The Owner of Miss Universe Has Filed for Bankruptcy: Everything We Know
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Miss Universe, arguably the planet’s most popular beauty pageant, is no stranger to controversy. Since being founded in 1952, the organization has been rocked numerous times by issues related to contestant eligibility, pageant rules, ownership, and behind-the-scenes intrigue.
These days, besides the usual virtual fistfights among rabid fans and the countries and contestants they support, the big issue hounding Miss Universe concerns the group running it. JKN Global Group is a Thai media conglomerate that acquired the Miss Universe Organization from IMG Worldwide in October 2022 reportedly for $20 million (about P1.1 billion). A year later, the company filed for bankruptcy protection.
How did we get here and how will this affect the future of Miss Universe?
Here’s your quick guide to everything happening outside the glare of the spotlights:
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What is JKN Global Group and who is its owner Anne Jakkaphong Jakrajutatip?
JKN Global Group is a publicly listed conglomerate founded and based in Thailand. The company has interests in beverages, content distribution, cosmetics, health products, home shopping, energy drinks, personal care, events, entertainment, and mass media. It was founded by Anne Jakkaphong Jakrajutatip.
Based on regulatory filings, the company declared a comprehensive income of THB596.22million (about P933.8 million) up nearly 200 percent from the 2021 figure of THB201.14 million (P315 million). Revenues, meanwhile, were at THB2.669 billion (about P4.2 billion) in 2022, up 47 percent from 2021 revenues of THB1.80 billion (P2.83 billion).
The company was founded and is chaired by Anne Jakkaphong Jakrajutatip, who was born a man but has since transitioned into a woman. In previous interviews, Jakrajutatip revealed that she used to study at an all-boys school where she was bullied by classmates and had even been sexually harassed by a teacher. She was forced to drop out and reportedly worked at a gas station to support herself.
Jakrajutatip eventually found her way to Australia where she studied international relations at Bond University. Upon returning to Bangkok, she helped in the family’s video rental business before she started working on her dream of starting her own company.
In 2013, she started JKN Global group that initially sold products such as beverages, cosmetics, and energy drinks. In time, the company expanded to content production and distribution, and TV programming. It acquired distribution rights in Thailand for foreign programs such as documentaries drama and reality shows, including Project Runway, for which she served as host in the Thai version.
JKN Global Group founder chairperson Anne Jakrajutatip being interviewed by Boy Abunda in Manila
Who owned the Miss Universe pageant and why did JKN acquire it?
The MUO has changed ownership multiple times over the years. The pageant was originally started by Pacific Knitting Mills, which owned the brand name Catalina Swimwear and was based in California, USA. Pacific Mills was later on acquired by the undergarments company Kayser-Roth corporation, that was, in turn, purchased by corporate giant Gulf and Western Industries Inc. Later on, the pageant would exchange hands once again when it was acquired by manufacturing company ITT Corp.
ITT managed and staged the pageant for years until, in 1996, it was acquired by the Trump Corporation under Donald Trump (who would go on to become president of the USA). Trump signed a joint venture agreement with US broadcast company NBC, which aired the pageant for a few years. But a dispute between the two parties led to NBC canceling the partnership and Trump acquiring NBC’s half of the company to full control the MUO. However, just a few days later, Trump turned around and sold the company to talent and media agency WME/IMG.
In October 2022, it was reported that Jakrajutatip’s JKN Global Group had purchased the Miss Universe Organization for $20 million from WME/IMG. It was a strategic acquisition, JKN said, that was meant to boost the brand’s portfolio of businesses as well as amplify the JKN brand outside of its home country of Thailand.
In a statement at the time of the acquisition, Jakrajutatip, who became the first woman to own the Miss Universe Organization in its decades-long history, said the company was “incredibly honored” to make the acquisition. “We seek not only to continue its legacy of providing a platform to passionate individuals from diverse backgrounds, cultures, and traditions, but also to evolve the brand for the next generation,” she said.
When did JKN’s financial troubles start?
Although JKN Global Group reported healthy earnings in 2022, it was not all good news for the company. According to a report from Nikkei Asia, although media companies scrambled to acquire and develop content and entertainment during the pandemic, when demand for it skyrocketed owing to people spending most of their time indoors, viewership eventually declined after restrictions eased and people started going out again.
JKN Global Group’s investments created negative cash flow for the last three years, based on the company’s financial statements. Profit also dipped over 23 percent for the first nine months of 2023 to THB115.5 million from THB151.7 billion during the same period last year.
According to the Nikkei Asia report, JKN continued to spend heavily on acquiring more program rights despite its liquidity problems. Of course, it is also spending a hefty amount to stage the pageant this year in El Salvador.
“Acquiring Miss Universe might have been a mistake,” Nikkei Asia quoted Kitpon Praipaisarnkit, an analyst at UOB Kay Hian Securities. “When you have negative cash flow, you have to be cautious with investments.”
Some people might ask: but Miss Universe is a globally recognized brand; shouldn’t it be earning money?
Well, yes, but maybe not enough to cover JKN Global Group’s losses. How MUO earns as a business is by collecting a franchise fee from countries so they could stage local competitions. That fee includes the right to use the image, brand, and everything related to Miss Universe. Individuals or companies bid to acquire these rights. According to sources, JKN set the starting price of the bid at $10 million. In addition, the MUO also earns from selling broadcast rights of the pageant itself to countries around the world.
According to Nikkei Asia, JKN said it expects to earn deferred revenues of about THB298 million after the pageant itself airs on Saturday night (Sunday in Manila). But even with additional earnings of about THB1.9 billion over the next five years may not be enough to cover yearly liabilities and amortizations.
JKN Global Group’s liquidity problem is the primary reason why it filed for bankruptcy earlier this month.
In a statement about the bankruptcy filing, the company said it missed a repayment deadline amounting $12 million that was due last September 1. JKN’s stock in the Thai bourse has fallen more than 90 percent compared to the previous year.
How will JKN Global Group’s bankruptcy affect the Miss Universe pageant?
As far as the pageant itself, it seems as though all systems are still a go and the program is still scheduled to go ahead on Saturday, November 18 (Sunday mornig in Manila).
In a statement posted on its website, JKN reiterated its “strategic corporate financial management plan” to address the bankruptcy issue, adding that it is confident that the new plan will support all of the company’s business operations, including Miss Universe.
“We confirm that Miss Universe 2023 will be held in El Salvador on 18 November 2023 where a topnotch experience provided to our fans will remain our top priorities,” the statement read. “We reaffirm that the legacy of Mis Universe will be carried on by the JKN Global Group as envisioned from the beginning.”
“We look forward to welcoming our delegates and fans in El Salvador as well as through our broadcasting partners,” it added.
It remains to be seen where the MUO is headed after this year's crowning.
Sources:
JKN Global Group financial statements
