Moody’s Investor Services and S&P Global Ratings issued credit ratings for UFC Holdings LLC. With most of the UFC's finances kept away from the public's gaze, these reports offer a glimpse into the promotion’s current financial state. They also offer the opportunity to try and extrapolate further details about their financial status.
According to the Moody’s report “[r]evenues for 2018 were well over $600 million.” This would signify a decrease from the previous year, when the promotion was reported to have generated "well over $700 million" in 2017.
According to the UFC, the company was expected to see contractual revenue from US media, international media, licensing and sponsorship all increase by millions from 2017 to 2018, due to built-in annual escalators. The fact that even with the increase in contractual revenue as well as an estimated one million more PPVs sold, the UFC still generated around $100 million more in revenue in 2017 than it did in 2018. This strongly suggests that the Mayweather-McGregor fight was incredibly lucrative for the UFC.
Moody's said: "The US media agreement with ESPN replaces the existing agreement with Fox that ended in 2018 and is expected to lead to a material increase in revenue and EBITDA. While the media rights deal is projected to lead to a material increase in revenue and EBITDA for the company, the PPV agreement is expected to dramatically reduce the volatility of the business."
"[A] potential long-term risk factor for UFC may be that the new agreement increases the cost of viewership for casual fans who do not currently subscribe to ESPN+. Viewers of PPV bouts would need to subscribe to ESPN+ going forward, compared to previously when they could purchase PPV bouts a la carte through a variety of cable subscriptions. The new agreement could reduce PPV purchases among some casual fans who do not convert into ESPN+ subscribers."
https://www.bloodyelbow.com/2019/5/15/18310943/ufc-revenues-for-2018-were-well-over-600-million
According to the Moody’s report “[r]evenues for 2018 were well over $600 million.” This would signify a decrease from the previous year, when the promotion was reported to have generated "well over $700 million" in 2017.
According to the UFC, the company was expected to see contractual revenue from US media, international media, licensing and sponsorship all increase by millions from 2017 to 2018, due to built-in annual escalators. The fact that even with the increase in contractual revenue as well as an estimated one million more PPVs sold, the UFC still generated around $100 million more in revenue in 2017 than it did in 2018. This strongly suggests that the Mayweather-McGregor fight was incredibly lucrative for the UFC.
Moody's said: "The US media agreement with ESPN replaces the existing agreement with Fox that ended in 2018 and is expected to lead to a material increase in revenue and EBITDA. While the media rights deal is projected to lead to a material increase in revenue and EBITDA for the company, the PPV agreement is expected to dramatically reduce the volatility of the business."
"[A] potential long-term risk factor for UFC may be that the new agreement increases the cost of viewership for casual fans who do not currently subscribe to ESPN+. Viewers of PPV bouts would need to subscribe to ESPN+ going forward, compared to previously when they could purchase PPV bouts a la carte through a variety of cable subscriptions. The new agreement could reduce PPV purchases among some casual fans who do not convert into ESPN+ subscribers."
https://www.bloodyelbow.com/2019/5/15/18310943/ufc-revenues-for-2018-were-well-over-600-million
