Daniel Wolfram
The fighting cooperation UFC took a loss of 30 million dollars after having its Freedom 250 on the White House lawn.
It is a costly endeavor to get into business with the Trump administration.
That is something the owners behind the Ultimate Fighting Championship (UFC) had to realize after losing tens of millions of dollars.
The financial loss comes after the highly controversial event at the White House.
A costly spectacle
The Guardian and BBC News report that the UFC lost around $30 million after staging its Freedom 250 card on the South Lawn of the White House in June. The event was created to celebrate the 250th anniversary of America’s independence and coincided with President Donald Trump’s 80th birthday.
The organizers behind the event created a venue holding roughly 4,300 seats around the octagon in the middle of the White House lawn. None of the seats was available to UFC fans, as tickets were reserved exclusively for political allies, celebrities, corporate sponsors, and military members.
Production costs quickly climbed past $60 million. The parent company TKO Group Holdings therefore saw its second-quarter profit margins drop drastically.
Executive chair and CEO Ariel Emanuel still remained upbeat about financial results. “Despite a challenging global environment, TKO delivered solid results in Q2, with strong momentum heading into the back half of the year,” Emanuel said.
The event produced record numbers
TKO Chief Financial Officer Andrew Schleimer told investors that higher expenses were “partially offset by sold-out global partnerships inventory.”
Even so, Schleimer acknowledged the financial strain. “Given the event’s profile, which, as anticipated, resulted in an approximate $30m loss, our margins at UFC as well as on a consolidated basis were meaningfully impacted,” he explained.
On screen, the extravaganza turned out to be a massive success. Despite being broadcast exclusively on the Paramount+ streaming service in the US and Latin America, the card reached a record-breaking 17 million total viewers, making it one of the most-watched combat sports events.
A highly controversial and divisive event
Inside the octagon, fight fans witnessed an upset when American fighter Justin Gaethje dethroned Spain’s Ilia Topuria to secure the lightweight title.
However, what drew the most headlines during the night came after an ill-advised political commentary. Heavyweight fighter Josh Hokit used his post-fight interview to repeat a disproved conspiracy theory accusing the former First Lady Michelle Obama of being a man.
Between record viewership and controversial moments, suffice it to say the evening grabbed headlines across the globe. Still, the partnership with the Trump administration left an enduring $30 million dent in the company’s budget.
