TKO COO Mark Shapiro says the company has already adjusted the composition of compensation for WWE superstars and UFC fighters following its major media-rights agreements, describing the changes as part of the company’s existing financial structure rather than a future concern.
Speaking at the Goldman Sachs Conference, Shapiro was asked about the balance between talent expenses and the marketing investment TKO makes around the athletes and personalities who drive WWE and UFC programming. His response connected talent compensation directly to the company’s newer distribution arrangements, including WWE’s deals with Netflix and ESPN as well as UFC’s agreements involving Paramount+, CBS, Peacock, and Sky.
“Post our new deals with ESPN on WWE and with Paramount+, CBS, Peacock, Sky with UFC, and even a little bit post Raw with Netflix, we did resize our fighter and superstar pay composition,” Shapiro said.
Shapiro indicated that the reshaped compensation model has already been factored into TKO’s numbers. “That is baked into our numbers,” he said, adding that the company does not expect “further adverse impact” from how compensation is distributed.
For more background on this topic, read Mark Shapiro Says TKO Could Announce Additional Middle East Events in 2026 as Demand ‘Outstrips Supply’.
The comments offer a significant look at how TKO views one of the central costs behind its two largest combat-sports brands. WWE’s on-screen product is built around performers who negotiate individual deals with the company, while UFC’s business depends on a large roster of contracted fighters, appearance opportunities, bonuses, and other forms of compensation. As TKO continues to pursue larger media packages and expanded corporate partnerships, Shapiro’s remarks suggest that talent-pay structures are being considered alongside the company’s broader push for growth and margin expansion.
WWE’s New Rights Landscape
WWE entered a transformative media period when Raw began its Netflix arrangement in January 2025. Later that year, WWE started an agreement with ESPN in September 2025. Those deals followed a period in which WWE programming and premium live event distribution were reshaped across several platforms.
Shapiro did not provide a detailed breakdown of precisely how WWE superstar compensation has been resized, nor did he identify a specific percentage, formula, or pay tier. He also did not say whether the changes apply uniformly across the roster or vary by contractual status, experience, role, or market value. What he did make clear was that TKO sees the revised composition as a completed part of its current planning.
That distinction matters because media-rights deals can change the overall economic environment around a wrestling company without automatically defining what each individual performer earns. WWE has a broad range of talent, from NXT developmental prospects and newer main-roster names to established featured acts. The company’s compensation approach has long involved different levels of guaranteed pay and additional opportunities tied to a performer’s place in the business. Shapiro’s comments did not outline the mechanics of the present system, but they did confirm that it has been revisited in the wake of TKO’s recent agreements.
There has also been a notable recent point of tension around WWE pay. Over the last year, WWE has asked some talent to take pay cuts, including Kofi Kingston and Xavier Woods, the former New Day members. Shapiro did not directly address any individual WWE negotiations during the conference appearance. Still, his broader statement that superstar-pay composition was resized places those discussions within a larger company-wide financial strategy.
TKO Frames Development as a Key Part of the Plan
Alongside the compensation discussion, Shapiro emphasized the importance of talent development. He pointed to the connection between NXT and WWE’s main roster, saying that 75% of WWE superstars come from NXT.
“They’re starting in our development league and going all the way up,” Shapiro said while explaining why the pipeline remains important to TKO’s strategy.
NXT serves as WWE’s central developmental brand, providing a structured environment for wrestlers to gain television experience, establish characters, and prepare for opportunities on the main roster. Shapiro’s description of NXT as a development league reflects the role it plays in the company’s larger system: it is both a programming brand in its own right and a source of future talent for Raw, SmackDown, and other WWE platforms.
From a business perspective, that pipeline is especially relevant to a discussion of talent spending. Homegrown talent development gives WWE a pathway to identify and cultivate performers internally rather than depending solely on established names from outside the company. That does not eliminate the importance of recruiting or signing talent, but it gives WWE a consistent mechanism to replenish the roster and develop acts suited to its production model.
Shapiro drew a similar parallel with UFC, noting that the company has invested in performance centers in Mexico City, Las Vegas, and China. He said the China operation in particular has generated “real traction.” While WWE and UFC operate with different talent models, Shapiro presented developmental investment as a shared pillar of TKO’s approach across both brands.
More Than Guaranteed Pay
Shapiro’s remarks also made clear that TKO’s view of talent compensation extends beyond base or guaranteed pay. He said the company intends to remain aggressive in pursuing additional monetization opportunities involving both WWE superstars and UFC fighters.
Those opportunities include advertiser deals and marketing partnerships. In UFC, Shapiro also referenced bonuses tied to finishes and Fight of the Night. He did not identify specific new initiatives for WWE performers, but his comments indicate that TKO sees commercial partnerships and marketing opportunities as an important part of the wider value proposition for talent.
“We want to make sure that we’re really spreading the opportunities,” Shapiro said.
For WWE, that can encompass the value of having performers associated with a global entertainment brand that operates across weekly television, premium live events, social media, consumer products, promotional appearances, and advertiser campaigns. Shapiro did not offer examples of new superstar-specific arrangements, so the immediate practical impact of his statement remains uncertain. However, the company’s stated goal is to continue pursuing ways for talent to participate in commercial activity connected to the brands.
The phrase “resized” is likely to draw particular attention because it does not inherently indicate whether every adjustment is an increase, decrease, or a shift in the mix of compensation. Shapiro characterized the change as a revision to the overall composition of fighter and superstar pay. Without further detail, it would be premature to treat that as a single universal outcome for all WWE talent.
What is known is that TKO believes the revised structure is compatible with the company’s long-term financial objectives. Shapiro said the strategy is working and stated that TKO’s margins will continue to expand. That is a corporate goal that can exist alongside continued investment in talent development, marketing partnerships, and major media distribution, but it also means compensation will remain an area closely watched by both performers and observers of the business.
Confidence in WWE’s Talent Appeal
Shapiro also expressed confidence that WWE and UFC remain highly attractive destinations for top performers. “What you see is you see the best of the best signing up and lining up to be a part of the UFC and to be a part of WWE,” he said.
That confidence is central to TKO’s business thesis. WWE’s ability to develop performers through NXT, present them on major global platforms, and connect them with commercial partners is an important part of its competitive position. The Netflix and ESPN agreements have raised the visibility of WWE’s changing media ecosystem, while the company’s developmental process continues to be positioned as a source of future main-roster stars.
For now, Shapiro has provided a high-level confirmation that WWE superstar compensation has been adjusted in the wake of TKO’s latest rights deals. He has not detailed how those adjustments affect specific roster groups, contracts, or individual talent. The larger message was that TKO considers its current pay structure accounted for, its talent pipeline healthy, and its ability to create additional commercial opportunities an ongoing priority.
As WWE continues operating under its newer distribution arrangements, the practical effects of that strategy will remain a major business story. Questions surrounding talent value, roster investment, developmental spending, and partnerships will continue to sit at the center of how TKO measures the success of its WWE operation.
Darryl Polo
Darryl Polo is a passionate wrestling fan covering WWE, AEW, TNA and beyond. He loves great rivalries, breakout stars and the moments that keep fans talking long after the bell. How we work.