Did UFC 229 finally help the UFC owners make some money ?

Discussion in 'UFC Discussion' started by Dessyboy, Oct 16, 2018.

  1. Dessyboy

    Dessyboy Blue Belt

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    Since they bought the UFC, really the new owners have had a bad run. They must have been thinking why they threw their money away

    But UFC 229 surely must have turned things around for them ?
     
  2. Blanqa Blanqua

    Blanqa Blanqua Red Belt

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    So Conor saved the UFC?
     
  3. in the liver

    in the liver Big Dick Energy Belt Double Yellow Card Yellow Card

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    nah he fucked them by being so inactive and ducking title defences

    also he's worthless as a fighter now because he showed himself to be a complete scumbag as well as a coward
     
  4. Haj01

    Haj01 Yellow Card Yellow Card

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    I'd like to meet this William Morris.
     
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  5. FrankieNYC

    FrankieNYC "My balls was hot!" Platinum Member

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    Someone hasn't been paying attention lol
     
  6. DeeDubb

    DeeDubb Gracie Online Black Belt

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    UFC Purchased for:
    $4,000,000,000

    UFC 229 ppv sales
    $160 mil or so? Maybe 20% of that made it to the owners after everything was paid out?

    It'll probably be decades before they make their money back on the purchase.
     
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  7. FrankieNYC

    FrankieNYC "My balls was hot!" Platinum Member

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    You have zero idea how business works lol
     
  8. DeeDubb

    DeeDubb Gracie Online Black Belt

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    TBH, you are probably right. Can you explain the flaws in what I've said?
     
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  9. FrankieNYC

    FrankieNYC "My balls was hot!" Platinum Member

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    very fair reply, so i will man.

    1. You are leaving out that UFC itself is worth money. When you buy a house, you don't make money every year, but the value should go up (unless it is run to the ground)

    2. UFC makes far more money under WME era than under Fertitta's. Largely due to WME being better at contractual deals.

    3. UFC is now worth $6-7b (shares recently sold at $7b, but that was a high end) since the ESPN deals.

    4. Without a single PPV sold, UFC makes over $200m a year profit. Fertitta best year was about $152m
     
  10. DeeDubb

    DeeDubb Gracie Online Black Belt

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    #2 and #4 doesn't matter that much if the profit doesn't lead to making up for the huge capital investment in a practical timeline, right?

    Points #1 and #3 are related, in that, they are about the potential to sell the business for a profit in the future, which is the part I was missing. As long as value doesn't wane under WME, they always have the potential to sell for a profit in the future, which is good. Those are the more convincing ideas to me.
     
  11. FrankieNYC

    FrankieNYC "My balls was hot!" Platinum Member

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    2 & 4 matter a lot
    That is what makes the investors money every year as well as the company value going up
     
  12. FrankieNYC

    FrankieNYC "My balls was hot!" Platinum Member

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    @DeeDubb
    As an FYI, WWE is a public company & worth about $6b
    they have never had a $100m profit year
    UFC is over $200m profit without a PPV & in 2019 should be over $300m profit

    There are a lot of variables to business.
    Also the 4 primary companies that own UFC go up in value by having UFC in their portfolio as well
     
    Last edited: Oct 16, 2018
  13. heyimacrab

    heyimacrab Yellow Card Yellow Card Banned

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    Yeah ufc isnt wholly dpenedant on ppvs guys. remember they do free events and ticket sales and other stuff too.
     
  14. Rizz

    Rizz Green Belt

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    I would like to add that WME is also better at trimming fat. After WME took over and did an overview of the previous regimes business practices they then preceded to cut their overhead by a ton. It sucks for all the people who got fired but it made for a more efficiently run business.

    I might not like a lot of their MMA related decisions but their business decisions have so far been solid for their bottom line. I am hoping when the Reebok deal runs out they return to letting fighters have sponsors. I think people forget that was in place before WME bought the UFC so there is a chance they reverse that decision.
     
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  15. FrankieNYC

    FrankieNYC "My balls was hot!" Platinum Member

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    I don't see the toothpaste going back in the tube man.
    I do see a better deal financially though
    Hopefully that goes to the fighters
     
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  16. TheCompleteKO

    TheCompleteKO All-new MMA Visual Podcast

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    Listen to @FrankieNYC
    Guy knows his stuff lads. (BTW podcast video soon, editor is on it)

    But yeah, you forgot about the ESPN deal, the growing publicity, the fact that UFC 229 did 2.4 Mill buys when the second biggest PPV did 1.65, some other PPV's did better than expected (TJ vs Cody 2) although some did worse than expected (Till vs Woodley).

    The ESPN deal was the best thing to happen to modern day MMA besides Conor McGregor
     
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  17. FrankieNYC

    FrankieNYC "My balls was hot!" Platinum Member

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    Thanks buddy
    But the Conor/Diaz 2 did 1.5m in the end
    but it will take a long time & a lot of correcting to make that known

    PS ...
    Looking forward to you releasing the interview I did with you. Hope you got what you wanted. We could have done 3 hours lol
     
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  18. TheCompleteKO

    TheCompleteKO All-new MMA Visual Podcast

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    Let's do more episodes - The first one was great. Really good content, looking forward to having you on the show again
     
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  19. FrankieNYC

    FrankieNYC "My balls was hot!" Platinum Member

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    COOL
    if something happens that needs explaining as far as the business/numbers end, lets do it
     
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  20. Black Paladin

    Black Paladin Funniest Sherdogger, P4P

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    PPV matters only for them in the sense that they have solid numbers for their ADVERTISING PARTNERS.
     

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