If you think WWE programming is packed with sponsorships now, TKO says there’s plenty more on the way. Despite criticism from fans about the growing number of advertisements during WWE events, the company is planning to expand its sponsorship portfolio even further.
Speaking with CNBC, TKO President and Chief Operating Officer Mark Shapiro discussed the company’s sponsorship strategy, explaining that WWE partnership revenue is expected to grow significantly as more global deals begin rolling out during the second half of the year.
Shapiro said WWE saw a massive jump in sponsorship revenue after TKO applied the same commercial strategy that had already worked for UFC. While growth slowed during the first half of this year because WWE held so many international events, he stressed that the biggest partnership deals are still to come.
“At 24-25, we grew 90-plus percent because WWE was new to TKO, and we took the playbook from UFC. We applied it to WWE, and we took down the low-hanging fruit. This year, what you’ve seen is 2 and 8 percent, respectively, in the first two quarters because we have so many international events this first half of the year, which don’t allow us to sell as many global partnerships as we otherwise would.”
According to Shapiro, that slowdown is only temporary. He expects the back half of the year to be much stronger, with several new multi-year sponsorship agreements already lined up that will continue generating revenue for WWE.
“But it’s backloaded. In the second half, a ton of global partnership deals take effect, many multi-year, all high margin, all recurring, and we will finish over 20 percent year-over-year increase on WWE partnership revenue for the year. So it’s more to come. So it’s really the calendar. We got it. It’s a story to tell. This is all timing.”
WWE programming has already become noticeably more sponsor-driven under TKO. Brand logos regularly appear on the ring canvas, sponsored match graphics have become commonplace, and stars frequently participate in promotional campaigns for companies like Slim Jim and DoorDash. The company has also brought actors and celebrities onto its shows to promote movies and streaming projects tied to Netflix.
Shapiro’s comments make it clear that this isn’t slowing down anytime soon. If anything, WWE fans should probably expect to see even more sponsorship integrations as TKO continues chasing new global partnerships.
Whether fans love the extra branding or feel it’s becoming too much, TKO clearly sees sponsorships as a major part of WWE’s future. Do you think the advertisements add to the presentation, or are they starting to distract from the product? Let us know your thoughts in the comments below.
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