The most valuable customers for TKO Group Holdings are not ticket buyers; they are governments. The kingdom of Saudi Arabia is the clearest proof of concept for TKO’s governmental partnerships. During the Q4 2024 earnings call, TKO CFO Andrew Schleimer insinuated that one fewer Saudi Arabia Premium Live Event (PLE) would affect revenue by about $55 million, underscoring the commercial significance of the relationship. Three events planned for 2026 in Saudi Arabia are expected to generate approximately $165 million in guaranteed revenue from a single government partner. That is not just a business model; it is a blueprint. In June, WWE returned to Kingdom Arena in Riyadh for Night of Champions, proceeding as planned despite ongoing regional tensions following Iranian strikes in the area.

The opportunity that follows is straightforward: What happens when TKO applies the same blueprint elsewhere? Formula 1 canceled its Saudi races. LIV Golf is approaching bankruptcy without its Public Investment Fund backer. The question is where the next sovereign partner comes from. Temple University economist and Professor Michael Leeds, who has studied the economics of major sports events, framed the strategic logic plainly: “I think it is always wise to diversify, even if the Middle East has been a major potential source of income. Current events clearly indicate that it is coming with considerable risk.”

The markets where that expansion logic points are not theoretical. South America, where TKO has confirmed a........

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