Ari Emanuel earned nearly $65 million in total pay in 2023 from the Endeavor’s $21 billion deal to combine WWE and the UFC to make TKO Group Inc.
According to TKO’s proxy filing, the executive got a total pay package of $64.9 million, with a salary of $911,538, a $24 million bonus, $40 million in stock awards, and $928 in “other” pay, which included 401(k) match contributions made by Endeavor.
Meanwhile, TKO president and chief operating officer Mark Shapiro received $16.08 million in total pay, including a $759,615 salary, $9 million bonus, $6.25 million in stock awards, and $73,629 in “other” pay, including $72,701 for costs related to personal use of a company-provided aircraft and 401(k) matching contributions made by Endeavor.
Endeavor completed the TKO merger in September 2023, which valued UFC at $12.1 billion and WWE at $9.3 billion. The company holds a 51% controlling interest in TKO, and existing WWE shareholders hold a 49% interest in the company.
In fiscal year 2023, TKO’s total revenue grew by 47% to $1.7 billion, with $1.29 billion from the UFC and $382.8 million from WWE. Adjusted EBITDA increased by 29% to $809.1 million, with UFC accounting for $755.7 million and WWE accounting for $163 million.
In January, the company signed a $5 billion, 10-year media rights deal with Netflix for WWE’s “Monday Night Raw.” Starting in 2025, Netflix will be the only place to watch “Raw” in the U.S., Canada, U.K., and Latin America, with more countries and regions to be added over time. The deal also covers all WWE shows and specials outside the U.S., including “Raw,” “Smackdown,” “NXT,” and live premium events like “WrestleMania,” “SummerSlam,” and “Royal Rumble.” WWE’s award-winning documentaries, original series, and upcoming projects will also be accessible on Netflix globally starting in 2025. The streamer has the choice to end the agreement after five years and extend it for an additional 10 years. Additionally, Dwayne Johnson was added to the company’s board of directors.
WWE founder Vince McMahon, who stepped down as TKO chairman after being sued for allegations of sexual assault and trafficking, received $376,323 in total pay and gave up $86,918 in stock rewards, according to the proxy filing. In November, the company disclosed McMahon would sell 8.4 million TKO shares, which accounted for one-fourth of his holdings in the company.
TKO will soon be Endeavor’s only exposure to the public markets, as the company’s main shareholder Silver Lake plans to buy the company for $13 billion and take it private at $27.50 per share. That agreement is expected to be completed in the first quarter of 2025, subject to meeting standard closing conditions and required regulatory approvals.
Under the agreement, Endeavor will not sell its controlling stake in TKO. When combining TKO’s value into Endeavor, the private equity firm estimates the company has a total enterprise value of $25 billion, making the deal the biggest private equity sponsor public-to-private investment transaction in over a decade, and the largest ever in the media and entertainment sector.
As a part of this change, Emanuel will have the opportunity to get a $25 million bonus for selling assets. He will also be entitled to receive payments from WME equal to 2.5% of the quarterly profits of the agency representation business of WME and its affiliated companies. In addition, he will get new equity awards, including an initial award of 2.5%, made up of one-third options and two-thirds restricted stock units, as well as a supplemental award of 0.5% of the equity interests. Emanuel will also get ownership of one of Endeavor’s private planes after the merger, and the company will pay for his reasonable costs and expenses for using it for business purposes. After the second anniversary of the closing, Emanuel will have a one-time right to require that the company repurchase all or a portion of his company interest.
The stock of TKO has increased by 21.9% in the last six months and 19.3% so far this year as of Wednesday.
