The UFC's parent company is going public
On Thursday afternoon, according to a report from The Hollywood Reporter, the entertainment conglomerate, Edeavor (EDR), filed the paperwork with the Securities and Exchange Commission.
According to the SEC's website, the company headed by Ari Emanuel and Patrick Whitesell generated $ 3.61 billion in revenue for 2018 with a net income of $ 100.1 million after adjustments. The report also indicated Endeavor's revenue increased drastically between December 2016 and 2017 “primarily due to the impact of the UFC Acquisition, increased revenue from media rights and a higher number of events and increased sponsorships at these events.”
However, the form also several potential risks, including the possibility of being "sued over alleged long-term neurocognitive impairment arising from concussions" as well as collective bargaining:
"There have also been efforts to unionize the MMA athletes that participate in UFC's events. A work stoppage at one or more of our operated venues or at our promoted events could have an adverse effect on our business, financial condition and results of operations. We cannot predict the effect that a potential work would have on our business. "
" The UFC is currently named in five related class- Action lawsuits filed against the alleged UFC violated Section 2 of the Sherman Antitrust Act of 1890 by monopolizing the alleged market for elite professional MMA athletes' services. If these issues are resolved favorably, our business, operating results and our financial condition may be adversely affected. ”