The Ultimate Fighting Championship (UFC) is placing increasing importance on site fees – payments made by cities, states, or countries – as a crucial element in deciding where to host its events. Azerbaijan is the latest nation willing to make a significant financial commitment to bring a fight card to its soil.
A site fee essentially represents a financial contribution from a local government or tourism body to the UFC (or, more broadly, TKO Group Holdings) in exchange for hosting a major event. This strategy has seen the UFC secure lucrative long-term agreements, similar to past deals with locations like Abu Dhabi, and recently negotiated a substantial fee to begin holding events in Saudi Arabia.
While the precise amount Azerbaijan paid for the upcoming June 21st event in Baku hasn`t been publicly disclosed, TKO Group Holdings President and Chief Operating Officer Mark Shapiro indicated that the country, which shares a border with Georgia, certainly incurred a substantial cost to host the event.
Speaking at the JP Morgan Global Technology, Media and Communications Conference, Shapiro highlighted the company`s proactive search for such opportunities. He mentioned significant site fees for WWE events, such as the Royal Rumble in Indianapolis and SummerSlam in New Jersey, which secured a $7 million fee. He also noted a commitment to holding multiple events in Perth, Australia, over the next couple of years through a partnership with Western Tourism Australia.
Shapiro specifically stated that the move to Baku, Azerbaijan, in June involved earning “multi-millions,” distinguishing these major international deals from more routine, smaller-market events.
This discussion arose partly in the context of the recent “TKO takeover” in Kansas City, Missouri, where the UFC, WWE, and Professional Bull Riders – all under the TKO umbrella – held events during the same weekend. Since the merger forming TKO, executives have explored the potential of multi-brand events in the same city to increase appeal and justify premium site fees from local authorities.
Although Shapiro expressed hope that the Kansas City model could serve as a template for the future, he was clear that the primary objective is financial gain. He stated, “Make no mistake about it, we are driven by the financial return.” While the Kansas City events offered positive earned media and worked well logistically, Shapiro reiterated that site fees remain the “priority driver.”
This focus on site fees also extends to major WWE events. Shapiro noted that WrestleMania 41 in Las Vegas secured a “meaningful site fee and in kind” support from the city. Furthermore, preliminary economic impact studies suggest that the event generated a remarkable $320 million for Las Vegas.
The significance of site fees is so high that Shapiro revealed TKO Group has a dedicated team specifically focused on this revenue stream. This team handles government relations and has staff on the ground in various cities to identify potential hosts willing to “pay to play.” This specialized effort indicates that more unexpected locations, like Azerbaijan, are likely to secure major events from the TKO portfolio in the future as the company actively pursues lucrative hosting deals.
