TKO’s money printers are in overdrive for 2026. Revenues for WWE & UFC have never been better. That’s the working thesis for Scott Barrett’s big-time TKO bull case as a generational stock.
This week, we deliver part of the bear case. And we have the courts potentially on our side at The MMA Draw.
There are three current, ongoing active court cases involving Endeavor & TKO. The prospects for TKO as a potential star witness in an(other) explosive media lawsuit are brewing.
Case #1: Shareholders suing over Endeavor’s acquisition of WWE, eventually leading to the merger spin-off with UFC for TKO.
This case was filed in Delaware Chancery Court, which is not proving to be automatically favorable territory for Ari Emanuel & Mark Shapiro.
Brandon Thurston of Wrestlenomics and Post Wrestling revealed some remarkable text messages obtained through discovery in ongoing litigation.
The judge in this case has ordered Endeavor to produce DOJ-related evidence from the government’s investigation into Vince McMahon.
Shareholders in Delaware must prove that Endeavor engaged in some closed-door scheme to acquire WWE that cost then-WWE shareholders more potential money from another prospective bidder.
The biggest news development in this litigation? What has been unearthed in discovery so far. It’s very surprising that Endeavor/TKO did not settle this court case quickly to prevent public disclosure of embarrassing communications.
Case #2: Activist investor Carl Icahn suing over Endeavor’s take-private transaction, claiming EDR shareholders got screwed at $27.50/share.
This case was also filed in Delaware Chancery Court. It’s the biggest financial risk for Endeavor, given Mr. Icahn’s access to cash to pursue a full-throated litigation battle. That’s a big problem.
TKO has a lot of assets that EDR owned. However, the market didn’t buy into EDR’s story. They have bought into TKO’s marketing story hook, line, and sinker.
Even if a massive settlement check is written to Mr. Icahn, discovery is quickly proceeding in the case. Icahn (and others) want to see Endeavor’s financial books and learn more about TKO’s business. So far, the Delaware judge has wasted no time in ordering Team Endeavor to cough up the dirt.
Case #3: UFC antitrust litigation. Three cases. The main case, involving Kajan Johnson, is seeking injunctive relief on UFC fighter contracts.
This litigation is based in US Federal Court in Las Vegas.
When UFC settled its first antitrust lawsuit for $375M with Cung Le and Company, everyone thought fighter litigation was finished.
What the proposed $375 million UFC antitrust settlement means
On Thursday morning, TKO filed an 8k with the Securities and Exchange Commission to announce a newly proposed $375 million dollar antitrust settlement with the Cung Le class of UFC fighters who fought for the promotion between December 16th, 2010 and June 30th, 2017.
Wall Street has handsomely rewarded TKO since the settlement. A huge explosion in price, from $80 to over $200 a share.
With the news of Judge Richard Boulware forcing Dana White to testify next month over UFC evidence issues, litigation risk just dramatically increased.
Under Nevada law, plaintiffs must demonstrate both procedural and substantive legal issues to nullify arbitration & class-action waivers as both unconscionable + unenforceable.
With the focus on TKO supposedly unable to — for various reasons — produce discovery relating to contract formation and business practices, Judge Boulware is putting a spotlight on key pressure points.
In each of these lawsuits, plaintiffs face the burden of demonstrating evidence of intentional schemes plus damages caused by these alleged schemes.
You better believe that attorneys in each of these lawsuits are watching discovery & depositions produced in other litigation. It’s all about establishing a pattern of behavior and learning how secrets from one case might impact other litigation.
As if these three court cases weren’t troublesome enough for TKO, there is growing potential for a fourth lawsuit that could cause severe heartburn for Ari Emanuel.
Zach Arnold has been publicly warning about Paramount paying $7.7B for seven years of UFC media rights and how it could boomerang back on TKO. The recent developments in the Paramount & WBD asset fight highlight UFC’s growing role vis-à-vis Ari Emanuel’s relationship with David Ellison.
That’s the focus of this week’s must-listen MMA Draw podcast. Even bulls know that The MMA Draw is the place to visit to find out the latest TKO happenings months, if not years, ahead of the curve.
You can check out The MMA Draw Podcast on Substack via the following feeds:
Nate Wilcox is Editor-in-Chief of The MMA Draw. He founded BloodyElbow.com in 2007 and sold it in 2024.
Zach Arnold is a lead opinion writer for The MMA Draw on Substack. His archives can be read at FightOpinion.com.
