TKO Group Holdings (TKO)

⚠️ Shariah Status: NON-COMPLIANT

Before anything else — TKO Group Holdings (NYSE: TKO) is classified as Shariah NON-COMPLIANT in our reference database (zoya_us_stock_reference). This is not a stock mahersaham can recommend as a Shariah-compliant investment. Plausible qualitative drivers behind this classification (not an exact screen ratio): exposure to sportsbook/gambling-adjacent sponsorships (many UFC and WWE events are sponsored by sports-betting operators), and an elevated interest-bearing debt level (net leverage of 2.3x) that commonly breaches conventional debt-to-market-cap Shariah screens. The sections below are for educational and business-understanding purposes only — not a buy recommendation.

From "WWE + UFC" to an Integrated Sports-Media Platform

Many people still think of TKO as just "the wrestling and UFC company." The story has actually moved on significantly. TKO was formed in September 2023 through the merger of WWE and UFC (Endeavor's Zuffa unit), but since then it has transformed into something much bigger. On February 28, 2025, TKO completed a $3.25 billion all-equity acquisition of Professional Bull Riders (PBR), On Location (event hospitality — Super Bowl, Ryder Cup, FIFA World Cup, Olympics), and IMG (sports media rights, production, consultancy) — all purchased from its own majority owner, Endeavor.

This acquisition did more than add a new business line — it created an entirely new reporting segment called "IMG," which is now TKO's largest segment by revenue, surpassing both UFC and WWE individually. In Q1 2026, IMG generated $655.4 million in revenue, versus UFC's $401.2 million and WWE's $475.7 million. This means TKO is no longer a two-property pure-play dependent entirely on its media-rights renewal cycle — it is now a diversified hospitality + media-services + live-sports platform.

Revenue Mix by Segment (Q1 2026)

Worth noting — this acquisition was bought directly from Endeavor (TKO's own majority owner), making it a related-party transaction. It was also paid entirely in stock (all-equity), which pushed TKO's shares outstanding up roughly 7.2% year-over-year — a dilutive event for existing shareholders.

Management Team

• Ari Emanuel — Executive Chair & CEO. Co-founder of Endeavor and one of the most influential figures in global entertainment. Appointed TKO CEO in September 2023. 2025 compensation: $67.3 million ($3M salary, $11.9M bonus, ~$44M in stock awards, $8.1M non-equity incentive).
• Mark Shapiro — President & COO. Also serves as President of Endeavor since December 2018. 2025 compensation rose to $42.6 million (from $31.9 million in 2024).
• Nick Khan — President of WWE, TKO board member. 2025 compensation: $24.3 million.

These executive compensation figures are large relative to the company's size — something worth weighing when assessing TKO's overall governance profile.

Endeavor's Control — A Key Governance Issue

Endeavor holds approximately 51% of the voting power in TKO, enough to control board elections, charter amendments, and M&A approvals. TKO has also opted out of several standard listed-company governance requirements under its "controlled company" status. This means public minority shareholders have materially less influence than in a typical listed company. We go deeper on this (including what happened when Endeavor itself went private) in the premium section below.

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