ONE Championship: Do the weakest dogs bark the loudest?
A summary of recent events ⏱️
What exactly is happening at ONE Championship? Quite a lot it seems…
Here’s a quick summary of recent events.
$50 million in new funding?
The Singapore-based mixed martial arts (MMA) sports media property was last reported to have raised $50 million from Qatar Investment Authority (QIA) and a group of investors last October.
The Bloomberg report added that ONE was priced at the same valuation as its last 2021 priced round of $1.35 billion, but the filings clearly show two things (see screenshot below):
The Singapore registered entity issued shares to itself aka the parent entity in Cayman
The shares were ordinary shares (not preference) priced at $1 each
It leads me to then wonder if these were simply previously-issued convertible notes which were turned into equity. Smart guesses anyone? 🤔
ONE Championship has raised over $550 million in funding to date, with a bevy of top investors including QIA, Temasek Holdings, Peak XV Partners (former Sequoia Capital India) and others.
Snubbed in Thailand? 😳
Thailand remains a key market for ONE Championship, where it runs the most number of MMA fight shows such as its ONE Friday Nights. It’s also a market where it enjoys consistently strong resonance because of its Muay Thai roots as well as its CEO’s Chatri Sityodtong’s half-Thai heritage.
However ONE’s standing in Thailand was thrown into a little uncertainty last week, with the Thai government approving a $1.2 billion deal to bring Formula One to Bangkok. The move appears to have created slight FOMO on the part of ONE, especially in a market where it’s recognised to enjoy strong ties with local authorities.
Sityodtong expressed his disappointment to Thai media last week, citing larger viewership and engagement than Formula One.
“To be honest, I feel a little sad. Boxing fans all over the country love ONE. 70 million Thais love ONE’s boxers. But why doesn’t the government support ONE Championship while other countries’ governments support it?
I am Thai. I made ONE Championship the number 1 martial arts program in the world. We help the country, inspire Thais, overcome obstacles, overcome poverty, and achieve success. ONE Championship is bigger than F1,” said Sityodtong as cited by Thai publication, Khaosod.
A response quickly followed, with Thailand’s Minister of Sports expressing a polite pledge of support.
"We admire what ONE Championship is doing," Minister of Tourism and Sports, Sorawong Thienthong said at a press conference on Wednesday, addressing growing scrutiny of the government's recent Formula One bid.
"Mr Chatri and ONE Championship play a crucial role in promoting Muay Thai. We're always willing to support ONE, because Muay Thai is something all Thai people want to see promoted on the global stage." (Source: Bangkok Post).
ONE’s Thai revenue and net losses jumped considerably in 2023, likely due to an aggressive rollout of 52 weekly fights at the prestigious Lumpinee Stadium in Bangkok from the beginning of that year. That promotion was made with the support of the Royal Thai Army (see below.)
Their Thai financials have also not escaped the eyes of MMA fans, who further pointed at the vast difference in ONE’s performance compared to its local Thai competitors.
The Rajadamnern World Series (RWS) reportedly outperformed ONE roughly 6:1 in terms of revenue in 2023. RWS was also profit-making while ONE netted losses of roughly US$8.8 million or 288 million Thai baht that same year (see below.)
Elsewhere in ONE’s other business lines, there appears to be some downsizing occurring. ONE eSports lost its department head, Carlos Alimurung among several other staff cuts last year. ONE’s affiliated gym, Evolve MMA is also understood to be shutting one of its key outlets at Far East Square in Singapore.
What about the US?
Entering the US has always been key to ONE’s global expansion plan, but that has proven over the last few years to be tough to crack as well.
Entering the Americas always involved a two-prong approach at the very least:
Secure multi-million dollar contracts with the top US broadcasters to stream ONE’s fights worldwide. This will increase global viewership and position them to win sponsorships
Organise a series of amazing MMA fights on-ground so fans can buy tickets to experience the show, see their MMA heroes up front, interact with other fans, buy merchandise…etc
But even after the COVID pandemic began to wane and live events resumed globally in 2023, ONE struggled to regain strong momentum on this front.
The latest hiccup — its highly anticipated US fight in Denver, Colorado originally slated for August 1 this year — has now been pushed to 2026.
ONE Championship's return to Denver has been put on ice.
The promotion announced Friday that ONE 173, which had been scheduled for Aug. 1 at Ball Arena, will not take place and a return to Denver won't happen until June 2026 "after Stamp Fairtex vs. Denice Zamboanga and multiple other title bouts did not materialize." (Source: MMA Junkie)
ONE Championship previously signed a multi-year broadcast deal with Amazon in 2022, following its lapsed deal with Turner, but based on a recent MMA Draw report citing sources, this may also be on the verge of ending.
In the high-stakes world of sports streaming, Amazon is not waiting for the music to stop. It is making moves now. Sources confirm Prime Video will not renew its deal with ONE Championship when it expires at the end of its term in 2025. The calculated exit is part of a broader shift, clearing the way for a potential bid on UFC’s pay-per-view rights. (Source: MMA Draw)
What next?⏱️
Until then, Sityodtong remains highly active on the PR front, including a highly-publicised appearance on Tim Ferriss’s podcast, and several vitriolic comments made on fellow Japanese MMA promoters eventually provoking a public retort on how “the weakest dogs bark the loudest”.
Even former heavyweight champions were not spared in recent weeks.
ONE Championship will likely continue to count on Qatar and the wider Gulf to grow its business where interest in sports media properties remains strong. However if the firm hasn’t yet fixed its cashburn and financials by now, it might need to do that quick.
With all due admiration for the mission, creating a platform for fighters, the execution has been extremely weak and spending lavish.
I remember visiting their Duo Tower office and wondering how on earth they can afford that level of spending