A new long-form investigative report has shed light on the contractual terms and legislative ambitions of Zuffa Boxing, the new venture overseen by TKO Group Holdings.
In a piece published by The Guardian on Wednesday, veteran boxing journalist Thomas Hauser details the inner workings of the joint venture between TKO and Saudi Arabian entities. The report suggests that while the project promises to revitalize the sport, the fine print of the contracts and a lobbying push to amend federal law could drastically reduce protections and revenue shares for boxers.
TKO Group Holdings, the parent company of WWE and UFC, owns 40% of Zuffa Boxing, with the remaining 60% owned by Sela, a company belonging to Saudi Arabia’s Public Investment Fund.
Amending the Muhammad Ali Act
A central focus of Hauser’s report is TKO’s lobbying effort to amend the Professional Boxer Health and Safety Act and the Muhammad Ali Boxing Reform Act (collectively known as the Ali Act). The Act currently establishes a “firewall” between promoters, managers, and sanctioning bodies to prevent conflicts of interest and exploitation.
TKO and its allies are pushing for legislation that would create “Unified Boxing Organizations” (UBOs). This designation would allow Zuffa Boxing to effectively act as promoter, sanctioning body, and ranking authority simultaneously.
Hauser writes that these changes would remove requirements for financial disclosures, meaning fighters would not know how much revenue promoters receive from their bouts.
The report includes strong opposition from industry figures, including Oscar De La Hoya:
The bill would allow promoter-controlled Unified Boxing Organizations to own rankings, titles and fighters essentially duplicating the UFC’s single-entity model inside boxing. It would legalize the very conflicts of interest the original Ali Act was written to outlaw… The new legislation would gut that framework, and the open marketplace that keeps the sport honest would collapse into monopoly.
Conversely, TKO officials argue the changes are necessary. UFC COO Ike Lawrence Epstein testified to Congress that a UBO would solve boxing’s “historical lack of a centralized industry organization”.
Contractual “Fine Print”
Hauser reviewed a Zuffa Boxing contract currently being offered to fighters, noting that in some respects, the terms “make Don King’s contracts of old look fighter-friendly”.
The report outlines several specific clauses within the 31 pages of “Standard Terms and Conditions”:
- Opponent Selection: Unlike traditional boxing contracts where opponents are mutually agreed upon, Zuffa designates opponents. If a fighter declines a designated opponent, it counts toward the number of fights Zuffa is obligated to offer that year.
- Termination Rights: Zuffa retains the right to cut a fighter if they lose, draw, or have a bout declared a “no contest”. They may also terminate a contract if Zuffa “discontinues the weight class” the fighter participates in.
- Medical Costs: The contract explicitly states in capital letters that all costs associated with medical examinations and tests are to be paid by the fighter.
- Merchandise: Fighters receive 15% of gross revenue or 30% of net revenue for merchandise, which Hauser notes is significantly lower than standards in other major sports leagues.
- Likeness and AI: The contract grants Zuffa extensive rights to use a fighter’s identity for video games, artificial intelligence, and “hyper-reality” simulations, with some rights extending in perpetuity.
Revenue Splits and “UFC 2.0”
The report raises concerns regarding the long-term financial implications for athletes under this model. Currently, elite boxers often receive in the neighborhood of 80% of revenue, whereas Zuffa pays approximately 17% to 20% of its revenue to UFC combatants.
Hauser quotes an unnamed executive who has done business with TKO, who suggests the goal is to align boxing economics with the UFC model:
The boxers will be treated the same as UFC fighters when it comes to the financial split. Anybody who thinks differently doesn’t know what they’re thinking about. Zuffa’s main business is UFC. And Dana isn’t about to jeopardize the UFC business model that made them all rich.
The article notes that Zuffa Boxing has secured a media rights agreement with Paramount+ believed to be worth $100 million a year to distribute 12 fight cards annually. However, the report is critical of the quality of the initial events, describing the recent Zuffa Boxing 01 card as having “more sizzle than steak” and criticizing the main event between Callum Walsh and Carlos Ocampo as “painfully boring”.
