TKO and Saudi Arabia looking at starting new boxing league
According to a report from the New York Times, a company owned by Saudi Arabia’s Public Investment Fund is “close” to creating a boxing league with TKO which would featuring “up-and-coming boxers tied exclusively to the league.”
The report notes that TKO said in a statement on Wednesday it had “nothing to announce,” but that it “would evaluate any unique and compelling opportunity that could fit well in our portfolio of businesses and create incremental value for our shareholders.” The wealth fund did not have any comments.
Furthermore it was said the investment in the new league will be made by Sela, a subsidiary of the Public Investment Fund. People familiar with the matter, in anonymity speaking to the New York Times said that TKO would be a managing partner and has been offered an equity stake and a share of the revenue.
Should the deal be completed, TKO will earn management fees of close to $30 million a year. Saudi Arabia is expected to pay significantly more in hosting fees to the league than any other country, according to details of the plan reviewed by The New York Times. Two fights there will bring in more than $40 million in fees. Other bouts are planned for the United States and Europe, where the hosting fees will be far lower.
Furthermore, one person that is familiar with the matter said that TKO has also been talking with other parties, including other Arab nations about the boxing league.
The New York Times also notes that Endeavor, TKO’s parent company and Saudi Arabia at times, had a bad relationship and this potential new partnership could be a sign the two may have repaired the strained relationship. Back in 2019, after the murder of the Saudi journalist Jamal Khashoggi, Endeavor returned a $400 million investment which was provided by the Saudi sovereign wealth fund.
WWE officially announced the Royal Rumble will take place in Saudi Arabia in 2026.
