WWE And Endeavor Buyers Overreact To Saudi Funding In PFL
Ring Mastery: April’s Wrestlemania 39—which featured a match between Logan Paul and Seth Rollins—was the highest-grossing occasion in WWE historical past.
PHOTO BY RONALD MARTINEZ/GETTY IMAGES
A $100 million funding within the Skilled Fighters League has put the smackdown on Endeavor Group Holdings’ inventory.
The inventory market is extremely irrational.
Within the two says because it was reported that SRJ Sports activities Investments, an organization launched earlier this month by Saudi Arabia’s Public Funding Fund, acquired a minority stake in blended martial arts promotion Skilled Fighters League for some $100 million, World Wrestling Leisure’s (WWE) market capitalization has plummeted to $8 billion from $9.6 billion, whereas Endeavor Group Holdings (proprietor of UFC and WWE) market cap dropped to $6.6 billion from $7.4 billion.
In different phrases, Wall Road has guess {that a} $100 million of capital within the PFL equates a $2.4 billion evisceration in its rivals. I get the worry of piles of Saudi cash fueling international progress for the PFL. Buyers are nervous, after all, as a result of WWE and UFC are set to finish their merger as a public firm subsequent month. Nonetheless, the scale of loss in market cap for WWE and Endeavor borders on the absurd as a result of it fails to account for the model energy of the 2 entities and the enterprise acumen of their administration.
UFC is by far the largest MMA promotion on this planet and is a among the many Most worthy international sports activities manufacturers. Maybe extra necessary, it’s led by Dana White, among the many high sports activities entrepreneurs of this century.
WWE, in the meantime, regardless of the recognition and success of its current challenger All Elite Wrestling, remains to be, by far, extra in style on tv. And its venerable Wrestlemania franchise—primarily the Tremendous Bowl {of professional} wrestling—set data for viewership, gate, sponsorship, merchandise and social media. in April. And naturally, its CEO, Vince McMahon, has been a visionary.
Take a breath, of us, even when the $100 million funding within the PFL turns into $200 million or $300 million, it nonetheless doesn’t come near equaling $2.4 billion.
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