WWE exploring cutting back on house shows as part of cost-cutting initiatives

TKO chief operating officer Mark Shapiro said they are looking to cut back on WWE house shows in the future as part of a cost-cutting initiative with both WWE and UFC.

Speaking at Monday's UBS media conference, Shapiro said while those house shows (what he called "cards" and/or "superstar events") are good for the brand, building an audience and bringing the brand to "C and D counties," "from a margin perspective, they're dilutive."

"There's probably an opportunity as we go through our synergies and efficiency opportunities, to cut back on some of those non-televised events which, of course, will push our margin up," he said, adding they are going through that exercise now.

He did not define what "C and D counties" meant, but it's assumed to be events in smaller cities and towns. He said they run 300 events a year with 170 of those televised.

Conversely, he would like to see more UFC Fight Night events and are exploring that, something both they and ESPN would like to see. He pointed to their six sellouts and impressive gates last quarter including their latest big financial success at Madison Square Garden. He did not indicate how many they are looking to add.

More cuts

After giving guidance that TKO could save up to $100 million in efficiencies post-merger, Shapiro said they will be at 75% of that by the end of 2024. 

"Frankly, I think there's a lot more from a production standpoint," specifically pointing to road crews and production for televised events for both UFC and WWE.

"There are a lot of production efficiencies. Even if our production chiefs want to tell me there's not, frankly, I worked at ESPN for 12 years, I oversaw all production, I have been through all the song and dance with every producer who treats every tape machine and camera like it's a baby and doesn't want to give it up. And we're here to improve our margins.

"We're going to scrutinize every dollar on production for every single event, every single one of these telecasts and improve our savings," he said.

Raw TV rights

Asked about any update on the domestic TV rights for WWE Raw, Shapiro didn't sound like they are in a rush, saying they could either wait until the NBA TV rights are completed or wait until the night before their current deal with NBCUniversal is up in the fall of 2024.

Site fees

Shapiro re-iterated TKO will continue to look for site fees for both WWE and UFC events, saying their deal for a combination of events in Australia generated $16 million. He also said there is a long line of countries who want to bring their events to their country.

Sponsorship

He said he won't be happy until they hit $1 billion in sponsorship revenue for the UFC as they want to be where the NBA and others are. 

With WWE, he said the "manifesto" by Vince McMahon for no sponsorship on the mat or other places has been thrown out and they are going to follow the same plan as the UFC. With the WWE audience, he said they are "very diverse, 40% female and heavy family."