In order to stay afloat amid the coronavirus pandemic, UFC’s Endeavor is hoping to raise $250 million by June, the New York Post reports.
According to The Post, Endeavor was expected to receive $150 million from UFC this year. These funds would have paid for a stock buyback program and would allow the company to rebuild itself after it pulled its IPO in September. Following several UFC cancellations due to coronavirus, that money is out of the question.
Earlier this week, Endeavor announced that it would furlough or cut the pay of 2,500 employees, which makes up a third of Endeavor’s 7,500-person workforce. This will save Endeavor about $100 million for the year. In addition to the pay cuts, Silver Lake announced that it would invest, a source close to the situation said, noting that the $250 million figure was a round number it was presenting to potential investors.
The money raised through cost savings and Silver Lake will go toward company functions, an insider told The Post, which includes payroll and rent. By June, Endeavor’s cost-cutting will be complete.
“The long-term prospects for Endeavor remain unchanged, but like other companies, we are taking a variety of actions to mitigate the impact of this pandemic,” Endeavor rep Christian Muirhead said in a statement regarding the cutbacks. “Since late March, we have been rolling out cost-saving measures in phases across our companies and geographies and intend to complete most of this process in late May.
“Approximately a third of our population will be impacted by reduced pay for reduced work, furlough, or position elimination, with the majority affected by reduced work and furlough.”