ONE Championship is reportedly seeking additional funding from the Qatar Investment Authority, aiming to secure more investors. A new report from DealStreetAsia provides insights into the situation.
Qatar has been a significant investor in ONE, contributing $50 million out of a $150 million funding round in 2021. ONE has approached sovereign wealth funds and venture capital firms for additional investment in the past. However, a report from DealStreetAsia raises concerns about ONE’s ability to generate significant returns for its funders.
According to sources cited by DealStreetAsia, ONE’s runway is projected to expire by the third quarter of the next year, placing pressure on the promotion to secure more funding. The report suggests that Qatar’s involvement with ONE is becoming unclear due to ONE’s weak financial standing and the global liquidity drying up.
Assessing ONE’s financial position is challenging. While the company’s financial reports to the Singapore Accounting and Corporate Regulatory Authority indicate increasing sales, the report from DealStreetAsia claims that the true cash proceeds for fiscal year 2022 are likely to be only $5 million to $8 million, despite reported sales of $67.7 million in 2021 and an expected $80 million in 2022.
ONE Championship has a packed schedule for 2023, with over 50 events planned, including weekly events in Bangkok, a US event in Broomfield, Colorado, and a show in Singapore. The promotion’s product and events have been well-received, and there is optimism for its continued growth in the martial arts market.
Despite the financial challenges, ONE seems to have a strong understanding of the finance world, which may contribute to its ability to secure additional funding to meet the Q3 deadline.
However, given the economic challenges faced by other promotions such as Bellator, there is some concern about the uncertainty in the industry.
A spokesperson from ONE stated, “Our projected 2024 revenue puts our core business on track to a profitable run-rate by next year,” in a statement to DealStreetAsia.
