UFC increasingly prioritizes site fees as a key factor when selecting locations for its events, with Azerbaijan serving as a recent example of a nation willing to pay a substantial sum to host a fight night.
A site fee is essentially a payment made by a local government or entity to the UFC in exchange for bringing an event to their area. UFC has secured lucrative fees, such as a recent agreement to begin holding events in Saudi Arabia, following earlier long-term deals like the one with Abu Dhabi.
Although the precise fee paid by Azerbaijan for the June 21 event in Baku was not revealed, TKO Group Holdings President and Chief Operating Officer Mark Shapiro confirmed that the country bordering Georgia paid a significant amount to secure the event.
Speaking at a recent conference, Shapiro highlighted the extensive search for these site fees. He gave examples from across the TKO portfolio, including WWE`s Royal Rumble in Indianapolis and SummerSlam in New Jersey, which commanded a $7 million fee. He also mentioned a commitment to holding multiple UFC events in Perth, Australia, over the next two years.
Specifically mentioning the upcoming event, Shapiro stated, “in June, we’re going for multi-millions to Baku, Azerbaijan,” contrasting these high-value deals with standard locations that don`t offer such financial incentives.
This conversation arose in the context of the recent “TKO takeover” in Kansas City, Missouri, where UFC, WWE, and Professional Bull Riders—all owned by TKO—held events concurrently over a single weekend.
Since the formation of TKO through the merger of UFC and WWE, executives like Shapiro have discussed strategies to hold multiple events in the same city, aiming to increase the appeal and value for local governments and encourage them to pay premium site fees.
While Shapiro expressed hope that the Kansas City model of simultaneous events could become a “template,” he clarified that financial return remains the ultimate objective.
He stated, “make no mistake about it, we are driven by the financial return.” He noted that the Kansas City events provided excellent media exposure, yielded a solid return on site fees and in-kind services, fit well with their scheduling, utilized a terrific venue, and attracted a great fan base across the sports, creating a synergistic effect (“one plus one did equal five”). However, he reiterated that site fees are the primary driving force behind location decisions.
Shapiro also cited WWE`s WrestleMania 41 in Las Vegas as another instance of securing a meaningful site fee and in-kind support.
He reported that an economic impact study for WrestleMania 41 is nearing completion and is projected to show that the event contributed $320 million to the economy of Las Vegas.
Site fees have become such a significant part of the business for UFC and WWE that Shapiro mentioned TKO has a dedicated team solely focused on securing this revenue stream.
Shapiro explained that this team includes government relations personnel but also individuals on the ground in various cities tasked with finding partners willing to “pay to play” for a major event, suggesting that other unexpected locations, much like Azerbaijan, could host future events.
