UFC, WWE to Merge; Emanuel to Serve as CEO, McMahon as Executive Chair
April 3, 2023 8:30 AM Subscribe
Endeavor Group Holdings and sports entertainment powerhouse WWE made things official on Monday, unveiling a definitive agreement to form a new, publicly listed company consisting of two “iconic, complementary” global sports and entertainment brands: UFC and WWE. Endeavor will hold a 51 percent controlling interest in the new company, with existing WWE shareholders owning a 49 percent interest.
The announcement follows months of speculation of a pending sale, which increased after Vince McMahon wrested back control of WWE in January after having retired in July 2022 amid allegations of sexual misconduct.
The announcement follows months of speculation of a pending sale, which increased after Vince McMahon wrested back control of WWE in January after having retired in July 2022 amid allegations of sexual misconduct.
Said this elsewhere and will repeat:
1. This is better than the Saudis (okay, the Saudi Arabian Sovereign Investment Fund, but come on) taking over WWE, which was the initial rumour making the rounds a couple of months ago.
2. This is only marginally better, and only because Endeavor is not a murderous dictatorship nation-state that wants to graduate to outright warmongering as soon as possible. It's still a rapacious entertainment company that makes Disney look like a bunch of socialists in comparison.
3. From a fan/worker standpoint, Endeavor is arguably worse than the Saudis would have been. When the Saudis take over or start a sports company, they generally lower ticket prices and increase payouts for athletes/performers, because Saudi investments in sports are about generating good PR and little else. Under Endeavor, UFC has become notorious for paying terrible wages to the non-superstar-level fighters and charging exorbitant prices for tickets and pay-per-views. The best-case scenario is the private equity golden handshake: one or two years of good prices and good salaries to try to lock people in, and then squeeeeeeze.
4. Curiously, given that Vince McMahon wanted to keep control of WWE in any sale because of course he did, the deal is structured badly for him. Vince gets to control five seats of the board of the new UFC/WWE combo company and Endeavor gets six. They can force him out literally on day one if they so choose.
5. Nine billion dollars for WWE is insane. It is just insane. The huge deal WWE inked with Peacock two years ago was for one billion dollars for five years' worth of content, and that was almost certainly an overpay at the time. Their deals with USA for RAW and Fox for Smackdown are about the same amount, but there's probably one big money deal left before the bottom drops out of televised sports (and that's coming sooner than anybody expects). They've cut down massively on non-televised live events so their touring revenue has dropped. It's a huge payout for a company that in an ideal scenario pays back that amount over ten years or so.
posted by mightygodking at 9:09 AM on April 3, 2023 [13 favorites]
1. This is better than the Saudis (okay, the Saudi Arabian Sovereign Investment Fund, but come on) taking over WWE, which was the initial rumour making the rounds a couple of months ago.
2. This is only marginally better, and only because Endeavor is not a murderous dictatorship nation-state that wants to graduate to outright warmongering as soon as possible. It's still a rapacious entertainment company that makes Disney look like a bunch of socialists in comparison.
3. From a fan/worker standpoint, Endeavor is arguably worse than the Saudis would have been. When the Saudis take over or start a sports company, they generally lower ticket prices and increase payouts for athletes/performers, because Saudi investments in sports are about generating good PR and little else. Under Endeavor, UFC has become notorious for paying terrible wages to the non-superstar-level fighters and charging exorbitant prices for tickets and pay-per-views. The best-case scenario is the private equity golden handshake: one or two years of good prices and good salaries to try to lock people in, and then squeeeeeeze.
4. Curiously, given that Vince McMahon wanted to keep control of WWE in any sale because of course he did, the deal is structured badly for him. Vince gets to control five seats of the board of the new UFC/WWE combo company and Endeavor gets six. They can force him out literally on day one if they so choose.
5. Nine billion dollars for WWE is insane. It is just insane. The huge deal WWE inked with Peacock two years ago was for one billion dollars for five years' worth of content, and that was almost certainly an overpay at the time. Their deals with USA for RAW and Fox for Smackdown are about the same amount, but there's probably one big money deal left before the bottom drops out of televised sports (and that's coming sooner than anybody expects). They've cut down massively on non-televised live events so their touring revenue has dropped. It's a huge payout for a company that in an ideal scenario pays back that amount over ten years or so.
posted by mightygodking at 9:09 AM on April 3, 2023 [13 favorites]
A 20% premium over current market value is pretty typical in situations like this.
posted by Hatashran at 9:27 AM on April 3, 2023 [1 favorite]
posted by Hatashran at 9:27 AM on April 3, 2023 [1 favorite]
Vince McMahon wrested back control of WWE in January
The thing is, he didn't because he never lost control, as I noted in the thread about his "retirement" last year: "he can just wait for this to fade from the public memory and announce his return any time he wants." Guess what happened?
I was stunned by how credulous and gullible the comments in that discussion were. How do people not understand that since Vince is the majority shareholder he is always the owner and always actually in charge no matter what butts he chooses to place in the various executive seats?
posted by star gentle uterus at 9:31 AM on April 3, 2023 [1 favorite]
The thing is, he didn't because he never lost control, as I noted in the thread about his "retirement" last year: "he can just wait for this to fade from the public memory and announce his return any time he wants." Guess what happened?
I was stunned by how credulous and gullible the comments in that discussion were. How do people not understand that since Vince is the majority shareholder he is always the owner and always actually in charge no matter what butts he chooses to place in the various executive seats?
posted by star gentle uterus at 9:31 AM on April 3, 2023 [1 favorite]
He was, from all reports, actually uninvolved in the company for six months, and several members of the Board of Directors resigned after he returned, including his own daughter. Yes, he came back. No one argued that he couldn't possibly ever come back. When he came back, he did so publicly by filing the appropriate reports because it's a publicly traded company. But before he did, he did not have the very active role that he had for the previous 40 years.
As I replied to you back then, Will his influence continue to affect the company, directly or in-? Sure. He still owned the company all along. But he wasn't controlling the company until the sales rumors kicked into high gear and he just couldn't stand not being in control anymore.
posted by Etrigan at 9:50 AM on April 3, 2023 [1 favorite]
As I replied to you back then, Will his influence continue to affect the company, directly or in-? Sure. He still owned the company all along. But he wasn't controlling the company until the sales rumors kicked into high gear and he just couldn't stand not being in control anymore.
posted by Etrigan at 9:50 AM on April 3, 2023 [1 favorite]
Some of the speculation I heard before going in to work this morning is that Endeavor could push to start allowing sports betting to take money bets on WWE match results, which opens up a big thorny nest of problems that the new owners will attempt to solve with highly-paid lawyers doing battle with state regulatory agencies.
posted by The Pluto Gangsta at 9:59 AM on April 3, 2023 [1 favorite]
posted by The Pluto Gangsta at 9:59 AM on April 3, 2023 [1 favorite]
That and the results of Wrestlemania night 2 might be great news for AEW, who really thrived when they were up against old man McMahon running WWE like Hans Moleman driving a truck.
posted by Monday, stony Monday at 10:01 AM on April 3, 2023 [1 favorite]
posted by Monday, stony Monday at 10:01 AM on April 3, 2023 [1 favorite]
I really thought this was an April Fool's press release about a merger between the WWE and the WWF, and I still kinda wish it was that.
posted by beepbeepboopboop at 10:42 AM on April 3, 2023 [1 favorite]
posted by beepbeepboopboop at 10:42 AM on April 3, 2023 [1 favorite]
How can you allow betting on scripted content? This would be like allowing betting on any reality TV show. Can of worms is putting it mildly.
WWE is a great athletic display, but no one has ever claimed that it an actual athletic contest (beyond a few deluded fans, I guess).
posted by bonehead at 10:42 AM on April 3, 2023 [6 favorites]
WWE is a great athletic display, but no one has ever claimed that it an actual athletic contest (beyond a few deluded fans, I guess).
posted by bonehead at 10:42 AM on April 3, 2023 [6 favorites]
Does this imply UFC is scripted? I don't follow it all that closely but in recent years their hype machine has gone into overdrive.
posted by tommasz at 11:14 AM on April 3, 2023 [3 favorites]
posted by tommasz at 11:14 AM on April 3, 2023 [3 favorites]
How can you allow betting on scripted content?
On the one hand, I suppose you can bet on anything. It's even a fun prisoner's dilemma style problem where the people scripting the results know people are wagering and the people wagering know it is scripted. How does that change the results given all the other incentives? This includes the incentive to run a scam with the wagering.
But still, "lost all his money betting on pro-wrestling" sounds like a hackiest of punchlines.
posted by Gary at 11:25 AM on April 3, 2023 [1 favorite]
On the one hand, I suppose you can bet on anything. It's even a fun prisoner's dilemma style problem where the people scripting the results know people are wagering and the people wagering know it is scripted. How does that change the results given all the other incentives? This includes the incentive to run a scam with the wagering.
But still, "lost all his money betting on pro-wrestling" sounds like a hackiest of punchlines.
posted by Gary at 11:25 AM on April 3, 2023 [1 favorite]
IT'S VINCE MCMAHON WITH THE CHAIR!!!
posted by schyler523 at 11:26 AM on April 3, 2023 [4 favorites]
posted by schyler523 at 11:26 AM on April 3, 2023 [4 favorites]
Every time is the worst time to consider getting back into wrestling, I swear.
posted by Selena777 at 11:36 AM on April 3, 2023 [2 favorites]
posted by Selena777 at 11:36 AM on April 3, 2023 [2 favorites]
Every time is the worst time to consider getting back into wrestling, I swear.
Every time is the best time to get back into wrestling. Just avoid WWE and you miss, like, 80% of the problems.
posted by mightygodking at 11:39 AM on April 3, 2023 [4 favorites]
Every time is the best time to get back into wrestling. Just avoid WWE and you miss, like, 80% of the problems.
posted by mightygodking at 11:39 AM on April 3, 2023 [4 favorites]
That and the results of Wrestlemania night 2 might be great news for AEW, who really thrived when they were up against old man McMahon running WWE like Hans Moleman driving a truck.
As long AEW owner/booker Tony Khan learns to take advantage of these opportunities Vince keeps giving him instead of squandering them.
posted by KingEdRa at 12:02 PM on April 3, 2023
As long AEW owner/booker Tony Khan learns to take advantage of these opportunities Vince keeps giving him instead of squandering them.
posted by KingEdRa at 12:02 PM on April 3, 2023
I am still holding out for GLOW season 4
posted by CostcoCultist at 12:22 PM on April 3, 2023 [2 favorites]
posted by CostcoCultist at 12:22 PM on April 3, 2023 [2 favorites]
People already bet on things like the Oscars. In theory as long as the bookies/gamblers have no information exchange with the WWE it should be fine. In practice the chances there will be leakage, corruption, and insider betting is almost a certainty. What could possibly go wrong?
posted by Mitheral at 12:26 PM on April 3, 2023 [1 favorite]
posted by Mitheral at 12:26 PM on April 3, 2023 [1 favorite]
"Does this imply UFC is scripted? I don't follow it all that closely but in recent years their hype machine has gone into overdrive."
UFC has its problems, but I do not believe it is scripted. I have nothing against professional wrestling, but I do not think this merger will give mixed martial arts the legitimacy Dana White always supposedly wanted. Oh well.
posted by cakelite at 12:33 PM on April 3, 2023 [3 favorites]
UFC has its problems, but I do not believe it is scripted. I have nothing against professional wrestling, but I do not think this merger will give mixed martial arts the legitimacy Dana White always supposedly wanted. Oh well.
posted by cakelite at 12:33 PM on April 3, 2023 [3 favorites]
how to defeat a wrestler.
Wing Chun is 90% wrestling.
I loved wrestling, great show and a bit Dangerous, then I discovered cigarettes and wing Chun and have never looked back, well, a little but it's a business so.
posted by clavdivs at 1:05 PM on April 3, 2023
Wing Chun is 90% wrestling.
I loved wrestling, great show and a bit Dangerous, then I discovered cigarettes and wing Chun and have never looked back, well, a little but it's a business so.
posted by clavdivs at 1:05 PM on April 3, 2023
A friend of a friend on Facebook commented "I still call it WWF." I replied "I still call it WWWF." I think I won.
posted by Faint of Butt at 1:32 PM on April 3, 2023 [2 favorites]
posted by Faint of Butt at 1:32 PM on April 3, 2023 [2 favorites]
Atlantic Grand Prix Wrestling, who's with me
remember the Iron Claw?
edit to add the Wikipedia article for George Momberg, aka "Killer Karl Krupp"
posted by elkevelvet at 1:37 PM on April 3, 2023
remember the Iron Claw?
edit to add the Wikipedia article for George Momberg, aka "Killer Karl Krupp"
posted by elkevelvet at 1:37 PM on April 3, 2023
omg, the iron claw. I was always facinated with the great kabuki and his use of Asian mist. He'd smoke any of these fuckbelts today.
posted by clavdivs at 1:44 PM on April 3, 2023 [2 favorites]
posted by clavdivs at 1:44 PM on April 3, 2023 [2 favorites]
UFC has its problems, but I do not believe it is scripted.
It's not scripted but if you're interested in shenanigans related to the UFC look into James Krause and his betting scandal.
posted by Jarcat at 2:36 PM on April 3, 2023 [2 favorites]
It's not scripted but if you're interested in shenanigans related to the UFC look into James Krause and his betting scandal.
posted by Jarcat at 2:36 PM on April 3, 2023 [2 favorites]
I'd like to wish WWE the best with their future Endeavors.
posted by andreaazure at 4:23 PM on April 3, 2023 [5 favorites]
posted by andreaazure at 4:23 PM on April 3, 2023 [5 favorites]
Adrenaline in my soul
Maybe the new owners
Don't like Cody Rhodes
posted by LostInUbe at 4:55 PM on April 3, 2023 [3 favorites]
Maybe the new owners
Don't like Cody Rhodes
posted by LostInUbe at 4:55 PM on April 3, 2023 [3 favorites]
I wonder what this does with the various “free agent” wrestlers currently bouncing around. FTR, Jay White, Mercedes Mone, Kota Ibushi, etc. If Endeavor/UFC are so well known for treating talent poorly/underpaying them, how does this affect WWE’s chances of signing/re-signing people when contracts are up? Obviously they have deep pockets, but from what I’ve read (I don’t follow it), UFC only pays significant money to people at the top of the card, and since the Endeavor takeover, has shown little or no loyalty to the fighters that helped build the company. Is this the kind of thing that, down the line, means people like Jamie Noble (for example) won’t have a place backstage?
That, and there seems to be a lot of wariness about the possibility of bringing back ppv events at UFC prices, when they’ve been included for free with the app/peacock for so long that people have gotten used to not paying (extra) for them.
Like mightygodking says, Endeavor isn’t the worst possibility (that’s still the Saudi sports washing investment thing), but damn if this isn’t 1A.
posted by Ghidorah at 5:43 PM on April 3, 2023
That, and there seems to be a lot of wariness about the possibility of bringing back ppv events at UFC prices, when they’ve been included for free with the app/peacock for so long that people have gotten used to not paying (extra) for them.
Like mightygodking says, Endeavor isn’t the worst possibility (that’s still the Saudi sports washing investment thing), but damn if this isn’t 1A.
posted by Ghidorah at 5:43 PM on April 3, 2023
Does UFC and WWE being under the same parent company hurt chances of unionization, help, or indifferent because the two groups would likely not form a single union given the difference of job?
posted by jermsplan at 11:58 AM on April 4, 2023
posted by jermsplan at 11:58 AM on April 4, 2023
I've been subscribing to WRESTLE UNIVERSE, an English-friendly service that provides content from Dramatic Dream Team, Tokyo Joshi Pro Wrestling, NOAH and Ganbare Pro for roughly seven bucks and change each month. TJPW alone is more than worth that entrance fee.
Gatoh Move/ChocoPro Wrestling is still going strong, providing YouTube-accessible wrestling in rings and in the remodeled lobby of a Japanese dentist's office. These are Emi Sakura's babies, paywall-free, and completely awesome.
And Chris Brookes, History's Greatest Monster for his various maltreatments of the noble Lulu Pencil, has been redeeming himself with monthly shows under the banner of Baka Gaijin & Friends, which is wrestling in an even SMALLER space than Ichigaya Chocolate Square (mats on a bar floor) featuring various DDT, ChocoPro and indie faves duking it out with the likes of Death Worm.
In case anyone out there needs a McMahon-free alternative.
posted by delfin at 2:06 PM on April 4, 2023 [1 favorite]
Gatoh Move/ChocoPro Wrestling is still going strong, providing YouTube-accessible wrestling in rings and in the remodeled lobby of a Japanese dentist's office. These are Emi Sakura's babies, paywall-free, and completely awesome.
And Chris Brookes, History's Greatest Monster for his various maltreatments of the noble Lulu Pencil, has been redeeming himself with monthly shows under the banner of Baka Gaijin & Friends, which is wrestling in an even SMALLER space than Ichigaya Chocolate Square (mats on a bar floor) featuring various DDT, ChocoPro and indie faves duking it out with the likes of Death Worm.
In case anyone out there needs a McMahon-free alternative.
posted by delfin at 2:06 PM on April 4, 2023 [1 favorite]
In case anyone out there needs a McMahon-free alternative.
There’s also All Elite Wrestling, which is on TNT Wednesdays at 8pm EST and also Fridays on TBS at 10pm EST (most of the time… the Friday scheduling is sometimes subject to changes) and also does YouTube show on Mondays and Tuesdays…
You may actually see Emi Sakura and some other TJPW and DDT folks. I’m pretty sure Maki Itoh is still an honorary member of the Dark Order…
Those outside of the US can catch it on Fite TV. We have a FanFare and everything!
posted by The Pluto Gangsta at 2:54 PM on April 4, 2023 [1 favorite]
There’s also All Elite Wrestling, which is on TNT Wednesdays at 8pm EST and also Fridays on TBS at 10pm EST (most of the time… the Friday scheduling is sometimes subject to changes) and also does YouTube show on Mondays and Tuesdays…
You may actually see Emi Sakura and some other TJPW and DDT folks. I’m pretty sure Maki Itoh is still an honorary member of the Dark Order…
Those outside of the US can catch it on Fite TV. We have a FanFare and everything!
posted by The Pluto Gangsta at 2:54 PM on April 4, 2023 [1 favorite]
Does UFC and WWE being under the same parent company hurt chances of unionization, help, or indifferent because the two groups would likely not form a single union given the difference of job?
It's been so long since anyone seriously raised the idea of unionization anywhere in wrestling that it was a punchline of Sami Zayn's character at least three gimmick changes ago.
posted by Etrigan at 6:44 PM on April 4, 2023
It's been so long since anyone seriously raised the idea of unionization anywhere in wrestling that it was a punchline of Sami Zayn's character at least three gimmick changes ago.
posted by Etrigan at 6:44 PM on April 4, 2023
The last person to bring it up in any serious context was Thea Trinidad a/k/a Zelina Vega, after WWE fired her for not giving up her Twitch stream.... until they hired her back.
posted by The Pluto Gangsta at 1:01 PM on April 5, 2023
posted by The Pluto Gangsta at 1:01 PM on April 5, 2023
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The transaction also puts a price of approximately $106 per share on WWE, before any post-closing dividend.
Like, I don't pretend to know anything about mergers, but that's something like a 20% premium, isn't it?
posted by uncleozzy at 8:41 AM on April 3, 2023