TKO President Says WWE Is Looking at Reducing Live Events and More Cost-Cutting Options

F4WOnline reports that during the UBS Global Media And Communication Conference, TKO COO Mark Shapiro noted that WWE was looking at reducing their number of live events, as well as other cost-cutting measures.

He said that house shows (referred to as “cards” or “superstar events”) were good for WWE as they helped build the audience and bring “the brand” to “C and D counties”. This likely means the smaller cities and towns WWE visits. However, he noted that “from a margin perspective, they’re dilutive.” He noted that WWE runs 300 events a year and only 170 are televised.

Shapiro added: “There’s probably an opportunity, as we go through our synergies and efficiency opportunities, to cut back on some of those non-televised events which, of course, will push our margin up.”

Meanwhile, TKO and ESPN are looking at more UFC Fight Night events. He cited the brand’s six sellouts and gates from the last quarter, as well as their success at Madison Square Garden.

Shapiro noted that TKO was told it could save up to $100 million in efficiencies after the merger, and they will hit 75% of that by the end of next year. He noted that production was an area where they could save more money, specifically the travel crews and production for TV events for UFC and WWE.

He added: “There are a lot of production efficiencies. Even if our production chiefs want to tell me there’s not, frankly, I worked at ESPN for 12 years, I oversaw all production, I have been through all the song and dance with every producer who treats every tape machine and camera like it’s a baby and doesn’t want to give it up. And we’re here to improve our margins. We’re going to scrutinize every dollar on production for every single event, every single one of these telecasts, and improve our savings.”

He said that TKO is still going to look for site fees for WWE and UFC, adding that their deal in Australia brought in $16 million. He said there are several countries who want to bring events in.

Finally, he noted that Vince McMahon’s “manifesto” about no sponsorship on the ring mat or other places in WWE has been “thrown out.” TKO is planning to follow the same plan they had with UFC for in-venue deals. Shapiro said WWE’s audience was “very diverse, 40% female and heavy family.”