This is Buying Sideline — the only newsletter that focuses solely on the business of of sports hospitality and premium experiences.
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In the email today:
⚽️ TKO Earnings Highlight Huge Hospitality Demand, Margin Challenges
TKO Group - parent company of sports hospitality provider On Location, along with WWE and UFC - announced its earnings earlier this week, and for the first time gave us a look at total hospitality ticket sales for the World Cup, for which it was FIFA’s exclusive provider.
On Location recognizes revenue for the World Cup as events are played, so all of this excludes 25 higher-ticket matchups in July:
$2B in gross sales through Q2
More than 568k packages sold through June— On Location expects over 600k packages sold
Implied AOV: $3,500
Buyers from 154 countries
$66M in recognized hospitality revenue in Q2
$45M in Q2 EBITDA from World Cup sales
Expects $75M in World Cup EBITDA overall
On Location had previously disclosed, on May 28, that the program had more than doubled the sales of any prior World Cup hospitality program, that it passed the 2022 World Cup’s lifetime sales total in June 2025 — a full year before kickoff — and that corporate buyers accounted for roughly half of all packages sold.
Or put another way: private buyers bought half of the tickets, implying there was over $1B in hospitality ticket sales to individuals.
President and COO Mark Shapiro:
“The success of our hospitality and experiential program doesn't merely speak to a trend, but instead what is quickly becoming the norm, front of the line access and the consumer's increasing desire to pay more for a personalized, customized offering.”
“On Location is such an important part of the overall life cycle we have here in the equation. We talked about it in the prepared remarks. You're just seeing so many more personalized experiences, customized experiences, front-of-the-line access, parents wanting it for their kids, individuals wanting to go out with their friends. These communal events, experiencing them in different unique ways.”
LA28, which On Location says is shaping up to be the largest sports hospitality event ever, is off to a ridiculous start, two years out:
$280M booked
More than 20k orders so far
AOV: $14,500
Two years out.
Our Take: This is a stunning number on several fronts.
1) It’s a lot of money, and shows clear demand from consumers for premium offerings, at scale. Granted, it’s the biggest sporting event in the world, but executive comments were effusive about the demand and their bullishness on the segment.
2) This isn’t a high-margin business. Things are obfuscated by the fact that On Location only recognizes their commission as revenue for the World Cup, compared to the Olympics where they purchase seat inventory and recognize the gross sales as revenue, making the resulting EBITDA figure more telling. In the case of Paris 2022, they lost money. In Milano, they were around break-even.
For the World Cup: $75M in EBITDA on over $2B of sales means On Location pockets somewhere around 3%. That’s perhaps a better business model as it doesn’t come with the inventory risk of the Olympics and other events, but the marketing costs for both also show up long before revenue is booked.
Shapiro acknowledged the margin challenges:
“While that margin, although we benefited from it this quarter, isn't up to speed or up to snuff with where WWE or UFC sits, it's still such an important element for the growth of those two leagues, let alone as a standalone business in On Location itself.”
3) This puts the right holders in the driver’s seat. On Location will end up in the black for the World Cup, but it’s a rounding error in the grand scheme of hospitality sales for the event, and a small portion of the company’s overall EBITDA.
On Location is the rights holders for its own properties— the WWE and UFC, and that part of the business is highly profitable, so it can use its learnings from major events and apply them to its own assets.
What this tells me is that the middleman layer, while performed admirably by On Location, will become a commoditized business with compressed margins. And specifically, what On Location has done here is provide a playbook to not only itself, but also other rights holders. It shows why they would be best off operating these tiered offerings internally given that they’re 1) high-margin when they’re owned inventory and 2) there are only a small handful of third-parties that can make the economics work for outsourcing, since even a company with the scale of On Location struggles to be reasonably profitable as a third-party.
🏈 Akron Football Scores Big With Viral Offensive Coordinator Promo
It’s unknown how the Akron football team will fare on the field this fall, but the program has already secured a huge win before its first game.
Earlier this week, Akron Athletics announced its “Offensive Coordinator of the Game” promotion, which gives a random season ticket holder the opportunity to call the Zips’ first drive in their home opener against Robert Morris on Sept. 12.
Talk about a premium experience.
The contest winner, who will be selected on Aug. 19, will assist Akron head coach Joe Moorhead and his offensive staff with developing the opening drive on the Thursday or Friday prior to the game.
It stands to reason the calls will have to fit within the general framework of the Zips’ offense, so don’t expect to see the Annexation of Puerto Rico or anything else too crazy.
But the real story here is the viral success of promotion.
Akron has sold out its entire suite inventory for the season for the first time ever
Aug. 5 nearly the best day of season ticket sales in program history with club level sales already doubled year-over-year
Akron’s initial post to X about the promo on Aug. 4 has already generated over 22 million views with celebrities like Barstool’s Big Cat, Dan Dakich and Pat McAfee scooping up season tickets for a shot to win
Speaking of McAfee, Moorehead seemingly embraced the buzz around the promo and handing over the play sheet.
“Listen, if we put the first one in the box, and score a touchdown I might hand him the damn call sheet and my headset and say keeping rolling,” he joked. We think.
Our Take: While much has naturally been made about the novelty of a fan calling offensive plays for a college football team, this story also says a lot about the future of ticket sales and hospitality.
Akron didn’t run the standard “come watch and get something for free” playbook. Instead, the school banked on the experience of actually influencing the game. The scarcity (for now) of such opportunities and the ensuing boom of social media buzz and ticket sales illustrates the rapidly increasing importance of unique sports experiences, which now even includes being part of a game’s story.
The reality is that this Akron promo is likely scratching the surface of where premium inventory is heading. We’re no longer talking better seats, better drinks and better food. We’re talking about getting as close to the action as possible. With the race to generate revenue in college athletics more critical than ever, expect more and more schools to lean in on game-planning and coaches’ room access, one-on-one, team travel and even one-on-one interactions with players and coaches.
In other words, access that fans could once only dream of could soon be regularly attainable for those willing to spend on it.
🎾 The 2026 US Open Premier Packages Are Here
US Open hospitality packages are available with options spanning standard suite access, luxury dining, one-on-one lessons and chats with tennis legends.
Some of the highlights include:
Fan Week Luxury Suites: Starting Aug. 23, check out US Open Fan Week events featuring an exhibition match with Roger Federer, Kids Day and the US Open Mixed Doubles Championship.
The Billie Jean King Experience: Meet and greet Billie Jean King in a shared luxury suite during the mixed doubles semifinal and final matches.
The Championship Lounge: Take in semifinals and finals matches in The Championship Lounge, which makes its debut this year. Perks range from courtside seating, chef-curated dishes, all-inclusive drinks and premium access.
On Court Experience: Get a private 10-person lesson on court at Arthur Ashe Stadium, courtside match views, an all-inclusive premium buffet with drinks and a private car for transportation.
Play Like a Pro: Get a one-on-one lesson from a tennis great on US Open practice courts before before taking a stadium tour and access to luxury and gifting suites, with the latter featuring US Open gear.
Also new this year are a three premium spaces — The Club, The Blue Room and The Championship Lounge. All three spaces have received significant demand in the weeks leading up to the tournament.
🔗 Sports Hospitality Links
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See you on the field.