Form 4: Endeavor Group Holdings CEO Reports Transaction Involving Common Units and Class X/Y Stock

Ariel Emanuel, CEO of Endeavor Group Holdings, reports a transaction involving the redemption of common units and cancellation of Class X and Class Y common stock, with no direct sale of Class A Common Stock by the reporting person.

Summary

• On March 12, 2024, Ariel Emanuel, CEO of Endeavor Group Holdings, reported a transaction on Form 4.
• The transaction involved the redemption of common units issued by Endeavor Executive Holdco, LLC.
• As part of the redemption, 20,832 shares of Class X and 20,832 shares of Class Y Common Stock were cancelled for no consideration.
• These shares were cancelled upon the exchange of an equal number of limited liability company units of Endeavor Operating Company, LLC ('OpCo Units').
• The reporting person did not directly sell any Class A Common Stock.
• Following the reported transactions, the reporting person beneficially owns 10,153,217 shares of Class X Common Stock and 10,153,217 shares of Class Y Common Stock directly.
• The reporting person also indirectly owns 28,422,310 shares of both Class X and Class Y Common Stock.
• The reporting person indirectly owns 25,148,809 Endeavor Operating Company Units.
• OpCo Units are exchangeable on a 1-for-1 basis for either Class A Common Stock or an equivalent amount of cash, at the Issuer's option.
• The securities are held by Endeavor Executive Holdco, LLC, Endeavor Executive PIU Holdco, LLC and Endeavor Executive II Holdco, LLC, which are managed by a board of directors composed of the Reporting Person and Patrick Whitesell.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing, so the sentiment is neutral.

Positives

• The document does not explicitly state any positive impacts.

Negatives

• The document does not explicitly state any negative impacts.

Risks

• The document does not explicitly state any risks.

Industry Context

This filing is a routine disclosure related to executive compensation and equity ownership, common in publicly traded companies like Endeavor Group Holdings. It provides transparency into the transactions of key executives and their holdings in the company.

Comparison to Industry Standards

• Form 4 filings are standard practice for publicly traded companies and their insiders.
• The structure of Endeavor's equity, with different classes of stock and operating company units, is not uncommon for companies with controlling shareholders or private equity backing.
• Comparable companies like Live Nation Entertainment or Madison Square Garden Entertainment also have similar filings related to executive stock transactions.

Stakeholder Impact

• The transaction itself has minimal direct impact on stakeholders.
• The filing provides transparency to shareholders regarding executive ownership and transactions.

Key Dates