WME Paid $4Billion For 3 fighters, Jones's Net Value Loss for the UFC is $1.33Billion Dollars

Discussion in 'UFC Discussion' started by koclem, Sep 13, 2017.

  1. UL

    UL no more yellows

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    I can see into the future and predict




    UFC is done by 2022
    In the gutter
     
  2. Trojanlegal

    Trojanlegal Orange Belt

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    Naturally, I am not aware of WME’s internal strategy, but I can provide a summary of an initial public offering (IPO). (I am not a corporate lawyer, so any attorney with corporate experience is more than welcomes to supplement my summary.) An IPO is the first sale of stock by a corporate entity. An IPO can be used to generate capital needed for future growth or pay off existing debt. Further, an IPO may be used by the owners or founder as an exit strategy or to obtain cash from the sell. If the UFC goes public in the future, it is important to know that public companies face the pressure of the market, which may cause the UFC to focus more on short-term results (i.e., big money fights) rather than long-term strategic growth.
     
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  3. Thuckey

    Thuckey I swear to drunk.. I'm not God. Platinum Member

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    Apparently I misunderstood what the buying of their last shares implied. But whatever I had only glanced at it and saw 4billions something or other which was surprising now I see why
     
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  4. Harbour

    Harbour Blue Belt

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    Still waiting on your source that UFC only made 10 million off the mayweather macgregor fight OP.

    I'm still waiting on troll TS to dig up a source saying the ufc only got 10 million for the Macgregor Mayweather fight. How much of a cut the ufc would get was really the biggest hurdle in making it happen from what heard.

    But TS continues to think they'd allow their biggest draw to skip all of 2017 for only 10 million dollars.

    lets see a source koclem
     
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  5. FrankieNYC

    FrankieNYC RIP to anybody that passed! Platinum Member

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    Of course.
    My query is if controlling 51% is an important part BEFORE going public.
    There seems to be a rush for WME to get there
     
  6. Zeppeling

    Zeppeling ritehand Double Yellow Card Yellow Card Banned

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    Lol says the guy who dismisses without explanation. You're a dumbass. Grab your ankles
     
  7. koclem

    koclem Green Belt

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    lol like they had a choice about conor fighting mayweather, the financials for WME dictated it needed to happen, dummy
     
  8. Thuckey

    Thuckey I swear to drunk.. I'm not God. Platinum Member

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    What does that mean exactly, bought at a valuation of 4 billion, I have a very basic understanding of business/financial knowledge but some things I just haven't put the effort into researching or looking up the definition for.. not really an interesting topic for me. :p
     
  9. koclem

    koclem Green Belt

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    cruising for men again i see
     
  10. Harbour

    Harbour Blue Belt

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    Unless you're on the board at WME, i'd like you to source that please.
     
  11. koclem

    koclem Green Belt

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    are you this dumb IRL?
     
  12. Thuckey

    Thuckey I swear to drunk.. I'm not God. Platinum Member

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    Insulting each other isn't a very productive way to sway minds in a debate folks
     
  13. Harbour

    Harbour Blue Belt

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    I guess so. Still though, lets see your source for the 10m smart guy.
     
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  14. Vicky

    Vicky Blue Belt

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    I haven't caught up on this thread but it seems like a troll thread with a few people (you and a few others) who actually know what they are talking about.

    I don't think Jones creates a net value loss for the UFC of 1.33 billion dollars. I don't even think Jones is that big of a draw outside his rivalry with DC. Their story was what made the fight as big or popular as it was. Stories can be made....just look at Conor and to a lesser extent Lee/Chiesa, etc. A lot of manufactured or exaggerated hype. I'm ok with that as long as it doesn't get to WWE level fakeness. Anyway, hype can be created. There is a movie called "Dis[honesty]" (I think that is the name) and one of the examples they show is of this guy who created hype for a movie he was making and the hype got out of control (I'll have to google it for more details because I forgot the specifics).

    I think the executives at WME know what they are doing. It's all about profit and to think they they are investing billions just for a couple athletes is illogical imo. It is for the brand and the entire talent pool. All these claims of the UFC dying is just ridiculous imo and maybe bitter fans who are nostalgic for the "old days". I also wonder if WME/UFC is going to try to tap into the Indian market. That is a huge continent with over a billion people. Granted, not everyone in India will watch but it is still a huge market and I bet there is a demand (if not then one can be created). I'm not a business person but I think I have some common sense (sometimes, lol). I stay out of these discussions because I don't have a business background and don't have numbers/sources to back up my claims. However I am interested in these discussions and tend to like posts that make sense to me.

    Any thoughts on the recent acquisition of a fighter with ties to India and the potential market/profit to be made there?
     
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  15. KillMeGod

    KillMeGod Double Yellow Card Double Yellow Card Yellow Card Banned

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    Those Hollywood idiots got hustled by a couple of Las Vegas sharks. Fertittas took em for everything they had! HAHAHAHAHA I hope UFC folds!
     
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  16. The Best JG

    The Best JG Platinum Nation!!

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    It means there were some remainder shares that they bought, and the price of the shares reflected a UFC value over 4 billion still, but it may have just been a remaining 10% shares or something, so ~400m, know what i mean? (i dont know actual %). The important thing to note is that wme is still valuing the UFC over 4 bil at this point in time..
     
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  17. Thuckey

    Thuckey I swear to drunk.. I'm not God. Platinum Member

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    Oh kay. So the value can shift up or down in the future so depending on when those shares were bought and sold the price would be 10% of that valuation. Gotcha
     
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  18. Thuckey

    Thuckey I swear to drunk.. I'm not God. Platinum Member

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    10mil for MayMac sounds incredibly unrealistic.

    I have no idea what the numbers would be, but it's a lot higher than that. Just going on gut instinct.
     
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  19. FrankieNYC

    FrankieNYC RIP to anybody that passed! Platinum Member

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    Good addition to the thread & thank you for the comment.
    Jump in & ask any questions. That is the fun of it ;)
    You seem to have a grasp on who might or might not know WTF they are talking about!

    India is a tough market.
    There is a lot of huge money there & a lot of people without money
    Unless what I read is incorrect, it seems there is very little middle-class there.

    WWE has been trying to monetize the market for a decade & haven't.
    They even have an Indian champ (born & raised in Canada lol) who is horrendous & killing business stateside.

    I think UFC's approach since doing a Dubai show & giving 10% of the company way to do so, shows the market is not a guarantee
     
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  20. FrankieNYC

    FrankieNYC RIP to anybody that passed! Platinum Member

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    Ex:
    When WME & crew bought UFC. DW bought back in out of his earnings as an owner (either 6-7%).
    Odds are Lorenzo & Frank did the same at their minority stake.
    Same with Dubai

    Now that they are looking to buy out minority owners, the cost is what they are valued at now & that is rumored to be close to $5b
     
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