WWE stock has taken a hit following the news of Saudi Arabia’s Public Investment Fund (PIF) acquiring a minority stake in the Professional Fighters League (PFL). The PFL recently announced that it sold a minority stake to SRJ Sports Investments, a company created through the Saudi PIF, for $100 million. This investment will facilitate the signing of top talent and star fighters, as well as accelerate the global expansion of the PFL. The deal also includes plans for “Super Fight” pay-per-view events in Saudi Arabia and the launch of a PFL MENA league in the Middle East and North Africa by 2024.
The impact of this investment was immediately felt in the stock market. WWE stock opened at $115.47 but closed the day at $110.03. As of the time of writing, the stock is trading at $95.61, down 13.12% from its opening price. Similarly, Endeavor stock, which is also involved in the merger between WWE and UFC as TKO, opened at $24.27 but has dropped to $21.84, a decrease of 9.57%.
The introduction of MMA into the WWE world through the TKO merger has caused concern among investors. Despite UFC’s dominance in the market over the PFL, the significant investment in the PFL by the Saudi PIF has raised questions about the long-term talent costs for WWE and UFC. Stock analyst Peter Supino from Wolfe Wolfe Research believes that the PIF backing does not bode well for WWE and UFC’s talent costs in the future. He also suggests that the PFL’s investment plans could impact WWE’s valuation multiple.
However, Guggenheim stock analyst Curry Baker does not view the Saudi investment in the PFL as a game changer for WWE or Endeavor. Baker believes that the investment is not significant enough to allow the PFL to compete with the depth of champions or weight classes of the UFC. He remains positive about the pending WWE-UFC merger.
The PFL is positioning itself as a competitor to the UFC. They have already announced that YouTuber-turned-boxer Jake Paul will fight on one of their shows in 2024. Additionally, former UFC Heavyweight Champion Francis Ngannou, who recently signed a multi-fight contract with the PFL, is expected to fight MMA under the PFL banner. Ngannou is also on the PFL global advisory board and has been appointed as an equity owner and chairman of the planned PFL Africa league.
While the stock market has reacted negatively to the Saudi investment in the PFL, it remains to be seen how this will impact the overall landscape of professional wrestling and MMA. The WWE and Endeavor will need to navigate this new challenge as they move forward with the TKO merger. For more updates on this story and other wrestling news, stay tuned to Prowrestlingwars.com.