The sale of several key sporting assets by heavyweight Endeavor, to its TKO sports vehicle, has been completed.
As of today, Endeavor has finalized the transferral of ownership of its IMG (sports agency), On Location (hospitality and events), and Professional Bull Riders (PBR) assets to TKO. In addition, the Asia-based digital agency Mailman (first bought by Endeavor in July 2021) now becomes part of the IMG heavyweight agency.
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While the IMG brand has been transferred, this does not apply specifically to IMG’s licensing and representation (across tennis and golf) divisions. Some properties on the IMG events portfolio are also set to remain a part of Endeavor (which is itself being taken private through Silver Lake).
Finally, the joint venture between IMG and the Euroleague Basketball, in place through 2035-36, has been transferred to sit under the TKO banner.
TKO, created in September 2023, currently houses the World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC) properties. Indeed, it was launched when Endeavor purchased WWE at that point and spun off UFC with that promotion.
The Mailman integration into IMG aims to boost the agency’s digital profile and resources, with the move meaning it now can offer digital services across five continents.
Mark Shapiro, president and chief operating officer at TKO, has said: “These industry-leading businesses will strengthen our portfolio of world-class IP and capabilities, helping us further capitalize on the momentum of the growing sports and entertainment ecosystem. By enhancing our expertise in sports rights, production, and premium events and experiences, we are better positioned to power the growth of UFC, WWE, and our extraordinary roster of partners.”
The sale of these assets by Endeavor was first disclosed in late October, as a $3.25 billion all-equity purchase. While the leadership of PBR and On Location remains unchanged, IMG president of media Adam Kelly now steps in as president of the IMG business as a whole.
Endeavor has owned IMG since 2013, On Location (which is the official hospitality provider for top-tier sporting events such as American football's Super Bowl) as a majority stakeholder since January 2020, and PBR since April 2015.
Multiple firms acted as advisors during the process, including Morgan Stanley & Co, The Raine Group, Latham & Watkins, Moelis & Company, and Skadden, Arps, Slate, Meagher & Flom.
This completion was unveiled soon after Endeavor’s fourth-quarter financial results were released.
Endeavor recorded revenue of close to $1.6 billion in the fourth quarter (Q4) of 2024 (up year-on-year from $1.46 billion) in what is potentially its last set of quarterly financials as a publicly-listed company.
The owned sports properties segment secured Q4 revenue of $670.4 million, up 4% year-on-year, and $2.9 billion for 2024.
