The UFC is increasingly prioritizing the fees paid by host cities, states, and countries to secure events, making these “site fees” a crucial factor in deciding where fight cards take place. Azerbaijan serves as one of the latest examples of a location willing to invest significantly to host an event under this `pay to play` model.
A site fee is essentially a financial contribution from a local government or entity to the UFC in exchange for bringing a live event to their area. The UFC has successfully negotiated substantial fees, including a recent agreement for events in Saudi Arabia, building on established long-term partnerships like those in Abu Dhabi.
While the exact fee paid by Baku, Azerbaijan, for the June 21st event wasn`t publicly disclosed, Mark Shapiro, President and COO of TKO Group Holdings (the parent company of UFC and WWE), indicated that the nation bore a significant cost to land the event.
Speaking at a recent conference, Shapiro detailed the company`s strategy of actively seeking out these lucrative deals. He mentioned successful instances like WWE`s Royal Rumble in Indianapolis and SummerSlam in New Jersey, which commanded a $7 million fee. He also highlighted a commitment for multiple UFC events in Perth, Australia.
Specifically referring to the upcoming Azerbaijan event, Shapiro stated, “in June, we’re going for multi-millions to Baku, Azerbaijan.” He contrasted these major deals with more standard event locations.
The conversation also touched on recent weekends where TKO held multiple events simultaneously in one city, such as a “TKO takeover” in Kansas City, Missouri, featuring UFC, WWE, and Professional Bull Riders events.
Since the merger forming TKO, executives like Shapiro have discussed the potential for multi-event city takeovers to increase their negotiating power and encourage local governments to offer premium site fees.
Although Shapiro suggested the Kansas City model could be a future template, he clearly stated that financial return remains the primary driver. “Make no mistake about it, we are driven by the financial return,” he asserted, noting that while events like Kansas City offer benefits like earned media and logistical ease, site fees are the “priority driver.”
Another illustration of this strategy is WWE`s recent WrestleMania 41 in Las Vegas. While it involved a significant site fee from the city, Shapiro argued the city received immense value in return.
He pointed to an economic impact study for WrestleMania 41, which estimated that the event generated an impressive $320 million for the city of Las Vegas, demonstrating the substantial economic benefits that can accompany hosting such a major event, even with a high site fee.
The business of securing site fees has become so central to TKO`s strategy that Shapiro revealed they have a dedicated team focused specifically on this area. This suggests that potentially unexpected locations like Azerbaijan are part of a deliberate and ongoing global search.
This specialized team works closely with government relations but also includes staff on the ground in various cities whose job is to identify entities willing to “pay to play” and host events, indicating a proactive approach to maximizing these revenue streams.
Wesley Dunham