TKO Group Holdings Inc at Goldman Sachs Communacopia & Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Stephen Laszczyk - Goldman Sachs - Analyst : So Mark, tomorrow is the one-year anniversary of TKO becoming a publicly traded company. So to start, I thought it would be great. Just if you could update us on the confidence behind the thesis of bringing both the UFC and WWE together, some of the things you're most proud about over the last year? And what opportunities looking ahead, you're still most excited about?

Question: Stephen Laszczyk - Goldman Sachs - Analyst : That's a great overview. I want to touch on a lot of what you just mentioned. But maybe for starting with the sports media rights. Mark, you've been in sports media longer than just about anyone. On your most recent earnings call, you said something that I thought was interesting, which is that the market is as hot as you've ever seen it. I was curious if you could just talk a little bit more about what you're seeing in the market today, maybe perhaps the headlines around the NBA, the French Open. But what types of conversations are you having that gives you that confidence?

Question: Stephen Laszczyk - Goldman Sachs - Analyst : Your domestic media rights on the UFC side are up with ESPN in about four months. You mentioned that as ESPN has been a fantastic partner of yours, that said it wouldn't be a surprise if others came in and were interested in the rights as well. Just curious how you're thinking about your approach to that media rights negotiation with ESPN and others and how you're thinking about maximizing the value of the UFC media rights through this next round of negotiations?

Question: Stephen Laszczyk - Goldman Sachs - Analyst : The pay-per-view aspect of the UFC deal is highly unique. I think in the past, Mark, you may have mentioned that one of the reasons you originally sold the pay-per-view deal to the ESPN at the time when Endeavor was coming back was the quarterly volatility in the pay-per-view buys. A lot has changed since then, your investor base is different say than what it was back when Endeavor came public. I'm curious if you're approaching that pay-per-view portion of the UFC contract in a different light to the extent you want to bring more of that risk on to your balance sheet or onto your P&L, what that could look like and how you would manage pay-per-view if it was brought in house?

Question: Stephen Laszczyk - Goldman Sachs - Analyst : You mentioned the PLEs on the WWE side up at the beginning of 2026. Just curious how you're thinking about the uniqueness of that content within the sports media market today? And how you're feeling generally going into those negotiations?

Question: Stephen Laszczyk - Goldman Sachs - Analyst : Last question on sports media, thinking longer term. We have conversations with investors, and I think there's a debate longer term on the future of sports media rights and the valuation step-ups. And if we continue to see more or less what we've seen for the last decade or two, we see some carriage disputes with the last year to TVs, the most recent one. So I'm curious from your angle, what's the argument or the pitch long term for why sports media rights can step up, not just through the next round of negotiations, but thinking 5, 10, 15 years into the future? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 5:50PM, TKO.N - TKO Group Holdings Inc at Goldman Sachs Communacopia & Technology Conference

Question: Stephen Laszczyk - Goldman Sachs - Analyst : Let's pivot over and talk about sponsorship. On the UFC side, it's been a fantastic success story. I think you're up to over $200 million in revenue at the moment. What's the opportunity from here? How much more inventory can you create? How many more verticals can you tap into existing sponsorship stepping them up into the broader packages?

Question: Stephen Laszczyk - Goldman Sachs - Analyst : On the live events side, nice opportunity as well. Thinking ahead here across both UFC, WWE, what's the opportunity? And there's maybe some room on the event mix side, perhaps on capacity, pricing you've talked about in the past. Site fees, of course.

Question: Stephen Laszczyk - Goldman Sachs - Analyst : Maybe switching to the expense structure and cost synergies have been a big part of the thesis. You opened by mentioning the $100 million in cost energies guiding to above and beyond that at this point. Maybe looking from here, where in the cost structure do you think there's perhaps the most opportunity to get more efficient? You mentioned just operating leverage on in the business naturally and the WWE side by becoming more efficient in the events. Where could margins get to you for this business over the long term?

Question: Stephen Laszczyk - Goldman Sachs - Analyst : I want to touch on the class action settlement back in July -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 5:50PM, TKO.N - TKO Group Holdings Inc at Goldman Sachs Communacopia & Technology Conference

Question: Stephen Laszczyk - Goldman Sachs - Analyst : Back in July, TKO, previously reached a settlement with two classes of UFC fighters. It was rejected by a district judge. One of the trials is set for February of 2025. If you could just spend a minute or two addressing the settlement, how you think it plays out from here? And one of the questions we get from investors is why should we be confident that the economic risks to your business won't exceed the original deal or perhaps even result in some change to the way UFC fighters are compensated?

Question: Stephen Laszczyk - Goldman Sachs - Analyst : Very clear. With a few seconds left, I want to get your take going into this weekend, UFC 306 at the Sphere. What could we expect? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 5:50PM, TKO.N - TKO Group Holdings Inc at Goldman Sachs Communacopia & Technology Conference

Question: Stephen Laszczyk - Goldman Sachs - Analyst : Great. Mark, thank you so much. Always great having you.