UFC Problem - 9 Out Of Last 10 Big PPV's Were Ronda or Conor

[rurouni]

ufc dying thread....nothing to see here, move on

 

[Jay philips]

They are happy with 350k plus and anything over that they

 

[USAUSA1]

PPV revenue is a vitally important income stream for the UFC and results thus far this year are disappointing.
Going back to February 2015, it is interesting to note that nine out of the ten PPV's over 500,000 involved either Ronda (184, 199, 193, 207) or Conor (189, 194. 196, 202, 205) - the exception being UFC 200.
Ronda is almost certainly gone and Conor may be gone soon - enjoying his windfall from the Mayweather fight.
Look for the UFC to get very very aggressive promoting the "next big thing" in the hopes of another big draw. But - based on this year's PPV numbers - it looks like the UFC may have been sold "at the top of the market."

Not to be an asshole, but what is the point?

UFC are in better hands because wme is not a struggling company. UFC is not their main revenue source. Don't let the mma media fool you into believing wme is in a rush to pay the money back because theyre really not.

I also believe the goal is to slowly move from ppv to 100% tv. Ppv is a dead market.

 

[flairleguccijoints]

It sure feels like it, but you'd think these people who bid on it didn't become rich by making decisions without research.
If they won or loss can't be determined until 2018 though when we see how much they receive for the TV contract when Fox deal expires. They currently get 150 million a year; they need to get a lot more than that on the upcoming deal.

I'd be worried if I was them, as the NBA deal is playing a large part in bleeding ESPN of their profits. Not sure they will be entering tv free agency at the best time, but time will tell.

They just signed the new NBA deal. So how is it playing a large part in losses that have occurred over years at ESPN? Are you aware of how many broadcast deals ESPN signed in the last 5-10 years, outside of the NBA deal?
They just signed the new NBA deal February 2016.

 

[UL]

Conor is objectively way higher in PPVs man check the numbers

Compare the cards too

Look how stacked they are compared to the cards that ronda headlined

Ufc pushed conor a lot
Made him seem the millionaire he wanted to be
That brings in deluded fans

 

[Meathead Jock]

It's not just the NBA deal, they have multi billion contracts with multiple leagues, including seclveral college football conferences, that are affecting their bottom line.

I was addicted to ESPN in my youth/late teens but quit on it after they bought the SEC conferences coverage. The media coverage felt like it was too biased from them after that deal, because obviously the better the SEC became the better their ratings would be, so it felt like they would do everything possible to build that conferences image up and shoot down other conferences; which is a big deal when a sport can recruit talent.

It was one of those things most people get mad about then get over in a week, but I still refuse to watch the channel for anything besides live sporting events.

 

[Diggie]

Compare the cards too

Look how stacked they are compared to the cards that ronda headlined

Ufc pushed conor a lot
Made him seem the millionaire he wanted to be
That brings in deluded fans

Stacked cards don't even make a difference, the vast majority of sales come from casuals who buy for the main event. 211 was "stacked" and it's set to do the same numbers as every other card this year, around 300k. 205 did less than 202 even though it was considered "the most stacked card ever" cause people wanted to see Conor vs Nate more.

 

[Mixedfights]

Theres always somebody else. When will you UFC haters realize this? UFC died..Chuck retired!

 

[platypus44]

Conor is objectively way higher in PPVs man check the numbers

Conor's PPVs are a lot higher than Ronda's.

 

[platypus44]

Theres always somebody else. When will you UFC haters realize this? UFC died..Chuck retired!

I am not saying UFC died - I just think that the data suggests they will perceive a big need to develop and promote a new star or several new stars. I think that they will be able to do it and that they will do just fine. But the departure of Ronda and (maybe) Conor leaves a very big hole in their financial picture.

 

[FrankieNYC]

They just signed the new NBA deal. So how is it playing a large part in losses that have occurred over years at ESPN? Are you aware of how many broadcast deals ESPN signed in the last 5-10 years, outside of the NBA deal?
They just signed the new NBA deal February 2016.

Plus it is actually a great time.
There are no other sports with deals coming up for several years & that means that companies like Turner & others that want live sports are expected to bid.
Live sports brings in the best advertiser dollars due to it being almost DVR proof.

 

[FrankieNYC]

I am not saying UFC died - I just think that the data suggests they will perceive a big need to develop and promote a new star or several new stars. I think that they will be able to do it and that they will do just fine. But the departure of Ronda and (maybe) Conor leaves a very big hole in their financial picture.

of course, that happened with Tito/Shamrock, then Chuck, then Brock, then GSP/Silva ... it is how MMA has always been
Three years ago nobody expected RR & Conor to be the top 2 PPV draws.
Matter of fact, the <cough> experts on here said RR would bomb as a main event.

But while PPV is currently about 30% of revenue, WME's new business strategy takes place starting 2019, so until 2020 there is no way to tell how their plan seems to be working.

 

[gunlok]

Ronda <> Conor in both being frauds, one if just clever enough to sit out and avoid fighting so he doesn't rack up the Ls

Technically you shouldn't be calling Ronda a fraud until MayRou actually takes place.

 

[platypus44]

of course, that happened with Tito/Shamrock, then Chuck, then Brock, then GSP/Silva ... it is how MMA has always been
Three years ago nobody expected RR & Conor to be the top 2 PPV draws.
Matter of fact, the <cough> experts on here said RR would bomb as a main event.

But while PPV is currently about 30% of revenue, WME's new business strategy takes place starting 2019, so until 2020 there is no way to tell how their plan seems to be working.

Very good points. I would note that although PPV is only about 30% of revenue, a sharp decline in PPV might reduce cash flow by a higher number due to its profitability. An event with 1 million PPVs doesn't cost much more to present than an event with 200,000 PPVs.

 

[ImNotSurpisedDonks!]

PPV revenue is a vitally important income stream for the UFC and results thus far this year are disappointing.
Going back to February 2015, it is interesting to note that nine out of the ten PPV's over 500,000 involved either Ronda (184, 199, 193, 207) or Conor (189, 194. 196, 202, 205) - the exception being UFC 200.
Ronda is almost certainly gone and Conor may be gone soon - enjoying his windfall from the Mayweather fight.
Look for the UFC to get very very aggressive promoting the "next big thing" in the hopes of another big draw. But - based on this year's PPV numbers - it looks like the UFC may have been sold "at the top of the market."

But Dana says the brand is bigger than the individual fighter.......

 

[platypus44]

Plus it is actually a great time.
There are no other sports with deals coming up for several years & that means that companies like Turner & others that want live sports are expected to bid.
Live sports brings in the best advertiser dollars due to it being almost DVR proof.

You are absolutely right. I worked on a project to value various television rights and "live sports" (especially "live team sports") has an absolutely enormous premium value in the television market. It appeals to the most important target demographic - young men between 18 and 35. And it has the advantage of providing a unique experience. Professional football has done a brilliant job of managing this market and the fact that there is enormous betting on football games doesn't hurt.
The UFC does a good job of television production in connection with its events and may be able to snag a really great TV deal.

 

[FrankieNYC]

Very good points. I would note that although PPV is only about 30% of revenue, a sharp decline in PPV might reduce cash flow by a higher number due to its profitability. An event with 1 million PPVs doesn't cost much more to present than an event with 200,000 PPVs.

Of course they want PPV to do better
but a 1m buy PPV does cost more. Main event money plus PPV bonuses. Add in publicity & expenses that come with a bigger show & the cost is a huge difference (although they more than make up for it).
But the point about 30% is, I see posters on here compare only PPV numbers as to how UFC is doing financially.
Bottom line is the other 70% approx is stable to better due to fixed deals that usually escalate each year
Take 2015 for example. 70% = about $420m that year in revenue. With escalating deals, etc. that can easily been $450-460m (less than 10% in one year) & this year maybe $500m before a single PPV gets sold

 

[FrankieNYC]

You are absolutely right. I worked on a project to value various television rights and "live sports" (especially "live team sports") has an absolutely enormous premium value in the television market. It appeals to the most important target demographic - young men between 18 and 35. And it has the advantage of providing a unique experience. Professional football has done a brilliant job of managing this market and the fact that there is enormous betting on football games doesn't hurt.
The UFC does a good job of television production in connection with its events and may be able to snag a really great TV deal.

Thank you
I try to tell people this & I get the nitwits shouting "shill"
Meanwhile the comprehension impaired never read that I say OVER & OVER that 2020 is when we can judge.
WME is in the TV deal making business. That is why Lorenzo went to them 7 years ago to negotiate the Fox deal.

I totally get most of this being foreign to many, but to insist that UFC is dying & WME is failing, just because that makes them feel better is purely insipid lol

 

[platypus44]

Of course they want PPV to do better
but a 1m buy PPV does cost more. Main event money plus PPV bonuses. Ass in added publicity & expenses that come with a bigger show & the cost is a huge difference (although they more than make up for it).
But the point about 30% is, I see posters on here compare only PPV numbers as to how UFC is doing financially.
Bottom line is the other 70% approx is stable to better due to fixed deals that usually escalate each year
Take 2015 for example. 70% = about $420m that year in revenue. With escalating deals, etc. that can easily been $450-460m (less than 10% in one year) & this year maybe $500m before a single PPV gets sold

Agreed. I also think that they could be more proactive. I have video on demand and various UFC fights are on there and they only change what's available every two months or so.
They have a solid business model but they will be focusing on "the next big thing" - probably "the redemption" of Jon Jones.

 

[platypus44]

But Dana says the brand is bigger than the individual fighter.......

I would agree that the UFC brand has value but the differential performance in PPV terms of the "stars" versus other fights suggests that the economic model is still heavily dependent on the development and promotion of a relatively small number of "stars" which is not unusual in the sports/entertainment world.
It would be interesting to compare the impact of Tiger Woods' arrival and demise on the golf scene. Or the impact of McEnroe and other stars on the tennis scene in terms of viewership etc. And Babe Ruth certainly helped baseball recover from the Black Sox scandal.
I predict that UFC will engage in an aggressive effort to find and promote the next generation of stars ASAP.