Not all news is good news and that was recently revealed by One Championship, as the promotion issued a press release announcing an additional $70 million in their war chest. The bad news was that while having additional money in the war chest, it came along with a 20% reduction in staff.
That news can be seen in the following section of the press release (via Bloody Elbow):
ONE Championship Adds US$70 Million To Its War Chest
Existing And New Institutional Investors Participate
The largest global sports media property in Asian history, ONE Championship (ONE), today announced that it has added US$70 million to its war chest, bringing total capital to US$346 million. ONE Championship has also streamlined operations, including a 20% reduction of total worldwide headcount.
Hua Fung Teh, Group President of ONE Championship, stated: “I am thrilled to announce that ONE Championship closed another round of funding a few weeks ago with existing institutional investors as well as a new institutional investor. I am full of gratitude for this strong vote of confidence amidst the worst global economic crisis in 100 years. With 9 figures of cash on the balance sheet and a streamlined organization, ONE Championship looks forward to continuing to delight our fans around the world with more heroes and new experiences for many years to come.”
One CEO Chatri Sityodtong issued a letter to employees announcing the cutbacks, which was obtained by Tech In Asia:
The world is suffering from the single worst economic crisis in a hundred years due to Covid-19. After weeks of consultation with both our leadership team and our board of directors, I have made the decision to future-proof ONE Championship by both streamlining operations and sharpening core strategic priorities.
It is one of the most heart-wrenching decisions I have ever had to make in life. On the one hand, ONE has a strong balance sheet with a 9-digit war chest after today’s new funding announcement. It puts us in the perfect position to continue aggressively building Asia’s largest global sports media property. On the other hand, these extraordinary times for the world require unusual prudence to protect our company and to ensure its longevity for many years to come. With the decision to sharpen our focus around core strategic priorities, ONE will undergo a 20% reduction in total worldwide headcount.
UFC President Dana White would mock One Championship’s announcement on Twitter:
Why the fuck would they announce that
— danawhite (@danawhite) June 15, 2020
The news of staff cutbacks may actually by worse if Josh Gross is to be believed:
This press release from ONE Championship notes a "20% reduction of total worldwide headcount," which is mealy mouthed phrasing for a layoff.
— Josh Gross (@yay_yee) June 16, 2020
I was told that ONE actually parted ways with closer to 50%-60% of its workers, which includes all freelance contractors. pic.twitter.com/MygwTk21WJ
There has been rumors spreading for a while now that One Championship has been hemorrhaging money and the staff cutbacks don’t necessarily dispel those rumors, despite the additional funds in the war chest.
