351 ) Depreciation and amortization ( 65,994 ) ( 67,236 ) Equity-based compensation expense ( 50,856 ) ( 16,491 ) Merger, acquisition and earn-out costs ( 12,794 ) ( 10,985 ) Certain legal costs ( 1,002 ) ( 3,952 ) Restructuring, severance and impairment ( 518 ) ( 407 ) Fair value adjustment - equity investments 1,653 7,799 Gain on sale of the restricted Endeavor Content business 463,641 — Tax receivable agreements liability adjustment ( 53,497 ) — Other ( 10,974 ) ( 13,577 ) Income before income taxes and equity losses of affiliates $ 521,087 $ 22,932 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES Claims and Litigation The Company is involved in legal proceedings, claims and governmental investigations arising in the normal course of business. The types of allegations that arise in connection with such legal proceedings vary in nature, but can include contract, employment, tax and intellectual property matters. The Company evaluates all cases and records liabilities for losses from legal proceedings when the Company determines that it is probable that the outcome will be unfavorable and the amount, or potential range, of loss can be reasonably estimated. While any outcome related to litigation or such governmental proceedings cannot be predicted with certainty, management believes that the outcome of these matters, except as otherwise may be discussed below, individually or in the aggregate, will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. An employee of the Company is one of several individuals and entities named in a complaint by India’s Director of Enforcement ("DE"), initially filed in January 2015, alleging violations of the Foreign Exchange Management Act ("FEMA"). The complaint alleges that the employee participated as an advisor in a series of transactions in 2009 that were completed by and on behalf of a client, the Board of Control for Cricket in India (the "BCCI"), and that contravened two provisions of FEMA. The subject transactions were pursued under the direction and control of one of the BCCI’s board members. The Company is not alleged to have possessed any funds improperly or to have made or received any of the payments that are alleged to have violated FEMA. The Company is cooperating with the DE’s investigation which, at present, is in its early stages. In July 2017, the Italian Competition Authority ("ICA") issued a decision opening an investigation into alleged breaches of competition law in Italy, involving inter alia IMG, and relating to bidding for certain media rights of the Serie A and Serie B football leagues. In April 2018, the European Commission conducted on-site inspections at a number of companies that are involved with sports media rights, including the Company. The inspections were part of an ongoing investigation into the sector and into potential violations of certain antitrust laws that may have taken place within it. The Company investigated these ICA matters, as well as other regulatory compliance matters. In May 2019, the ICA completed its investigation and fined the Company approximately EUR 0.3 million. As part of its decision, the ICA acknowledged the Company’s cooperation and ongoing compliance efforts since the investigation commenced. In July 2019, three football clubs and in June 2020, the Serie A football league (Lega Nazionale Professionisti Serie A or "Lega Nazionale," and together with the three clubs, the "Plaintiffs") each filed separate claims against IMG and certain other unrelated parties in the Court of Milan, Italy, alleging that IMG engaged in anti-competitive practices with regard to bidding for certain media rights of the Serie A and Serie B football leagues. The Plaintiffs seek damages from all defendants in amounts totaling EUR 554.6 million in the aggregate relating to the three football clubs and EUR 1,592.2 million relating to Lega Nazionale, along with attorneys’ fees and costs (the "Damages Claims"). Since December 2020, four additional football clubs have each filed requests to intervene in the Lega Nazionale proceedings and individually seek to claim amounts in the aggregate totaling EUR 251.5 million. Ten other clubs also filed requests to intervene in support of Lega Nazionale’s claim or alternatively to individually claim in the amount of EUR 92.1 million, in the case of one club, and unspecified amounts (to be quantified as a percentage of the total amount sought by Lega Nazionale) in the other nine cases. Collectively, the interventions of these 14 clubs are the "Interventions." The Company intends to defend against the Damages Claims, Interventions and any related claims, and management believes that the Company has meritorious defenses to these claims, including the absence of standing of the clubs, and the absence of actual damage. The Company may also be subject to regulatory and other claims and actions with respect to these ICA and other regulatory matters. Any judgment entered against the Company or settlement entered into, including with respect to claims or actions brought by other parties, could materially and adversely impact the Company’s business, financial condition and results of operations. Zuffa has five related class-action lawsuits filed against it in the United States District Court for the Northern District of California (the "District Court") between December 2014 and March 2015 by a total of eleven former UFC fighters. The complaints in the five lawsuits are substantially identical. Each alleges that Zuffa violated Section 2 of the Sherman Act by monopolizing the alleged market for the promotion of elite professional MMA bouts and monopolizing the alleged market for elite professional MMA fighters’ services. Plaintiffs claim that Zuffa’s alleged conduct injured them by artificially depressing the compensation they received for their services and their intellectual property rights, and they seek treble damages under the antitrust laws, as well as attorneys’ fees and costs, and injunctive relief. On December 14, 2020, the District Court orally indicated its intention to grant plaintiffs’ motion to certify the Bout Class (comprised of fighters who participated in bouts from December 16, 2010 to September 30, 2017) and to deny plaintiffs’ motion to certify the Identity Class (a purported class based upon the alleged expropriation and exploitation of fighter identities). The Company is awaiting the official written order from the judge and assuming he rules as previously indicated, then the Company will seek an appeal of this decision. On June 23, 2021, plaintiffs’ lawyers filed a new case against Zuffa and EGH alleging substantially similar claims, but providing for a class period from July 1, 2017 to present. Management believes that the Company has meritorious defenses against the allegations and intends to defend itself vigorously. Commitments In September 2021, the Company signed an agreement to acquire the OpenBet business of Scientific Games Corporation ("OpenBet"). OpenBet consists of companies that provide products and services to sports betting operators for the purposes of sports wagering. Based on the agreement, the Company will pay Scientific Games Corporation consideration of $ 1.0 billion in cash and will issue 7,605,199 shares of the Company's Class A common stock, a value of $ 200.0 million based on the volume-weighted average trading price of the Class A common stock for the twenty trading days ended on September 24, 2021. The closing of this transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the third quarter of 2022. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS The Company has the following related party transactions as of March 31, 2022 and December 31, 2021 and for the three months ended March 31, 2022 and 2021 (in thousands): March 31, December 31, 2022 2021 Other current assets $ 13,454 $ 4,728 Investments 660 — Other assets — 322 Current liabilities 818 320 Other current liabilities 2,306 2,111 Three Month Ended March 31, 2022 2021 Revenue $ 7,739 $ 7,000 Direct operating costs 4,696 2,133 Selling, general and administrative expenses 1,861 1,126 Other income (expense), net ( 14,125 ) 875 As of March 31, 2022, the Company has an equity-method investment in Euroleague, a related party. For the three months ended March 31, 2022 and 2021 , the Company recognized revenue of $ 3.7 million and $ 2.2 million, respectively, for a management fee to compensate it for representation and technical services it provides to Euroleague in relation to the distribution of media rights. This revenue is included in the Owned Sports Properties segment. Also, for the three months ended March 31, 2022 and 2021 , the Company recognized revenue of $ 2.8 million and $ 2.6 million, respectively, for production services provided to Euroleague as well as direct operating costs of $ 1.4 million and $ 1.8 million, respectively, for the procurement of a license for gaming rights from Euroleague, which are included in the Events, Experiences & Rights segment. As of March 31, 2022 and December 31, 2021 , the Company had a receivable of $ 4.6 million and $ 1.4 million, respectively, and a payable of $ 1.4 million for both the periods. Silver Lake and certain of our executives indirectly own a minority interest in The Raine Group ("Raine"). During the three months ended March 31, 2022, the Company paid $ 15.0 million in transaction costs to Raine for investment banking services in connection with the sale of the restricted Endeavor Content business ( Note 4 ). In addition, during the three months ended March 31, 2022, the Company invested $ 0.7 million in a non-marketable fund maintained by Raine. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. SUBSEQUENT EVENTS In April 2022, the Company acquired Mutua Madrid Open tennis tournament and additional assets, including the Acciona Open de España golf tournament, from Super Slam Ltd and its affiliates. The Company paid approximately EUR 360 million for consideration and transfer fees at closing and an additional EUR 30 million of consideration is payable within two years of closing. Considering the proximity of the closing of the acquisition, additional disclosures required under ASC Topic 805, Business Combinations , will be provided in the Company's next quarterly interim financial statements. In April 2022, EOC issued 8,037,483 EOC common units (and 32 Equity obtained an equal number of paired shares of the Company's Class X common stock) in exchange for the non-controlling interests of OLE Parent. The aggregate value of the shares was $ 223.7 million based on the volume-weighted average trading price of the Class A common stock for thirty days ending on the day before the close. The Company also issued 495,783 shares of Class A common stock to several employees of the Company in exchange for the employees' direct or indirect interests in OLE Parent based on the same valuation. As a result of these transactions, OLE Parent became an indirect wholly-owned subsidiary of EOC. In April 2022, the Company issued 5,693,774 shares of Class A common stock in exchange for the non-controlling partnership interests of WME IMG China, L.P ("Endeavor China"). The aggregate value of the shares was $ 158.5 million based on the volume-weighted average trading price of the Class A common stock for thirty days ending on the day before the close. In addition, EOC issued 659,896 common units in EOC to several employees of the Company, including members of management (and such employees obtained an equal number of paired shares of the Company's Class X common stock), in exchange for the employees' direct or indirect interests in Endeavor China based on the same valuation. As a result of these transactions, Endeavor China became an indirect wholly-owned subsidiary of EOC. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Subsidiary or Equity Method Investee [Line Items] | |
Basis of Presentation | Basis of Presentation The accompanying interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for reporting interim financial information and should be read in conjunction with the Company’s consolidated financial statements and accompanying footnotes in our Annual Report on Form 10-K for the year ended December 31, 2021. Certain information and note disclosures normally included in the annual financial statements have been condensed or omitted from these interim financial statements. The interim consolidated financial statements as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 are unaudited; however, in the opinion of management, such interim consolidated financial statements reflect all adjustments, consisting solely of normal and recurring adjustments, necessary for a fair statement of its financial position, results of operations and cash flows for the interim periods presented. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying disclosures. Significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, allowance for doubtful accounts, the fair value of acquired assets and liabilities associated with acquisitions, the fair value of the Company’s reporting units and the assessment of goodwill, other intangible assets and long-lived assets for impairment, consolidation, investments, redeemable non-controlling interests, the fair value of equity-based compensation, tax receivable agreements liability, income taxes and contingencies. Management evaluates these estimates using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s consolidated financial statements in future periods. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU addresses issues identified as a result of the complexity associated with applying GAAP for certain financial instruments with characteristics of liabilities and equity. The amendments in this update were effective for public entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The adoption did not have a material effect on the Company’s financial position or results of operations. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. Adoption of the expedients and exceptions is permitted upon issuance of this update through December 31, 2022. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method. This ASU clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets, expanding the scope of this guidance to allow entities to apply the portfolio layer method to portfolios of all financial assets, including both prepayable and nonprepayable financial assets. The amendments in this update are effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption will not have a material effect on the Company’s financial position or results of operations. In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the accounting guidance on troubled debt restructurings (TDRs) for creditors in ASC 310-40 and amends the guidance on "vintage disclosures" to require disclosure of current-period gross write-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. For entities that have already adopted ASU 2016-13, the amendments in this update are effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption will not have a material effect on the Company’s financial position or results of operations. |
ACQUISITIONS AND DIVESTITURE (T
ACQUISITIONS AND DIVESTITURE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Fair Values of the Assets Acquired and the Liabilities Assumed in the Business Combination | Preliminary Allocation of Purchase Price The acquisitions were accounted for as business combinations and the preliminary fair values of the assets acquired and liabilities assumed in the business combinations are as follows (in thousands): Accounts receivable $ 89 Other current assets 491 Property and equipment 4,403 Right of use assets 7,270 Other assets 103 Intangible assets: Customer relationships 1,960 Other 35,410 Goodwill 25,487 Accounts payable and accrued expenses ( 93 ) Other current liabilities ( 56 ) Operating lease liability ( 9,470 ) Deferred revenue ( 1,426 ) Net assets acquired $ 64,168 |
SUPPLEMENTARY DATA (Tables)
SUPPLEMENTARY DATA (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Supplementary Data [Abstract] | |
Summary of Accrued Liabilities | The following is a summary of accrued liabilities (in thousands): March 31, December 31, 2022 2021 Accrued operating expenses $ 286,576 $ 302,024 Payroll, bonuses and benefits 113,938 162,688 Other 59,914 59,349 Total accrued liabilities $ 460,428 $ 524,061 |
Summary of Allowance for Doubtful Accounts | The changes in the allowance for doubtful accounts are as follows (in thousands): Balance at Additions/Charged Balance at Beginning (Credited) to Costs Foreign End of of Year and Expenses Deductions Exchange Period Allowance for doubtful accounts Three Months Ended March 31, 2022 $ 57,102 $ 5,699 $ ( 571 ) $ ( 499 ) $ 61,731 |
Summary of Supplemental Cash Flow | Supplemental Cash Flow The Company’s supplemental cash flow information is as follows (in thousands): Three months ended March 31, 2022 2021 Supplemental information: Cash paid for interest $ 47,038 $ 41,726 Cash payments for income taxes 7,751 7,709 Non-cash investing and financing activities: Capital expenditures included in accounts payable and accrued liabilities $ 11,639 $ 5,924 Establishment and acquisition of non-controlling interests — 2,888 Accretion of redeemable non-controlling interests 27,308 ( 271 ) Tax receivable agreements in connection with exchanges 681 — Investment in affiliates retained from a business divestiture 196,345 — Accrued redemption of units in other current liabilities — 3,733 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in the Carrying Value of Goodwill | The changes in the carrying value of goodwill are as follows (in thousands): Owned Sports Properties Events, Experiences & Rights Representation Total Balance — December 31, 2021 $ 2,741,048 $ 1,266,144 $ 499,362 $ 4,506,554 Acquisitions 25,487 — — 25,487 Foreign currency translation and other 142 ( 1,488 ) 33 ( 1,313 ) Balance — March 31, 2022 $ 2,766,677 $ 1,264,656 $ 499,395 $ 4,530,728 |
Summary of Company's Identifiable Intangible Assets | The following table summarizes information relating to the Company’s identifiable intangible assets as of March 31, 2022 (in thousands): Weighted Average Gross Accumulated Carrying Amortized: Trade names 17.3 $ 990,126 $ ( 305,384 ) $ 684,742 Customer and client relationships 6.5 1,337,226 ( 1,023,960 ) 313,266 Internally developed technology 3.4 121,173 ( 73,612 ) 47,561 Other 15.3 177,947 ( 46,131 ) 131,816 $ 2,626,472 $ ( 1,449,087 ) $ 1,177,385 Indefinite-lived: Trade names $ 336,437 $ — $ 336,437 Owned events 87,655 — 87,655 Total intangible assets $ 3,050,564 $ ( 1,449,087 ) $ 1,601,477 The following table summarizes information relating to the Company’s identifiable intangible assets as of December 31, 2021 (in thousands): Weighted Average Gross Accumulated Carrying Amortized: Trade names 17.3 $ 991,021 $ ( 291,326 ) $ 699,695 Customer and client relationships 6.7 1,344,783 ( 1,012,509 ) 332,274 Internally developed technology 3.9 120,175 ( 66,939 ) 53,236 Other 14.3 142,657 ( 44,608 ) 98,049 $ 2,598,636 $ ( 1,415,382 ) $ 1,183,254 Indefinite-lived: Trade names $ 340,029 $ — $ 340,029 Owned events 88,401 — 88,401 Total intangible assets $ 3,027,066 $ ( 1,415,382 ) $ 1,611,684 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Company's Investments | The following is a summary of the Company’s investments (in thousands): March 31, December 31, 2022 2021 Equity method investments $ 373,417 $ 196,423 Equity investments without readily determinable fair values 118,379 101,124 Equity investments with readily determinable fair values 925 665 Total investments $ 492,721 $ 298,212 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Financial Instrument Disclosure [Abstract] | |
Schedule of Outstanding Forward Foreign Exchange Contracts Balances | As of March 31, 2022 , the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 12 months from March 31, 2022) (in thousands except for exchange rates): Foreign Currency Foreign US Dollar Weighted Average British Pound Sterling £ 21,066 in exchange for $ 28,499 £ 0.74 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Of Assets and Liabilities Measured on Recurring Basis | The following tables present, for each of the fair value hierarchy levels, the Company’s assets and liabilities that are measured at fair value on a recurring basis (in thousands): Fair Value Measurements as of March 31, 2022 Level I Level II Level III Total Assets: Investments in equity securities with readily determinable fair values $ 925 $ — $ — $ 925 Interest rate swaps — 8,846 — 8,846 Forward foreign exchange contracts — 2,423 — 2,423 Total $ 925 $ 11,269 $ — $ 12,194 Liabilities: Contingent consideration $ — $ — $ 25,957 $ 25,957 Interest rate swaps — 2,130 — 2,130 Forward foreign exchange contracts — 12,408 — 12,408 Total $ — $ 14,538 $ 25,957 $ 40,495 Fair Value Measurements as of December 31, 2021 Level I Level II Level III Total Assets: Investments in equity securities with readily determinable fair values $ 665 $ — $ — $ 665 Forward foreign exchange contracts — 2,529 — 2,529 Total $ 665 $ 2,529 $ — $ 3,194 Liabilities: Contingent consideration $ — $ — $ 26,900 $ 26,900 Interest rate swaps — 48,427 — 48,427 Forward foreign exchange contracts — 13,363 — 13,363 Total $ — $ 61,790 $ 26,900 $ 88,690 |
Schedule of Change in Fair Value of Contingent Consideration | The changes in the fair value of contingent consideration were as follows (in thousands): Three Months Ended March 31, 2022 Balance at December 31, 2021 $ 26,900 Payments ( 1,733 ) Change in fair value 790 Balance at March 31, 2022 $ 25,957 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following is a summary of outstanding debt (in thousands): March 31, December 31, 2022 2021 2014 Credit Facilities: First Lien Term Loan (due May 2025 ) $ 2,778,515 $ 2,786,048 Zuffa Credit Facilities: Zuffa First Lien Term Loan (due April 2026 ) 2,833,017 2,840,767 Other debt ( 2.86 %- 14.50 % Notes due at various dates through 2031 ) 159,828 159,010 Total principal $ 5,771,360 $ 5,785,825 Unamortized discount ( 24,081 ) ( 26,077 ) Unamortized issuance costs ( 43,201 ) ( 46,012 ) Total debt $ 5,704,078 $ 5,713,736 Less: current portion ( 82,649 ) ( 82,022 ) Total long-term debt $ 5,621,429 $ 5,631,714 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share and Weighted Average Shares Outstanding | T he computation of basic and diluted earnings per share and weighted average shares of the Company’s common stock outstanding for the period presented below: Three Months Ended March 31, 2022 Basic earnings per share Numerator Consolidated net income $ 517,666 Net income attributable to NCI (Endeavor Operating Company) 170,943 Net income attributable to NCI (Endeavor Manager Units) 27,177 Net income attributable to EGH common shareholders $ 319,546 Denominator Weighted average Class A Common Shares outstanding - Basic 268,489,176 Basic earnings per share $ 1.19 Three Months Ended March 31, 2022 Diluted earnings per share Numerator Consolidated net income $ 517,666 Net income attributable to NCI (Endeavor Operating Company) 5,407 Net income attributable to EGH common shareholders $ 512,259 Denominator Weighted average Class A Common Shares outstanding - Basic 268,489,176 Additional shares assuming exchange of all Endeavor Profits Units 4,219,455 Additional shares from RSUs, Stock Options and Phantom Units, as calculated using the 2,863,781 Additional shares assuming exchange of all Endeavor Operating Units and Endeavor Manager Units 167,466,205 Weighted average number of shares used in computing diluted earnings per share 443,038,617 Diluted earnings per share $ 1.16 Securities that are anti-dilutive for the three months ended March 31, 2022 Stock Options 2,512,767 Unvested RSUs 1,268,888 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Company's Revenue Disaggregated by Primary Revenue | The following table presents the Company’s revenue disaggregated by primary revenue sources for the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 Owned Sports Properties Events, Experiences Representation Total Media rights $ 156,965 $ 163,121 $ — $ 320,086 Media production, distribution and content 2,300 85,224 73,743 161,267 Events and performance 137,424 577,468 — 714,892 Talent representation and licensing — — 199,171 199,171 Marketing — — 84,407 84,407 Eliminations — — — ( 6,060 ) Total $ 296,689 $ 825,813 $ 357,321 $ 1,473,763 Three Months Ended March 31, 2021 Owned Sports Properties Events, Experiences & Rights Representation Total Media rights $ 177,653 $ 323,126 $ — $ 500,779 Media production, distribution and content 2,187 84,713 58,923 145,823 Events and performance 103,641 131,771 — 235,412 Talent representation and licensing — — 146,745 146,745 Marketing — — 43,241 43,241 Eliminations — — — ( 2,418 ) Total $ 283,481 $ 539,610 $ 248,909 $ 1,069,582 |
Summary of Transaction Price Related to These Future Obligation | Years Ending Remainder of 2022 $ 1,197,201 2023 1,405,785 2024 1,106,909 2025 1,001,196 2026 151,097 Thereafter 583,010 $ 5,445,198 |
Summary of Company's Contract Liabilities | The following table presents the Company’s contract liabilities as of March 31, 2022 and December 31, 2021 (in thousands): Description December 31, 2021 Additions Deductions Acquisitions Foreign Exchange March 31, 2022 Deferred revenue - current $ 651,760 $ 651,266 $ ( 806,155 ) $ 1,321 $ ( 1,615 ) $ 496,577 Deferred revenue - noncurrent $ 62,155 $ 4,141 $ 6,871 $ — $ ( 120 ) $ 73,047 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue | Revenue Three Months Ended March 31, 2022 2021 Owned Sports Properties $ 296,689 $ 283,481 Events, Experiences & Rights 825,813 539,610 Representation 357,321 248,909 Eliminations ( 6,060 ) ( 2,418 ) Total consolidated revenue $ 1,473,763 $ 1,069,582 |
Schedule of Reconciliation of Segment Profitability | Reconciliation of segment profitability Three Months Ended March 31, 2022 2021 Owned Sports Properties $ 148,741 $ 145,549 Events, Experiences & Rights 132,483 39,050 Representation 101,705 61,483 Corporate ( 68,480 ) ( 46,616 ) Adjusted EBITDA 314,449 199,466 Reconciling items: Equity earnings of affiliates ( 3,749 ) ( 3,334 ) Interest expense, net ( 59,272 ) ( 68,351 ) Depreciation and amortization ( 65,994 ) ( 67,236 ) Equity-based compensation expense ( 50,856 ) ( 16,491 ) Merger, acquisition and earn-out costs ( 12,794 ) ( 10,985 ) Certain legal costs ( 1,002 ) ( 3,952 ) Restructuring, severance and impairment ( 518 ) ( 407 ) Fair value adjustment - equity investments 1,653 7,799 Gain on sale of the restricted Endeavor Content business 463,641 — Tax receivable agreements liability adjustment ( 53,497 ) — Other ( 10,974 ) ( 13,577 ) Income before income taxes and equity losses of affiliates $ 521,087 $ 22,932 |
RELATED PARTY TRANSACTIONS (Ta
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The Company has the following related party transactions as of March 31, 2022 and December 31, 2021 and for the three months ended March 31, 2022 and 2021 (in thousands): March 31, December 31, 2022 2021 Other current assets $ 13,454 $ 4,728 Investments 660 — Other assets — 322 Current liabilities 818 320 Other current liabilities 2,306 2,111 Three Month Ended March 31, 2022 2021 Revenue $ 7,739 $ 7,000 Direct operating costs 4,696 2,133 Selling, general and administrative expenses 1,861 1,126 Other income (expense), net ( 14,125 ) 875 |
DESCRIPTION OF BUSINESS AND O_2
DESCRIPTION OF BUSINESS AND ORGANIZATION - Additional Information (Detail) - $ / shares | May 03, 2021 | Mar. 31, 2022 |
Subsidiary or Equity Method Investee [Line Items] | ||
Percentage of equity interest acquired in subsidiary | 100.00% | |
Common Class A [Member] | New And Current Investors | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Number of shares issued | 75,584,747 | |
Common Class A [Member] | Endeavor Group Holdings | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Share price | $ 24 | |
Common Class A [Member] | IPO [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Stock issued during period shares | 24,495,000 | |
Shares issued price per share | $ 24 | |
Common Class A [Member] | Over-Allotment Option [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Stock issued during period shares | 3,195,000 |
ACQUISITIONS AND DIVESTITURE -
ACQUISITIONS AND DIVESTITURE - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Business Acquisition [Line Items] | |
Divestiture Agreement Description | In February 2021, the Company signed a new franchise agreement and side letter (the "Franchise Agreements") directly with the Writer’s Guild of America East and the Writer’s Guild of America West (collectively, the "WGA"). These Franchise Agreements included terms that, among other things, prohibited the Company from (a) negotiating packaging deals after June 30, 2022 and (b) having more than a 20% non-controlling ownership or other financial interest in, or being owned or affiliated with any individual or entity that has more than a 20% non-controlling ownership or other financial interest in, any entity or individual engaged in the production or distribution of works written by WGA members under a WGA collective bargaining agreement. As a result, in the third quarter of 2021, the Company began marketing the restricted Endeavor Content business for sale and such assets and liabilities were reflected as held for sale in the consolidated balance sheet as of December 31, 2021. The sale of 80% of the restricted Endeavor Content business closed in January 2022. The Company received cash proceeds of $666.3 million and divested $16.6 million of cash and restricted cash on the date of sale. The retained 20% interest of the restricted Endeavor Content business is reflected as an equity method investment as of March 31, 2022 and was valued at $196.3 million at the date of sale. The fair value of the retained 20% interest of the restricted Endeavor Content business was determined using the market approach. The key input assumption was the transaction price paid for the Company's 80% interest in the restricted Endeavor Content business. The Company recorded a net gain of $463.6 million, inclusive of a $121.1 million gain related to the remeasurement of the retained interest in the restricted Endeavor Content business to fair value and $15.0 million of transaction costs, in other income (expense), net during the three months ended March 31, 2022. The restricted Endeavor Content business was included in the Company’s Representation segment prior to the sale. |
Cash proceeds received | $ 666.3 |
Equity-method investment | 196.3 |
Cash and cash equivalents | 16.6 |
Net gain recognized | 463.6 |
Gain Related to The Remeasurement of Retained Interest | 121.1 |
Transaction costs | 15 |
Diamond Baseball Holdings [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | $ 64.2 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 18 years 8 months 12 days |
Business acquisitions, proforma revenue | $ 0.2 |
Business acquisitions, proforma net loss | (1) |
Diamond Baseball Holdings [Member] | Selling, General and Administrative Expenses [Member] | |
Business Acquisition [Line Items] | |
Business Acquisition, Transaction Costs | $ 0.6 |
ACQUISITIONS AND DIVESTITURE _2
ACQUISITIONS AND DIVESTITURE - Schedule of Fair Values of the Assets Acquired and the Liabilities Assumed in the Business Combination (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Intangible assets: | ||
Goodwill | $ 4,530,728 | $ 4,506,554 |
Diamond Baseball Holdings [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 89 | |
Other current assets | 491 | |
Property and equipment | 4,403 | |
Right of use assets | 7,270 | |
Other assets | 103 | |
Intangible assets: | ||
Goodwill | 25,487 | |
Accounts payable and accrued expenses | (93) | |
Other current liabilities | (56) | |
Deferred revenue | (1,426) | |
Operating lease liability | (9,470) | |
Net assets acquired | 64,168 | |
Diamond Baseball Holdings [Member] | Customer relationships [Member] | ||
Intangible assets: | ||
Intangible assets | 1,960 | |
Diamond Baseball Holdings [Member] | Other [Member] | ||
Intangible assets: | ||
Intangible assets | $ 35,410 |
SUPPLEMENTARY DATA - Summary of
SUPPLEMENTARY DATA - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Accrued operating expenses | $ 286,576 | $ 302,024 |
Payroll, bonuses and benefits | 113,938 | 162,688 |
Other | 59,914 | 59,349 |
Total accrued liabilities | $ 460,428 | $ 524,061 |
SUPPLEMENTARY DATA - Summary _2
SUPPLEMENTARY DATA - Summary of Allowance for Doubtful Accounts (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Allowance For Doubtful Accounts [Abstract] | |
Balance at Beginning of Year | $ 57,102 |
Additions/Charged (Credited) to Costs and Expenses | 5,699 |
Deductions | (571) |
Foreign Exchange | (499) |
Balance at End of Period | $ 61,731 |
SUPPLEMENTARY DATA - Summary _3
SUPPLEMENTARY DATA - Summary of Supplemental Cash Flow (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Supplemental information: | ||
Cash paid for interest | $ 47,038 | $ 41,726 |
Cash payments for income taxes | 7,751 | 7,709 |
Non-cash investing and financing activities: | ||
Capital expenditures included in accounts payable and accrued liabilities | 11,639 | 5,924 |
Establishment and acquisition of non-controlling interests | 0 | 2,888 |
Accretion of redeemable non-controlling interests | 27,308 | 271 |
Tax receivable agreements in connection with exchanges | 681 | 0 |
Investment in affiliates retained from a business divestiture | 196,345 | 0 |
Accrued redemption of units other current liabilities | $ 0 | $ 3,733 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Intangible asset amortization expense | $ 42.9 | $ 45.7 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Summary of Changes in the Carrying Value of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Line Items] | |
Balance - December 31, 2021 | $ 4,506,554 |
Acquisitions | 25,487 |
Foreign currency translation and other | (1,313) |
Balance - March 31, 2022 | 4,530,728 |
Owned Sports Properties [Member] | |
Goodwill [Line Items] | |
Balance - December 31, 2021 | 2,741,048 |
Acquisitions | 25,487 |
Foreign currency translation and other | 142 |
Balance - March 31, 2022 | 2,766,677 |
Events, Experiences & Rights [Member] | |
Goodwill [Line Items] | |
Balance - December 31, 2021 | 1,266,144 |
Acquisitions | 0 |
Foreign currency translation and other | (1,488) |
Balance - March 31, 2022 | 1,264,656 |
Representation [Member] | |
Goodwill [Line Items] | |
Balance - December 31, 2021 | 499,362 |
Acquisitions | 0 |
Foreign currency translation and other | 33 |
Balance - March 31, 2022 | $ 499,395 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Summary of Company's Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total Amortized Gross | $ 2,626,472 | $ 2,598,636 |
Total Intangible Assets Gross | 3,050,564 | 3,027,066 |
Accumulated Amortization | (1,449,087) | (1,415,382) |
Carrying Value | 1,177,385 | 1,183,254 |
Total Intangible Assets Carrying Value | 1,601,477 | 1,611,684 |
Indefinite-Lived Trade Names | 336,437 | 340,029 |
Owned events [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Owned Events | $ 87,655 | $ 88,401 |
Trade names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Life (in years) | 17 years 3 months 18 days | 17 years 3 months 18 days |
Total Amortized Gross | $ 990,126 | $ 991,021 |
Accumulated Amortization | (305,384) | (291,326) |
Carrying Value | $ 684,742 | $ 699,695 |
Customer and client relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Life (in years) | 6 years 6 months | 6 years 8 months 12 days |
Total Amortized Gross | $ 1,337,226 | $ 1,344,783 |
Accumulated Amortization | (1,023,960) | (1,012,509) |
Carrying Value | $ 313,266 | $ 332,274 |
Internally developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Life (in years) | 3 years 4 months 24 days | 3 years 10 months 24 days |
Total Amortized Gross | $ 121,173 | $ 120,175 |
Accumulated Amortization | (73,612) | (66,939) |
Carrying Value | $ 47,561 | $ 53,236 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Life (in years) | 15 years 3 months 18 days | 14 years 3 months 18 days |
Total Amortized Gross | $ 177,947 | $ 142,657 |
Accumulated Amortization | (46,131) | (44,608) |
Carrying Value | $ 131,816 | $ 98,049 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Jan. 31, 2022 | |
Schedule of Held-to-maturity Securities [Line Items] | ||||
Equity method investments, Net proceeds from sale | $ 4,800,000 | |||
Equity method investment without Readily Determinable Fair Values, gain from sale recorded | 2,600,000 | |||
Equity investments with readily determinable fair values, Amount | $ 900,000 | $ 700,000 | ||
Gains (losses) recorded, Due to the change in fair value in other (expense) income | (200,000) | 5,200,000 | ||
Net income | 517,666,000 | 2,376,000 | ||
Equity losses of affiliates, net of tax | (20,655,000) | (15,471,000) | ||
Recorded gains on disposal/sales | $ 0 | 0 | ||
Percentage of ownership sold | 80.00% | |||
Divestiture Agreement Description | In February 2021, the Company signed a new franchise agreement and side letter (the "Franchise Agreements") directly with the Writer’s Guild of America East and the Writer’s Guild of America West (collectively, the "WGA"). These Franchise Agreements included terms that, among other things, prohibited the Company from (a) negotiating packaging deals after June 30, 2022 and (b) having more than a 20% non-controlling ownership or other financial interest in, or being owned or affiliated with any individual or entity that has more than a 20% non-controlling ownership or other financial interest in, any entity or individual engaged in the production or distribution of works written by WGA members under a WGA collective bargaining agreement. As a result, in the third quarter of 2021, the Company began marketing the restricted Endeavor Content business for sale and such assets and liabilities were reflected as held for sale in the consolidated balance sheet as of December 31, 2021. The sale of 80% of the restricted Endeavor Content business closed in January 2022. The Company received cash proceeds of $666.3 million and divested $16.6 million of cash and restricted cash on the date of sale. The retained 20% interest of the restricted Endeavor Content business is reflected as an equity method investment as of March 31, 2022 and was valued at $196.3 million at the date of sale. The fair value of the retained 20% interest of the restricted Endeavor Content business was determined using the market approach. The key input assumption was the transaction price paid for the Company's 80% interest in the restricted Endeavor Content business. The Company recorded a net gain of $463.6 million, inclusive of a $121.1 million gain related to the remeasurement of the retained interest in the restricted Endeavor Content business to fair value and $15.0 million of transaction costs, in other income (expense), net during the three months ended March 31, 2022. The restricted Endeavor Content business was included in the Company’s Representation segment prior to the sale. | |||
Equity Method Investee Member | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Equity method investment without Readily Determinable Fair Values, gain from sale recorded | $ 1,900,000 | $ 0 | ||
Endeavor | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Net income | $ 2,900 | |||
LeafieldImg College [Member] | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Company's ownership of its equity method investments | 42.00% | |||
Equity losses of affiliates, net of tax | $ (21,500,000) | (18,800,000) | ||
Maximum [Member] | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Company's ownership of its equity method investments | 50.00% | |||
Equity method investments, Net proceeds from sale | $ 11,500,000 | |||
Minimum [Member] | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Company's ownership of its equity method investments | 20.00% |
INVESTMENTS - Summary of Compan
INVESTMENTS - Summary of Company's Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Equity method investments | $ 373,417 | $ 196,423 |
Equity investments without readily determinable fair values | 118,379 | 101,124 |
Equity investments with readily determinable fair values | 925 | 665 |
Total investments | $ 492,721 | $ 298,212 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financial Instrument [Line Items] | ||
Outstanding forward foreign exchange contracts maturities | 12 months | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | $ 47.7 | $ 15.1 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 7.3 | 7.4 |
Designated As Cash Flow Hedge [Member] | Forward Foreign Exchange Contracts [Member] | ||
Financial Instrument [Line Items] | ||
Recognized net gains (losses) in accumulated other comprehensive (losses) gains | 0.3 | (1.4) |
Reclassification of gains or losses into income (loss) | 0.8 | |
Other Nonoperating Income (Expense) [Member] | Forward Foreign Exchange Contracts [Member] | ||
Financial Instrument [Line Items] | ||
Net Gain (Loss) on foreign exchange contracts | 0.5 | (11.4) |
Other Nonoperating Income (Expense) [Member] | Not Designated As Cash Flow Hedge [Member] | Forward Foreign Exchange Contracts [Member] | ||
Financial Instrument [Line Items] | ||
Net Gain (Loss) on foreign exchange contracts | $ (1.3) | $ (0.2) |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Outstanding Forward Foreign Exchange Contracts Balances (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | |
Schedule Of Outstanding Forward Foreign Exchange Contracts Balances [Line Items] | ||
Foreign Currency Amount | $ (8,487) | $ 2,966 |
British Pound Sterling [Member] | ||
Schedule Of Outstanding Forward Foreign Exchange Contracts Balances [Line Items] | ||
Foreign Currency Amount | 21,066 | |
US Dollar Amount | $ 28,499 | |
Weighted Average Exchange Rate Per $1 USD | 0.0074 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers of assets or liabilities between fair value measurement classifications | $ 0 | |
Foreign Current Derivatives [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of foreign currency derivatives | 400,000 | $ 2,300,000 |
Foreign Current Derivatives [Member] | Other Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of foreign currency derivatives | 2,000,000 | 0 |
Foreign Current Derivatives [Member] | Other Long Term Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of foreign currency derivatives | 6,600,000 | 8,500,000 |
Foreign Current Derivatives [Member] | Assets Held For Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of foreign currency derivatives | 0 | 200,000 |
Foreign Current Derivatives [Member] | Liabilities Held For Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of foreign currency derivatives | 0 | 400,000 |
Foreign Current Derivatives [Member] | Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of foreign currency derivatives | 5,800,000 | 4,500,000 |
Interest Rate Swap [Member] | Other Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of the interest rate swaps | 8,800,000 | 0 |
Interest Rate Swap [Member] | Other Long Term Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of the interest rate swaps | $ 2,100,000 | $ 48,400,000 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Fair Value Of Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Investments in equity securities with readily determinable fair values | $ 925 | |
Interest rate swaps | 8,846 | |
Forward foreign exchange contracts | 2,423 | |
Total | 12,194 | |
Liabilities: | ||
Contingent consideration | 25,957 | $ 26,900 |
Interest rate swaps | 2,130 | |
Forward foreign exchange contracts | 12,408 | |
Level I [Member] | ||
Assets: | ||
Investments in equity securities with readily determinable fair values | 925 | |
Total | 925 | |
Level II [Member] | ||
Assets: | ||
Interest rate swaps | 8,846 | |
Forward foreign exchange contracts | 2,423 | |
Total | 11,269 | |
Fair Value, Recurring [Member] | ||
Assets: | ||
Investments in equity securities with readily determinable fair values | 665 | |
Forward foreign exchange contracts | 2,529 | |
Total | 3,194 | |
Liabilities: | ||
Contingent consideration | 26,900 | |
Interest rate swaps | 48,427 | |
Forward foreign exchange contracts | 13,363 | |
Total | 40,495 | 88,690 |
Fair Value, Recurring [Member] | Level I [Member] | ||
Assets: | ||
Investments in equity securities with readily determinable fair values | 665 | |
Total | 665 | |
Fair Value, Recurring [Member] | Level II [Member] | ||
Assets: | ||
Forward foreign exchange contracts | 2,529 | |
Total | 2,529 | |
Liabilities: | ||
Interest rate swaps | 48,427 | |
Forward foreign exchange contracts | 13,363 | |
Total | 14,538 | 61,790 |
Fair Value, Recurring [Member] | Level III [Member] | ||
Liabilities: | ||
Contingent consideration | 26,900 | |
Total | $ 25,957 | $ 26,900 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Change in Fair Value of Contingent Consideration (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Schedule Of Change In The Fair Value Of Contingent Consideration [Line Items] | |
Balance at December 31, 2021 | $ 26,900 |
Payments | (1,733) |
Change in fair value | 790 |
Balance at March 31, 2022 | $ 25,957 |
DEBT - Additional Information (
DEBT - Additional Information (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,704,078,000 | $ 5,713,736,000 |
Redeemable non-controlling interests | 242,534,000 | 209,863,000 |
Other current liabilities | 129,413,000 | 105,053,000 |
EDR Endeavor Group Holdings [Member] | ||
Debt Instrument [Line Items] | ||
Long term deferred tax benefit | 122,600,000 | 61,500,000 |
Tax receivable agreements liability | 191,200,000 | 133,800,000 |
Other long-term liabilities | 149,900 | 92,600,000 |
Other current liabilities | 41,200,000 | 41,200,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | 2,800,000,000 | 2,800,000,000 |
Line of credit | 200,000,000 | |
2014 Credit Facilities [Member] | Letter of credit | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | 19,600,000 | 23,800,000 |
Zuffa Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | 2,800,000,000 | 2,800,000,000 |
Line of credit | 205,000,000 | |
Letters of credit maximum face amount | 40,000,000 | |
Swingline loan maximum amount | 15,000,000 | |
Zuffa Credit Facilities [Member] | Letter of credit | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | 10,000,000 | 0 |
Zuffa Credit Facilities [Member] | Incremental term loan | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | 0 | 0 |
OLE Revolving Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | $ 0 | 0 |
First lien leverage ratio | 3 | |
Long-term debt | $ 2,000,000 | |
Percentage of revolving commitments | 40.00% | |
Receivables Purchase Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 46,200,000 | $ 50,500,000 |
Zuffa Secured Commercial Loans [Member] | ||
Debt Instrument [Line Items] | ||
Covenant compliance | Zuffa was in compliance with its financial debt covenant | Zuffa was in compliance with its financial debt covenant |
2014 Credit Facilities and Zuffa Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument fair value | $ 5,500,000,000 | $ 5,600,000,000 |
DEBT - Summary of Outstanding D
DEBT - Summary of Outstanding Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total principal | $ 5,771,360 | $ 5,785,825 |
Unamortized discount | (24,081) | (26,077) |
Unamortized issuance costs | (43,201) | (46,012) |
Total debt | 5,704,078 | 5,713,736 |
Less: current portion | (82,649) | (82,022) |
Total long-term debt | 5,621,429 | 5,631,714 |
First Lien Term Loan (due May 2025) [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | 2,778,515 | 2,786,048 |
Zuffa First Lien Term Loan (due April 2026) [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | 2,833,017 | 2,840,767 |
Other Debt (2.47%-14.50% Notes due at various dates through 2030) [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | $ 159,828 | $ 159,010 |
DEBT - Summary of Outstanding_2
DEBT - Summary of Outstanding Debt (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2022 | |
First Lien Term Loan (due May 2025) [Member] | |
Debt Instrument [Line Items] | |
Line of credit maturity date | May 2025 |
Zuffa First Lien Term Loan (due April 2026) [Member] | |
Debt Instrument [Line Items] | |
Line of credit maturity date | April 2026 |
Other Debt (2.47%-14.50% Notes due at various dates through 2030) [Member] | |
Debt Instrument [Line Items] | |
Line of credit maturity date | 2031 |
Other Debt (2.47%-14.50% Notes due at various dates through 2030) [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Line of credit interest rate | 14.50% |
Other Debt (2.47%-14.50% Notes due at various dates through 2030) [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Line of credit interest rate | 2.86% |
REDEEMABLE NON-CONTROLLING INTE
REDEEMABLE NON-CONTROLLING INTERESTS - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | ||||
Jul. 31, 2018 | Jun. 30, 2016 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 25, 2021 | |
Redeemable Noncontrolling Interest [Line Items] | |||||
Premium payable | $ 41 | ||||
Noncontrolling interest, fair value | $ 65.2 | ||||
Proceeds from noncontrolling interests | $ 9.7 | $ 75 | |||
Minority interest ownership percentage | 34.00% | ||||
EBIT DA multiplication factor | 7.5 | ||||
OLE [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Temporary equity, estimated redemption value | $ 69.3 | $ 57.9 | |||
Aggregate pro-rata capital contribution | $ 40 | ||||
Amount funded as pro-rata capital contribution from parent | 34.6 | ||||
Amount funded as pro-rata capital contribution from equity holders | $ 5.4 | ||||
China Subsidiary [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Temporary equity, estimated redemption value | 119.5 | 107.5 | |||
Zuffa [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Temporary equity, estimated redemption value | 9.7 | 9.7 | |||
Frieze [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Temporary equity, estimated redemption value | $ 23.2 | $ 23.8 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Share and Weighted Average Shares Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator | ||
Consolidated net income | $ 517,666 | $ 2,376 |
Net loss attributable to NCI (Endeavor Operating Company) | 198,120 | 27,246 |
Net income attributable to NCI (Endeavor Manager Units) | 5,407 | |
Net loss attributable to NCI (Endeavor Manager LLC Manager Units) | 27,177 | |
Net income attributable to EGH common shareholders | 319,546 | |
Net income attributable to EGH common shareholders | $ 512,259 | |
Denominator | ||
Weighted average Class A Common Shares outstanding - Basic | 268,489,176 | |
Additional shares assuming exchange of all Endeavor Profits Units | 4,219,455 | |
Additional shares assuming exchange of all Endeavor Operating Units and Endeavor Manager Units | 167,466,205 | |
Weighted average number of shares used in computing diluted income per share | 443,038,617 | |
Earnings Per Share, Basic | $ 1.19 | |
Diluted earnings per share | $ 1.16 | |
Stock Option [Member] | ||
Denominator | ||
Additional shares from RSUs, Stock Options and Phantom Units, as calculated using the treasury stock method | 2,863,781 | |
Common Class A [Member] | ||
Denominator | ||
Weighted average Class A Common Shares outstanding - Basic | 268,489,176 | |
Operating Unit [Member] | ||
Numerator | ||
Consolidated net income | $ 517,666 | |
Manager units [Member] | ||
Numerator | ||
Net loss attributable to NCI (Endeavor Operating Company) | $ 170,943 |
EARNINGS PER SHARE - Schedule_2
EARNINGS PER SHARE - Schedule of Antidilutive Securities (Detail) | 3 Months Ended |
Mar. 31, 2022shares | |
Stock Options [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities | 2,512,767 |
Unvested Restricted Stock Units [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities | 1,268,888 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
(Benefit from) provision for income taxes | $ (17,234) | $ 5,085 | |
Income from continuing operations | $ 521,087 | $ 22,932 | |
Effective income tax rate | (3.30%) | 22.20% | |
Tax Expense | $ 34,200 | ||
Unrecognized tax benefits | 41,400 | $ 40,000 | |
Tax Receivable Agreement [Member] | |||
Valuation allowance on differed tax assets | $ 56,500 | ||
Percentage of realized tax benefits payable pursuant to an agreement | 85.00% | ||
Tax liability pursuant to an agreement | $ 57,300 |
REVENUE - Summary Of Company's
REVENUE - Summary Of Company's Revenue Disaggregated By Primary Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,473,763 | $ 1,069,582 |
Owned Sports Properties [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 296,689 | 283,481 |
Events, Experiences & Rights [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 825,813 | 539,610 |
Representation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 357,321 | 248,909 |
Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (6,060) | (2,418) |
Eliminations [Member] | Owned Sports Properties [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Eliminations [Member] | Events, Experiences & Rights [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Eliminations [Member] | Representation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Media Rights [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 320,086 | |
Media Rights [Member] | Reportable Subsegments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 500,779 | |
Media Rights [Member] | Reportable Subsegments [Member] | Owned Sports Properties [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 156,965 | 177,653 |
Media Rights [Member] | Reportable Subsegments [Member] | Events, Experiences & Rights [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 163,121 | 323,126 |
Media Rights [Member] | Reportable Subsegments [Member] | Representation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Media Production, Distribution And Content [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 161,267 | |
Media Production, Distribution And Content [Member] | Reportable Subsegments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 145,823 | |
Media Production, Distribution And Content [Member] | Reportable Subsegments [Member] | Owned Sports Properties [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,300 | 2,187 |
Media Production, Distribution And Content [Member] | Reportable Subsegments [Member] | Events, Experiences & Rights [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 85,224 | 84,713 |
Media Production, Distribution And Content [Member] | Reportable Subsegments [Member] | Representation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 73,743 | 58,923 |
Events And Performance [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 714,892 | |
Events And Performance [Member] | Reportable Subsegments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 235,412 | |
Events And Performance [Member] | Reportable Subsegments [Member] | Owned Sports Properties [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 137,424 | 103,641 |
Events And Performance [Member] | Reportable Subsegments [Member] | Events, Experiences & Rights [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 577,468 | 131,771 |
Events And Performance [Member] | Reportable Subsegments [Member] | Representation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Talent Representation And Licensing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 199,171 | |
Talent Representation And Licensing [Member] | Reportable Subsegments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 146,745 | |
Talent Representation And Licensing [Member] | Reportable Subsegments [Member] | Owned Sports Properties [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Talent Representation And Licensing [Member] | Reportable Subsegments [Member] | Events, Experiences & Rights [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Talent Representation And Licensing [Member] | Reportable Subsegments [Member] | Representation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 199,171 | 146,745 |
Marketing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 84,407 | |
Marketing [Member] | Reportable Subsegments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 43,241 | |
Marketing [Member] | Reportable Subsegments [Member] | Owned Sports Properties [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Marketing [Member] | Reportable Subsegments [Member] | Events, Experiences & Rights [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Marketing [Member] | Reportable Subsegments [Member] | Representation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 84,407 | $ 43,241 |
REVENUE - Summary Of Transactio
REVENUE - Summary Of Transaction Price Related To These Future Obligation (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 5,445,198 |
Remainder of 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 1,197,201 |
2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 1,405,785 |
2024 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 1,106,909 |
2025 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 1,001,196 |
2026 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 151,097 |
Thereafter | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 583,010 |
REVENUE - Summary Of Company'_2
REVENUE - Summary Of Company's Contract Liabilities (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Contract with Customer, Liability [Abstract] | |
Beginning Balance | $ 651,760 |
Additions | 651,266 |
Deductions | (806,155) |
Acquisitions | 1,321 |
Foreign Exchange | (1,615) |
Ending Balance | 496,577 |
Beginning Balance | 62,155 |
Additions | 4,141 |
Deductions | 6,871 |
Foreign Exchange | (120) |
Ending Balance | $ 73,047 |
REVENUE - Additional Informatio
REVENUE - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 17.4 | $ 13.1 |
SEGMENT INFORMATION (Additional
SEGMENT INFORMATION (Additional Information) (Detail) | 3 Months Ended |
Mar. 31, 2022Segment | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Number of reportable segments | 3 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue, Major Customer [Line Items] | ||
Revenues | $ 1,473,763 | $ 1,069,582 |
Owned Sports Properties [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 296,689 | 283,481 |
Events Experiences & Rights [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 825,813 | 539,610 |
Representation [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 357,321 | 248,909 |
Operating Segments [Member] | Owned Sports Properties [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 296,689 | 283,481 |
Eliminations [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenues | $ (6,060) | $ (2,418) |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Reconciliation of Segment Profitability (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | $ (65,994) | $ (67,236) |
Tax receivable agreements liability adjustment | (53,497) | 0 |
Income before income taxes and equity losses of affiliates | 521,087 | 22,932 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 314,449 | 199,466 |
Equity losses (income) losses of affiliates | (3,749) | (3,334) |
Interest expense, net | (59,272) | (68,351) |
Depreciation and amortization | (65,994) | (67,236) |
Equity-based compensation expense | (50,856) | (16,491) |
Merger, acquisition and earn-out costs | (12,794) | (10,985) |
Certain legal costs | (1,002) | (3,952) |
Restructuring, severance and impairment | (518) | (407) |
Fair value adjustment - equity investments | 1,653 | 7,799 |
Gain on sale of the restricted Endeavor Content business | 463,641 | 0 |
Tax receivable agreements liability adjustment | (53,497) | 0 |
Other | (10,974) | (13,577) |
Operating Segments [Member] | Owned Sports Properties [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 148,741 | 145,549 |
Operating Segments [Member] | Events, Experiences & Rights [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 132,483 | 39,050 |
Operating Segments [Member] | Representation [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 101,705 | 61,483 |
Operating Segments [Member] | Corporate | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | $ (68,480) | $ (46,616) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) € in Millions, $ in Millions | May 31, 2021EUR (€) | Sep. 30, 2021USD ($)shares | Dec. 31, 2020EUR (€) | Jul. 31, 2019EUR (€) | Mar. 31, 2015 | Mar. 31, 2022 |
Minority interest ownership percentage | 34.00% | |||||
Zuffa [Member] | ||||||
New claims filed, number | 5 | |||||
UFC Fighters [Member] | ||||||
New claims filed, number | 11 | |||||
OpenBet [Member] | ||||||
Consideration in cash | $ | $ 1,000 | |||||
OpenBet [Member] | Common Class A [Member] | ||||||
Number of shares issued to acquire entity | shares | 7,605,199 | |||||
Value of shares issued for acquisition | $ | $ 200 | |||||
Breach of Competition Law [Member] | Italian Competition Authority [Member] | ||||||
Loss contingency, loss in period | € 0.3 | |||||
Breach of Competition Law [Member] | Lega Nazionale [Member] | ||||||
Loss contingency, damages sought, value | € 1,592.2 | |||||
Breach of Competition Law [Member] | Ten Other Clubs [Member] | ||||||
Loss contingency, damages sought, value | € 92.1 | |||||
Breach of Competition Law [Member] | Three Football Clubs [Member] | ||||||
Loss contingency, damages sought, value | € 554.6 | |||||
Breach of Competition Law [Member] | Four Additional Football Club [Member] | ||||||
Loss contingency, damages sought, value | € 251.5 |
RELATED PARTY TRANSACTIONS - A
RELATED PARTY TRANSACTIONS - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue | $ 7,739 | ||
Related party costs | 4,696 | $ 2,133 | |
Euroleague [Member] | |||
Due from related parties | 4,600 | $ 1,400 | |
Due to related parties | 1,400 | $ 1,400 | |
Raine group | |||
Transaction cost | 15,000 | ||
Investment in non marketable fund | 700 | ||
Representation and Technical Services [Member] | Euroleague [Member] | |||
Revenue | 3,700 | 2,200 | |
Production Services [Member] | Euroleague [Member] | |||
Revenue | 2,800 | 2,600 | |
Gaming Rights [Member] | Euroleague [Member] | |||
Related party costs | $ 1,400 | $ 1,800 |
RELATED PARTY TRANSACTIONS - S
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Other current assets | $ 200,541 | $ 204,697 | |
Investments | 492,721 | 298,212 | |
Current liabilities | 1,998,794 | 2,705,437 | |
Other current liabilities | 129,413 | 105,053 | |
Revenue | 7,739 | ||
Direct operating costs | 4,696 | $ 2,133 | |
Selling, general and administrative expenses | 1,861 | 1,126 | |
Other income (expense), net | (14,125) | 875 | |
Related party transactions [Member] | |||
Related Party Transaction [Line Items] | |||
Other current assets | 13,454 | 4,728 | |
Investments | 660 | 0 | |
Other assets | 0 | 322 | |
Current liabilities | 818 | 320 | |
Other current liabilities | $ 2,306 | $ 2,111 | |
Revenue | $ 7,000 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Detail) - 1 months ended Apr. 30, 2022 € in Millions, $ in Millions | USD ($) | EUR (€)shares |
Subsequent Event [Line Items] | ||
Consideration payable | € | € 30 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Aggregate value of shares | $ | $ 158.5 | |
Subsequent Event [Member] | Mutual Madrid Open | ||
Subsequent Event [Line Items] | ||
consideration and transfer fees | € | € 360 | |
Subsequent Event [Member] | OLE [Member] | ||
Subsequent Event [Line Items] | ||
Aggregate value of shares | $ | $ 223.7 | |
Subsequent Event [Member] | Common Class A [Member] | ||
Subsequent Event [Line Items] | ||
Share issued | 5,693,774 | |
Subsequent Event [Member] | Common Class A [Member] | OLE [Member] | ||
Subsequent Event [Line Items] | ||
Share issued | 495,783 | |
Subsequent Event [Member] | Common Class X [Member] | ||
Subsequent Event [Line Items] | ||
Share issued | 659,896 | |
Subsequent Event [Member] | Common Class X [Member] | OLE [Member] | ||
Subsequent Event [Line Items] | ||
Share issued | 8,037,483 |