U.S. Open agreement ‘incrementally positive’ for TKO Group, says Citi

Citi says press reports this week indicated the United States Tennis Association reached an agreement to extend its U.S. media rights agreement for the U.S. Open through 2026. As a result, the domestic rights for the U.S. Open will see a 2.2-times step-up beginning in 2026, the analyst tells investors in a research note. The firm says this compares to other recently announced domestic sports rights step-ups, including the NBA at 2.6-times, the Big East at 1.8, and the French Open at 5.4. Citi views the U.S. Open announcement as “incrementally positive” for TKO, which it says is set to renew its UFC domestic media rights prior to Q4 of 2025. It believes the sell-side consensus currently implies a 1.5 to 1.6-times step-up in UFC’s domestic media rights in 2026. Citi reiterates a Buy rating on TKO with a $137 price target.