The UFC strategically leverages site fees paid by local governments to decide event locations, with Azerbaijan being a recent example, as part of a broader strategy to maximize financial returns from hosting events globally.
The UFC has really capitalized on site fees. They’re a major factor in choosing where to host events. Azerbaijan is one of the latest to pay up for a fight card.
So, what’s a site fee? It’s basically cash from the local government to the UFC to host an event. The UFC has scored big deals, like in Saudi Arabia, after long-term agreements with places like Abu Dhabi.
We don’t know the exact fee Azerbaijan paid, but Mark Shapiro, TKO Group Holdings president, hinted it was hefty for the June 21 event in Baku. They’re not skimping!
“We’re looking under every stone,” Shapiro said at a conference. He mentioned big payouts for events like Royal Rumble in Indianapolis and SummerSlam in New Jersey, where they got $7 million.
And then there’s Baku, Azerbaijan, shelling out multi-millions. These aren’t just your everyday locations like Kansas City.
The talk began with the recent “TKO takeover” in Kansas City, where UFC, WWE, and Professional Bull Riders all held events. It’s all under the TKO umbrella.
Since the UFC-WWE merger, Shapiro and others have eyed chances to host multiple events in one city, making local governments more willing to pay premium site fees.
Kansas City was a “template” for future events, Shapiro said, but the financial gain is key. “We are driven by the financial return,” he added. It was a solid return, with great media coverage and fan engagement.
Recently, WWE went to Las Vegas for WrestleMania 41, earning a hefty fee. Shapiro said the city got its money’s worth, with a $320 million economic impact.
Site fees are now big business for UFC and WWE. Shapiro mentioned a whole team dedicated to this, ensuring Azerbaijan won’t be the last surprising host.