TKO Group Holdings executives laid out the financial structure behind Zuffa Boxing during the company’s second quarter earnings call on Monday, with Chief Financial Officer Andrew Schleimer telling analysts the venture carries no funding obligations for TKO and President and Chief Operating Officer Mark Shapiro saying the promotion is running ahead of schedule.

The exchange came in the final question of the call, when Baird analyst Vikram Kesavabhotla asked about priorities for the boxing business and the reception to recent events outside Nevada.

Shapiro answered first, then handed the financial explanation to Schleimer.

“We like the structure of the JV. We take calculated and intelligent risks,” Schleimer said. “This is low risk, but allows us to have our fingerprints on a third combat sport vertical, with a path for meaningful equity ownership that will ultimately enhance our firm value. We’re here to build something, but we have no funding obligations, and we don’t take financial risk. It’s really opportunity cost of time and materials. What you see so far is a product that’s ahead of schedule, and that energy and focus is paying off.”

Schleimer said the joint venture allows TKO to earn equity ownership and, in his words, participate in future value creation. He then described a second revenue stream that sits outside the venture itself.

“Somewhat tethered and associated to the JV is our ability to participate in, stage, work with, promote, sell the media rights for super fights, which we get paid a fee, depending upon the level of services that we ultimately provide,” Schleimer said. He added that those fees appear in TKO’s corporate line item outside the non-consolidating joint venture, and that the arrangement offers “a lot of ways to win here, but it’s early days.”

Shapiro followed with his own framing.

“Our reputation is that we know how to stage big events. We know how to build properties and assets like this. We know how to create attention and set the stage for these fighters,” Shapiro said. “Dana White has a reputation of always putting fighters and fans first. One of the reasons our plan has accelerated the way it has is because fighters want to fight underneath a business being run by Dana White.”

On the direction of the business, Shapiro said the approach borrows from what TKO already runs elsewhere.

“It’s a lot of rinse and repeat in terms of what we’re doing with our other assets and properties across TKO,” he said. “We’re taking it out to London and New York City because we’re efforting to bring more awareness to what it is that we’ve launched, namely the fighters.”

He described the current phase as roster building. “Right now it’s about signing up more fighters, expanding our dugout, creating more opportunities and incentives for the fighters themselves, and staging best-in-class fights and best-in-class fight cards,” Shapiro said. He added that the venture is “already a winning proposition for both the fighters and also the business,” and noted that TKO does not consolidate its results.

In his prepared remarks, Shapiro ran through the quarter’s boxing activity, citing the promotion’s first international event in Bournemouth, England, which activated a new Sky Sports media partnership, and its New York City debut at the Infosys Theater at Madison Square Garden. He singled out the signing of Shakur Stevenson as evidence of the roster push.

“On September 12th, we will return with TKO’s next super fight featuring Ryan Garcia versus Conor Benn at T-Mobile Arena in Las Vegas, airing on Paramount+ globally and on DAZN in the U.K. and Ireland,” Shapiro said. “The growth of this asset is comfortably ahead of schedule.”

Answering a separate question from Goldman Sachs analyst Stephen Laszczyk about growth catalysts, Shapiro placed boxing alongside TKO’s media rights and incentive package targets. “Our next major combat sports asset, Zuffa Boxing, is not just underway, it’s ahead of plan,” he said. “I’m sure you’re reading each and every day about different fighters that are signing up under the Zuffa Boxing banner.”

Shapiro also disclosed that Zuffa Boxing is included in a three-year, seven-event agreement signed in May with the Arizona Sports and Events Alliance covering UFC, WWE, PBR and boxing, which he called one of the broadest multi-property incentive deals the company has assembled.

Zuffa Boxing does not report as its own segment. Boxing revenue appears inside TKO’s corporate and other category, which rose 9 percent to $49 million on higher management fees and Professional Bull Riders revenue. That segment posted adjusted EBITDA of negative $77 million, essentially flat with the prior year. Schleimer said third quarter results in that line will reflect the Garcia and Benn card, and that the overall impact of the boxing business should be comparable to the prior year period, when TKO provided services for Canelo Alvarez against Terence Crawford.

Asked by LightShed analyst Brandon Ross about the combination of PFL and Most Valuable Promotions, Shapiro was dismissive of the threat.

“Clearly on an individual standalone basis, these promotions, both MVP and PFL, were not necessarily sustainable,” Shapiro said. “Now they’ve come together. We’ll see what they can conjure up. What we know is that competition’s always made us stronger. A rising tide lifts all boats.”

TKO reported second quarter revenue of $1.547 billion, up 18 percent year over year, with adjusted EBITDA rising 23 percent to $650 million. Adjusted earnings per share of $1.34 came in below the $1.53 consensus. The company raised full year 2026 guidance to revenue of $5.775 billion to $5.825 billion and adjusted EBITDA of $2.275 billion to $2.305 billion.

For background on TKO’s corporate structure and how Zuffa Boxing fits into it, see Does The Boxing Industry Really Understand Who TKO / Zuffa Boxing Is?