TKO Boss Defends WWE Pay Despite “Lean Cost Structure”
WWE and UFC’s parent company, Endeavor, combined to form TKO Group Holdings in September 2023.
Under the new leadership, changes like frequent budget cuts and lean cost structuring were implemented, which focused on managing and reducing expenses while maintaining quality content and revenue growth.
TKO has enforced stricter budget controls, which have led to a reduction in talent costs, with several stars being released in 2025, including veterans like Braun Strowman and Dakota Kai. These cuts are part of TKO’s effort to recover from financial losses after the WWE acquisition and to optimize operational efficiency across the company.
TKO Compensates WWE Superstars Based Upon Their Performance
TKO’s Chief Operating Officer, Mark Shapiro, attended the 2025 Goldman Sachs Communacopia & Technology Conference on Wednesday. During the event, he commented TKO operates with “a pretty lean cost structure”, while also promising to “continue to do right by the fighters and our superstars.”
He emphasized that top performers, which he called “the cream of the crop,” receive premium compensation, and that when major rights deals are signed (such as UFC’s with Paramount and WWE’s with ESPN), TKO reinvests back into the product and talent. Shapiro clarified that pay is performance-based and operates transparently, with superstars who deliver greater results receiving higher compensation.
“We’re going to share as much as makes sense with the stars of both leagues. We will be very competitive…we pay more than any other competitor in combat sports. We know why we’re here and it’s a team effort.”
“It’s a scale and a formula, and we’re very transparent about it with our fighters and (WWE) superstars.”
Mark Shapiro also spoke about WWE’s high ticket prices at the 2025 Goldman Sachs Communacopia & Technology Conference. He stated WWE has yet to fully maximize ticket revenue, noting that the Stamford-based promotion is not at the level of UFC in terms of ticket yield (revenue generated per ticket sold).
Shapiro explained that Vince McMahon had originally priced tickets primarily to accommodate families and wasn’t fully focused on maximizing revenue opportunities. TKO is now applying similar pricing strategies used in UFC, involving holding back tickets and optimizing advance sales, which has been working well.
He also stressed the importance of site fees, warning cities that if they want WWE events to return after breaking arena records, they must pay up, or the company may take shows elsewhere.
“WWE is not where the UFC yet is on ticket yield. We have our work to do there.”
“We know we have a lot of room there because Vince McMahon was primarily pricing tickets for families and wasn’t totally focused on maxing the opportunity there. Now that we’ve seen what we can do with UFC, we’re replicating that in terms of ticket yield and holding back and advance sales when it comes to OnLocation on the WWE side and it’s working out really well.”
“there are no shortage of countries…that want to see us bring our show to town.”
H/T to Wrestling Observer