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TKO could lose between 70 million and 90 million dollars in EBITDA if its three upcoming Middle East events are cancelled.
According to a Guggenheim report dated October 20, reported by NoDQ.com, the three events at risk are WWE Crown Jewel on November 7, a UFC event in Qatar on November 21, and a UFC event in Saudi Arabia tentatively scheduled for December 5. The estimated loss would represent approximately 3.0 percent to 3.9 percent of TKO’s annual EBITDA.
WWE reportedly remains committed to holding Crown Jewel in Saudi Arabia on November 7, despite ongoing conflict involving Saudi Arabia and the Houthis, along with reports of attacks on infrastructure sites. TKO CEO Ari Emanuel said this week that Crown Jewel is still set, with a team doing daily monitoring of where it could move.
Dave Meltzer of F4WOnline also noted that, besides the revenue from the planned UFC and WWE shows over the next two months, the situation could also put WrestleMania in Saudi Arabia in jeopardy. Meltzer noted that Morgan Stanley has estimated the government is paying 150 million dollars for that show, and that sources from Saudi Arabia had said at the time the deal was finalized that the price tag was well over 100 million dollars.
What is confirmed is the Guggenheim estimate and the three events it covers. No cancellation has been announced, and Crown Jewel remains scheduled for November 7 in Riyadh. The loss figure is an estimate of what would happen if the events were cancelled, not a loss that has already happened.
Source: Guggenheim, h/t NoDQ.com
