Reason Dana said UFC is valued at $7b now

[Bend NvR Break]

Because that is the amount it seems they bought the 10% off Flash for (according to rumors Meltzer & others heard).
The other rumor is they want to go public soon (long rumored since the sale that they would after the US TV deal).

Now i know a little bit about these things & there is no way they are not over-valued at $7b
$6b might be a reasonable top end.

Now if they go public, they seem to be thinking that it will go the same way WWE did.
WWE made 7x less profit than UFC did (before TV deal) but were valued at about 60% of UFC on the market

Thanks. Please keep me updated on if they go public. I will so buy UFC stock at IPO prices.

 

[FrankieNYC]

Thanks. Please keep me updated on if they go public. I will so buy UFC stock at IPO prices.

i doubt I will have to tell you.
It will be pretty big news

 

[Lemmy Caution]

Ive said from the start the Fertitas fucked up big time. They did all the leg work and took all the risk building the business only to sell it way too early.

4b sounds like a lot, but imo the ufc could be worth 20-30b in 10-15 years.

Fertittas fucked up when they saw 4b and went goofy. Barely a few years later its almost doubled. You fucked up guys

The UFC hasn't doubled in value. Something is worth what somebody is willing to pay. With that said, the way companies typically are valued, the UFC isn't worth 4bn. F1 sold for 8bn when it had a revenue of 1.8bn. If we use that as a measure, the UFC should have a revenue of 0.9bn in order to be worth 4bn.

On the other hand, F1 was sold after seeing a decline in revenue. The people buying it most likely bet on it starting to grow again. If somebody believes that the UFC will generate billions in the future, then that somebody might be willing to pay a lot more than 4bn. It's just not how companies are valued. Apple in the 1990s wasn't valued by their revenue in the 2010s.

Hindsight is always 20/20. Whatever the UFC sells for, the buyer is likely to be viewed as either a genius or a fool, not something in between, even though that is probably closer to the truth.

 

[superpunch]

Ive said from the start the Fertitas fucked up big time. They did all the leg work and took all the risk building the business only to sell it way too early.

4b sounds like a lot, but imo the ufc could be worth 20-30b in 10-15 years.

Fertittas fucked up when they saw 4b and went goofy. Barely a few years later its almost doubled. You fucked up guys

Lol the UFC has already hit its peak of growth. It's all just about maximizing revenue sources now. 30 billion $? lol

 

[FrankieNYC]

@JoeyJoeJoeJr Probably a lot of pressure from the powers that be In this industry to sell and hand over the reins to those who may be able to do what the Fertittas could not. Among other reasons

Regardless of whether or not It was the best time to sell In the grand scheme , seems It was their time to leave.

It was a win-win
It was time to sell
WME makes more money with less interest (pun) & Lorenzo & frank made billions off millions

 

[flairleguccijoints]

The Fertitas got a massive return on their investment. How is this fucking up? Sure it could be worth more down the road or it might decline. How many billions do you need to make for an investment to a be a success?

Yeah they fucked making billions on the millions they invested. Poster trust flippant valuations by Dana White of a private company. Only on Sherdog...

 

[Conor McGrammar]

UFC had failed to establish itself in Asia just prior, they have nowhere to go but down from here. MMA will never be as popular as the mainstream sports.

It was overvalued.

Something has as much value as a buyer is willing to give it.
If WME-IMG paid $4.2b for the UFC, then by definition the UFC has a value of $4.2b.

I would never pay $1m for a car, but some people would. Therefore, some cars are worth/have a value of $1m, you just need to match the product to the right buyer.

 

[Deleted member 457759]

Something has as much value as a buyer is willing to give it.
If WME-IMG paid $4.2b for the UFC, then by definition the UFC has a value of $4.2b.

I would never pay $1m for a car, but some people would. Therefore, some cars are worth/have a value of $1m, you just need to match the product to the right buyer.

They were suckered into believing the UFX would go global. They didnt do their research.

 

[Timurd123]

There are players worth hundreds of millipns of dollars. A single team is sold for billions

Yep

Can you imagine if someone wants to buy Barcelona or Real Madrid ? Shit would be 10b in today’s market


Neymar was sold for a price you can buy nhl/mlb teams (smaller markets of course)

 

[FrankieNYC]

I think I'm sick of dana, he seems to be getting worse and worse. he was always not really professional and trashed his own fighters in the regular, but it seems to be getting worse nowadays. or maybe I'm just tired of it and noticing it more

I think we are seeing Dana having less fun since his buddy is no longer with him.
He seems more bitter.
he was always a dick, but you are right that lately it seems more pronounced even though we see him at less events.
He used to seem like the most passionate MMA fan, but now like a bitter millionaire

 

[Brock-B-level-Athlete]

Yep

Can you imagine if someone wants to buy Barcelona or Real Madrid ? Shit would be 10b in today’s market


Neymar was sold for a price you can buy nhl/mlb teams (smaller markets of course)

would this be enough for a guy like neymar?

 

[Quebec Nick]

Pros: The company should go up in value.
Cons: I doubt they will put up enough to lose a majority (why WME is buying out others), but they will be under more public scrutiny. Also while we do get the real numbers due to financial filings, there would be stockholder reports (every Q) that will be dissected.

If they go public, maybe that is the beginning of the end of Dana.

You are absolutely right, on the public market, any bad news make the stocks go down. In the UFC there's a shitload of things that can go wrong.

Dana saying something inapropriate
Any quarter that goes below the expectations
Stars getting caught for PEDs
Big fights getting canceled due to injuries
Stars doing bad stuff or just saying bad stuff

Wouldn't want to be the CEO of that company and have to explain myself every week to the shareholders

 

[suffersystem]

They were suckered into believing the UFX would go global. They didnt do their research.

Something has as much value as a buyer is willing to give it.
If WME-IMG paid $4.2b for the UFC, then by definition the UFC has a value of $4.2b.

I would never pay $1m for a car, but some people would. Therefore, some cars are worth/have a value of $1m, you just need to match the product to the right buyer.

UFC had multiple offers at the 4b range, so obviously I would think if half a dozen companies are offering 4b, then maybe that company is valued at 4b.

 

[BobbyHillComedian]

I would be shocked if they went public

 

[FrankieNYC]

You are absolutely right, on the public market, any bad news make the stocks go down. In the UFC there's a shitload of things that can go wrong.

Dana saying something inapropriate
Any quarter that goes below the expectations
Stars getting caught for PEDs
Big fights getting canceled due to injuries
Stars doing bad stuff or just saying bad stuff

Wouldn't want to be the CEO of that company and have to explain myself every week to the shareholders

This
I wonder what would have happened if the doli BS happened while they were public?

 

[TheIrishPsycho]

pros and cons?

Dying either way.

 

[FrankieNYC]

Dying either way.

Fight Club:
I know we're all-- we're all dying, all right?

 

[Quebec Nick]

This
I wonder what would have happened if the doli BS happened while they were public?

Pretty much what's happening to Elon Musk's stuff right now after the JRE interview

 

[Readybodisready]

That's not really a good way to rationalize it. They are already filthy rich, I doubt the UFC sale changed anything in their day to day life.

They still fucked up. They were in a position where the company was just getting going imo, with bigger better tv deals paving the way.

It was so obvious the UFC was not going to decline in value. They sold right when all the hard work just started to pay off. They should have waited, and this valuation of 7b proves it.

Fertittas selling Zuffa was a bad business move imo. They made 4b but lost out on double, triple, 5x that amount.

WME's been cutting costs and going strictly for profit the minute they got here. Fertittas would not have increased their value much going the way they were going. They're the GOAT's, but they made a great move selling it.

 

[Mau]

What is Flash?