A concerning report from DealStreetAsia suggests that Qatar may be becoming impatient with ONE’s inability to generate stable financial returns.
ONE Championship has reportedly made a fresh appeal to the Qatar Investment Authority in a bid to secure funding from investors once again. New report from DealStreetAsia.
Qatar is a significant investor in ONE, reportedly contributing $50 million of a $150 million funding round in 2021. As a result, it is not uncommon for ONE to approach sovereign wealth funds and venture capital firms for additional investment. However, there were some concerning claims in the DealStreetAsia article suggesting that ONE may be running out of time to generate significant returns for its funders.
“ONE’s runway is expected to expire by the third quarter of next year,” a source told DealStreetAsia, adding further pressure on the promotion to secure more funding. This time it may be even more difficult. That’s because “sources told DealStreetAsia that Qataris are increasingly confused about their involvement with ONE, which has been noted for its weak financial standing.” They also noted that global liquidity is drying up.
ONE’s financial health is a difficult question to answer. The company regularly submits financial reports to the Singapore Accounting and Corporate Regulatory Authority, which report that revenue is on the rise, with revenues reported at $67.7 million in 2021 and $80 million in 2022. There is. deal street asia These numbers include a “non-cash component” and claim that “ONE’s true cash proceeds for fiscal year 2022 are likely to be only $5 million to $8 million.”
ONE Championship has a very busy 2023 with over 50 events scheduled on the calendar. This includes a weekly event at Lumphini Boxing Stadium in Bangkok, a US event in Broomfield, Colorado, and a show in Singapore. The fights are great, the product is slick, and I have high hopes that ONE will continue to grow as it adds a lot of flavor to the martial arts schedule.
Behind the scenes, ONE seems to be adept at manipulating the world of finance. So there’s good reason to think there’s no problem securing more funding for the promotion to get past the dreaded Q3 runway deadline.
Still, I can’t help but feel a little concerned, having just witnessed Bellator’s slow and uncertain stalling in these tough economic times.
“Our projected 2024 revenue puts our core business on track to a profitable run-rate by next year,” a ONE spokesperson said. Statement to DealStreetAsia.
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