Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2024 | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity File Number | 001-41797 | |
Entity Registrant Name | TKO GROUP HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 92-3569035 | |
Entity Address, Address Line One | 200 Fifth Ave, 7th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10010 | |
City Area Code | 646 | |
Local Phone Number | 558-8333 | |
Title of 12(b) Security | Class A Common Stock, par value $0.00001 per share | |
Trading Symbol | TKO | |
Security Exchange Name | NYSE | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Central Index Key | 0001973266 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 80,690,075 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 89,616,891 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 245,812 | $ 235,839 |
Accounts receivable (net of allowance for doubtful accounts of $1,191 and $1,093, respectively) | 171,555 | 135,436 |
Other current assets | 164,393 | 121,155 |
Total current assets | 581,760 | 492,430 |
Property, buildings and equipment, net | 611,756 | 608,416 |
Intangible assets, net | 3,483,021 | 3,563,663 |
Finance lease right-of-use assets, net | 259,890 | 255,709 |
Operating lease right-of-use assets, net | 36,376 | 35,508 |
Goodwill | 7,666,148 | 7,666,485 |
Investments | 15,993 | 16,392 |
Other assets | 67,322 | 52,136 |
Total assets | 12,722,266 | 12,690,739 |
Current liabilities: | ||
Accounts payable | 22,587 | 42,040 |
Accrued liabilities | 405,672 | 267,363 |
Current portion of long-term debt | 22,321 | 22,367 |
Current portion of finance lease liabilities | 10,953 | 8,135 |
Current portion of operating lease liabilities | 4,900 | 4,246 |
Deferred revenue | 111,782 | 118,992 |
Other current liabilities | 12,276 | 8,997 |
Total current liabilities | 590,491 | 472,140 |
Long-term debt | 2,708,361 | 2,713,948 |
Long-term finance lease liabilities | 249,168 | 245,288 |
Long-term operating lease liabilities | 33,046 | 32,911 |
Deferred tax liabilities | 372,953 | 372,860 |
Other long-term liabilities | 137,865 | 3,046 |
Total liabilities | 4,091,884 | 3,840,193 |
Commitments and contingencies (Note 16) | ||
Redeemable non-controlling interests | 12,354 | 11,594 |
Stockholders' equity: | ||
Additional paid-in capital | 4,275,901 | 4,244,537 |
Accumulated other comprehensive loss | (2,059) | (332) |
Accumulated deficit | (239,067) | (135,227) |
Total TKO Group Holdings, Inc. stockholders’ equity | 4,034,777 | 4,108,980 |
Nonredeemable non-controlling interests | 4,583,251 | 4,729,972 |
Total stockholders' equity | 8,618,028 | 8,838,952 |
Total liabilities, redeemable non-controlling interests and stockholders' equity | 12,722,266 | 12,690,739 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 1 | 1 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common stock | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Net of allowance for doubtful accounts | $ 1,191 | $ 1,093 |
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 | 82,420,074 | 82,292,902 |
Common Stock, shares outstanding | 82,420,074 | 82,292,902 |
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 | 89,616,891 | 89,616,891 |
Common Stock, shares outstanding | 89,616,891 | 89,616,891 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Consolidated Statements of Operations [Abstract] | |||
Revenue | $ 629,711 | $ 306,730 | |
Operating expenses: | |||
Direct operating costs | 201,015 | 89,152 | |
Selling, general and administrative expenses | 531,880 | 56,346 | |
Depreciation and amortization | 107,161 | 15,152 | |
Total operating expenses | 840,056 | 160,650 | |
Operating (loss) income | (210,345) | 146,080 | |
Other expenses: | |||
Interest expense, net | (64,466) | (53,908) | |
Other expense, net | (271) | (329) | |
(Loss) income before income taxes and equity losses of affiliates | (275,082) | 91,843 | |
(Benefit from) provision for income taxes | (25,522) | 3,630 | |
(Loss) income before equity losses of affiliates | (249,560) | 88,213 | |
Equity (earnings) losses of affiliates, net of tax | (50) | 263 | |
Net (loss) income | (249,510) | 87,950 | |
Less: Net (loss) income attributable to non-controlling interests | (145,670) | 348 | |
Less: Net income attributable to TKO Operating Company, LLC prior to the Transactions | $ 87,602 | ||
Net loss attributable to TKO Group Holdings, Inc. | $ (103,840) | ||
Basic net loss per share | [1] | $ (1.26) | |
Diluted net loss per share | [1] | $ (1.26) | |
Weighted average common shares outstanding: | |||
Basic | 82,351,654 | ||
Diluted | 82,351,654 | ||
[1] Basic and diluted net loss per share of Class A common stock is applicable only for the period from January 1, 2024 through March 31, 2024, which is the period following the Transactions (as defined in Note 1 to the unaudited consolidated financial statements). See Note 13, Earnings Per Share , for the calculation of the number of shares used in computation of net loss per share of Class A common stock and the basis for computation of net loss per share. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements of Comprehensive (Loss) Income [Abstract] | ||
Net (loss) income | $ (249,510) | $ 87,950 |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation adjustments | (2,188) | (31) |
Cash flow hedges: | ||
Change in net unrealized gains | 537 | 453 |
Amortization of cash flow hedge fair value to net income | (76) | (76) |
Total comprehensive (loss) income, net of tax | (251,237) | 88,296 |
Less: Comprehensive (loss) income attributable to non-controlling interests | (145,670) | 348 |
Less: Comprehensive income attributable to TKO Operating Company, LLC prior to the Transactions | $ 87,948 | |
Comprehensive loss attributable to TKO Group Holdings, Inc. | $ (105,567) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) shares in Thousands, $ in Thousands | Common Class A [Member] Common Stock [Member] | Common Class B [Member] Common Stock [Member] | Members Capital [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Accumulated Deficit [Member] | Total TKO Group Holdings, Inc. [Member] | Nonredeemable Non-Controlling Interest [Member] | Total |
Balance at Dec. 31, 2022 | $ 568,070 | $ 846 | $ 568,916 | ||||||
Comprehensive income (loss) | 87,602 | 346 | 87,948 | ||||||
Distributions to members | (101,425) | (101,425) | |||||||
Contributions from members | 5,795 | 5,795 | |||||||
Balance at Mar. 31, 2023 | $ 560,042 | 1,192 | 561,234 | ||||||
Balance at Dec. 31, 2023 | $ 1 | $ 1 | $ 4,244,537 | (332) | $ (135,227) | $ 4,108,980 | $ 4,729,972 | 8,838,952 | |
Balance, Shares at Dec. 31, 2023 | 82,293 | 89,617 | |||||||
Comprehensive income (loss) | (1,727) | (103,840) | (105,567) | (146,430) | (251,997) | ||||
Distributions to members | (302) | ||||||||
Distributions to members | (302) | (342) | (644) | ||||||
Contributions from members | 2,790 | 2,790 | |||||||
Stock issuances and other, net, shares | 127 | ||||||||
Equity-based compensation | 27,435 | 27,435 | 27,435 | ||||||
Principal stockholder contributions | 1,492 | 1,492 | 1,492 | ||||||
Equity reallocation between controlling and non-controlling interests | 2,739 | 2,739 | (2,739) | ||||||
Balance, Shares at Mar. 31, 2024 | 82,420 | 89,617 | |||||||
Balance at Mar. 31, 2024 | $ 1 | $ 1 | $ 4,275,901 | $ (2,059) | $ (239,067) | $ 4,034,777 | $ 4,583,251 | $ 8,618,028 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (249,510) | $ 87,950 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 107,161 | 15,152 |
Amortization and impairments of content costs | 7,728 | 3,914 |
Amortization and write-off of original issue discount and deferred financing costs | 2,689 | 2,588 |
Equity-based compensation | 30,225 | 5,795 |
Income taxes | (29,771) | 860 |
Equity (earnings) losses of affiliates | (50) | 263 |
Net provision for allowance for doubtful accounts | 398 | 107 |
Other, net | 9 | (128) |
Changes in operating assets and liabilities, net of acquisition: | ||
Accounts receivable | (36,482) | (7,719) |
Other current assets | (12,527) | (13,866) |
Other noncurrent assets | (17,988) | (3,143) |
Accounts payable and accrued liabilities | 129,206 | (24,724) |
Deferred revenue | (7,672) | (3,945) |
Other liabilities | 135,921 | 6,595 |
Net cash provided by operating activities | 59,337 | 69,699 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, buildings and equipment and other assets | (31,483) | (4,581) |
Investments in affiliates, net | (4,809) | |
Proceeds from sales of property, buildings and equipment | 45 | |
Net cash used in investing activities | (36,247) | (4,581) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of long-term debt | (9,972) | (8,150) |
Distributions to members | (644) | (101,425) |
Net cash used in financing activities | (10,616) | (109,575) |
Effects of exchange rate movements on cash | (2,501) | (31) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 9,973 | (44,488) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 235,839 | 180,574 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 245,812 | 136,086 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | 64,230 | 50,495 |
Cash payments for income taxes | 6,467 | 2,878 |
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||
Purchases of property and equipment recorded in accrued expenses and accounts payable | 24,441 | 590 |
Contribution from members for equity-based compensation | 2,790 | $ 5,795 |
Principal stockholder contributions | $ 1,492 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2024 | |
DESCRIPTION OF BUSINESS [Abstract] | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTIO N OF BUSINESS TKO Group Holdings, Inc. (the “Company” or “TKO”) was incorporated as a Delaware corporation in March 2023, under the name New Whale Inc., and was formed for the purpose of facilitating the business combination of the Ultimate Fighting Championship (“UFC”) and World Wrestling Entertainment, LLC (f/k/a World Wrestling Entertainment, Inc.) (“WWE”) businesses under TKO Operating Company, LLC (f/k/a Zuffa Parent, LLC) (“Zuffa” or “TKO OpCo”), which owns and operates the UFC and WWE businesses (the “Transactions”), as contemplated within the Transaction Agreement, dated as of April 2, 2023, by and among Endeavor Group Holdings, Inc. (“Endeavor” or “EGH”), Endeavor Operating Company, LLC, TKO OpCo, WWE, TKO, and Whale Merger Sub Inc. (the “Transaction Agreement”). On September 12, 2023, the Transactions were completed with the newly-formed TKO combining the UFC and WWE businesses. See Note 4, Acquisition of WWE , for further details. Under the terms of the Transaction Agreement, (A) EGH and/or its subsidiaries received (1) a 51.0 % controlling non-economic voting interest in TKO on a fully-diluted basis and (2) a 51.0 % economic interest in the operating subsidiary on a fully diluted basis, TKO OpCo, which owns all of the assets of the UFC and WWE businesses, and (B) the stockholders of WWE received (1) a 49.0 % voting interest in TKO on a fully diluted basis and (2) a 100 % economic interest in TKO, which in turn holds a 49.0 % economic interest in TKO OpCo on a fully-diluted basis. TKO OpCo is the accounting acquirer and predecessor to TKO. Financial results and information included in the accompanying consolidated financial statements include (1) prior to the consummation of the Transactions, financial results and information of Zuffa and its consolidated subsidiaries, which includes UFC and its subsidiaries, and (2) after the consummation of the Transactions, financial results and information of TKO Group Holdings, Inc., and its consolidated subsidiaries, which includes UFC and WWE and their respective subsidiaries. Unless the context suggests otherwise, references to the “Company” or “TKO” refer to Zuffa and its consolidated subsidiaries prior to the consummation of the Transactions and to TKO Group Holdings, Inc. and its consolidated subsidiaries after the consummation of the Transactions. TKO is a premium sports and entertainment company which operates leading combat sports and sports entertainment brands. The Company monetizes its brands through four principal activities: Media rights and content, Live events, Sponsorship and Consumer products licensing. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
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 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, 2023 (the “Annual Report”). 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, 2024 and for the three months ended March 31, 2024 and 2023 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. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. All intercompany balances are eliminated in consolidation. TKO is the sole managing member of TKO OpCo and maintains a controlling financial interest in TKO OpCo. As sole managing member, the Company operates and controls all of the business affairs of TKO OpCo. As a result, the Company is the primary beneficiary and thus consolidates the financial results of TKO OpCo and reports a non-controlling interest representing the economic interest in TKO OpCo held by the other members of TKO OpCo. As of March 31, 2024, the Company owned 47.9 % of TKO OpCo. 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, the allowance for doubtful accounts, content cost amortization and impairment, 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, determination of useful lives of intangible assets and long-lived assets acquired, the fair value of equity-based compensation, leases, 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, 2024 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 3. RECENT ACCOUNTING PRONOUNCEMENTS Recently Issued Accounting Pronouncements In August 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-05, Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement . This ASU requires that a joint venture apply a new basis of accounting upon formation. The amendments in this update are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025, with an option to apply the amendments retrospectively. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative . This ASU amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532, Disclosure Update and Simplification , which was issued in 2018. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. If, by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the ASC and will not become effective. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures . This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The update should be applied retrospectively to all prior periods presented in the financial statements. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This ASU requires that an entity annually disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate) as well as income taxes paid disaggregated by jurisdiction. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In March 2024, the FASB issued ASU 2024-02, Codification Improvements – Amendments to Remove References to the Concepts Statements . This ASU amends the Accounting Standards Codification (“ASC”) to remove references to various FASB Concepts Statements to simplify the ASC and draw a distinction between authoritative and nonauthoritative literature. The amendments in this update apply to all reporting entities within the scope of the affected accounting guidance, and are effective for public entities for fiscal years beginning after December 15, 2024. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. |
ACQUISITION OF WWE
ACQUISITION OF WWE | 3 Months Ended |
Mar. 31, 2024 | |
ACQUISITION OF WWE [Abstract] | |
ACQUISITION OF WWE | 4. ACQUISITION OF WWE Transactions Overview On September 12, 2023 (the “Closing Date”), the transaction between EGH and WWE was completed with the newly-formed TKO combining the UFC and WWE businesses. Under the terms of the Transaction Agreement, (A) EGH and its subsidiaries received (1) a 51.0 % controlling non-economic voting interest in TKO on a fully-diluted basis and (2) a 51.0 % economic interest on a fully-diluted basis in the operating subsidiary, TKO OpCo, which owns all of the assets of the UFC and WWE businesses, and (B) the stockholders of WWE received (1) a 49.0 % voting interest in TKO on a fully-diluted basis and (2) a 100 % economic interest in TKO, which in turn holds a 49.0 % economic interest in TKO OpCo on a fully-diluted basis. WWE is an integrated media and entertainment company that has been involved in the sports entertainment business for four decades. WWE is principally engaged in the production and distribution of unique and creative content through various channels, including content rights agreements for its flagship programs, Raw and SmackDown , premium live event programming, monetization across social media outlets, live events, and licensing of various WWE-themed products. The Transactions have been accounted for as a reverse acquisition of WWE using the acquisition method of accounting in accordance with the guidance of ASC 805, Business Combinations (“ASC 805”), with TKO OpCo, the legal acquiree, treated as the accounting acquirer. Based on this determination, the Company has allocated the preliminary purchase price to the fair value of WWE’s identifiable assets and liabilities as of the Closing Date, with the excess preliminary purchase price recorded as goodwill. The goodwill was assigned entirely to the WWE segment and is not deductible for tax purposes. The weighted average life of finite-lived intangible assets acquired was 20.3 years, which consisted of trademarks and trade names with a weighted average life of 25.0 years, customer relationships with a weighted average life of 11.3 years and other intangible assets with a weighted average life of 3.6 years. In connection with the Transactions, the Company incurred transaction costs of $ 0.5 million and $ 5.4 million for the three months ended March 31, 2024 and 2023, respectively, which were expensed as incurred and included in selling, general and administrative expenses in the consolidated statements of operations. Consideration Transferred The fair value of the consideration transferred in the reverse acquisition was $ 8,432.1 million, which consisted of 83,161,123 shares of TKO Class A common stock valued at $ 8,061.8 million, Replacement Awards (as defined below) valued at $ 49.3 million and $ 321.0 million of deferred consideration which was paid on September 29, 2023 to former WWE shareholders in the form of a special dividend. Pursuant to the Transactions, awards of WWE RSUs and PSUs outstanding immediately prior to the completion of the Transactions were converted into awards of TKO RSUs or PSUs, as applicable, on the same terms and conditions as were applicable immediately prior to the Closing Date (the “Replacement Awards”). The portion of the fair-value-based measure of the Replacement Awards that is attributable to pre-combination vesting is purchase consideration and is valued at approximately $ 49.3 million. Preliminary Allocation of Purchase Price The purchase price is allocated to the underlying WWE assets acquired and liabilities assumed based on their estimated fair values on the Closing Date, with any excess purchase price recorded as goodwill. Goodwill is primarily attributable to the synergies that are expected to arise as a result of the Transactions and other intangible assets that do not qualify for separate recognition. The purchase price allocation reflects preliminary fair value estimates, including measurement period adjustments, based on management analysis, including preliminary work performed by third-party valuation specialists. The estimated fair value of assets acquired and liabilities assumed are preliminary and subject to change as purchase price allocations are finalized, which is expected within one year of the Closing Date. The effects of measurement period adjustments made during the three months ended March 31, 2024 were not material to the Company’s consolidated financial statements. The fair value of the nonredeemable non-controlling interest of $ 4,521.8 million was calculated as EGH’s 51.9 % ownership interest in TKO OpCo’s net assets. TKO OpCo’s net assets differ from TKO combined net assets primarily due to the net deferred tax liabilities for which the non-controlling interest does not have economic rights. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE [Abstract] | |
REVENUE | 5. REVENUE The Company derives its revenue principally from the following sources: (i) media rights and content fees associated with the distribution of content, (ii) ticket sales at live events and site fees, (iii) sponsorship and advertising sales, and (iv) consumer product licensing. Disaggregated Revenue The following table presents the Company’s revenue disaggregated by primary revenue sources (in thousands): Three Months Ended March 31, 2024 2023 Revenue: UFC Segment : Media rights and content $ 214,462 $ 224,062 Live events 35,277 31,390 Sponsorship 48,603 38,057 Consumer products licensing 14,648 13,221 Total UFC Segment revenue 312,990 306,730 WWE Segment : Media rights and content 221,107 — Live events 50,192 — Sponsorship 13,815 — Consumer products licensing 31,607 — Total WWE Segment revenue 316,721 — Total revenue $ 629,711 $ 306,730 Remaining Performance Obligations The transaction price related to the Company’s future performance obligations does not include any variable consideration related to sales or usage-based royalties. The variability related to these sales or usage-based royalties will be resolved in the periods when the licensee generates sales related to the intellectual property license. The following table presents the aggregate amount of the transaction price allocated to remaining performance obligations for contracts greater than one year for their initial term prior to opt-out provisions with unsatisfied or partially satisfied performance obligations as of March 31, 2024 (in thousands): Remainder of 2024 $ 1,541,246 2025 2,141,149 2026 1,222,433 2027 1,156,324 2028 1,108,766 Thereafter 961,283 Total remaining performance obligations $ 8,131,201 Revenue from Prior Period Performance Obligations The Company did no t recognize any significant revenue from performance obligations satisfied in prior periods during the three months ended March 31, 2024 and 2023, respectively. Contract Liabilities (Deferred Revenues) The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance. The Company’s deferred revenue balance primarily relates to advance payments received related to its content distribution rights agreements, consumer product licensing agreements and sponsorship arrangements, as well as memberships for the Company’s subscription services . 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 deferred revenue as of March 31, 2024 and December 31, 2023 (in thousands): As of As of December 31, Foreign March 31, Description 2023 Additions Deductions Exchange 2024 Deferred revenue - current $ 118,992 $ 356,498 $ ( 363,728 ) $ 20 $ 111,782 Deferred revenue - non-current 672 — ( 168 ) — 504 |
SUPPLEMENTARY DATA
SUPPLEMENTARY DATA | 3 Months Ended |
Mar. 31, 2024 | |
SUPPLEMENTARY DATA [Abstract] | |
SUPPLEMENTARY DATA | 6. SUPPLEMENTARY DATA Property, Buildings and Equipment, net Property, buildings and equipment, net consisted of the following (in thousands): As of March 31, December 31, 2024 2023 Buildings and improvements $ 402,613 $ 394,481 Office, computer and other equipment 132,290 126,082 Land and land improvements 80,919 80,919 Furniture and fixtures 75,572 74,862 Construction in progress 28,805 20,389 720,199 696,733 Less: accumulated depreciation ( 108,443 ) ( 88,317 ) Total Property, buildings and equipment, net $ 611,756 $ 608,416 Depreciation expense for property, buildings and equipment totaled $ 20.3 million and $ 3.5 million for the three months ended March 31, 2024 and 2023, respectively. Allowance for Doubtful Accounts The changes in the allowance for doubtful accounts are as follows (in thousands): As of Charged to As of December 31, Costs and Foreign March 31, 2023 Expenses Deductions Exchange 2024 Three Months Ended March 31, 2024 $ 1,093 $ 150 $ ( 52 ) $ — $ 1,191 Film and Television Content Costs The following table presents the Company’s unamortized content costs, which are included as a component of other assets in the consolidated balance sheets (in thousands): Predominantly Monetized Individually Predominantly Monetized as a Film Group As of As of March 31, December 31, March 31, December 31, 2024 2023 2024 2023 Licensed and acquired program rights $ — $ — $ 22,425 $ 21,413 Produced programming: In release 2,014 1,410 1,914 2,049 Completed but not released 2 2,045 — — In production 639 1,350 754 819 Total film and television costs $ 2,655 $ 4,805 $ 25,093 $ 24,281 As of March 31, 2024, substantially all of the “completed but not released” content costs that are monetized individually are estimated to be amortized over the next 12 months and approximately 77 % of the “in release” content costs monetized individually are estimated to be amortized over the next three years . As of March 31, 2024, substantially all of the “licensed and acquired program rights” and “in release” content costs monetized as a film group are estimated to be amortized over the next three years . Amortization and impairment of content costs, which are included as a component of direct operating costs in the consolidated statement of operations, consisted of the following (in thousands): Three Months Ended March 31, 2024 2023 Content production amortization expense - assets monetized individually $ 3,224 $ — Content production amortization expense - assets monetized as a film group 4,504 3,914 Content production impairment charges (1) — — Total amortization and impairment of content costs $ 7,728 $ 3,914 (1) Unamortized content costs are evaluated for impairment whenever events or changes in circumstances indicate that the fair value of a film predominantly monetized on its own or a film group may be less than its amortized costs. If conditions indicate a potential impairment, and the estimated future cash flows are not sufficient to recover the unamortized costs, the asset is written down to fair value. In addition, if we determine that content will not likely air, we will expense the remaining unamortized costs. Other current assets The following is a summary of other current assets (in thousands): As of March 31, December 31, 2024 2023 Prepaid taxes $ 89,488 $ 57,885 Prepaid event and production-related costs 24,240 15,382 Amounts due from the Group (Note 18) 16,017 11,599 Assets held for sale 7,500 7,500 Prepaid insurance 5,244 8,145 Other 21,904 20,644 Total $ 164,393 $ 121,155 Accrued Liabilities The following is a summary of accrued liabilities (in thousands): As of March 31, December 31, 2024 2023 Legal settlements (Note 16) $ 200,000 $ — Event and production-related costs 51,888 51,015 Interest 41,221 41,634 Payroll-related costs 36,477 100,982 Legal and professional fees 28,724 18,730 Accrued capital expenditures 24,060 29,550 Other 23,302 25,452 Total $ 405,672 $ 267,363 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 7. GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying value of Goodwill are as follows (in thousands): UFC (1) WWE (2) Total Balance — December 31, 2023 $ 2,602,639 $ 5,063,846 $ 7,666,485 Foreign exchange and other — ( 337 ) ( 337 ) Balance — March 31, 2024 $ 2,602,639 $ 5,063,509 $ 7,666,148 (1) Reflects goodwill resulting from the Company’s election to apply pushdown accounting to reflect EGH’s new basis of accounting in the UFC’s assets and liabilities, including goodwill, which occurred during 2016. (2) Based on preliminary fair values acquired through the business acquisition of WWE. See Note 4, Acquisition of WWE , for further information. There were no dispositions or impairments to goodwill during the three months ended March 31, 2024 and 2023. Intangible Assets, net The following table summarizes information relating to the Company’s identifiable intangible assets as of March 31, 2024 (in thousands): Weighted Average Estimated Useful Life Accumulated (in years) Gross Amount Amortization Carrying Value Trademarks and trade names 22.8 $ 2,891,826 $ ( 346,342 ) $ 2,545,484 Customer relationships 5.4 1,255,010 ( 429,059 ) 825,951 Other (1) 3.4 145,588 ( 34,002 ) 111,586 Total intangible assets $ 4,292,424 $ ( 809,403 ) $ 3,483,021 (1) Other intangible assets as of March 31, 2024 primarily consisted of talent roster, internally developed software and content library assets acquired through the business combination with WWE in September 2023. See Note 4, Acquisition of WWE , for further information. The following table summarizes information relating to the Company’s identifiable intangible assets as of December 31, 2023 (in thousands): Weighted Average Estimated Useful Life Accumulated (in years) Gross Amount Amortization Carrying Value Trademarks and trade names 22.8 $ 2,891,826 $ ( 314,685 ) $ 2,577,141 Customer relationships 5.5 1,254,210 ( 388,640 ) 865,570 Other (1) 3.4 145,438 ( 24,486 ) 120,952 Total intangible assets $ 4,291,474 $ ( 727,811 ) $ 3,563,663 (1) Other intangible assets as of December 31, 2023 primarily consisted of talent roster, internally developed software and content library assets acquired through the business combination with WWE in September 2023. See Note 4, Acquisition of WWE , for further information. Amortization of intangible assets was $ 81.6 million and $ 11.7 million during the three months ended March 31, 2024 and 2023, respectively, which is recognized within depreciation and amortization in the consolidated statements of operations. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
INVESTMENTS [Abstract] | |
INVESTMENTS | 8. INVESTMENTS The following is a summary of the Company’s investments (in thousands): As of March 31, December 31, 2024 2023 Equity method investments $ 3,461 $ 3,775 Nonmarketable equity investments without readily determinable fair values 12,532 12,617 Total investment securities $ 15,993 $ 16,392 Equity Method Investments The Company has an approximately 7 % ownership stake in Monkey Spirit, LLC, which owns the IP license to distribute Howler Head branded products and beverages (together, “Howler Head”). The Company recognized equity losses of $ 0.3 million for each of the three months ended March 31, 2024 and 2023, and the investment balance was $ 3.0 million and $ 3.3 million as of March 31, 2024 and December 31, 2023, respectively. The Company recognized equity earnings of $ 0.3 million and equity losses of $ 0.1 million for the three months ended March 31, 2024 and 2023, respectively, from other equity method investments, which had a balance of $ 0.5 million as of March 31, 2024 and December 31, 2023. During the three months ended March 31, 2024, the Company received distributions of $ 0.3 million from these equity method investments. Nonmarketable Equity Investments Without Readily Determinable Fair Values As of March 31, 2024 and December 31, 2023, the Company held various investments in nonmarketable equity instruments of private companies. The Company did no t record any impairment charges on these investments during the three months ended March 31, 2024 and 2023. In addition, there were no observable price change events that were completed during the three months ended March 31, 2024 and 2023. The fair value measurements of the Company’s equity investments and nonmarketable equity investments without readily determinable fair values are classified within Level 3 as significant unobservable inputs are used as part of the determination of fair value. Significant unobservable inputs may include variables such as near-term prospects of the investees, recent financing activities of the investees, and the investees' capital structure, as well as other economic variables, which reflect assumptions market participants would use in pricing these assets. For equity investments without readily determinable fair values, the Company has elected to use the measurement alternative to fair value that will allow these investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
DEBT [Abstract] | |
DEBT | 9. DEBT The following is a summary of the Company’s outstanding debt (in thousands): As of March 31, December 31, 2024 2023 First Lien Term Loan (due April 2026 ) $ 2,721,016 $ 2,728,766 Secured Commercial Loans 31,467 31,867 Total principal 2,752,483 2,760,633 Unamortized discount ( 7,498 ) ( 8,367 ) Unamortized debt issuance cost ( 14,303 ) ( 15,951 ) Total debt 2,730,682 2,736,315 Less: Current portion of long-term debt ( 22,321 ) ( 22,367 ) Total long-term debt $ 2,708,361 $ 2,713,948 First Lien Term Loan (due April 2026) As of March 31, 2024 and December 31, 2023, the Company had $ 2.7 billion and $ 2.7 billion, respectively, outstanding under a credit agreement dated August 18, 2016 (as amended and/or restated, the “Credit Agreement”), by and among Zuffa Guarantor, LLC, UFC Holdings, LLC, as borrower, the lenders party hereto and Goldman Sachs Bank USA, as Administrative Agent, which was entered into in connection with the acquisition of Zuffa by EGH in 2016. The facilities under the Credit Agreement consist of (i) a first lien secured term loan (the “First Lien Term Loan”) and (ii) 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 “Revolving Credit Facility,” and, together with the First Lien Term Loan, the “Credit Facilities”). The Credit Facilities are secured by liens on substantially all of the assets of Zuffa Guarantor, LLC, UFC Holdings, LLC and certain subsidiaries thereof. Payments under the First Lien Term Loan include 1 % principal amortization that is payable in equal quarterly installments, with any remaining balance payable on the final maturity date of April 29, 2026. In June 2023, the Company amended the terms of the First Lien Term Loan to replace the adjusted LIBOR reference rate with Term Secured Overnight Financing Rate (“SOFR”) and provide for a credit spread adjustment (as defined in the Credit Agreement). The First Lien Term Loan accrues interest at an annual interest rate of adjusted SOFR plus 2.75 - 3.00 %, which totaled 8.34 % as of March 31, 2024. The Credit Facilities contain a financial covenant that requires the Company 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 6.5 -to-1. The Company is only required to meet the First Lien Leverage Ratio if the sum of outstanding borrowings under the Revolving Credit Facility plus outstanding letters of credit exceeding $ 10.0 million that are not cash collateralized exceeds thirty-five percent of the capacity of the Revolving Credit Facility as measured on a quarterly basis, as defined in the Credit Agreement. This covenant did not apply as of March 31, 2024 and December 31, 2023, as the Company had no borrowings outstanding under the Revolving Credit Facility. The Company had no outstanding letters of credit as of March 31, 2024 and December 31, 2023, respectively. The Credit Facilities restrict the ability of certain subsidiaries of the Company to make distributions and other payments to the Company. These restrictions 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, which generally provides for no restrictions as long as the Total Leverage Ratio (as defined in the Credit Agreement) is less than 5.0 x. The estimated fair values of the Company’s First Lien Term Loan are based on quoted market values for the debt. As of March 31, 2024 and December 31, 2023, the face amount of the Company’s First Lien Term Loan approximates its fair value. Secured Commercial Loans As of March 31, 2024 and December 31, 2023, the Company had $ 31.5 million and $ 31.9 million, respectively, of secured loans outstanding, which were entered into in October 2018 in order to finance the purchase of a building and its adjacent land (the “Secured Commercial Loans”). The Secured Commercial Loans have identical terms except one of the Loan Agreements is secured by a deed of trust for the UFC’s headquarters building located at 6650 S. Torrey Pines Drive, Las Vegas, Nevada and underlying land and the other Loan Agreement is secured by a deed of trust for a building located at 6650 El Camino Road, Las Vegas, Nevada and its adjacent land. In May 2023, the parties amended the terms of the Secured Commercial Loans to replace the adjusted LIBOR reference rate with SOFR and bear interest at a rate of SOFR plus 1.70 %. Principal amortization of 4 % is payable in monthly installments with any remaining balance payable on the final maturity date of November 1, 2028 . The Secured Commercial Loans contain a financial covenant that requires the Company to maintain a Debt Service Coverage Ratio of consolidated debt to Adjusted EBITDA as defined in the applicable loan agreements of no more than 1.15 -to-1 as measured on an annual basis. As of March 31, 2024 and December 31, 2023, the Company was in compliance with its financial debt covenant under the Secured Commercial Loans. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2024 | |
FINANCIAL INSTRUMENTS [Abstract] | |
FINANCIAL INSTRUMENTS | 10. FINANCIAL INSTRUMENTS In October 2018, in connection with the Secured Commercial Loans, the Company entered into a swap for $ 40.0 million notional effective November 1, 2018 with a termination date of November 1, 2028. The swap required the Company to pay a fixed rate of 4.99 % and receive the total of LIBOR + 1.62 %, which totaled 3.97 % as of December 31, 2018. The Company entered into this swap to hedge certain of its interest rate risks on its variable rate debt. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions. The Company has designated the interest rate swap as a cash flow hedge, and all changes in fair value are recognized in other comprehensive income until the hedged interest payments affect earnings. In May 2023, the Company amended its Secured Commercial Loans and associated interest rate swap to replace the LIBOR reference rate with Term SOFR. The swap requires the Company to pay a fixed rate of 4.99 % and receive the total of SOFR + 1.70 %, which totaled 7.02 % as of March 31, 2024. Prior to the May 2023 amendment the fair value of the swap was based on commonly quoted monthly LIBOR rates. Subsequent to this amendment, the fair value of the swap is based on commonly quoted monthly Term SOFR rates. Both the LIBOR and Term SOFR reference rates are considered observable inputs representing a Level 2 measurement within the fair value hierarchy. The fair value of the swap was $ 0.9 million and $ 0.3 million as of March 31, 2024 and December 31, 2023, respectively, and was included in other assets in the consolidated balance sheets. The total change in fair value of the swap’s asset position included in accumulated other comprehensive income was an increase of $ 0.6 million and $ 0.5 million for the three months ended March 31, 2024 and 2023, respectively. The Company reclassified less than $ 0.1 million and $ 0.1 million during the three months ended March 31, 2024 and 2023, respectively, representing the amortization of the cash flow hedge fair value to net income. |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 3 Months Ended |
Mar. 31, 2024 | |
NON-CONTROLLING INTERESTS [Abstract] | |
NON-CONTROLLING INTERESTS | 11. NON-CONTROLLING INTERESTS Nonredeemable Non-Controlling Interest in TKO OpCo In connection with the business acquisition of WWE described in Note 4, Acquisition of WWE , on September 12, 2023, the Company became the sole managing member of TKO OpCo and, as a result, consolidates the financial results of TKO OpCo. The Company reports a non-controlling interest representing the economic interest in TKO OpCo held by the other members of TKO OpCo. TKO OpCo’s operating agreement provides that holders of membership interests in TKO OpCo (“Common Units”) may, from time to time, require TKO OpCo to redeem all or a portion of their Common Units (and an equal number of shares of TKO Class B common stock) for cash or, at the Company’s option, for shares of TKO Class A common stock on a one -for-one basis. In connection with any redemption or exchange, the Company will receive a corresponding number of Common Units, increasing the total ownership interest in TKO OpCo. Changes in the ownership interest in TKO OpCo while the Company retains its controlling interest in TKO OpCo will be accounted for as equity transactions. As such, future redemptions or direct exchanges of Common Units in TKO OpCo by the other members of TKO OpCo will result in a change in ownership and reduce the amount recorded as non-controlling interest and increase additional paid-in capital. Redeemable Non-Controlling Interest in the UFC In July 2018, the Company received an investment of $ 9.7 million by 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 UFC business in Russia and certain other countries in the Commonwealth of Independent States. The terms of this investment provide the Russia Co-Investors with a put option to sell their ownership in the Russia Subsidiary five years and six months after the consummation of the investment. 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, 2024 and December 31, 2023, the estimated redemption value was $ 11.2 million. The changes in carrying value of the redeemable non-controlling interest for the three months ended March 31, 2024 were as follows (in thousands): Balance — December 31, 2023 $ 11,594 Net income attributable to non-controlling interest holders 760 Balance — March 31, 2024 $ 12,354 |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
EQUITY-BASED COMPENSATION [Abstract] | |
EQUITY-BASED COMPENSATION | 12. EQUITY-BASED COMPENSATION Equity-based compensation expense, which is included within direct operating costs and selling, general and administrative expenses on the Company’s consolidated statements of operations, consisted of the following (in thousands): Three Months Ended March 31, 2024 2023 EGH 2021 Plan $ 2,790 $ 5,795 Replacement Awards under WWE 2016 Plan 8,622 — TKO 2023 Plan 18,813 — Equity-based compensation expense $ 30,225 $ 5,795 EGH 2021 Plan The terms of each award, including vesting and forfeiture, are determined by the administrator of the EGH 2021 Plan. Key grant terms include one or more of the following: (a) time-based vesting over a two - to five-year period; (b) market-based vesting conditions at graduated levels upon the Company’s attainment of certain market price per share thresholds; and (c) expiration dates (if applicable). Granted awards may include time-based vesting conditions only, market-based vesting conditions only, or both. The following table summarizes the RSU award activity under the EGH 2021 Plan for the three months ended March 31, 2024: Time Vested RSUs Market / Market and Time Vested RSUs Units Weighted- Average Grant-Date Fair Value Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2024 605,610 $ 25.74 5,115 $ 24.65 Granted — $ — — $ — Released ( 92,121 ) $ 22.33 — $ — Forfeited ( 893 ) $ 21.73 — $ — Outstanding at March 31, 2024 512,596 $ 26.36 5,115 $ 24.65 The following table summarizes the stock option award activity under the EGH 2021 Plan for the three months ended March 31, 2024: Stock Options Units Weighted-Average Exercise Price Outstanding at January 1, 2024 286,836 $ 26.04 Granted — $ — Exercised — $ — Forfeited or expired — $ — Outstanding at March 31, 2024 286,836 $ 26.04 Vested and exercisable at March 31, 2024 191,224 $ 26.04 Replacement Awards The following table summarizes the RSU award activity under the WWE 2016 Plan for the three months ended March 31, 2024: Time Vested RSUs Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2024 701,090 $ 100.65 Vested ( 24,167 ) $ 100.65 Forfeited ( 95,182 ) $ 100.65 Outstanding at March 31, 2024 581,741 $ 100.65 The following table summarizes the PSU award activity under the WWE 2016 Plan for the three months ended March 31, 2024: Time Vested PSUs Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2024 327,403 $ 93.84 Vested ( 6,447 ) $ 100.65 Forfeited ( 3,580 ) $ 100.65 Outstanding at March 31, 2024 317,376 $ 95.40 TKO 2023 Plan The terms of each award, including vesting and forfeiture, are determined by the administrator of the TKO 2023 Plan. Key grant terms include time-based vesting over a six-month to four-year period. During the first quarter of 2024, WWE entered into an Independent Services Contractor and Merchandising Agreement (the “DJ Services Agreement”) with Dwayne Johnson, a member of the Company’s board of directors, pursuant to which Mr. Johnson agreed to provide to WWE certain promotional and other services. See Note 18, Related Party Transactions , for further discussion. As consideration for Mr. Johnson’s services provided under the DJ Services Agreement, the Company granted Mr. Johnson RSUs for an aggregate value of $ 30.0 million. Subject to certain forfeiture and acceleration events, the RSUs granted to Mr. Johnson vest as follows: 25 % on the date granted, 25 % upon completion of certain services, 25 % on December 31, 2024, and the remaining 25 % in equal monthly installments from January 31, 2025 through December 31, 2025. The Company will record the expense associated with these awards based on the timing of services provided by Mr. Johnson through January 2028. During the three months ended March 31, 2024, the Company recorded equity-based compensation expenses of approximately $ 9.0 million associated with these RSUs, which are included within direct operating costs in the Company’s consolidated statement of operations. The units associated with these awards are included in the table below. The following table summarizes the RSU award activity under the TKO 2023 Plan for the three months ended March 31, 2024: Time Vested RSUs Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2024 935,536 $ 91.23 Granted 991,718 $ 80.03 Vested ( 96,558 ) $ 77.41 Forfeited ( 819 ) $ 86.13 Outstanding at March 31, 2024 1,829,877 $ 85.89 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 13. EARNINGS PER SHARE Earnings per share is calculated utilizing net loss available to common stockholders of the Company during the three months ended March 31, 2024, divided by the weighted average number of shares of TKO Class A common stock outstanding during the same period. Diluted EPS is calculated by dividing the net loss available to common stockholders by the diluted weighted average shares outstanding during the same period. The Company’s outstanding equity-based compensation awards under its equity-based compensation arrangements (refer to Note 12, Equity-based Compensation ) were anti-dilutive during the period. The following table presents the computation of net loss per share and weighted average number of shares of the Company’s common stock outstanding for the period presented (dollars in thousands, except per share data): Three Months Ended March 31, 2024 Basic and diluted net loss per share Numerator Net loss attributable to TKO Group Holdings, Inc. $ ( 103,840 ) Denominator Weighted average Class A Common Shares outstanding - Basic and diluted 82,351,654 Basic and diluted net loss per share $ ( 1.26 ) Securities that are anti-dilutive this period Unvested RSUs 2,411,618 Unvested PSUs 317,376 TKO Class B Common Shares 89,616,891 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 14. INCOME TAXES TKO Group Holdings, Inc. was incorporated as a Delaware corporation in March 2023. As the sole managing member of TKO OpCo, TKO Group Holdings, Inc. operates and controls all the business and affairs of UFC and WWE. TKO Group Holdings, Inc. is subject to corporate income taxes on its share of taxable income of TKO OpCo. TKO OpCo is treated as a partnership for U.S. federal income tax purposes and is therefore generally not subject to U.S. corporate income tax, other than entity-level income taxes in certain U.S. state and local jurisdictions. TKO OpCo’s foreign subsidiaries are subject to entity-level taxes, and TKO OpCo’s U.S. subsidiaries are subject to foreign withholding taxes on sales in certain foreign jurisdictions which are included as a component of foreign current taxes. As discussed in Note 4, Acquisition of WWE , the Transactions are accounted for as a reverse acquisition of WWE using the acquisition method of accounting in accordance with ASC 805. As a result, TKO recorded a fair value step-up on the acquired WWE net assets in the amount of $ 3.3 billion and deferred tax liabilities in the amount of $ 379.8 million, all of which was recorded through goodwill as of the Closing Date. In accordance with ASC 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 records 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 that are noted in the relevant period. During the three months ended March 31, 2024, the Company treated the legal settlement related to UFC antitrust lawsuits of $ 335.0 million, as described in Note 16, Commitments and Contingencies , discretely. 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, 2024 and 2023, adjusted for discrete items as noted. The (benefit from) provision for income taxes for the three months ended March 31, 2024 and 2023 was a benefit of $ 25.5 million and provision of $ 3.6 million, respectively, based on pretax loss of $ 275.1 million and pretax income of $ 91.8 million, respectively. The effective tax rate was 9.3 % and 3.9 % for the three months ended March 31, 2024 and 2023, respectively. The tax benefit for the three months ended March 31, 2024 differs from tax expense in the same period in 2023 primarily due to the legal settlement related to UFC antitrust lawsuits of $ 335.0 million that resulted in a $ 39.6 million discrete tax benefit recognized in the period ended March 31, 2024. Any tax balances reflected on the Company’s consolidated balance sheets as of March 31, 2024 will be adjusted accordingly to reflect the actual financial results for the year ending December 31, 2024. The Company’s effective tax rate differs from the U.S. federal statutory rate primarily due to state and local income taxes, non-controlling interest, withholding taxes in foreign jurisdictions that are not based on net income, and increased income subject to tax in foreign jurisdictions which differ from the U.S. federal statutory income tax rate. As of March 31, 2024 and December 31, 2023, the Company had unrecognized tax benefits of $ 5.4 million and $ 5.5 million, respectively, for which the Company is 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. Other Matters On August 16, 2022, the United States enacted the Inflation Reduction Act of 2022 ("IRA"). The IRA, in addition to other provisions, creates a 15% corporate alternative minimum tax ("CAMT") on adjusted financial statement income for applicable corporations. The CAMT is effective for tax years beginning after December 31, 2022. For the three months ended March 31, 2024 and the year ended December 31, 2023, the Company was not subject to CAMT. The Company will continue to assess the potential tax effects of the CAMT on the Company’s consolidated financial statements. In December 2022, the Organization for Economic Co-operation and Development ("OECD") proposed Global Anti-Base Erosion Rules, which provides for changes to numerous long-standing tax principles including the adoption of a global minimum tax rate of 15% for multinational enterprises ("GloBE rules"). Various jurisdictions have adopted or are in the process of enacting legislation to adopt GloBE rules and other countries are expected to adopt GloBE rules in the future. While changes in tax laws in the various countries in which the Company operates can negatively impact the Company’s results of operations and financial position in future periods, the Company’s impact related to the adoption of the GLoBE rules, effective January 1, 2024, was not material to the Company’s consolidated financial position. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 3 Months Ended |
Mar. 31, 2024 | |
RESTRUCTURING CHARGES [Abstract] | |
RESTRUCTURING CHARGES | 15. RESTRUCTURING CHARGES Beginning in the third quarter of 2023, the Company implemented an ongoing cost reduction program, primarily related to realizing synergy opportunities and integrating the combined operations of WWE and UFC, which resulted in the recording of termination benefits for a workforce reduction of certain employees and contract termination costs for independent contractors in the WWE segment and Corporate. As a result, the Company recorded restructuring charges of $ 11.6 million for the three months ended March 31, 2024, inclusive of $ 2.4 million of equity-based compensation expenses, which are accrued in accrued liabilities and additional paid-in-capital on the consolidated balance sheets, respectively. These restructuring charges are recorded within direct operating costs and selling, general and administrative expenses in the consolidated statements of operations. Changes in the Company’s restructuring liability through March 31, 2024 were as follows (in thousands): Balance — December 31, 2023 $ 9,725 Restructuring charges (excluding equity-based compensation expense) 9,235 Payments ( 10,693 ) Balance — March 31, 2024 $ 8,267 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES 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. UFC Legal Proceedings Five related class-action lawsuits were filed against Zuffa between December 2014 and March 2015 by a total of eleven former UFC fighters. The lawsuits, which were substantially identical, were transferred to the United States District Court for the District of Nevada and consolidated into a single action in June 2015, captioned Le et al. v. Zuffa, LLC , No. 2:15-cv-1045-RFB-BNW (D. Nev.) (the “Le” case). The lawsuit alleged that Zuffa violated Section 2 of the Sherman Act by monopsonizing an alleged market for the services of elite professional MMA athletes. The fighter plaintiffs claimed that Zuffa’s alleged conduct injured them by artificially depressing the compensation they received for their services, and they sought treble damages under the antitrust laws, as well as attorneys’ fees and costs, and, in some instances, injunctive relief. On August 9, 2023, the district court certified the lawsuit as a damages class action, encompassing the period from December 16, 2010 to June 30, 2017. The fighter plaintiffs in the Le case abandoned their claim for injunctive relief, so the only relief the fighter plaintiffs would have sought at trial was damages. On June 24, 2021, another lawsuit, Johnson et al. v. Zuffa, LLC et al. , No. 2:21-cv-1189-RFB-BNW (D. Nev.) (the “Johnson” case), was filed by a putative class of former UFC fighters and covering the period from July 1, 2017 to the present and alleged substantially similar claims to the Le case and sought injunctive relief. On March 13, 2024, TKO OpCo, and certain of its affiliates, including Endeavor, reached an agreement to settle all claims asserted in both class action lawsuits (Le and Johnson) for an aggregate amount of $ 335.0 million payable by the Company and its subsidiaries in installments over an agreed-upon period of time with $ 200.0 million expected to be due within the next twelve months from March 31, 2024 and $ 135.0 million expected to be due in April 2025. During the three months ended March 31, 2024, the Company recorded a charge of $ 335.0 million, which is included as a component of selling, general and administrative expenses in the consolidated statements of operations. The terms have been memorialized in a long form agreement and will be submitted to the court for approval. The Company anticipates that the settlement amount will be deductible for tax purposes. WWE Legal Proceedings As announced in June 2022, a Special Committee of independent members of WWE’s board of directors (the “Special Committee”) was formed to investigate alleged misconduct by WWE’s then-Chief Executive Officer, Vincent K. McMahon (the “Special Committee Investigation”). Mr. McMahon initially resigned from all positions held with WWE on July 22, 2022 but remained a stockholder with a controlling interest and served as Executive Chairman of WWE’s board of directors from January 9, 2023 through September 12, 2023, at which time Mr. McMahon became Executive Chair of the Board of Directors of the Company. Although the Special Committee investigation is complete and, in January 2024, Mr. McMahon resigned from his position as Executive Chair and member of TKO’s Company’s Board of Directors, as well as other positions, employment and otherwise, at TKO and its subsidiaries , WWE has received, and may receive in the future, regulatory, investigative and enforcement inquiries, subpoenas, demands and/or other claims and complaints arising from, related to, or in connection with these matters. On July 17, 2023, federal law enforcement agents executed a search warrant and served a federal grand jury subpoena on Mr. McMahon. No charges have been brought in these investigations. WWE has received voluntary and compulsory legal demands for documents, including from federal law enforcement and regulatory agencies, concerning the investigation and related subject matters. On January 25, 2024, a former WWE employee filed a lawsuit against WWE, Mr. McMahon and another former WWE executive in the United States District Court for the District of Connecticut alleging, among other things, that she was sexually assaulted by Mr. McMahon and asserting claims under the Trafficking Victims Protection Act. On November 17, 2023, a purported former stockholder of WWE, Laborers’ District Council and Contractors’ Pension Fund of Ohio (“Laborers”), filed a verified class action complaint on behalf of itself and similarly situated former WWE stockholders in the Court of Chancery of the State of Delaware (“Delaware Court”), captioned Laborers District Council and Contractors’ Pension Fund of Ohio v. McMahon, C.A. No. 2023-1166-JTL (“ Laborers Action”). On November 20, 2023, another purported former WWE stockholder, Dennis Palkon, filed a verified class action complaint on behalf of himself and similarly situated former WWE stockholders in the Delaware Court, captioned Palkon v. McMahon , C.A. No. 2023-1175-JTL (“ Palkon Action”). The Laborers and Palkon Actions allege breach of fiduciary duty claims against former WWE directors Vincent K. McMahon, Nick Khan, Paul Levesque, George A. Barrios, Steve Koonin, Michelle D. Wilson, and Frank A. Riddick III (collectively, the “Individual Defendants”), arising out of the Transactions. On April 24, 2024, the City of Pontiac Reestablished General Employees’ Retirement System (“Pontiac”), a purported former stockholder of WWE, filed another verified class action complaint on behalf of itself and similarly situated former WWE stockholders in the Delaware Court captioned City of Pontiac Reestablished General Employees’ Retirement System v. McMahon , C.A. No. 2024-0432 (“Pontiac Action”). The Pontiac Action similarly alleges breach of fiduciary duty claims against the Individual Defendants, and adds claims against WWE and TKO for denying stockholders their appraisal rights under DGCL § 262, as well as claims against EGH for aiding and abetting the alleged breaches of fiduciary duties and for civil conspiracy to violate DGCL § 262. On May 2, 2024, the Court entered an order consolidating the Laborers, Palkon and Pontiac actions under the caption In re World Wrestling Entertainment, Inc. Merger Litigation, C.A. No. 2023-1166-JTL (“Consolidated Action”). The Consolidated Action is in the early stages, and the parties agreed that TKO, WWE and EGH will not be required to respond to the complaints until a lead plaintiff is appointed and the lead plaintiff designates an operative pleading. On January 4, 2024, Pontiac filed an action in the Delaware Court seeking certain books and records related to the Transactions under Section 220 of the DGCL (the “Pontiac 220 Action”). On February 12, 2024, the court entered an order vacating the case schedule and staying the Pontiac 220 Action. On April 2, 2024, Pontiac voluntarily dismissed its complaint. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | 17. SEGMENT INFORMATION Prior to the acquisition of WWE, the Company operated as a single reportable segment. Subsequent to the acquisition of WWE and effective September 12, 2023, the Company identified two reportable segments: UFC and WWE, to align with how the Company’s chief operating decision maker (the “CODM”), the Chief Executive Officer, manages the businesses, evaluates financial results, and makes key operating decisions. The UFC segment consists entirely of the operations of the Company’s UFC business which was the sole reportable segment prior to the acquisition of WWE, while the WWE segment consists entirely of the operations of the WWE business acquired on September 12, 2023. The Company also reports the results for the “Corporate” group. The Corporate group reflects operations not allocated to the UFC or WWE segments and primarily consists of general and administrative expenses. These expenses relate largely to corporate activities, including information technology, facilities, legal, human resources, finance, accounting, treasury, investor relations, corporate communications, community relations and compensation to TKO’s management and board of directors, which support both reportable segments. Corporate expenses also include service fees paid by the Company to Endeavor related to certain corporate activities as well as certain revenue generating activities under the services agreement dated as of September 12, 2023, by and between EGH and TKO OpCo (the “Services Agreement”). All prior period amounts related to the segment change have been retrospectively reclassified to conform to the new presentation. The profitability measure employed by the Company’s CODM for allocating resources and assessing operating performance is Adjusted EBITDA. The Company defines Adjusted EBITDA as net income, excluding income taxes, net interest expense, depreciation and amortization, equity-based compensation, merger and acquisition costs, certain legal costs, restructuring, severance and impairment charges, and certain other items when applicable. Adjusted EBITDA includes amortization expenses directly related to supporting the operations of the Company’s segments, including content production asset amortization. The Company believes the presentation of Adjusted EBITDA is relevant and useful for investors because it allows investors to view the Company’s segment performance in the same manner as the Company’s CODM to evaluate segment performance and make decisions about allocating resources. Additionally, the Company believes that Adjusted EBITDA is a primary measure used by media investors, analysts and peers for comparative purposes. The Company does not disclose assets by segment information. The Company does not provide assets by segment information to the Company’s CODM, as that information is not typically used in the determination of resource allocation and assessing business performance of each reportable segment. A significant portion of the Company’s assets following the Transactions represent goodwill and intangible assets arising from the Transactions. The following tables present summarized financial information for each of the Company’s reportable segments (in thousands): Revenue Three Months Ended March 31, 2024 2023 UFC $ 312,990 $ 306,730 WWE 316,721 — Total consolidated revenue $ 629,711 $ 306,730 Reconciliation of segment profitability Three Months Ended March 31, 2024 2023 UFC $ 195,083 $ 186,257 WWE 140,213 — Corporate ( 53,136 ) ( 13,649 ) Total Adjusted EBITDA 282,160 172,608 Reconciling items: Equity (earnings) losses of affiliates ( 50 ) 263 Interest expense, net ( 64,466 ) ( 53,908 ) Depreciation and amortization ( 107,161 ) ( 15,152 ) Equity-based compensation expense ( 30,225 ) ( 5,795 ) Merger and acquisition costs ( 520 ) ( 5,415 ) Certain legal costs (1) ( 345,199 ) ( 442 ) Restructuring, severance and impairment ( 9,235 ) — Other adjustments ( 386 ) ( 316 ) (Loss) income before income taxes and equity losses of affiliates $ ( 275,082 ) $ 91,843 (1) During the three months ended March 31, 2024, certain legal costs included a legal settlement related to UFC antitrust lawsuits of $ 335.0 million. Of this amount, $ 200.0 million is included as a component of accrued liabilities (see Note 6, Supplementary Data ) and $ 135.0 million is included as a component of other long-term liabilities in our consolidated balance sheets as of March 31, 2024. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 18. RELATED PARTY TRANSACTIONS EGH and its subsidiaries EGH and its subsidiaries (collectively, the “Group”), which collectively own approximately 52.1 % of the voting interest in TKO as described in Note 1, Description of Business , provide various services to the Company and, upon consummation of the Transactions, such services are provided pursuant to the Services Agreement. Revenue and expenses associated with such services are as follows (in thousands): Three Months Ended March 31, 2024 2023 Event and other licensing revenues earned from the Group $ 5,902 $ 3,420 Expenses incurred with the Group included in direct operating costs (1) 4,849 4,416 Expenses incurred with the Group included in selling, general and administrative expenses (2) 7,451 6,352 Net expense resulting from Group transactions included within net income (loss) $ ( 6,398 ) $ ( 7,348 ) (1) These expenses primarily consist of production and consulting services as well as commissions paid to the Group. (2) These expenses primarily consist of service fees paid to the Group. The Company believes that these service fees are a reasonable allocation of costs related to representation, executive leadership, back-office and corporate functions and other services provided by the Group. Outstanding amounts due to and from the Group were as follows (in thousands): As of March 31, December 31, Classification 2024 2023 Amounts due from the Group Other current assets $ 16,017 $ 11,599 Amounts due to the Group Other current liabilities ( 9,219 ) ( 5,473 ) The Company also reimburses the Group for third party costs they incur on the Company’s behalf. The Company reimbursed $ 3.3 million of such costs during the three months ended March 31, 2024. There were no costs reimbursed during the three months ended March 31, 2023. Vincent McMahon Vincent K. McMahon, who served as Executive Chair of the Company’s Board of Directors until January 26, 2024, previously controlled a significant portion of the voting power of the issued and outstanding shares of the Company’s common stock. Mr. McMahon has agreed to make future payments to certain counterparties personally. In accordance with the SEC’s Staff Accounting Bulletin Topic 5T, Miscellaneous Accounting, Accounting for Expenses or Liabilities Paid by Principal Stockholders (“Topic 5T”), the Company concluded that these amounts should be recognized by the Company as expenses in the period in which they become probable and estimable. As of December 31, 2023, total liabilities of $ 1.5 million are included within accrued expenses in our consolidated balance sheets related to future payments owed by Mr. McMahon to certain counterparties. During the three months ended March 31, 2024, Mr. McMahon made payments of $ 1.5 million associated with these liabilities to certain counterparties directly. Since these liabilities existed when Mr. McMahon controlled a significant portion of the voting power of the Company’s common stock, these payments are considered non-cash capital contributions and are included as principal stockholder contributions in our consolidated statements of stockholders’ equity. In connection with and/or arising from the investigation conducted by a Special Committee of the former WWE board of directors, Mr. McMahon has agreed to reimburse the Company for additional costs incurred in connection with and/or arising from the same matters. Dwayne Johnson Dwayne Johnson (also known by his stage name “The Rock”) is an actor, film producer, entrepreneur and professional wrestler who has provided talent related services to WWE for decades. Mr. Johnson is represented by talent agency William Morris Endeavor, an affiliate of TKO. On January 23, 2024, the Company’s board of directors appointed Mr. Johnson as a WWE director designee on the TKO Board. On January 22, 2024, WWE and Mr. Johnson entered into the DJ Services Agreement, pursuant to which Mr. Johnson agreed to provide to WWE certain promotional and other services. WWE also entered into an IP Assignment Agreement with certain affiliates of Mr. Johnson, pursuant to which WWE assigned to Mr. Johnson (via one of his affiliates) “The Rock” trademark and certain related trademarks, service marks, ring names, taglines and other intellectual property assets (the “Assigned IP”). Under the terms of the DJ Services Agreement, Mr. Johnson further agreed to license the Assigned IP and Mr. Johnson’s name, likeness and certain other intellectual property rights to WWE for use in connection with certain categories of licensed products related to professional wrestling for up to 10 years, subject to certain earlier termination rights. As discussed in Note 12, Equity-based Compensation , as consideration for Mr. Johnson’s services pursuant to the DJ Services Agreement, and in respect of the intellectual property grants and licenses made by Mr. Johnson and his affiliates in connection therewith, Mr. Johnson received an RSU award for an aggregate value of $ 30.0 million. During the three months ended March 31, 2024, the Company recorded equity-based compensation expense of $ 9.0 million associated with this award, which is included within direct operating costs in our consolidated statements of operations. Mr. Johnson also receives annual royalties from WWE and will be entitled to receive royalties in connection with the sale of licensed products that utilize the Assigned IP and his name, likeness and other intellectual property rights in accordance with the DJ Services Agreement. For the three months ended March 31, 2024, the Company paid $ 0.1 million of royalties that were earned by Mr. Johnson. In addition, Mr. Johnson is entitled to reimbursement for certain travel expenses associated with delivering services under the DJ Services Agreement, of which $ 1.9 million was incurred by the Company during the three months ended March 31, 2024, and is included as a component of selling, general and administrative expenses in our consolidated statements of operations. As of March 31, 2024, $ 1.7 million of these costs are payable to Mr. Johnson and are included as a component of accrued liabilities in our consolidated balance sheets. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS Stock Purchase Agreement On April 4, 2024, WME IMG, LLC (“WME IMG”), an indirect subsidiary of Endeavor entered into a stock purchase agreement with Mr. McMahon, pursuant to which WME IMG agreed to purchase 1,642,970 shares of TKO Class A common stock held by Mr. McMahon at a per share price of $ 89.01 for an aggregate amount of $ 146.2 million (the “Endeavor Share Purchase”). The Endeavor Share Purchase closed on April 9, 2024. On April 7, 2024, TKO entered into a stock purchase agreement with Mr. McMahon, pursuant to which TKO agreed to purchase 1,853,724 shares of TKO Class A common stock held by Mr. McMahon at a per share price of $ 89.01 for an aggregate amount of $ 165.0 million (the “TKO Share Purchase”). The TKO Share Purchase closed on April 10, 2024, and the Company retired the shares of TKO Class A common stock purchased in the TKO Share Purchase. The Company funded the TKO Share Repurchase with approximately $ 150.0 million of borrowings under the Revolving Credit Facility and with cash on hand. Following the transactions, Endeavor owns approximately 53.6 % and TKO owns approximately 46.4 % of TKO OpCo. Amendment to the Credit Agreement On May 1, 2024, the Company entered into an amendment to the Credit Agreement, which extended the Revolving Credit Facility’s maturity by twelve months to October 29, 2025. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
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 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, 2023 (the “Annual Report”). 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, 2024 and for the three months ended March 31, 2024 and 2023 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. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. All intercompany balances are eliminated in consolidation. TKO is the sole managing member of TKO OpCo and maintains a controlling financial interest in TKO OpCo. As sole managing member, the Company operates and controls all of the business affairs of TKO OpCo. As a result, the Company is the primary beneficiary and thus consolidates the financial results of TKO OpCo and reports a non-controlling interest representing the economic interest in TKO OpCo held by the other members of TKO OpCo. As of March 31, 2024, the Company owned 47.9 % of TKO OpCo. |
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, the allowance for doubtful accounts, content cost amortization and impairment, 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, determination of useful lives of intangible assets and long-lived assets acquired, the fair value of equity-based compensation, leases, 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, 2024 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-05, Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement . This ASU requires that a joint venture apply a new basis of accounting upon formation. The amendments in this update are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025, with an option to apply the amendments retrospectively. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative . This ASU amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532, Disclosure Update and Simplification , which was issued in 2018. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. If, by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the ASC and will not become effective. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures . This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The update should be applied retrospectively to all prior periods presented in the financial statements. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This ASU requires that an entity annually disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate) as well as income taxes paid disaggregated by jurisdiction. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In March 2024, the FASB issued ASU 2024-02, Codification Improvements – Amendments to Remove References to the Concepts Statements . This ASU amends the Accounting Standards Codification (“ASC”) to remove references to various FASB Concepts Statements to simplify the ASC and draw a distinction between authoritative and nonauthoritative literature. The amendments in this update apply to all reporting entities within the scope of the affected accounting guidance, and are effective for public entities for fiscal years beginning after December 15, 2024. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE [Abstract] | |
Summary of Company's Revenue Disaggregated by Primary Revenue Sources | Three Months Ended March 31, 2024 2023 Revenue: UFC Segment : Media rights and content $ 214,462 $ 224,062 Live events 35,277 31,390 Sponsorship 48,603 38,057 Consumer products licensing 14,648 13,221 Total UFC Segment revenue 312,990 306,730 WWE Segment : Media rights and content 221,107 — Live events 50,192 — Sponsorship 13,815 — Consumer products licensing 31,607 — Total WWE Segment revenue 316,721 — Total revenue $ 629,711 $ 306,730 |
Summary of Remaining Performance Obligation for Contracts Greater Than One Year | Remainder of 2024 $ 1,541,246 2025 2,141,149 2026 1,222,433 2027 1,156,324 2028 1,108,766 Thereafter 961,283 Total remaining performance obligations $ 8,131,201 |
Summary of Company's Deferred Revenue | As of As of December 31, Foreign March 31, Description 2023 Additions Deductions Exchange 2024 Deferred revenue - current $ 118,992 $ 356,498 $ ( 363,728 ) $ 20 $ 111,782 Deferred revenue - non-current 672 — ( 168 ) — 504 |
SUPPLEMENTARY DATA (Tables)
SUPPLEMENTARY DATA (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SUPPLEMENTARY DATA [Abstract] | |
Summary of Property and equipment | As of March 31, December 31, 2024 2023 Buildings and improvements $ 402,613 $ 394,481 Office, computer and other equipment 132,290 126,082 Land and land improvements 80,919 80,919 Furniture and fixtures 75,572 74,862 Construction in progress 28,805 20,389 720,199 696,733 Less: accumulated depreciation ( 108,443 ) ( 88,317 ) Total Property, buildings and equipment, net $ 611,756 $ 608,416 |
Summary of Allowance for Doubtful Accounts | As of Charged to As of December 31, Costs and Foreign March 31, 2023 Expenses Deductions Exchange 2024 Three Months Ended March 31, 2024 $ 1,093 $ 150 $ ( 52 ) $ — $ 1,191 |
Summary of Unamortized Content Costs | Predominantly Monetized Individually Predominantly Monetized as a Film Group As of As of March 31, December 31, March 31, December 31, 2024 2023 2024 2023 Licensed and acquired program rights $ — $ — $ 22,425 $ 21,413 Produced programming: In release 2,014 1,410 1,914 2,049 Completed but not released 2 2,045 — — In production 639 1,350 754 819 Total film and television costs $ 2,655 $ 4,805 $ 25,093 $ 24,281 |
Summary of Amortization and Impairment of Content Costs | Three Months Ended March 31, 2024 2023 Content production amortization expense - assets monetized individually $ 3,224 $ — Content production amortization expense - assets monetized as a film group 4,504 3,914 Content production impairment charges (1) — — Total amortization and impairment of content costs $ 7,728 $ 3,914 (1) Unamortized content costs are evaluated for impairment whenever events or changes in circumstances indicate that the fair value of a film predominantly monetized on its own or a film group may be less than its amortized costs. If conditions indicate a potential impairment, and the estimated future cash flows are not sufficient to recover the unamortized costs, the asset is written down to fair value. In addition, if we determine that content will not likely air, we will expense the remaining unamortized costs. |
Summary of Other Current Assets | As of March 31, December 31, 2024 2023 Prepaid taxes $ 89,488 $ 57,885 Prepaid event and production-related costs 24,240 15,382 Amounts due from the Group (Note 18) 16,017 11,599 Assets held for sale 7,500 7,500 Prepaid insurance 5,244 8,145 Other 21,904 20,644 Total $ 164,393 $ 121,155 |
Summary of Accrued Liabilities | As of March 31, December 31, 2024 2023 Legal settlements (Note 16) $ 200,000 $ — Event and production-related costs 51,888 51,015 Interest 41,221 41,634 Payroll-related costs 36,477 100,982 Legal and professional fees 28,724 18,730 Accrued capital expenditures 24,060 29,550 Other 23,302 25,452 Total $ 405,672 $ 267,363 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
Summary of Changes in the Carrying Value of Goodwill | The changes in the carrying value of Goodwill are as follows (in thousands): UFC (1) WWE (2) Total Balance — December 31, 2023 $ 2,602,639 $ 5,063,846 $ 7,666,485 Foreign exchange and other — ( 337 ) ( 337 ) Balance — March 31, 2024 $ 2,602,639 $ 5,063,509 $ 7,666,148 (1) Reflects goodwill resulting from the Company’s election to apply pushdown accounting to reflect EGH’s new basis of accounting in the UFC’s assets and liabilities, including goodwill, which occurred during 2016. (2) Based on preliminary fair values acquired through the business acquisition of WWE. See Note 4, Acquisition of WWE , for further information. |
Summary of Company's Identifiable Intangible Assets | The following table summarizes information relating to the Company’s identifiable intangible assets as of March 31, 2024 (in thousands): Weighted Average Estimated Useful Life Accumulated (in years) Gross Amount Amortization Carrying Value Trademarks and trade names 22.8 $ 2,891,826 $ ( 346,342 ) $ 2,545,484 Customer relationships 5.4 1,255,010 ( 429,059 ) 825,951 Other (1) 3.4 145,588 ( 34,002 ) 111,586 Total intangible assets $ 4,292,424 $ ( 809,403 ) $ 3,483,021 (1) Other intangible assets as of March 31, 2024 primarily consisted of talent roster, internally developed software and content library assets acquired through the business combination with WWE in September 2023. See Note 4, Acquisition of WWE , for further information. The following table summarizes information relating to the Company’s identifiable intangible assets as of December 31, 2023 (in thousands): Weighted Average Estimated Useful Life Accumulated (in years) Gross Amount Amortization Carrying Value Trademarks and trade names 22.8 $ 2,891,826 $ ( 314,685 ) $ 2,577,141 Customer relationships 5.5 1,254,210 ( 388,640 ) 865,570 Other (1) 3.4 145,438 ( 24,486 ) 120,952 Total intangible assets $ 4,291,474 $ ( 727,811 ) $ 3,563,663 (1) Other intangible assets as of December 31, 2023 primarily consisted of talent roster, internally developed software and content library assets acquired through the business combination with WWE in September 2023. See Note 4, Acquisition of WWE , for further information. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INVESTMENTS [Abstract] | |
Summary of Company's Investments | As of March 31, December 31, 2024 2023 Equity method investments $ 3,461 $ 3,775 Nonmarketable equity investments without readily determinable fair values 12,532 12,617 Total investment securities $ 15,993 $ 16,392 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
DEBT [Abstract] | |
Summary of Outstanding Debt | As of March 31, December 31, 2024 2023 First Lien Term Loan (due April 2026 ) $ 2,721,016 $ 2,728,766 Secured Commercial Loans 31,467 31,867 Total principal 2,752,483 2,760,633 Unamortized discount ( 7,498 ) ( 8,367 ) Unamortized debt issuance cost ( 14,303 ) ( 15,951 ) Total debt 2,730,682 2,736,315 Less: Current portion of long-term debt ( 22,321 ) ( 22,367 ) Total long-term debt $ 2,708,361 $ 2,713,948 |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
NON-CONTROLLING INTERESTS [Abstract] | |
Changes in carrying value of redeemable non-controlling interest | The changes in carrying value of the redeemable non-controlling interest for the three months ended March 31, 2024 were as follows (in thousands): Balance — December 31, 2023 $ 11,594 Net income attributable to non-controlling interest holders 760 Balance — March 31, 2024 $ 12,354 |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Equity-Based Compensation Expense | Three Months Ended March 31, 2024 2023 EGH 2021 Plan $ 2,790 $ 5,795 Replacement Awards under WWE 2016 Plan 8,622 — TKO 2023 Plan 18,813 — Equity-based compensation expense $ 30,225 $ 5,795 |
Summary of RSU Activity | Time Vested RSUs Market / Market and Time Vested RSUs Units Weighted- Average Grant-Date Fair Value Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2024 605,610 $ 25.74 5,115 $ 24.65 Granted — $ — — $ — Released ( 92,121 ) $ 22.33 — $ — Forfeited ( 893 ) $ 21.73 — $ — Outstanding at March 31, 2024 512,596 $ 26.36 5,115 $ 24.65 |
Summary of Stock Option Activity | Stock Options Units Weighted-Average Exercise Price Outstanding at January 1, 2024 286,836 $ 26.04 Granted — $ — Exercised — $ — Forfeited or expired — $ — Outstanding at March 31, 2024 286,836 $ 26.04 Vested and exercisable at March 31, 2024 191,224 $ 26.04 |
Summary of PSU Activity | Time Vested PSUs Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2024 327,403 $ 93.84 Vested ( 6,447 ) $ 100.65 Forfeited ( 3,580 ) $ 100.65 Outstanding at March 31, 2024 317,376 $ 95.40 |
Replacement Awards [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of RSU Activity | Time Vested RSUs Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2024 701,090 $ 100.65 Vested ( 24,167 ) $ 100.65 Forfeited ( 95,182 ) $ 100.65 Outstanding at March 31, 2024 581,741 $ 100.65 |
TKO 2023 Plan [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of RSU Activity | Time Vested RSUs Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2024 935,536 $ 91.23 Granted 991,718 $ 80.03 Vested ( 96,558 ) $ 77.41 Forfeited ( 819 ) $ 86.13 Outstanding at March 31, 2024 1,829,877 $ 85.89 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share and Weighted Average Shares Outstanding | Three Months Ended March 31, 2024 Basic and diluted net loss per share Numerator Net loss attributable to TKO Group Holdings, Inc. $ ( 103,840 ) Denominator Weighted average Class A Common Shares outstanding - Basic and diluted 82,351,654 Basic and diluted net loss per share $ ( 1.26 ) Securities that are anti-dilutive this period Unvested RSUs 2,411,618 Unvested PSUs 317,376 TKO Class B Common Shares 89,616,891 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
RESTRUCTURING CHARGES [Abstract] | |
Summary of Changes in Company’s Restructuring Liability | Balance — December 31, 2023 $ 9,725 Restructuring charges (excluding equity-based compensation expense) 9,235 Payments ( 10,693 ) Balance — March 31, 2024 $ 8,267 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SEGMENT INFORMATION [Abstract] | |
Schedule of Revenue | Three Months Ended March 31, 2024 2023 UFC $ 312,990 $ 306,730 WWE 316,721 — Total consolidated revenue $ 629,711 $ 306,730 |
Schedule of Reconciliation of Segment Profitability | Three Months Ended March 31, 2024 2023 UFC $ 195,083 $ 186,257 WWE 140,213 — Corporate ( 53,136 ) ( 13,649 ) Total Adjusted EBITDA 282,160 172,608 Reconciling items: Equity (earnings) losses of affiliates ( 50 ) 263 Interest expense, net ( 64,466 ) ( 53,908 ) Depreciation and amortization ( 107,161 ) ( 15,152 ) Equity-based compensation expense ( 30,225 ) ( 5,795 ) Merger and acquisition costs ( 520 ) ( 5,415 ) Certain legal costs (1) ( 345,199 ) ( 442 ) Restructuring, severance and impairment ( 9,235 ) — Other adjustments ( 386 ) ( 316 ) (Loss) income before income taxes and equity losses of affiliates $ ( 275,082 ) $ 91,843 (1) During the three months ended March 31, 2024, certain legal costs included a legal settlement related to UFC antitrust lawsuits of $ 335.0 million. Of this amount, $ 200.0 million is included as a component of accrued liabilities (see Note 6, Supplementary Data ) and $ 135.0 million is included as a component of other long-term liabilities in our consolidated balance sheets as of March 31, 2024. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Schedule of Related Party Transactions | EGH and its subsidiaries (collectively, the “Group”), which collectively own approximately 52.1 % of the voting interest in TKO as described in Note 1, Description of Business , provide various services to the Company and, upon consummation of the Transactions, such services are provided pursuant to the Services Agreement. Revenue and expenses associated with such services are as follows (in thousands): Three Months Ended March 31, 2024 2023 Event and other licensing revenues earned from the Group $ 5,902 $ 3,420 Expenses incurred with the Group included in direct operating costs (1) 4,849 4,416 Expenses incurred with the Group included in selling, general and administrative expenses (2) 7,451 6,352 Net expense resulting from Group transactions included within net income (loss) $ ( 6,398 ) $ ( 7,348 ) (1) These expenses primarily consist of production and consulting services as well as commissions paid to the Group. (2) These expenses primarily consist of service fees paid to the Group. The Company believes that these service fees are a reasonable allocation of costs related to representation, executive leadership, back-office and corporate functions and other services provided by the Group. Outstanding amounts due to and from the Group were as follows (in thousands): As of March 31, December 31, Classification 2024 2023 Amounts due from the Group Other current assets $ 16,017 $ 11,599 Amounts due to the Group Other current liabilities ( 9,219 ) ( 5,473 ) |
DESCRIPTION OF BUSINESS (Narrat
DESCRIPTION OF BUSINESS (Narrative) (Details) | Sep. 12, 2023 |
EGH [Member] | TKO Group Holdings, Inc. [Member] | |
Description Of Business Disclosure [Line Items] | |
Voting interest | 51.90% |
WWE [Member] | TKO Group Holdings, Inc. [Member] | |
Description Of Business Disclosure [Line Items] | |
Voting interest | 49% |
TKO [Member] | EGH [Member] | |
Description Of Business Disclosure [Line Items] | |
Non-economic voting interest | 51% |
Economic interest | 51% |
TKO [Member] | WWE [Member] | |
Description Of Business Disclosure [Line Items] | |
Non-economic voting interest | 51% |
Economic interest | 100% |
TKO OpCo [Member] | TKO Group Holdings, Inc. [Member] | |
Description Of Business Disclosure [Line Items] | |
Economic interest | 49% |
TKO OpCo [Member] | EGH [Member] | |
Description Of Business Disclosure [Line Items] | |
Economic interest | 51% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Variable Interest Entity, Primary Beneficiary [Member] | TKO OpCo [Member] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Line Items] | |
Variable interest entity owned | 47.90% |
ACQUISITION OF WWE (Narrative)
ACQUISITION OF WWE (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 12, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
EGH [Member] | TKO OpCo [Member] | |||
Business Acquisition [Line Items] | |||
Economic interest | 51% | ||
TKO [Member] | TKO OpCo [Member] | |||
Business Acquisition [Line Items] | |||
Economic interest | 49% | ||
WWE [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets, weighted average life | 20 years 3 months 18 days | ||
Transaction costs | $ 0.5 | $ 5.4 | |
Consideration transferred | $ 8,432.1 | ||
Nonredeemable non-controlling interest | 4,521.8 | ||
Deferred consideration | $ 321 | ||
WWE [Member] | Common Class A [Member] | |||
Business Acquisition [Line Items] | |||
Consideration transferred, shares | 83,161,123 | ||
Consideration transferred, value of shares | $ 8,061.8 | ||
WWE [Member] | Replacement Awards [Member] | |||
Business Acquisition [Line Items] | |||
Consideration transferred, value of shares | $ 49.3 | ||
TKO Group Holdings, Inc. [Member] | TKO OpCo [Member] | |||
Business Acquisition [Line Items] | |||
Economic interest | 49% | ||
TKO Group Holdings, Inc. [Member] | EGH [Member] | |||
Business Acquisition [Line Items] | |||
Voting interest | 51.90% | ||
Trademarks and Trade Names [Member] | WWE [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets, weighted average life | 25 years | ||
Customer relationships [Member] | WWE [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets, weighted average life | 11 years 3 months 18 days | ||
Other [Member] | WWE [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets, weighted average life | 3 years 7 months 6 days |
REVENUE (Narrative) (Details)
REVENUE (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUE [Abstract] | ||
Revenue from prior period performance obligations | $ 0 | $ 0 |
REVENUE (Summary of Company's R
REVENUE (Summary of Company's Revenue Disaggregated by Primary Revenue Sources) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 629,711 | $ 306,730 |
Revenue, Remaining Performance Obligation, Amount | 8,131,201 | |
UFC Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 312,990 | 306,730 |
UFC Segment [Member] | Media Rights and Content [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 214,462 | 224,062 |
UFC Segment [Member] | Live Events [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 35,277 | 31,390 |
UFC Segment [Member] | Sponsorship [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 48,603 | 38,057 |
UFC Segment [Member] | Consumer Products Licensing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 14,648 | $ 13,221 |
WWE Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 316,721 | |
WWE Segment [Member] | Media Rights and Content [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 221,107 | |
WWE Segment [Member] | Live Events [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 50,192 | |
WWE Segment [Member] | Sponsorship [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 13,815 | |
WWE Segment [Member] | Consumer Products Licensing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 31,607 |
REVENUE (Summary of Remaining P
REVENUE (Summary of Remaining Performance Obligation for Contracts Greater Than One Year) (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 8,131,201 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1,541,246 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 2,141,149 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1,222,433 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1,156,324 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1,108,766 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 961,283 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
REVENUE (Summary of Company's D
REVENUE (Summary of Company's Deferred Revenue) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Contract with Customer, Liability [Abstract] | |
Beginning Balance | $ 118,992 |
Additions | 356,498 |
Deductions | (363,728) |
Foreign Exchange | 20 |
Ending Balance | 111,782 |
Beginning Balance | 672 |
Additions | 0 |
Deductions | (168) |
Foreign Exchange | 0 |
Ending Balance | $ 504 |
SUPPLEMENTARY DATA (Narrative)
SUPPLEMENTARY DATA (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
SUPPLEMENTARY DATA [Abstract] | ||
Percentage of released films to be amortized | 77% | |
Depreciation expense | $ 20.3 | $ 3.5 |
Completed but not released content costs, monetized individually, estimated amortization period | 12 months | |
In release content costs, monetized individually, estimated amortization period | 3 years | |
In release content costs, monetized as a film group, estimated amortization period | 3 years |
SUPPLEMENTARY DATA (Summary Pro
SUPPLEMENTARY DATA (Summary Property and equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, buildings and equipment, gross | $ 720,199 | $ 696,733 |
Less: accumulated depreciation and amortization | (108,443) | (88,317) |
Total property, buildings and equipment, net | 611,756 | 608,416 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, buildings and equipment, gross | 402,613 | 394,481 |
Office, Computer and Other Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, buildings and equipment, gross | 132,290 | 126,082 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, buildings and equipment, gross | 80,919 | 80,919 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, buildings and equipment, gross | 75,572 | 74,862 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, buildings and equipment, gross | $ 28,805 | $ 20,389 |
SUPPLEMENTARY DATA (Summary of
SUPPLEMENTARY DATA (Summary of Allowance for Doubtful Accounts) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
SUPPLEMENTARY DATA [Abstract] | |
Balance at Beginning of Year | $ 1,093 |
Charged to Costs and Expenses | 150 |
Deductions | (52) |
Balance at End of Year | $ 1,191 |
SUPPLEMENTARY DATA (Summary o_2
SUPPLEMENTARY DATA (Summary of Unamortized Content Costs) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
SUPPLEMENTARY DATA [Abstract] | ||
Predominantly Monetized Individually, In release | $ 2,014 | $ 1,410 |
Predominantly Monetized Individually, Completed but not released | 2 | 2,045 |
Predominantly Monetized Individually, In production | 639 | 1,350 |
Predominantly Monetized Individually, Total film and television costs | 2,655 | 4,805 |
Predominantly Monetized as a Film Group, Licensed and acquired program rights | 22,425 | 21,413 |
Predominantly Monetized as a Film Group, In release | 1,914 | 2,049 |
Predominantly Monetized as a Film Group, In production | 754 | 819 |
Predominantly Monetized as a Film Group, Total film and television costs | $ 25,093 | $ 24,281 |
SUPPLEMENTARY DATA (Summary o_3
SUPPLEMENTARY DATA (Summary of Amortization and Impairment of Content Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
SUPPLEMENTARY DATA [Abstract] | ||
Content production amortization expense - assets monetized individually | $ 3,224 | |
Content production amortization expense - assets monetized as a film group | 4,504 | $ 3,914 |
Total amortization and impairment of content costs | $ 7,728 | $ 3,914 |
SUPPLEMENTARY DATA (Summary o_4
SUPPLEMENTARY DATA (Summary of Other Current Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
SUPPLEMENTARY DATA [Abstract] | ||
Prepaid taxes | $ 89,488 | $ 57,885 |
Prepaid event and production-related costs | 24,240 | 15,382 |
Amounts due from the Group (Note 18) | 16,017 | 11,599 |
Assets held for sale | 7,500 | 7,500 |
Prepaid insurance | 5,244 | 8,145 |
Other | 21,904 | 20,644 |
Total | $ 164,393 | $ 121,155 |
SUPPLEMENTARY DATA (Summary o_5
SUPPLEMENTARY DATA (Summary of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
SUPPLEMENTARY DATA [Abstract] | ||
Legal settlements (Note 16) | $ 200,000 | |
Event and production-related costs | 51,888 | $ 51,015 |
Interest | 41,221 | 41,634 |
Payroll-related costs | 36,477 | 100,982 |
Legal and professional fees | 28,724 | 18,730 |
Accrued capital expenditures | 24,060 | 29,550 |
Other | 23,302 | 25,452 |
Total accrued liabilities | $ 405,672 | $ 267,363 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | ||
Intangible asset amortization expense | $ 81.6 | $ 11.7 |
Goodwill impairment loss | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Summary of Changes in the Carrying Value of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
GOODWILL AND INTANGIBLE ASSETS [Line Items] | |
Balance - December 31, 2022 | $ 7,666,485 |
Foreign exchange | (337) |
Balance - December 31, 2023 | 7,666,148 |
UFC Segment [Member] | |
GOODWILL AND INTANGIBLE ASSETS [Line Items] | |
Balance - December 31, 2022 | 2,602,639 |
Balance - December 31, 2023 | 2,602,639 |
WWE Segment [Member] | |
GOODWILL AND INTANGIBLE ASSETS [Line Items] | |
Balance - December 31, 2022 | 5,063,846 |
Foreign exchange | (337) |
Balance - December 31, 2023 | $ 5,063,509 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Summary of Company's Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 4,292,424 | $ 4,291,474 |
Accumulated Amortization | (809,403) | (727,811) |
Carrying Value | $ 3,483,021 | $ 3,563,663 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Life (in years) | 22 years 9 months 18 days | 22 years 9 months 18 days |
Gross Amount | $ 2,891,826 | $ 2,891,826 |
Accumulated Amortization | (346,342) | (314,685) |
Carrying Value | $ 2,545,484 | $ 2,577,141 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Life (in years) | 5 years 4 months 24 days | 5 years 6 months |
Gross Amount | $ 1,255,010 | $ 1,254,210 |
Accumulated Amortization | (429,059) | (388,640) |
Carrying Value | $ 825,951 | $ 865,570 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Life (in years) | 3 years 4 months 24 days | 3 years 4 months 24 days |
Gross Amount | $ 145,588 | $ 145,438 |
Accumulated Amortization | (34,002) | (24,486) |
Carrying Value | $ 111,586 | $ 120,952 |
INVESTMENTS (Narrative) (Detail
INVESTMENTS (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
INVESTMENTS [Line Items] | |||
Equity earning (losses) of affiliates, net of tax | $ 50,000 | $ (263,000) | |
Equity method investments | 3,461,000 | $ 3,775,000 | |
Distributions received from other equity method investments | 300,000 | ||
Impairment charges on investments | 0 | 0 | |
Observable price change upward price adjustment | $ 0 | 0 | |
Monkey Spirit, LLC [Member] | |||
INVESTMENTS [Line Items] | |||
Company's ownership of its equity method investments | 7% | ||
Equity earning (losses) of affiliates, net of tax | $ (300,000) | (300,000) | |
Equity method investments | 3,000,000 | 3,300,000 | |
Other Equity Investments [Member] | |||
INVESTMENTS [Line Items] | |||
Equity earning (losses) of affiliates, net of tax | 300,000 | $ (100,000) | |
Equity method investments | $ 500,000 | $ 500,000 |
INVESTMENTS (Summary of Investm
INVESTMENTS (Summary of Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
INVESTMENTS [Abstract] | ||
Equity method investments | $ 3,461 | $ 3,775 |
Nonmarketable equity investments without readily determinable fair values | 12,532 | 12,617 |
Total investment securities | $ 15,993 | $ 16,392 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | May 31, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
DEBT [Line Items] | ||||
Long-term debt | $ 2,730,682,000 | $ 2,736,315,000 | ||
Cash and cash equivalents | 245,812,000 | 235,839,000 | ||
Revolving Credit Facility [Member] | ||||
DEBT [Line Items] | ||||
Maximum borrowing capacity | 205,000,000 | |||
Threshold Amount of Outstanding Letters of Credit Not Cash Collateralized | 10,000,000 | |||
2016 Credit Facilities [Member] | ||||
DEBT [Line Items] | ||||
Outstanding letters of credit | $ 0 | 0 | ||
Minimum leverage ratio required | 5 | |||
Line of credit | $ 0 | $ 0 | ||
Percentage of revolving commitments | 35% | |||
Swingline loan maximum amount | $ 15,000,000 | |||
2016 Credit Facilities [Member] | Maximum [Member] | ||||
DEBT [Line Items] | ||||
Debt service leverage ratio | 6.5 | |||
First Lien Term Loan (due April 2026) [Member] | ||||
DEBT [Line Items] | ||||
Line of credit | $ 2,700,000,000 | $ 2,700,000,000 | ||
Percentage of principal amortization payable in equal quarterly installments | 1% | |||
Effective rate | 8.34% | |||
Secured Commercial Loans [Member] | ||||
DEBT [Line Items] | ||||
Long-term debt | $ 31,500,000 | $ 31,900,000 | ||
Debt instrument, maturity date | Nov. 01, 2028 | |||
Debt service coverage ratio | 1.15 | |||
Letter of credit [Member] | ||||
DEBT [Line Items] | ||||
Maximum borrowing capacity | $ 40,000,000 | |||
SOFR [Member] | First Lien Term Loan (due April 2026) [Member] | Maximum [Member] | ||||
DEBT [Line Items] | ||||
Variable rate | 3% | |||
SOFR [Member] | First Lien Term Loan (due April 2026) [Member] | Minimum [Member] | ||||
DEBT [Line Items] | ||||
Variable rate | 2.75% | |||
SOFR [Member] | Secured Commercial Loans [Member] | ||||
DEBT [Line Items] | ||||
Percentage of principal amortization payable in monthly installments | 4% | |||
Variable rate | 1.70% |
DEBT (Summary of Outstanding De
DEBT (Summary of Outstanding Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
DEBT [Line Items] | ||
Total principal | $ 2,752,483 | $ 2,760,633 |
Unamortized discount | (7,498) | (8,367) |
Unamortized debt issuance cost | (14,303) | (15,951) |
Total debt | 2,730,682 | 2,736,315 |
Less: Current portion of long-term debt | (22,321) | (22,367) |
Total long-term debt | 2,708,361 | 2,713,948 |
First Lien Term Loan (due April 2026) [Member] | ||
DEBT [Line Items] | ||
Total principal | $ 2,721,016 | 2,728,766 |
Line of credit maturity date | April 2026 | |
Secured Commercial Loans [Member] | ||
DEBT [Line Items] | ||
Total principal | $ 31,467 | 31,867 |
Total debt | $ 31,500 | $ 31,900 |
FINANCIAL INSTRUMENTS (Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2018 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Oct. 31, 2018 | |
Secured Commercial Loans [Member] | |||||
FINANCIAL INSTRUMENTS [Line Items] | |||||
Fixed rate | 4.99% | ||||
Effective rate | 7.02% | ||||
Change in fair value of swap’s liability included in accumulated other comprehensive income | $ 0.6 | $ 0.5 | |||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 0.1 | $ 0.1 | |||
Secured Commercial Loans [Member] | SOFR [Member] | |||||
FINANCIAL INSTRUMENTS [Line Items] | |||||
Variable rate | 1.70% | ||||
Secured Commercial Loans [Member] | Level II [Member] | |||||
FINANCIAL INSTRUMENTS [Line Items] | |||||
Interest rate swaps | $ 0.9 | $ 0.3 | |||
4.99% Interest Rate Swap [Member] | |||||
FINANCIAL INSTRUMENTS [Line Items] | |||||
Fixed rate | 4.99% | ||||
Effective rate | 3.97% | ||||
Debt Instrument face amount | $ 40 | ||||
4.99% Interest Rate Swap [Member] | LIBOR [Member] | |||||
FINANCIAL INSTRUMENTS [Line Items] | |||||
Variable rate | 1.62% |
NON-CONTROLLING INTERESTS (Narr
NON-CONTROLLING INTERESTS (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jul. 31, 2018 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Noncontrolling Interest [Line Items] | |||
Common units, convertible, conversion ratio | 1 | ||
Temporary equity, estimated redemption value | $ 11.2 | $ 11.2 | |
Russia Subsidiary [Member] | |||
Noncontrolling Interest [Line Items] | |||
Investment term | 5 years 6 months | ||
Proceeds from noncontrolling interests | $ 9.7 |
NON-CONTROLLING INTERESTS (Chan
NON-CONTROLLING INTERESTS (Changes in Redeemable Non-controlling Interest) (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
NON-CONTROLLING INTERESTS [Abstract] | |
Balance | $ 11,594 |
Net income attributable to non-controlling interest holders | 760 |
Balance | $ 12,354 |
EQUITY-BASED COMPENSATION (Narr
EQUITY-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation | $ 30,225 | $ 5,795 |
EGH 2021 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation | $ 2,790 | $ 5,795 |
EGH 2021 Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years | |
EGH 2021 Plan [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years | |
TKO 2023 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation | $ 18,813 | |
TKO 2023 Plan [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 25% | |
TKO 2023 Plan [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 25% | |
TKO 2023 Plan [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 25% | |
TKO 2023 Plan [Member] | Share-Based Payment Arrangement, Tranche Four [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 25% | |
TKO 2023 Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 6 months | |
TKO 2023 Plan [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Replacement Awards under WWE 2016 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation | $ 8,622 | |
Dwayne Johnson [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate awards received by related parties | 30,000 | |
Equity-based compensation | $ 9,000 |
EQUITY-BASED COMPENSATION (Sche
EQUITY-BASED COMPENSATION (Schedule of Equity-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | $ 30,225 | $ 5,795 |
EGH 2021 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | 2,790 | $ 5,795 |
Replacement Awards under WWE 2016 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | 8,622 | |
TKO 2023 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | $ 18,813 |
EQUITY-BASED COMPENSATION (Summ
EQUITY-BASED COMPENSATION (Summary of RSU Activity) (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
EGH 2021 Plan [Member] | Time Vested Restricted Stock Units [Member] | |
EQUITY-BASED COMPENSATION [Line Items] | |
Outstanding balances at beginning, Units | shares | 605,610 |
Released, Units | shares | (92,121) |
Forfeited, Units | shares | (893) |
Outstanding balances at end, Units | shares | 512,596 |
Outstanding balances at beginning, Weighted-Average Exercise Price | $ / shares | $ 25.74 |
Released, Weighted-Average Exercise Price | $ / shares | 22.33 |
Forfeited, Weighted-Average Exercise Price | $ / shares | 21.73 |
Outstanding balances at end, Weighted-Average Exercise Price | $ / shares | $ 26.36 |
EGH 2021 Plan [Member] | Market / Market and Time Vested RSUs [Member] | |
EQUITY-BASED COMPENSATION [Line Items] | |
Outstanding balances at beginning, Units | shares | 5,115 |
Outstanding balances at end, Units | shares | 5,115 |
Outstanding balances at beginning, Weighted-Average Exercise Price | $ / shares | $ 24.65 |
Outstanding balances at end, Weighted-Average Exercise Price | $ / shares | $ 24.65 |
Replacement Awards under WWE 2016 Plan [Member] | Restricted Stock Units (RSUs) [Member] | |
EQUITY-BASED COMPENSATION [Line Items] | |
Outstanding balances at beginning, Units | shares | 701,090 |
Vested, Units | shares | (24,167) |
Forfeited, Units | shares | (95,182) |
Outstanding balances at end, Units | shares | 581,741 |
Outstanding balances at beginning, Weighted-Average Exercise Price | $ / shares | $ 100.65 |
Vested, Weighted-Average Exercise Price | $ / shares | 100.65 |
Forfeited, Weighted-Average Exercise Price | $ / shares | 100.65 |
Outstanding balances at end, Weighted-Average Exercise Price | $ / shares | $ 100.65 |
TKO 2023 Plan [Member] | Restricted Stock Units (RSUs) [Member] | |
EQUITY-BASED COMPENSATION [Line Items] | |
Outstanding balances at beginning, Units | shares | 935,536 |
Granted, Units | shares | 991,718 |
Vested, Units | shares | (96,558) |
Forfeited, Units | shares | (819) |
Outstanding balances at end, Units | shares | 1,829,877 |
Outstanding balances at beginning, Weighted-Average Exercise Price | $ / shares | $ 91.23 |
Granted, Weighted-Average Exercise Price | $ / shares | 80.03 |
Vested, Weighted-Average Exercise Price | $ / shares | 77.41 |
Forfeited, Weighted-Average Exercise Price | $ / shares | 86.13 |
Outstanding balances at end, Weighted-Average Exercise Price | $ / shares | $ 85.89 |
EQUITY-BASED COMPENSATION (Su_2
EQUITY-BASED COMPENSATION (Summary of Stock Options Activity) (Detail) - Stock Options [Member] | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
EQUITY-BASED COMPENSATION [Line Items] | |
Outstanding balances at beginning, Units | shares | 286,836 |
Granted, Units | shares | |
Exercised, Units | shares | |
Forfeited or expired, Units | shares | |
Outstanding balances at end, Units | shares | 286,836 |
Vested and exercisable, Units | shares | 191,224 |
Outstanding balances at beginning, Weighted-Average Exercise Price | $ / shares | $ 26.04 |
Granted, Weighted-Average Exercise Price | $ / shares | |
Exercised, Weighted-Average Exercise Price | $ / shares | |
Forfeited or expired, Weighted-Average Exercise Price | $ / shares | |
Outstanding balances at end, Weighted-Average Exercise Price | $ / shares | 26.04 |
Vested and exercisable, Weighted-Average Exercise Price | $ / shares | $ 26.04 |
EQUITY-BASED COMPENSATION (Su_3
EQUITY-BASED COMPENSATION (Summary Of PSU Activity) (Details) - Time Vested PSUs [Member] | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
EQUITY-BASED COMPENSATION [Line Items] | |
Outstanding balances at beginning, Units | shares | 327,403 |
Vested, Units | shares | (6,447) |
Forfeited, Units | shares | (3,580) |
Outstanding balances at end, Units | shares | 317,376 |
Outstanding balances at beginning, Weighted-Average Exercise Price | $ / shares | $ 93.84 |
Vested, Weighted-Average Exercise Price | $ / shares | 100.65 |
Forfeited, Weighted-Average Exercise Price | $ / shares | 100.65 |
Outstanding balances at end, Weighted-Average Exercise Price | $ / shares | $ 95.40 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Basic and Diluted Earnings Per Share and Weighted Average Shares Outstanding) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Sep. 30, 2023 | Mar. 31, 2024 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net loss attributable to TKO Group Holdings, Inc. | $ (103,840) | ||
Weighted average Class A Common Shares outstanding - Basic | 82,351,654 | ||
Weighted average dilutive common shares outstanding | 82,351,654 | ||
Basic net loss per share | $ (1.26) | $ (1.26) | [1] |
Diluted net loss per share | $ (1.26) | $ (1.26) | [1] |
Restricted Stock Units (RSUs) [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Securities that are anti-dilutive this period | 2,411,618 | ||
Performance Stock Units (PSUs) [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Securities that are anti-dilutive this period | 317,376 | ||
Common Class B [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Securities that are anti-dilutive this period | 89,616,891 | ||
[1] Basic and diluted net loss per share of Class A common stock is applicable only for the period from January 1, 2024 through March 31, 2024, which is the period following the Transactions (as defined in Note 1 to the unaudited consolidated financial statements). See Note 13, Earnings Per Share , for the calculation of the number of shares used in computation of net loss per share of Class A common stock and the basis for computation of net loss per share. |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Sep. 12, 2023 | |
Operating Loss Carryforwards [Line Items] | ||||
Effective tax rate | 9.30% | 3.90% | ||
Unrecognized tax benefits | $ 5,400 | $ 5,500 | ||
Legal settlement | 335,000 | |||
Discrete tax benefit | 39,600 | |||
Income Tax Expense (Benefit) | $ (25,522) | $ 3,630 | ||
WWE [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Fair value step-up on acquired net assets | $ 3,300,000 | |||
Deferred tax liabilities | $ 379,800 |
RESTRUCTURING CHARGES (Narrativ
RESTRUCTURING CHARGES (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
RESTRUCTURING CHARGES [Abstract] | |
Restructuring charges including equity-based compensation expenses | $ 11.6 |
Equity-based compensation expenses included in restructuring charges | $ 2.4 |
RESTRUCTURING CHARGES (Summary
RESTRUCTURING CHARGES (Summary of changes in company's restructuring liability) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
RESTRUCTURING CHARGES [Abstract] | |
Balance | $ 9,725 |
Restructuring charges (excluding share-based compensation expense) | 9,235 |
Payments | (10,693) |
Balance | $ 8,267 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||
Mar. 13, 2024 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2015 item | Dec. 31, 2025 USD ($) | Dec. 31, 2024 USD ($) | |
Loss Contingencies [Line Items] | |||||
Number of class action lawsuits | item | 5 | ||||
Number of former fighters with class-action lawsuits | item | 11 | ||||
Agreed amount to be paid under settlement | $ | $ 335 | $ 335 | |||
Forecast [Member] | |||||
Loss Contingencies [Line Items] | |||||
Agreed amount to be paid under settlement | $ | $ 135 | $ 200 |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) | 1 Months Ended |
Sep. 30, 2023 segment | |
SEGMENT INFORMATION [Abstract] | |
Number of reportable segments | 2 |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue, Major Customer [Line Items] | ||
Revenues | $ 629,711 | $ 306,730 |
UFC Segment [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 312,990 | 306,730 |
WWE Segment [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 316,721 | |
Operating Segments [Member] | UFC Segment [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 312,990 | $ 306,730 |
Operating Segments [Member] | WWE Segment [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenues | $ 316,721 |
SEGMENT INFORMATION (Schedule_2
SEGMENT INFORMATION (Schedule of Reconciliation of Segment Profitability) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | $ 282,160 | $ 172,608 |
Equity (earnings) losses of affiliates | (50) | 263 |
Depreciation and amortization | (107,161) | (15,152) |
Restructuring, severance and impairment | (11,600) | |
Other adjustments | (271) | (329) |
(Loss) income before income taxes and equity losses of affiliates | (275,082) | 91,843 |
UFC Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Certain legal costs | 335,000 | |
Legal costs, included as accrued liabilities | (200,000) | |
Legal costs, included as other long-term liabilities | (135,000) | |
Operating Segments [Member] | UFC Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 195,083 | 186,257 |
Operating Segments [Member] | WWE Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 140,213 | |
Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Equity (earnings) losses of affiliates | (50) | 263 |
Interest expense, net | (64,466) | (53,908) |
Depreciation and amortization | (107,161) | (15,152) |
Equity-based compensation expense | (30,225) | (5,795) |
Merger and acquisition costs | (520) | (5,415) |
Certain legal costs | (345,199) | (442) |
Restructuring, severance and impairment | (9,235) | |
Other adjustments | (386) | (316) |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | $ (53,136) | $ (13,649) |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Other current liabilities | $ 12,276,000 | $ 8,997,000 | |
Equity-based compensation | 30,225,000 | $ 5,795,000 | |
Vincent K McMahon [Member] | |||
Related Party Transaction [Line Items] | |||
Liabilities paid directly by related party | 1,500,000 | ||
EGH And Its Subsidiaries [Member] | |||
Related Party Transaction [Line Items] | |||
Reimbursed costs | 3,300,000 | $ 0 | |
Other current liabilities | $ 9,219,000 | 5,473,000 | |
EGH And Its Subsidiaries [Member] | TKO Group Holdings, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Company's ownership interest percentage | 52.10% | ||
Dwayne Johnson [Member] | |||
Related Party Transaction [Line Items] | |||
Royalties earned by related parties | $ 100,000 | ||
Reimbursed costs | 1,900,000 | ||
Other current liabilities | $ 1,700,000 | ||
License agreement term | 10 years | ||
Accrued Expenses [Member] | Vincent K McMahon [Member] | |||
Related Party Transaction [Line Items] | |||
Liabilities related to future payments owed | $ 1,500,000 | ||
Restricted Stock Units (RSUs) [Member] | Dwayne Johnson [Member] | |||
Related Party Transaction [Line Items] | |||
Aggregate awards received by related parties | $ 30,000,000 | ||
Equity-based compensation | $ 9,000,000 |
RELATED PARTY TRANSACTIONS (Sum
RELATED PARTY TRANSACTIONS (Summary of Provided Services) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Revenues | $ 629,711 | $ 306,730 |
Direct operating costs | 201,015 | 89,152 |
Selling, general and administrative expenses | 531,880 | 56,346 |
Net loss | (103,840) | |
EGH And Its Subsidiaries [Member] | Event And Other Licensing Revenues Earned From The Group [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues | 5,902 | 3,420 |
EGH And Its Subsidiaries [Member] | Expenses Incurred with the Group Included in Direct Operating Costs [Member] | ||
Related Party Transaction [Line Items] | ||
Direct operating costs | 4,849 | 4,416 |
EGH And Its Subsidiaries [Member] | Expenses Incurred with the Group Included in Selling, General and Administrative Expenses [Member] | ||
Related Party Transaction [Line Items] | ||
Selling, general and administrative expenses | 7,451 | 6,352 |
EGH And Its Subsidiaries [Member] | Income (Expense) Included within Net Income [Member] | ||
Related Party Transaction [Line Items] | ||
Net loss | $ (6,398) | $ (7,348) |
RELATED PARTY TRANSACTIONS (Out
RELATED PARTY TRANSACTIONS (Outstanding Amounts due to and from Related Party) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Related Party Transaction [Line Items] | ||
Other current assets | $ 164,393 | $ 121,155 |
Other current liabilities | (12,276) | (8,997) |
EGH And Its Subsidiaries [Member] | ||
Related Party Transaction [Line Items] | ||
Other current assets | 16,017 | 11,599 |
Other current liabilities | $ (9,219) | $ (5,473) |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions | Apr. 07, 2024 | Apr. 04, 2024 |
Revolving Credit Facility [Member] | ||
Subsequent Event [Line Items] | ||
Borrowings from line of credit | $ 150 | |
Vincent K McMahon [Member] | Common Class A [Member] | ||
Subsequent Event [Line Items] | ||
Shares repurchased | 1,853,724 | 1,642,970 |
Price per share | $ 89.01 | $ 89.01 |
Repurchase amount of stock | $ 165 | $ 146.2 |
EGH [Member] | TKO OpCo [Member] | ||
Subsequent Event [Line Items] | ||
Ownership percentage | 53.60% | |
TKO Group Holdings, Inc. [Member] | TKO OpCo [Member] | ||
Subsequent Event [Line Items] | ||
Ownership percentage | 46.40% |