Additional information has surfaced regarding the fusion of WWE and UFC following Endeavor’s acquisition from Vince McMahon. This merger has resulted in both wrestling and MMA promotions falling under a unified entity known as TKO Group Holdings.
Dave Meltzer, in this week’s “Wrestling Observer Newsletter,” has shed light on the inclusion of a non-compete clause. This clause apparently dictates that if Endeavor ever decides to sell TKO Group Holdings, they will be prohibited from re-entering the MMA or professional wrestling sectors for a span of five years. Meltzer pointed out a precedent with the sale of WCW by Turner Broadcasting, where a three-year non-compete clause was in place. Despite discussions by Ted Turner, Bill Shaw, and Jim Barnett about a potential comeback to the industry after the clause expired, it ultimately fizzled out due to the significant associated costs.
Delving into MMA history, Meltzer also mentioned that during Scott Coker’s sale of Strikeforce to UFC, a non-compete agreement was part of the deal. Coker continued to operate Strikeforce as a separate brand until the clause’s expiration, much like Tony Khan’s approach with Ring of Honor. Once the non-compete clause ended, Coker parted ways with UFC and eventually took charge of Bellator MMA. Additionally, if Endeavor decides to sell TKO Group Holdings after the five-year non-compete period, they will face an additional six-month restriction from launching a new venture in either sport and from negotiating with talent within these industries, regardless of their affiliation with TKO Group Holdings.
The WWE and UFC merger was finalized last week, prompting widespread staff layoffs within WWE to streamline operations and eliminate redundancy resulting from the restructuring of the two organizations.