Tracing The Finances Of ONE Championship Including Losses Of Millions Of Dollars
Bloody Elbow has been following the finances of ONE Championship, and their research revealed staggering numbers in their losses and profits over the years.
The extensive report — written by John Nash of Bloody Elbow – outlines a $341 million profit in their most recent annual financial statement, despite its many subsidiaries showing a loss of $47.6 million for the year.
Group One Holdings Pte. Ltd. Is the company that does business under ONE Championship. Its subsidiaries include One China, One India, One Esports and One Warriors.
The sports association is a Singapore-based mixed martial arts, Muay Thai and kickboxing promotion. Notable athletes from ONE includes Demetrius Johnson and Miesha Tate, who was the former vice president.
The $341 million profit is reportedly a result of an intercompany transaction with one of their new subsidiaries, One Championship, Inc., which came about in Delaware in August 2019.
Bloody Elbow wrote, according to their 2020 financial statements, “[d]uring the financial year, the Company has sold its intellectual property rights relating to the combat sports and martial arts business in the United States to One Championship, Inc for a consideration of US$400,000,000, of which US$200,000,000 being settled by way of shares in One Championship, inc and US$200,000,000 by way of cash.”
Without the $400 million transaction, the company would have reported a loss of $59 million.
The recent decrease in revenue is victim to the Covid-19 pandemic, which forced ONE Championship to cancel at least seven events. This also enabled a steep decline in event production expenses and overseas business travel expenses.
Group reported a decline from $1.7 million in 2019 to a little over $100,000 last year.
The sports association previously included a “barter transactions” segment with their revenue sources, noting that responsible for 65% of all their revenues in 2017.
“For their 2018 annual financial statements, barter transactions were eliminated and 2017 was restated with the barter transaction revenues transferred to sponsorship and broadcast revenues,” Nash wrote. “Barter transactions now made up 63% of 2017’s sponsorship revenue and 83% of that year’s broadcast revenue.”
It’s unclear how much of the current revenue is from barter transactions or other non-cash transactions.
There’s also been a change in Company officers and a potential move to the Cayman Islands.
ACRA Senior Vice President of Finances, Wei Jin Soh, has been replaced with Chief Financial Officer Jesley Chua, as of an August 5 filing.
On August 6, the United States Security and Exchange Commission posted a move that suggests they were preparing for an IPO or SPAC.
Amidst the different financial moves, ONE Championship has been successful with raising capital. As of January 1, 2021 they had raised a total of $276 million from investors for the Group.
But they’ve also been spending.
At the beginning of this year, they had reported accumulated losses of $273 million.
The company will be celebrating its 10th anniversary of its first event next month.
ONE Championship has yet to comment.