In the world of combat sports, UFC is known for the most epic showdowns and has evolved into a powerhouse when it comes to revenue generation. Despite its humble beginnings going back in 1993, it has since become a top global platform for professional mixed martial artists. The recent UFC -WWE merger has further made huge ripples in the realm of combat sports and it comes as no surprise to anyone that these two big shots of the industry are reaping substantial financial rewards.

A few days following their official debut, the company swiftly filed its S-1 document with the Securities and Exchange Commission (SEC). In a fashion similar to recent submissions made by Endeavor and the WWE in anticipation of their impending merger, this filing offers a comprehensive insight into the financial aspects of the UFC. And well, we are talking huge numbers here!

UFC revenue skyrockets in the first half of 2023

The submission of S-1 documentation by UFC presented a disclosure and exposed the fiscal well-being of the Ultimate Fighting Championship- marking a notable step from recent filings within the sports industry. Showcasing a substantial increase in revenue for the first half of 2023 as compared to last year, the revenue for the period ending in June saw an increase of $84.2 million as compared to the period concluding in June 2022. It also revealed that the company generated a whopping total revenue of $611.9 million.

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Subsequently, the lion’s share of UFC’s revenue stream originates from multiple sources, enclosing media rights and content broadcast fees, live spectacles, sponsorship agreements, and licensing ventures. Significantly, each facet of revenue generation experienced an increase in its monetary inflow. Notably, in relation to all other categories,  media rights, and content broadcast thus boasted an upright of nearly $50 million in comparison to the equivalent period in 2022.

However, in terms of setbacks, the increased revenue amounted to a 16% increase as compared to last year and presented a slightly decreased income. With more exciting events to come, a bigger number won’t be a far-fetched idea.

Rising expenses impact UFC’s financials

Hand-in-hand with the increased cash flow, the expenses appear to have increased substantially as well. This is especially visible in terms of direct expenses, selling, general, and administrative expenses, depreciation and amortization, as well as interest expenses. It can be thus speculated that all of these together, might just hit the UFC’s balance sheet hard in the next cycle.

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The operating expenses for the first half of 2023 saw an increase of $28.1 million, which accounts for a 19.5% increase as compared to last year. This was massively due to event production, marketing, and employee benefit expenses. The selling, general, and admin costs as well as the depreciation and amortization costs also increased for the company by $20.6 million which is a 20.8% increase as compared to last year. Depreciation and amortization slightly rose to $30.2 million.

In light of this, how the promotion deals with the financial gushes and what could be the numbers for the next half would be interesting to see. To stay updated, keep an eye on this space.

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