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

[007]

{<Mcgoat}

 

[12ga.]

Always seemed overpriced to me. Even in best of times it netted ~100m a year avg. I would not buy a business that took 42 years to pay back my investment. Add to that possiblty of fighters organizing, proven volatility based on stars or not having them, ali act, CTE kidney issues and other long term health torts sure to arrse, etc - seems poor value. We shall see.

 

[BWC]

Yes 2016 was a magical year with Conor reaching peak box-office and Ronda coming back. Ronda's annihilation really stopped the UFC's commercial momentum in its tracks.

I rather enjoy the UFC when its not so commercial and casual-friendly, but of course my opinion isn't the end-all, be-all for WME..

 

[BWC]

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.

True. Although I would note that PBC is also looking for a nice TV deal and could force some TV execs to think about it long and hard if UFC on Fox continues to suckl

 

[BWC]

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.

Every metric is correlated with the stars UFC has on its roster. Fox and FS1 ratings, PPV buys, merch sales, it's al dependent on "stars"..

 

[GordoBarraBJJ]

Or they can just put up solid fights - maybe not huge numbers but actual fight fans will watch and pay for PPVs that are solid.

 

[GordoBarraBJJ]

The Ferttitas conned WME.

pretty much - take the money and run.

 

[platypus44]

Or they can just put up solid fights - maybe not huge numbers but actual fight fans will watch and pay for PPVs that are solid.

I think that the megastars tend to pull in new fans and then solid fights will help hold on to the fans.

 

[Kowboy On Sherdog]

They need to build the up and comers to the casual fans. There is a bunch of young talent but don't get the exposure to become a house hold name.

 

[Thug Rose]

ufc created ronda & conor hypejobs. they can do it again.

 

[GordoBarraBJJ]

I think that the megastars tend to pull in new fans and then solid fights will help hold on to the fans.

True but at this point they really don't have a mega star to sell.

The stars are either old, retired, or mid-level draws.

I think they should just rely on having solid cards and not worry so much about breaking PPV numbers.

I feel like it peaked, the ufc - in terms of popularity, with ronda and conor.

 

[FrankieNYC]

Always seemed overpriced to me. Even in best of times it netted ~100m a year avg. I would not buy a business that took 42 years to pay back my investment. Add to that possiblty of fighters organizing, proven volatility based on stars or not having them, ali act, CTE kidney issues and other long term health torts sure to arrse, etc - seems poor value. We shall see.

That is not how it works
The company has a value to sell (its worth).
It also adds a lot to WME's portfolio (if they were to sell).
If the company makes $100m a year (your figure) for ten years ($1b). The company can be sold for what they paid ($3.95b) or more & they made well over a billion in a decade

 

[Trojanlegal]

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

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

As a professional in the sports industry, I agree with your analyses.

First, the UFC made every Conor PPV an "event" with a world tour, press conferences, expensive advertisements, strong undercard and staging in either Vegas or NYC. Ronda never had that consistently and two of her PPVs were in foreign countries, which historically bring in lower buy rates than American-based PPVs.

Second, that is why WME is making certain moves (or permitting Dana White to make certain moves) that many people on this board do not understand. For example. like it or not, but the following long-term decisions were made to clean up a sport and make it attractive to big-ticket, name brand sponsors:

1. Reebok deal: Cleans up the look of the fighters and the sport for TV. The NFL, for example, is one league very concerned about how the product looks on TV and has very strict rules on uniforms. Also, cleans the slate for the signing of larger sponsorship deals.

2. WMMA: Brings in the female demo and sponsors that appeal to them. Also, a sport that attracts women appears to be more mainstream to potential TV bidders.

3. New York legalization: It was important for the UFC to push for the sport to be legal in New York, which is the headquarters for the largest media agencies and interests in the USA.

 

[FrankieNYC]

As a professional in the sports industry, I agree with your analyses.

First, the UFC made every Conor PPV an "event" with a world tour, press conferences, expensive advertisements, strong undercard and staging in either Vegas or NYC. Ronda never had that consistently and two of her PPVs were in foreign countries, which historically bring in lower buy rates than American-based PPVs.

Second, that is why WME is making certain moves (or permitting Dana White to make certain moves) that many people on this board do not understand. For example. like it or not, but the following long-term decisions were made to clean up a sport and make it attractive to big-ticket, name brand sponsors:

1. Reebok deal: Cleans up the look of the fighters and the sport for TV. The NFL, for example, is one league very concerned about how the product looks on TV and has very strict rules on uniforms. Also, cleans the slate for the signing of larger sponsorship deals.

2. WMMA: Brings in the female demo and sponsors that appeal to them. Also, a sport that attracts women appears to be more mainstream to potential TV bidders.

3. New York legalization: It was importanrt for the UFC to push for the sport to be legal in New York, which is the headquarters for the largest media agencies and interests in the USA.

Thank you my man.
Obviously we are on the same page.
What do you do in the "sports industry"?
I ask because you get it!

 

[Trojanlegal]

Thank you my man.
Obviously we are on the same page.
What do you do in the "sports industry"?
I ask because you get it!

Thank you. I am sports lawyer. I have to possess a general knowledge of the business, in addition to the legal issues, in order to properly represent my clients (organizational and athlete clients) in the modern world of sports.

 

[FrankieNYC]

Thank you. I am sports lawyer. I have to possess a general knowledge of the business, in addition to the legal issues, in order to properly represent my clients (organizational and athlete clients) in the modern world of sports.

Interesting, I hope we converse more in the future.
It is nice to read someone that actually takes time to research instead of thinking "I don't like XXXX, so that means it is failing"

 

[Trojanlegal]

Interesting, I hope we converse more in the future.
It is nice to read someone that actually takes time to research instead of thinking "I don't like XXXX, so that means it is failing"

Thank you. My training as a lawyer forces me to go into "objective data" mode whenever I see an issue. I think we as MMA fans owe it to our relative new (as compared to the Big 4 American sports) and growing sport. I do not want the UFC to lose interest and viewership like other sports that were trending within the last decade (e.g., NASCAR and PGA).

 

[Magooglie]

WME didn't know what they were buying.

 

[platypus44]

Thank you. My training as a lawyer forces me to go into "objective data" mode whenever I see an issue. I think we as MMA fans owe it to our relative new (as compared to the Big 4 American sports) and growing sport. I do not want the UFC to lose interest and viewership like other sports that were trending within the last decade (e.g., NASCAR and PGA).

It would, of course, be a big help if MMA became a collegiate or Olympic sport. It is all part of an effort to go "mainstream" - to have the sport covered extensively in the sports section of major newspapers, to have it in Sports Illustrated, to have it on the TV news, etc. etc. This may be an uphill battle at a time when the mainstream media will have a strong bias against a sport in which giving your opponent a concussion is a major strategic objective.

 

[FrankieNYC]

Thank you. My training as a lawyer forces me to go into "objective data" mode whenever I see an issue. I think we as MMA fans owe it to our relative new (as compared to the Big 4 American sports) and growing sport. I do not want the UFC to lose interest and viewership like other sports that were trending within the last decade (e.g., NASCAR and PGA).

I agree
MMA truly have some of the worst, uneducated fans ever.
Could UFC pay fighters better (13% in 2015)? ABSOLUTELY
But rooting/hoping they fail is asinine & short-sighted.