Zuffa 2004-2006 financials

[FrankieNYC]

Missed it.

Off top of my head:
2015: $600m+ rev, $152m profit, $80m to fighters
2016: $700m+ rev, $220m profit, $120m to fighters
2017: Projected $275-300m profit with over $300m EBITDA

 

[acannxr]

Ugh, I like you as a poster
But i did 90% of the work for you ITT already by giving you the figures for 50-55% of profit

UFC would not be where it is today with 3/4 of profits
Would they make money on a good year by that calculated adjustment?
Yes
But would they have bother to grow UFC the way they did for a lower profit?
I severely doubt that.

TLDR: If the reward was less, the effort would not be there to get it to this point

Thanks for the spoon feeding .

 

[FrankieNYC]

Thanks for the spoon feeding .

Lazy mofo lol

 

[Fstepp]

Off top of my head:
2015: $600m+ rev, $152m profit, $80m to fighters
2016: $700m+ rev, $220m profit, $120m to fighters
2017: Projected $275-300m profit with over $300m EBITDA

Thanks Frankie, it went better and better for every year after 2006 then?

 

[FrankieNYC]

Thanks Frankie, it went better and better for every year after 2006 then?

I don't know every year off the top of my head but I am almost positive 2014 was worse than 2013.
That was the year when almost every PPV had issues & back then UFC was more reliant on PPV for profit.

I'll see if I can dig up some info & tag you

 

[FrankieNYC]

@Fstepp

I don't know about profit,

 

[Hester65]

Where did that excess profit (75mil) go in 2006? Is there some kind of policy or regulation for that excess profit?

 

[FrankieNYC]

More info from Nash that makes it seem like Fertittas exaggerated their losses early on:

Using data from the 2007 Deutsche Bank memorandum, we can determine the EBITDA for 2004-2006. It was reported to potential credit facility lenders that the UFC had a net income of -$653,000 (a loss) for 2004, $6.3 million for 2005, and $75.3 million for 2006.[ii] It was also reported that their amortization and depreciation was approximately $609,000 for 2004, $383,000 for 2005, and $621,000 for 2006. For later years (2007-2014), we can make a reasonable estimate using the reported EBITDA margins and the UFC's reported revenue from part 1 or the reported debt-to-EBITDA leverage ratios along with the debt estimates from part 2. (The debt-to-EBITDA leverage ratio represent the number of times the EBITDA divides into the debt. Thus the EBITDA for a given year can be obtained by dividing the current debt with the ratio.)

 

[Fstepp]

@Fstepp

I don't know about profit,

Perfect! Thank you!

 

[FrankieNYC]

Perfect! Thank you!

You are welcome

 

[MikeMcMann]

Yup. Adding another 8-10% of their revenue and opening up the sponsorship market would go a long way towards helping especially the entry level fighters and quench overall fighter dissent.

I don't see why they couldn't have structured the Reebok deal in a way that allowed fighters to have additional, non-competing sponsors like how they're proposing over at PFL:

It doesn't hurt UFC's bottom line and would get them a lot of good will from fighters. The current Reebok deal isn't doing Reebok or the fighters any favors.

This is my belief and my belief only so take it with some huge grains of salt.

When the UFC brought in Reebok it was right at the end of the GSP era and right at the start of what looked like the Jones era in MMA.

GSP was a trail blazer in bringing in big main stream sponsors who prior had been afraid of MMA and the potential reputational risk fo being attached to some of the fighters. GSP went a long way to showing the stars could be bankable.

I know the UFC had talks with another major sponsor to come in just after Reebok but those fell apart. Why?

I think it was Jones. Soon after Reebok Jones started his slide and went on an epic slide that is still happening. Conor the other big star just threw a hand cart at a bus and injured fighters. Ronda proved to be a bad sport and not the type of person many sponsors would want to attach to. But I think Jones was the key. I think Jones scared the next level of those sponsors away.

I am sure the UFC never planned on it being Reebok and Reebok only. They would want a major sponsor in each and every area. Drink, Food, Airlines and other Transportation and down the line. If they could have accomplished that it would have brought in more extra money for most fighters outside the top guys and been better overall. And now they are kind of stuck. I am sure they made Reebok pay a high price and they won't want to devalue that 'major spoosr' category price but with the athletes the way they are no new sponsors want to pay it.

Anyway that is just my two cents.

 

[FrankieNYC]

I am sure the UFC never planned on it being Reebok and Reebok only. They would want a major sponsor in each and every area. Drink, Food, Airlines and other Transportation and down the line.

I wonder how restrictive the deal is with Reebok though
WME have brought in big event sponsors, so getting others is not the issue
Maybe Reebok gets a big cut and/or veto power
This was a Lorenzo deal not WME

 

[Substance Abuse]

I agree
At that stage, they had to recoup & build

I think a fair % would be 25% now
in 2016 that would have been roughly $175m
That is about $55m more than they paid & would have still put UFC at $170m profit for the year

What I said would be fair & go a long way is to keep the money the way it is, but come up with a bonus structure at the years end once the financials are confirmed.
They can give fighters a % bonus compatible to their pay structure & amount of fights

If they added $55m to a bonus & have 550 fighters (lets make it easy) that is $100k per
So if they went by %, even a prelim guy might get a nice $20-25k check

This is a really nice, logical setup. Good stuff.

 

[kazam]

Hey look guys a FrankieNYC UFC shill thread

 

[Substance Abuse]

Hey look guys a FrankieNYC UFC shill thread

Are you just mad that he actually contributes unique info to the forum and you're ... wait, who the fuck are you?

 

[FrankieNYC]

Are you just mad that he actually contributes unique info to the forum and you're ... wait, who the fuck are you?

Thanks man

Holy reading comp fail

How is bringing up that the Fertittas lied about money & underpay a "shill"

The stupidity of some on here is amazing lol

I hope he actually cut school to party & that is the reason for his comprehension issues.

 

[kflo]

Hey look guys a FrankieNYC UFC shill thread

Are you actually reading this thread retard?

 

[FrankieNYC]

Are you actually reading this thread retard?

They always out themselves don't they?

 

[kazam]

Are you just mad that he actually contributes unique info to the forum and you're ... wait, who the fuck are you?

 

[kazam]

Are you actually reading this thread retard?

obviously not why are you so TRIGGERED? i called out your boyfriend FrankieUFCshill?