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According to TKO President Mark Shapiro, the UFC’s upcoming White House card on June 14 will not make a profit.

Shapiro revealed that the expenses for the fight—commemorating the US 250th anniversary of the Declaration of Independance—have surged to approximately $60 million. This budget is nearly three times the cost of the UFC’s Las Vegas Sphere card. While Shapiro expects to recoup roughly half of that, the company is braced for a $30 million deficit.

A significant factor in this shortfall is the decision to keep the event invitation-only, which forces the UFC to walk away from millions in typical ticket sales. Furthermore, the overhead includes a $700,000 commitment to fully restore the presidential grounds immediately following the fights. Despite the projected multi-million dollar loss, Shapiro maintains that the prestige and unprecedented exposure of the event represent a vital “investment” in the organization’s future market value.

Shapiro Reacts

​​”At the moment, the UFC event at the White House is slated to cost upwards of $60 million dollars. By the time all is said and done, and what we pay the fighters and the fanfest, that could move north, it’s definitely not moving south. It’s still a moving target. We’re working to determine, on a parallel track, a package of inventory in and around the weekend of events that we can monetize, primarily with corporate partners, which will offset half of the spending. Even if that 60 goes up, we believe we can offset half of the spend.

“Today, we see it as 60 offsetting 30.“We have several interperspective partners that are pursuing multi-year partnerships with TKO assets that will likely be inclusive of the White House event. They are inquiring about inventory as part of their greater partnership deals that they either already have or are negotiating in the future. We will not profit from the White House event independently. We will not be making money on America’s 250th Anniversary. This is an investment for the long term. This is about earned media, sampling new fans and casual viewers, a spectacle on a stage that will ultimately expand our audience, our viewership, and our success on Paramount+,” Shapiro said

The Benefits

The primary return on investment is the publicity gained through the promotion. By staging a fight on the South Lawn to celebrate the US 250th anniversary, the UFC expects to generate global headlines that transcend the sport,. This association with the White House serves as the ultimate big break for the brand. This is especially if numerous American fighters leave their mark in the sport, as fans await for the card.

The event will show off the UFC’s $7.7 billion media rights deal with Paramount+, which started in January. Because the card will air on CBS and Paramount+, it provides a massive opportunity to reach over 100 million households. The fighters will walk out directly from the Oval Office and could drive a record number of new subscribers for Paramount+. This is especially since a casual audience might never buy a traditional Pay-Per-View, but with Paramount+, they do not have to do so.

This article first appeared on BoxingNews.com and was syndicated with permission.

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