How can WME expect a 450 million per year TV deal with garbage ratings and low PPV numbers?

All the rip-off ppvs this year I would watch on free tv
 
They need to put on better cards and get more eyeballs on screens to justify that amount of money. 2017 has a very weak year with only a couple of exceptions(UFC 214 and 217)
 
They'll put conor and GSP on PPV's right before the deal expires
 
100k buys is 5 million in PPV revenue if it cost 50 a pop

The ppv company takes half.

They made 2.5 million from UFC 215 PPV only. That is peanuts.

???

2.2 million went to purses total....

so the UFC only made about 3 hundred thousand on the pay per view.....

Its not peanuts, but you're forgetting a few things....

Bars who broadcast UFC events are not factored into PPV orders....their deals are separate and large bars can be charged alot per bar to broadcast an event....

Thats one revenue stream that the fighters never see a dime of....AND ITS HUGE....

Next, the gate revenue. 100% to the UFC....in fact they are often paid by venues to host events to boost concessions, gambling and tourism....fighters get 0 of that as well.

UFC Merchandise/event programs/posters sold at the event.....thats all the UFCs money....unless you include the fight kits.....but nobody buys that shit.....

Next, gaming....while it is reported that the fighters are given a very modest cut for their appearance in the UFC video game, it is clear that the power at the negotiating table is all in the UFCs favor.....nobody would sign away their likeness in perpetuity without perpetual payment unless the consequence for not signing would be much more severe....

Advertising revenue from UFC sponsors....zip to the fighters.....harley and bud arent cutting any fighters checks.....


There are tons of revenue streams for the UFC....the fighters only get three or four:

1. Base event salary and win/performance bonuses.

2. Modest cut (<2%) of ppv revenue

3. Reebok

4. Small commission from game (it is important to note that the manner in which the UFC structured the agreement for likeness rights means that the UFC is allowed to use the fighters likeness even after the fighter has left the UFC.....much worse however, is that if a fighter dies, the commission doesn't transfer to a next of kin....once a fighter dies, the UFC enjoys the right to their likeness for videogames.....In 50 years, conor will be an unlockable character in UFC videogames and his family wont see shit for the use of his likeness....

the commission for the fighters appearance in the game is way too low considering those conditions.....)

The promotion has many sources of revenue:

1. Gate

2. PPV

3. Reebok

4. UFC Merch at events

5. Closed circuit sales

6. Broadcasts in bars

7. The video game

8. Tickets to press events

9. Fight Pass

10. Miscellaneous advertising revenue

11. TV deals

12. Payment from venues to host events....


The UFC likely never does less than 15 million.....even on the lowest drawing PPVs.....
 
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the tv deal will be easy.....they outperform alot of other programming among their target demographics....

with a more prominent network push....like the nfl....the UFC could do much better numbers on free tv.....i think they might get more than 450 million if they get networks bidding or get a longer term deal....
 
BREAKING: WME hands UFC over to Bellator, Scott Coker now walks Dana around on a leash
 
I don't know much about TV deals, but if UFC was just on one network, I'd assume that would warrant slightly more money. Hmm. I think the main problem is perhaps fight pass. They may have to change the format of their cards. Fight pass would essentially be all pre preliminary fights of the lowest ranked unlikeable type. TV would get everything else. PPV would stars only. Doesn't matter if its a champion or not. Whoever has eyes would get the PPV.

The main problem right now, I think is UFC needs another Ronda, Jones, And heavyweight star.
MM may have great skills, but I doubt he could bring in huge PPV numbers based on what I read about his generally abymsal sales.
 
ITT: Sherdoggers educating an army of ivy league lawyers and accountants from multi-billion dollar corporations.
 
<36>

Not true at all.

Depends on the fighters, the venue, a whole bunch of shit.

They would lose their shirts if a McGregor card or (now that he's back) a GSP card did below 150 k buys (which it never would). With MM, they probably start making money somewhere around 90-100 k. That's why his contract is what it is. Because they know his worth (even if he doesn't).
 
Can I ask a silly question...

Where did the 450m a year number come from?? I haven't heard that at all
 
You believe wrong.
<36>

Not true at all.

I love how people just correct someone off of assumptions without taking a minute to check if it's right....

http://forums.sherdog.com/threads/u...-145-000-buys-required-to-break-even.2528167/

mic-micdrop-owned-gif-5912938
 
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Maybe the sheer number of commercials. No program on television has more commercials than UFC cards.
 
100k buys is 5 million in PPV revenue if it cost 50 a pop

The ppv company takes half.

They made 2.5 million from UFC 215 PPV only. That is peanuts.

No, what the fighters get is peanuts. Pennies on the dollar.

Don't forget they also get a site free in Vegas, the gate, foreign television rights, closed circuit, they charge the bars and restaurants that show UFC card a lot of money and corporate sponsorship money.

It's not just about 55-60% of the PPV revenue they get.
 
You forgot about fighter pay, you forgot about the cost to put on an event which is a lot.

I believe it cost 150k ppv buys to cover the costs of operation.

And you get these numbers...?

Sherdog finance is the only thing worse than Sherdog doctors.
 
B-b-but WME just received tons in investments! $5b valuation! Automatically successful no matter what!!!!

*dancing W M E letters*
 
WME would have to give up PPV and offer Conor on free TV multiple times a year to justify a 450 million dollar price tag.

Does WME expect to offer the same watered down low ratings product and get three times what they currently get? What network would be stupid enough to even offer 450 million?

I realize WME will end up settling for a lower amount but even 300 million would be too much.
You're dumb and you don't understand the sports rights markets, it's worth more because it's the only sports rights property on the market until 2021 and these networks need year round programming, I wish all these "WME are idiots" threads would stop, you clearly don't have any clue about business and saying WME don't know what they're doing is just as retarded.

When you buy something for 4 billion you're not looking at the next 1-2 years, 4 billion is a huge long term investment, but idiots like you don't understand that because you need something to be right in front of your face right now.
 
That's what Zuffa did and those dumb asses took the bait. I'm not so sure about them sometimes.
Dumbasses, seriously? You've been sitting on a website talking shit for the best part of 6 years yet they're dumbasses? You don't evaluate a $4 billion investment after just over a year, that alone tells me you guys are frauds who really know jack shit about business.

Stop it, you're not sticking it to the corporate section & Dana White by sitting in your basements pretending you have a clue
B-b-but WME just received tons in investments! $5b valuation! Automatically successful no matter what!!!!

*dancing W M E letters*
UFC shills need to face reality.

The Ferttitas conned WME.
 
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