The UFC is overvalued

[Red Bull]

WWE is listed as being worth 1.5 billion

Both have a very niche hardcore fan base

Both are sports entertainment

Both generate similar revenue each year $659 million for the WWE in 2015 and $600 million that Lorenzo claimed last year.

When I look at both of them, I just can't see how anyone can value the UFC over the WWE

• WWE stars last much longer due to it being scripted, look how long John Cena has been around selling merchandise and PPV to kids
• UFC stars are typically draws for less than a handful of PPV events due to there being so many different ways to lose.
• WWE stars don't get injured as much and if they do, there's always someone to replace them.
• When UFC stars get injured it typically results in a weak main event or the whole event being cancelled meaning millions wasted in promotion.
• The WWE is on all the top networks all over the world whilst the UFC in the UK is on a fairly small subscription channel
• WWE has a richer history

 

[Z28MARO]

UFC will always have the reality factor of actual competition.

 

[MMAAAM]

We need a "cool story bro" smiley thingy.

 

[Sherdog'sOfficialBlackMan]

The difference is the UFC has potential for growth (or at least WME believes it does) while WWE has most likely reached marked saturation.

 

[DeathByBeer]

One is real, therefore you are stuck with reality. It is what it is, all sports have stars that get injured, it sucks but its part of what makes it a sport.

WWE as you say is scripted, they can do whatever they want, makes no difference as long as they entertain people who find that kind of thing entertaining.

Regarless of the above, someone, probably 1000 times smarter at business then myself, not sure about you, decided it was worth what they paid.....kind of hard to question that.

 

[Red Bull]

UFC will always have the reality factor of actual competition.

This is a business argument though

 

[Red Bull]

The difference is the UFC has potential for growth (or at least WME believes it does) while WWE has most likely reached marked saturation.

They'll need to start paying better if they want to grow the sport.

 

[Red Bull]

The difference is the UFC has potential for growth (or at least WME believes it does) while WWE has most likely reached marked saturation.

The WWE would obliterate the UFC if they started being more edgy like the in 90s. The potential is there, they just need the right guys running it .

 

[ColombianFist]

it doesn't matter if it's overvalued. Compared to the WWE they offer real fights with no BS. the only thing uncle dana and ari needs to do (which i doubt) is to improve the salary of the guys and girls of the roster.

 

[Only Here for Attachments]

MMA fans don't care about reality or competition anymore, it's all about catchphrases, soundbytes, and fighters wearing ugly-ass expensive clothes.

 

[rockylion]

 

[Sano]

MMA has broader appeal. Where are the WWE starts on Conan, Ellen, Jimmy Kimmel and so forth?

 

[skylolow]

I don't know........the people who bought the UFC aren't morons by any means. You don't spend 4 billion on a hunch or a maybe this or maybe that will work out. If you asked me before the sale I would said about 2 to 2.5 billion tops and if anyone walks in with 3+Billion take it and run.

I sit back here and laugh that they think there going to get 400 Million a year on the next TV deal. But than when you think about it these guys do this for living and no way in hell did they spend 4 billion not knowing damn well that 400 million a year is realistic. Honestly, I think they'd have a hard time getting 200 million. But they obviously know more than any one on Sherdog does.

UFC Fight pass I think when the dust settles will really be there bread and butter as traditional way of getting media content is quickly going this way. I think there is a lot of potential in it.

 

[blackjackz]

Over-valued? Not really fair to say, it is a private company and at the end of the day, it's value is whatever someone is willing to pay... because it is private, the earnings are not reported (publicly)...

As for the WWE, it is public and the market cap for the company is just over $1.5billion, that is not what it would take to buy the whole company. If someone put a bid for $1.5 billion together, it is almost certainly not going to be able to buy the company... the buy-out value of the WWE may be several multiples higher (and likely is)...

 

[Congo66]

Both are sports entertainment

They're not, one is a tv company who produces soap operas for a live audience and the other is sports promoter.
Good luck in your new job in the City working for a bank and dealing with acquisitions. The value of a company is set by what people who have access to the accounts are prepared to pay and not what's posted in an internet forum.

 

[20falarVerdades]

Yes it absolutely is, let's compare it to a true A-level sport

How can the UFC be valued at $4bn? The only answer is: Americans love to speculate

 

[Red Bull]

Yes it absolutely is, let's compare it to a true A-level sport

How can the UFC be valued at $4bn? The only answer is: Americans love to speculate

My only explanation is that the WME/IMG got severely ripped off or that they have some kind of major revamp up their sleeve

 

[AusMMAfan]

You raise some points. Interesting comparison.

My main concern is UFC is lacking the big PPV stars at the moment:
- Anderson Silva isn't what he use to be
-GSP isn't fighting(might come back in 2017 though)
-JBJ isn't fighting(might come back and fight DC in 2017 though)
-Ronda has lost her aura and UFC 207 could be her last fight in the UFC
-Conor is taking a long leave of absence and could be going to boxing.
-Brock - I highly doubt we will see him back.

MM, Stipe, Aldo, JJ, Bisping, DC are all great fighters and whatnot but they aren't the big PPV stars.

 

[Red Bull]

WME IMG were sold wolf tickets

 

[20falarVerdades]

LMAO UFC supposedly makes $150M in profit ... A-level footballers like Cristiano Ronaldo(CR7) makes almost that in a year.