TKO Group beat expectations in the first quarter of 2024, fueled by a new relationship with Netflix and easing investor concern over the future of Vince McMahon and UFC’s antitrust lawsuit, reports SBJ's Adam Stern.

The umbrella company of UFC and WWE earned $629 million in revenue in the first quarter, beating Wall Street estimates of $609 million, according to Zacks Equity Research. The company suffered a net loss of $249.5 million in the quarter, as well as decreases in cash flow and free cash flow. But that was largely due to taking a $335 million charge related to settling the UFC fighter antitrust lawsuit, which the street viewed as a favorable outcome for UFC due to concerns that a trial could have brought an even more unfavorable outcome to the company. TKO’s stock is up more than 22% this year heading into the close of business today, closing at $98.27 with no movement in after-hours trading as of this report.

UFC held one fewer PPV event compared to the same quarter last year but still delivered higher revenue with a 2% or $6.3 million increase, largely fueled by more sponsorship revenue and a better mix of event-related revenue. That includes the start of UFC’s new official beer deal with Anheuser-Busch, and the combined UFC/WWE sales team continues to carve out inventory to bring in new partners. TKO Group believes that there are still several categories left to sell for UFC, according to a person familiar with the matter. The company is also looking forward to the return of UFC superstar Conor McGregor after nearly three years out from injury should also

WWE revenue increased 6% in the quarter, and its new deal with Netflix has helped TKO’s stock stage a comeback after it had dropped double digits from its IPO price last year. WWE is also announcing today that NBCUniversal’s USA Network will continue to air “Raw” in the fourth quarter of this year in a deal worth $25 million to TKO, before Netflix takes over next year.

Adidas has named recently retired WNBAer Candace Parker President of Women's Basketball. It is a "first-of-its-kind role" for Adidas, in which Parker will work to "oversee product lines, expand the brand’s existing athlete roster and increase representation" among her responsibilities. Parker has long roots with Adidas, having worn the brand’s shoes in high school and college and officially signing as a professional athlete in 2008. She became the first woman to have a signature shoe with Adidas when her ACE Commander was released in 2010, "headlined multiple collections" with the brand and has "acted as a mentor for collegiate Adidas athletes" in the NIL era. Parker will have "input on new product lines" while also "building upon Adidas' women’s basketball athlete roster," which currently includes Aliyah Boston, Hailey Van Lith, Kahleah Copper, Aaliyah Edwards, Chelsea Gray, Betnijah Laney, Alysha Clark, Nneka Ogwumike, Chiney Ogwumike and Erica Wheeler, among others (SI, 5/8).

TKO Group beat expectations on top and bottom line in the first quarter of 2024 and is raising its full-year guidance accordingly, fueled by a new relationship with Netflix and allayed investor concern over the future of Vince McMahon and UFC’s antitrust lawsuit. The umbrella company of UFC and WWE earned $629M in revenue in the first quarter, beating Wall Street estimates of $609M, according to Zacks Equity Research. TKO also beat analyst expectations on the bottom line, with an adjusted EBITDA of $282M, topping estimates of $263M.

The company suffered a net loss of $249.5M in the quarter, as well as decreases in cash flow and free cash flow. But that was largely due to taking a $335M charge related to settling the UFC fighter antitrust lawsuit, which the street viewed as a favorable outcome for UFC due to concerns that a trial could have brought an even more unfavorable outcome to the company. TKO’s stock is up more than 22% this year heading into the close of business today, trading at $98.30 as of presstime.

UFC held one fewer PPV event compared to the same quarter last year but still delivered higher revenue with a 2% or $6.3M increase, largely fueled by more sponsorship revenue and a better mix of event-related revenue. WWE revenue increased 6% in the quarter, and its new deal with Netflix has helped TKO’s stock stage a comeback after it had dropped double digits from its IPO price last year. WWE is also announcing today that NBCUniversal’s USA Network will continue to air “Raw” in the fourth quarter of this year in a deal worth $25M to TKO, before Netflix takes over next year.

As a result of beating analyst expectations and securing the Q4 extension with NBCUniversal, TKO Group is raising its full-year guidance from a range of $2.575-2.650B to a range of $2.610-2.685B. It also upped its target for adjusted EBITDA to a range of $1.185-1.205B.

The Dallas City Council today unanimously approved an agreement "meant to pave the way for a new women’s pro soccer team to call the Cotton Bowl Stadium home" starting this summer. The council authorized a two-year, $592,000 subsidy for the operators of Fair Park to "secure a contract" with the unnamed USL Super League team to play home games at the more than 90-year-old stadium in South Dallas. There is an option for the $296,000 annual subsidy to continue for a third year. The team is "planning to reveal the club’s name, logo and other branding and more details about the upcoming season" during an event tomorrow morning at Klyde Warren Park (DALLAS MORNING NEWS, 5/8).

Two congressmen introduced a bill today that would "provide the NCAA, college conferences and member schools federal protection from legal challenges that stand in the way of their ability to govern college sports." The Protect The Ball Act is sponsored by Rep. Russell Fry (R-S.C.) and Rep. Barry Moore (R-Ala.) and is "intended to provide legal safe harbor" for the entities that run college sports, which have been "under siege" from antitrust lawsuits. The Protect the Ball Act would give the NCAA "protection from litigation and allow the association and conferences to regulate things" like recruiting, eligibility standards and the way college athletes are compensated for NIL. The Protect the Ball Act is a "narrow bill intended to support broader legislation that would create a national standard for NIL compensation in college sports" (AP, 5/8).

Pirates games will "remain on Audacy Pittsburgh radio stations through the 2027 season." The parties agreed to a "broadcast contract extension that will keep Pirates games" on KDKA-FM, which has been the team’s flagship station since 2012. Audacy Pittsburgh also will "continue to offer games on its sister stations 100.1 FM and 1020 AM," including the "airing of all weekday afternoon games" (TRIBLIVE.com, 5/8).

Indiana entrepreneur Chuck Surack has joined the USL Indy Eleven "as a co-owner ... and as an investor in the private development" of the team's plan to "build a Major League Soccer-eligible stadium at the planned Eleven Park mixed-use development in downtown Indianapolis." The Indy Eleven's announcement today "is the latest salvo in an increasingly contentious duel to land an MLS franchise and construct a new downtown stadium." Surack joins Ersal Ozdemir as a financial backer of the project that is being opposed by a "separate effort to bring an MLS team to Indianapolis" by Mayor Joe Hogsett (INDIANAPOLIS STAR, 5/8).

RELATED: Indianapolis' push for MLS team coming at expense of USL club's plans

On this week's episode of The Sports Media Podcast, SBJ's Austin Karp and Ted Keith give their Who's Up and Who's Down. As his Who's Up, Karp picked NBC's Rick Cordella for the network's broadcast of the Kentucky Derby on Saturday, along with extending their rights deal with the event. Keith chose ESPN producer Malinda Adams as his Who's Up after the praise she received following an interaction she had with Bucks G Patrick Beverley, who Keith picked as his Who's Down this week. Karp for his Who's Down chose the WNBA for the league not airing Angel Reese and Kamilla Cardoso's debut with the Chicago Sky.

ESPN’s coverage of the PGA Championship will add an alternate betting telecast featuring ESPN Bet. The telecast, ESPN Bet at the PGA Championship, will air for two hours each day during all four days of play at the event, which will be held at Valhalla Golf Club (ESPN).

Street League Skateboarding and Jones Soda Co. signed a multiyear partnership which will feature an integration of Jones products into SLS venues, SLS athlete activations, content, and branding throughout the 2024 and 2025 SLS seasons. Jones will also serve as the official sponsor of SLS Futures, the league’s new youth development program (SLS).

Clif Bar launched a new campaign, “The Most Important Ingredient is You,” featuring athlete partners like tennis player Frances Tiafoe, Portland Thorns F Sophia Smith and N.Y. Liberty F Breanna Stewart (Clif Bar).

Rogers Communications has become the title partner of Canada’s only PGA Tour Champions tournament in Calgary, formerly the Shaw Charity Classic, and is kickstarting fundraising for the event’s charitable arm with a $1M donation (Rogers).

The UFL has partnered with Visit Missouri and its "Road to Missouri" campaign ahead of the UFL Championship game at The Dome at America’s Center on June 16. The partnership will feature various initiatives including game-day experiences, social media campaigns and promotions highlighting Missouri (UFL).

USA Swimming today launched its Goggles On marketing campaign. The new multiyear campaign aims to increase aquatic participation at all levels and offers free marketing resources to any aquatic program or facility (USA Swimming).

The NHL, NHLPA and SAP have named three finalists for the Future Goals Most Valuable Teacher of the Year. The three were selected as Future Goals Most Valuable Teacher of the Month in Jan., Feb. and March, respectively, and their school districts were awarded $10,000 in environmental sustainability resource donations from SAP. Fans can go to NHL.com/MVT between May 6-10 to vote for the overall winner, whose school district will receive an additional $20,000 donation (NHL).

Brazil’s soccer federation has "suspended matches" involving three top-tier clubs of the country’s flood-ridden southern region for 20 days. Gremio, Internacional and Juventude, which are based in the state of Rio Grande do Sul, "will only return to activities after the harms of major flooding are mitigated." Ten of their matches in the Brazilian league and the Brazilian Cup will be rescheduled (AP, 5/8).

All 36 English Football League matches on the opening weekend of next season, including the Saturday 3pm kick-offs, "will be streamed lived on Sky Sports," with six games screened "every Saturday lunchtime for the rest of the campaign" (London TIMES, 5/8).

🔥 The Olympic flame is on this ship… but not for long!

⚓🇫🇷 The Belem is about to dock in Marseille, and the French leg of the Olympic Torch Relay will soon begin.#OlympicTorchRelay | #Paris2024 | @Paris2024 pic.twitter.com/z4Vdsc3YnC

— The Olympic Games (@Olympics) May 8, 2024

Here’s the video of Boomer Esiason saying he expects the NFL to sell the Christmas Day games to Netflix. pic.twitter.com/8mIIx1yPzy

— Jimmy Traina (@JimmyTraina) May 8, 2024

DC FANDUEL

Per @DCLottery:

In the first 2 WEEKS of FanDuel in DC, revenue was $1.1 million.

For context, under 4 YEARS of GamBet DC, the district's revenue was just over $4 million.

At that pace, it'll take the district two months to make what it did in 4 years under GamBet. pic.twitter.com/5dspPJ6N2l

— David Kaplan (@DKaplanFox5DC) May 8, 2024

Lots of questions about the Met Gala here. Nelly shares a few tidbits about the night. Shakira had her the most star struck, it was her first red carpet and her first spray tan ever (can't be rocking a sock tan at fashion's biggest night). https://t.co/MHjHnirlTH

— Meg Adkins (@megadkins_TFE) May 8, 2024

Feel like we’re playing with fire with some of these hats! pic.twitter.com/UCRPRdasiF

— Patrick McDonald (@pmcdonaldCBS) May 8, 2024

Rory invoked the Good Friday Agreement as an example of how both sides in this deal might not like the outcome but it in the end would bring peace. We've clearly reached another level. #golf

— Bob Harig (@BobHarig) May 8, 2024

To honor National Mobility Awareness Month, Pennzoil brought together Joey Logano, NASCAR driver of the No. 22 Shell-Pennzoil Ford Mustang, and Torsten Gross, an advocate for mobility and a C6 quadriplegic, to create original content that champions innovation, accessibility and a deep love for driving (Penzoil).

$274,550 -- Auction house Bonhams is running an auction of the napkin upon which Lionel Messi’s first Barcelona agreement was informally written. The auction runs until May 17, with a starting price of $274,550, on behalf of Argentine player agent Horacio Gaggioli (THE ATHLETIC, 5/8).