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Old 12-28-2009, 12:54 PM   #41
dustin32

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Originally Posted by doyawanna View Post
That's one line of thinking, but not necessarily the correct one. It depends on what the business structure and goals are. Here's what I see:

The UFC employs approximately 200 staff and 250-odd fighters. The staff costs are largely well-paid professionals (marketing, legal, production crews, etc), making this a huge part of the operating costs of the company. There are additional non-employee costs in hiring local lobbyists, lawyers etc. in the constant work of opening up new markets.

These costs are very large and need a stream of revenue and profits to support them. Even a 200k PPV would pay the UFC $5M (assuming $25 from each PPV reaches them), helping cover these costs. This is critical revenue to keep the core business afloat and growing.

Secondly, the UFC is intently branding itself as THE source of MMA... by putting on lots of shows - even over-saturating the market a little - they keep the primary MMA focus on themselves. We all know the difference, but I heard two people talking about watching Fedor on UFC when he had his last fight... to many casual fans, the UFC IS MMA... that is a leadership position that is weakened by fewer shows, even if those shows are less profitable.

Overall, I think we will likely see more UFC shows rather than fewer, with a concerted effort to continue to equate UFC with MMA globally. Just my $0.02
Good points.

Also, holding fewer events would mean having a smaller stable of fighters. This would make it more difficult to build prospects into stars (and would give your competition the opportunity to absorb that talent). More fights = securing more prospects and a higher probability of young talent rising to the competitive ranks. It's a combination of branding and security of talent.

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Old 12-28-2009, 12:54 PM   #42
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Old 12-28-2009, 12:55 PM   #43
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Originally Posted by vv44 View Post
I'm actually still very unclear as to how the proposed network deal impacts the business model, which as I understand it, amounts to selling as many PPVs as possible.

I know how TUF primed the larger, casual audience to start watching PPVs, but how much more exposure can the UFC really get without showing actual fights? And if they do show real fights, does UFN end up being a regular, televised program on network TV?

I'm sure my understanding of the situation is far from complete or accurate. Anybody have any further info?
IMHO I think the UFC will hold out on a network deal until they get a blockbuster deal they have to take. PPV dominace like we are seeing I don't think can be sustain for years and years, it will run its course. This is where network TV could really come into play(I would include ESPN in this also as they would be better then any true network TV station). You could do like six events a year on network, six to eight on Spike, and make all your network events lead up to 4 to 6 just stacked PPV's a year that are can't miss. Basically you try to build it so those PPV's avg. around 1.2 to 1.5 million buys and maybe push that 2 million barrier. This would be a much more sustainable business model over time. Hitting the fans once and a few times twice a month for $45 to $55 and then add in WEC and Strikeforce at some point holding events on PPV is going to be tough to keep numbers up like there seeing right now.

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Old 12-28-2009, 12:55 PM   #44
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Originally Posted by Lazepunk View Post
keep in mind, if you compare boxing ppv's, you're going to want to compare each promotion individually, as well as a whole. Not all boxing ppvs are done by the same promoter.
Aren't most boxing ppvs done by two promoters?

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Old 12-28-2009, 12:59 PM   #45
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Yeah because at least $350,600,000 from Pay per View buys alone shows that they are just tanking huh? IDIOT! That doesn't even take in to consideration the Bars that buy the PPVs and pay $1000 for it instead of 44.95.
Dude, the oh wait meant he was being sarcastic and was spitting the rhetoric of Sherdog regarding the UFC and its future. Guess he went over your head.

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Old 12-28-2009, 12:59 PM   #46
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Originally Posted by SwanzeeBoySee View Post
Anyone got a comparison of boxing and wwe ppv numbers with the ufc this year?
According to the WWE 'Trending Schedules', PPV sales are as follows:

Q1 2009 : 818,000 (2 events; avg of 409,000)
Q2 2009 : 1,819,000 (5 events; avg of 363,800)
Q3 2009 : 836,000 (3 events; avg of 278,667)

2009 (so far) : 3,473,000 (10 events; avg of 347,300)

I'm pretty sure these are global figures though and so not a direct comparison to the UFC's figures (In the UK, WWE is sometimes PPV whilst the UFC never is).

http://corporate.wwe.com/documents/W...gFINAL_000.pdf

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Old 12-28-2009, 12:59 PM   #47
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Originally Posted by SwanzeeBoySee View Post
Anyone got a comparison of boxing and wwe ppv numbers with the ufc this year?
Well boxing has lived on the last few years on a handful of boxers. This list is dwindling quickly. They have no new stars that avg people relate to. As a fan of boxing the sport is really on its last legs as the top combat sport in the world and I hate to say it, but it will basically fade into a more of a underground status in the next few years(at least in most modernize countries). Boxing will be like MMA was in about 2003.

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Last edited by skylolow; 12-28-2009 at 01:06 PM.
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Old 12-28-2009, 12:59 PM   #48
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Yeah, and the pricks are lobbying congress because a couple hundred thousand fans are getting the fights for free via. the internet. Oh, I feel so sorry for them.

Quote:
Originally Posted by MatParker116 View Post
UFC Establishes New Mark for PPV Buys in 2009 : MMAPayout.com: The Business of MMA

Zuffa is making the money a lot of money and eight million is a lot of ppvs.

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Old 12-28-2009, 01:00 PM   #49
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Originally Posted by skylolow View Post
IMHO I think the UFC will hold out on a network deal until they get a blockbuster deal they have to take. PPV dominace like we are seeing I don't think can be sustain for years and years, it will run its course. This is where network TV could really come into play(I would include ESPN in this also as they would be better then any true network TV station). You could do like six events a year on network, six to eight on Spike, and make all your network events lead up to 4 to 6 just stacked PPV's a year that are can't miss. Basically you try to build it so those PPV's avg. around 1.2 to 1.5 million buys and maybe push that 2 million barrier. This would be a much more sustainable business model over time. Hitting the fans once and a few times twice a month for $45 to $55 and then add in WEC and Strikeforce at some point holding events on PPV is going to be tough to keep numbers up like there seeing right now.
I agree.

Fewer ppv's with more bang for the buck. the UFC could put on 6-8 shows a year with stacked cards and huge hype behind them.

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Old 12-28-2009, 01:02 PM   #50
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Originally Posted by SwanzeeBoySee View Post
Aren't most boxing ppvs done by two promoters?
if not more. I was just trying to point out that comparing all of boxings ppvs to just 1 mma promotion may be skewed. However, the fact that it's possible to compare one promotion of one sport to another sport as a whole says something big.

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