Business
Saudi Arabia May Partner With UFC Owner TKO to Create Boxing League
In the days after Donald J. Trump was re-elected president, one of his most high-profile stops was at an Ultimate Fighting Championship event at Madison Square Garden.
Mr. Trump’s appearance in the front row was notable, as was the presence of some of his closest confidants, like Elon Musk, who sat alongside him. But few in attendance for the fights would have recognized the other man sitting beside the president-elect.
Yasir al-Rumayyan, the governor of Saudi Arabia’s vast sovereign wealth vehicle, the Public Investment Fund, watched the action from ringside, and is getting even closer to being part of the action. A company owned by the fund is close to creating a boxing league with TKO, the owner of Ultimate Fighting Championship. A deal for what would be a new competition, featuring up-and-coming boxers tied exclusively to the league, could be announced within weeks, according to three people familiar with the matter.
TKO said in a statement on Wednesday that it had “nothing to announce,” but that it “would evaluate any unique and compelling opportunity that could fit well in our portfolio of businesses and create incremental value for our shareholders.”
The wealth fund did not comment.
The potential investment in TKO follows a Saudi Arabian effort in June to create a multibillion-dollar boxing league that would aim to unite the world’s best boxers, who for decades have been divided by rival promoters and fighting for titles controlled by an alphabet soup of sanctioning bodies. That effort, while not completely abandoned, had proved complicated and expensive, even for a country like Saudi Arabia, which for the past half decade has disbursed billions to become a player across some of the world’s biggest sports.
The investment in the new league will be made by Sela, a subsidiary of the Public Investment Fund. TKO — which is majority controlled by the entertainment and sports conglomerate Endeavor and embodied by Dana White, the U.F.C. empresario, a longtime friend of Mr. Trump’s — would be a managing partner. In return, TKO has been offered an equity stake and a share of the revenue, according to the people familiar with the matter, who spoke on the condition of anonymity ahead of the official announcement.
Saudi Arabia has backed some of the biggest and richest boxing bouts in history in recent years. It has played host to major title fights, most recently a face-off between Oleksandr Usyk and Tyson Fury, which ended with Mr. Usyk as the first undisputed heavyweight champion in more than a generation. Fights like that, which for years proved almost impossible to negotiate, have taken place thanks to the millions of dollars put on the table by Turki al-Sheikh, a government official with close ties to the kingdom’s crown prince, Mohammed bin Salman.
Mr. al-Sheikh, a former security guard, has become perhaps the most powerful man in boxing, seen at ringside and even inside the ring for the biggest bouts. He is also a frequent recipient of messages of thanks from some of the best-known fighters and boxing promoters, who refer to him as “His Excellency.” He pushed for a partnership with Mr. White, who over the last two decades has turned the U.F.C. from a $2 million company into one worth more than $10 billion. Talks have been taking place for more than a year in the United States, Europe and Saudi Arabia.
Mr. al-Sheikh had suggested in interviews that he was planning a new boxing venture. And he has made no secret of his frustration at the way the sport has been run, with the best fighters rarely meeting in their prime. In November, he purchased Ring Magazine — the century-old bible of the sport — and vowed to re-establish its prominence.
Mr. al-Sheikh has also teamed up with the World Boxing Council, a sanctioning organization, to create the Boxing Grand Prix, a tournament for young boxers.
For TKO, which owns both the U.F.C. and World Wrestling Entertainment, the venture has little risk, given that the Saudis are footing the bill. “If we were to get involved in boxing, we would expect to do so in an organic way, not an M&A way,” said Mark Shapiro, TKO’s president, on an earnings call in November, referring to mergers and acquisitions.
He added, “So, i.e., we’re not writing a check.”
Should the deal be completed, TKO will earn management fees of close to $30 million a year. Saudi Arabia is expected to pay significantly more in hosting fees to the league than any other country, according to details of the plan reviewed by The New York Times. Two fights there will bring in more than $40 million in fees. Other bouts are planned for the United States and Europe, where the hosting fees will be far lower.
TKO has also been talking with other parties, including other Arab nations, about the boxing league, according to one of the people familiar with the matter.
Endeavor, TKO’s parent company, has at times had a strained relationship with Saudi Arabia, and this potential partnership suggests that it has largely been repaired. In 2019, after the killing of the Saudi journalist Jamal Khashoggi, Endeavor returned $400 million that the Saudi sovereign wealth fund had invested in the company.
For the Saudis, getting a partner like Mr. White would come at an opportune time. He joined the board of Meta this week, and has spoken at the last three Republican National Conventions. Mr. Trump regularly hosted U.F.C. events at his properties in the organization’s early years, and he has attended many fights. Mr. Trump and Mr. al-Rumayyan are also close, with the Saudi-owned LIV golf championship holding several of its events at Mr. Trump’s courses, including one scheduled for April in Florida.
Saudi officials have described sports and entertainment as major pillars of a strategy, known as Vision 2030, to pivot their economy away from its reliance on oil exports, and as a part of efforts to liberalize society. Critics have described those efforts differently, positioning them as a way of using sports to distract the focus from Saudi Arabia’s human rights record, a tool known as sportswashing.
What TKO would get is a partnership with the biggest sports investor in the world. Saudi Arabia has invested in teams, talent and events across a wide range of sports, most recently securing rights to the 2034 men’s soccer World Cup, the most-watched event on the planet.
The U.F.C.’s U.S. media rights agreement with ESPN expires this year, as does the network’s deal with Top Rank, a top boxing promoter. TKO could try to bundle the rights to its new boxing league with the U.F.C. rights to help shore up the fledgling boxing league.
But applying the U.F.C. playbook to boxing will be extremely difficult. Boxing is a much more heavily regulated sport than mixed martial arts, with the federal Muhammad Ali Act mandating a separation in boxing between the role of manager and promoter, and the public listing of purse figures.
Unlike U.F.C., the league would not include the most prominent boxers. And they may not think there is an upside to joining it. While the fractured nature of boxing means its earning potential isn’t maximized for promoters and managers, top boxers earn far more than top M.M.A. fighters.
In October, the U.F.C. settled an antitrust lawsuit filed by former fighters — who claimed that the company illegally suppressed fighters’ pay — for $375 million. Documents submitted as evidence in that suit showed that the U.F.C. paid less than 20 percent of its revenue to its fighters.
In boxing, those figures are reversed, with fighters combining to earn well over 50 percent of the revenue from any fight.
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Business
Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial
Nearly two years after actor Alec Baldwin was cleared of criminal charges in the “Rust” movie shooting death, a long simmering civil negligence case is inching toward a trial this fall.
On Friday, a Los Angeles Superior Court judge denied a summary judgment motion requested by the film producers Rust Movie Productions LLC, as well as actor-producer Baldwin and his firm El Dorado Pictures to dismiss the case.
During a hearing, Superior Court Judge Maurice Leiter set an Oct. 12 trial date.
The negligence suit was brought more than four years ago by Serge Svetnoy, who served as the chief lighting technician on the problem-plagued western film. Svetnoy was close friends with cinematographer Halyna Hutchins and held her in his arms as she lay dying on the floor of the New Mexico movie set. Baldwin’s firearm had discharged, launching a .45 caliber bullet, which struck and killed her.
The Bonanza Creek Ranch in Santa Fe, N.M. in 2021.
(Jae C. Hong / Associated Press)
Svetnoy was the first crew member of the ill-fated western to bring a lawsuit against the producers, alleging they were negligent in Hutchins’ October 2021 death. He maintains he has suffered trauma in the years since. In addition to negligence, his lawsuit also accuses the producers of intentional infliction of emotional distress.
Prosecutors dropped criminal charges against Baldwin, who has long maintained he was not responsible for Hutchins’ death.
“We are pleased with the Court’s decision denying the motions for summary judgment filed by Rust Movie Productions and Mr. Baldwin,” lawyers Gary Dordick and John Upton, who represent Svetnoy, said in a statement following the hearing. “He looks forward to finally having his day in court on this long-pending matter.”
The judge denied the defendants’ request to dismiss the negligence, emotional distress and punitive damages claims. One count directed at Baldwin, alleging assault, was dropped.
Svetnoy has said the bullet whizzed past his head and “narrowly missed him,” according to the gaffer’s suit.
Attorneys representing Baldwin and the producers were not immediately available for comment.
Svetnoy and Hutchins had been friends for more than five years and worked together on nine film productions. Both were immigrants from Ukraine, and they spent holidays together with their families.
On Oct. 21, 2021, he was helping prepare for an afternoon of filming in a wooden church on Bonanza Creek Ranch. Hutchins was conversing with Baldwin to set up a camera angle that Hutchins wanted to depict: a close-up image of the barrel of Baldwin’s revolver.
The day had been chaotic because Hutchins’ union camera crew had walked off the set to protest the lack of nearby housing and previous alleged safety violations with the firearms on the set.
Instead of postponing filming to resolve the labor dispute, producers pushed forward, crew members alleged.
New Mexico prosecutors prevailed in a criminal case against the armorer, Hannah Gutierrez, in March 2024. She served more than a year in a state women’s prison for her involuntary manslaughter conviction before being released last year.
Baldwin faced a similar charge, but the case against him unraveled spectacularly.
On the second day of his July 2024 trial, his criminal defense attorneys — Luke Nikas and Alex Spiro — presented evidence that prosecutors and sheriff’s deputies withheld evidence that may have helped his defense . The judge was furious, setting Baldwin free.
Variety first reported on Friday’s court action.
Business
California’s gas prices push Uber and Lyft drivers off the road
The highest gas prices in the country are making it tougher for some gig drivers to make a living.
Gas prices have shot up amid the war in the Middle East. On average, California gas prices are the most expensive in the United States, according to data from the American Automobile Assn. The average price of regular gas in California is almost $6. The national average is a little above $4.
While Uber and Lyft drivers have concocted clever ways to cut gas consumption, they say that without some relief they will be forced to leave the ride-hailing business.
John Mejia was already struggling to make money as a part-time Lyft driver when soaring gas prices made his side hustle even harder.
“Unfortunately, it’s the economics of paying less to drivers and gas prices,” he said. “It actually is pulling people out of the business.”
Guests at The Westin St. Francis hotel get into an Uber.
(Jess Lynn Goss / For The Times)
Gig work offers drivers the freedom to work for themselves and more flexibility, but being independent contractors also means they must shoulder unexpected costs.
Ride-sharing companies say they’re trying to help, but drivers say the gas relief comes with caveats. For now, drivers say they’re being pickier about what rides they accept, cutting hours and are looking at other ways to make money.
Mejia, who started driving for Lyft more than a decade ago, said in his early days, he would sometimes make $400 in three hours. Now it takes 12 hours to rake in $200.
The San Francisco Bay Area consultant is an active member of the California Gig Workers Union, so he knows he isn’t alone. California has more than 800,000 gig rideshare drivers, according to the group, which is affiliated with the Service Employees International Union.
On social media sites such as Reddit and Facebook, gig workers have posted about how the higher gas prices are eating into their earnings. Among the tricks they are suggesting: reducing the number of times the ignition is turned on or off, avoiding traffic, working in specific neighborhoods and at times with high demand and switching to electric vehicles.
Gig drivers usually have only seconds to decide whether to accept a ride on the app, but they have become more strategic about which rides and deliveries they accept.
That means they are more likely to sit back in their cars and wait for higher fares for quick pick-up and drop-off.
“I highly recommend the ‘decline and recline’ strategy, rejecting unprofitable rides until a better one appears,” wrote Sergio Avedian, a driver, in the popular blog the Rideshare Guy.
Pedestrians cross the street in front of a Lyft and Uber driver on Wednesday. High gas prices have made it hard for gig drivers to make a living, cutting into their profits.
(Jess Lynn Goss / For The Times)
Uber, Lyft and other companies have unveiled several ways to help drivers save on gas.
Uber said drivers can get up to 15% cash back through May 26 with the Uber Pro card, a business debit Mastercard for drivers and couriers. Based on a worker’s tier, they can get up to $1 off per gallon of gas through Upside — an app that offers cash rewards — and up to 21 cents off per gallon of gas with Shell Fuel Rewards. The company also offers incentives for drivers who want to switch to electric vehicles.
“We know the price of gas is top of mind for many rideshare and delivery drivers across the country right now,” Uber said in a blog post about its gas savings efforts.
Lyft also said it’s expanding gas relief through May 26 because the company knows that the extra cost “hits hardest for drivers who depend on driving for their income.”
The company is offering more cash back, depending on the driver’s tier, for drivers who use a Lyft Direct business debit card to pay for gas at eligible gas stations. They can get an additional 14 cents per gallon off through Upside.
Drivers say the fine print on the offers dictates which card they use and where they fill up gas, making it difficult for them to save money.
“If I do the math, it’s ridiculous,” Mejia said. “They’re offering us nothing.”
Uber declined to comment, but pointed to its blog post about the gas relief efforts. Lyft also referenced the blog post and said “the gas savings were structured through rewards to maximize stackable opportunities.”
Guests at The Westin St. Francis hotel get into an Uber.
(Jess Lynn Goss / For The Times)
Gig workers have struggled with rising gas prices in the past.
In 2022, Lyft and Uber temporarily added a surcharge to their fares amid record-high gas prices following Russia’s invasion of Ukraine. This year, Uber is adding a fuel charge to its fares in Australia for roughly two months to offset the high cost of gas for drivers. Lyft said it hasn’t added a fuel charge in the U.S. or elsewhere.
Margarita Penalosa, who drives full time for Uber and Lyft in Los Angeles, started as a rideshare driver in 2017. Back then, gas was cheaper. She would easily hit her goal of making $300 in eight hours. Now she’s making just $250 after working as much as 14 hours.
Gas prices, she said, used to be less than $3 per gallon. Now some gas stations are charging more than $8 per gallon.
“Take out the gas. Take out the mileage from my car and maintenance. How much [do] I really make? Probably I get $11 for an hour,” she said.
Jonathan Tipton Meyers wants to spend fewer hours as a rideshare driver.
He already juggles multiple gigs even while driving for Uber and Lyft in Los Angeles. He’s a mobile notary and loan signing agent, a writer and performer.
Driving is “a very challenging, full-time job,” he said. “It’s very taxing and, of course, wages were just continually decreasing.”
John Mejia, a longtime Lyft and Uber driver, poses for a portrait before attending a meeting about unionizing gig drivers.
(Jess Lynn Goss / For The Times)
Even if oil continues to flow through the Strait of Hormuz, which Iran reopened Friday, it could take a while for gas prices to come down to earth, said Mark Zandi, the chief economist at Moody’s Analytics.
“There’s an old adage that prices rise like a rocket and fall like a feather,” he said. “I think that’ll apply.”
In the meantime, it will be survival of the fittest drivers. If enough of them decide to leave the apps, the ride-hailing companies could be forced to raise fares further to attract some back.
“Those who approach rideshare driving strategically, tracking expenses, choosing trips carefully, and optimizing efficiency are far more likely to weather periods of high gas prices,” wrote Avedian in the Rideshare Guy blog. “For everyone else, a spike at the pump can quickly turn rideshare driving from a side hustle into a money-losing venture.”
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