During a recent appearance at the Morgan Stanley Technology, Media & Telecom Conference, TKO Group Holdings President Mark Shapiro addressed several important topics, including the compensation of UFC fighters and WWE superstars. His remarks come amid ongoing discussions within the industry regarding athlete compensation in combat sports and sports entertainment. Shapiro mentioned that projected financial growth includes planned pay increases for talent.
He also provided an overview of the company’s recent financial performance, revealing that it achieved adjusted EBITDA margins of 33.5% last year. Shapiro added that internal projections estimate this year’s midpoint to be approximately 39.6%. He clarified that these forward-looking figures already account for increases in pay for fighters and superstars. Shapiro emphasized that talent compensation continues to be a priority as revenues grow.
This is what Mark Shapiro said, “Our margins last year were, adjusted for EBITDA, 33.5%. We have announced that midpoint in our guidance, we’re going to be roughly 39.6%, and that margin is inclusive of an increase of fighter and superstar pay. We take that very seriously.”
In reference to the UFC, Shapiro highlighted the promotion's recent shift in media rights to Paramount+. He mentioned that fighter bonuses were doubled at the beginning of this new agreement. Shapiro described this decision as part of a larger strategy to reinvest revenue gains back into the fighter roster. While he did not provide specific figures for the future, he indicated that further increases in bonuses are anticipated as the business continues to perform well.
“We are focused on all the ingredients that make our events what they are, and that starts with fighters and superstars. Whatever increases we have, and we will have increases, that are inclusive of the margins and guidance we have targeted.”
WWE and UFC now operate under the TKO umbrella after their merger, making compensation structures a closely monitored topic for athletes and analysts.
"The Experience Economy" according to TKO Group Holdings (WWE & UFC) 🥊@mrdipeshashah you may enjoy this. pic.twitter.com/Dua0Q2F0KH
— Tim Rowe (@stateofstreamtv) November 15, 2025
(H/T to Fightful for transcribing the above quotes)
