Endeavor CEO Ari Emanuel Explains Why He Returned $400 Million, Plus Interest, To Saudi Arabia

In 2019, Endeavor CEO Ari Emanuel returned a $400 million investment given to Endeavor by Saudi Arabia and the crown prince Mohammed bin Salman. The deal was a means to finance Endeavor’s growth and diversify Saudi Arabia’s economy via the agency’s work in sports, events, and production. 

The return happened a few months after the murder of Saudi journalist Jamal Khashoggi.

Speaking on Freakonomics, Ari explained his decision to return the money and his current relationship with Saudi Arabia. 

The conversation began by host Stephen J. Dubner asking if Ari had a moral position on LIV Golf being funded by Saudi. 

Ari replied, “No.” 

Endeavor was considering an investment into LIV Golf, but ultimately did not go that route. 

Asked if the sport washing in Saudi concerned him, Ari replied, “I haven’t really thought about it. I have enough on my plate. They’re doing what they’re doing.”

Ari was then asked about his initial partnership with Saudi and taking the investment money to start.

“I was somewhere for the UFC, making a deal, either in China or Russia, I get a call from one of my investors in Abu Dhabi. He says, ‘What are you doing?’ ‘I’m making this deal.’ ‘Can you fly to Abu Dhabi?’ ‘Of course.’ Found a flight, flew to Abu Dhabi, we met, he said, ‘I want you to go to Suadi Arabia, meet with MBS [Mohammed bin Salman].’ ‘Okay.’ ‘He’s going to be taking over and he wants entertainment, he’s changing what they’re doing,’ and he gave me the whole speech. I said, ‘I’ll fly to Suadi.’ I flew to Saudi, met with MBS,” he said. 

Asked what MBC is liked, Ari replied, “He’s incredible. He’s as charming as can be. He had this whole vision, bringing entertainment and movies back, and he wanted to spend $30 billion in entertainment. I thought his vision was incredible. We negotiated, it took about nine months in negotiation for them to invest, I think, $400 million. Then, a bad thing happened. Let’s be very clear what happened, I’m not defending what they did.”

Ari is referring to the murder of Khashoggi, who entered the Saudi consulate in Istanbul, but was never seen leaving. The CIA concluded that Mohammed bin Salman ordered Khashoggi’s assassination. 

He continued, “I have a brother who has been in two White Houses. Every country does bad things, they just don’t do it in an embassy. Right or wrong, we killed an American citizen, who was a terrorist, with no trial during the Obama administration. He was American, he was a terrorist, no trial. That wasn’t in an embassy, but that was…every country….that was evident. That was very difficult. I wish it woud not have happened for a lot of reasons.”

He is now referring to the 2011 drone strike in Yemen when Anwar Nasser Abdulla al-Awlaki, a US citizen tied to Al-Qaeda, was targeted by the US government.

Asked about returning the money, Ari said, “It was a long negotiation. We wrote a check back, with interest.”

Asked if it precludes Ari and Endeavor from doing business with Saudi again, he replied, “No, but we wrote a check. Everybody thinks things are black and white, and I have a tendency to do that too. We live in this period of time where, there was a period of time where it was worse, and I struggle with this. We do business there. People drive cars with oil. Let’s get through a bunch of stuff here. Governments do bad things. Let’s just say that, and then work through our own emotional ethics.”

Finally, Ari was asked why this was the case that made him give the money back. 

“I don’t know. I don’t really know,” he said.

Endeavor acquired WWE in April, entering into a transaction agreement to purchase the company. WWE has a deal with Saudi Arabia, running two premium live events per year in the country. WWE held its Night of Champions event in Saudi Arabia on May 27. 

Nick Khan previously stated that WWE’s relationship with Saudi would continue after the Endeavor purchase despite the history between Saudi and Endeavor. 

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