Credit agencies leak some UFC financials: Revenues fell by $100 million in 2018

revenue down, profit up.

UFC used to only get 50% of the revenue from PPVs.
 
All I will say is $4 Billion is a huge multiple to pay for a business generating $700 million in sales. At a 25% profit margin on $700 million, that is a return of 4.3%.

For it to be even remotely worth it, they would need sales to be over $ 1 Billion at a 25% profit margin, and even that gets you only a 6.25% return.

But hell, I guess $160 million is $160 million no matter how you came by it.
 
Sonny Qc said:
images


RIP Frankie...
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I was going through my old PMs and found an old message Frankie sent me a while ago when we were arguing over the legality of a hypothetical contract issue.

He of course won but he sent me a message after complimenting me on my ability to argue a point and saying he enjoyed the interaction. He was a class act all the way.

<DCrying><DCrying><2><2>
 
cooks1 said:
All I will say is $4 Billion is a huge multiple to pay for a business generating $700 million in sales. At a 25% profit margin on $700 million, that is a return of 4.3%.

For it to be even remotely worth it, they would need sales to be over $ 1 Billion at a 25% profit margin, and even that gets you only a 6.25% return.

But hell, I guess $160 million is $160 million no matter how you came by it.
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WME has several other revenue streams, no?
 
So not everything was fine and dandy with The UFC in terms of revenue.

100 million out of 800 is not a huge loss, let's see next year after the PPV bound to ESPN+ will make them lose money.
 
Mr_Hodge said:
Not something really that they should be worried about, shows similar sorta revenues from the year before if we exclude MayMac, which would've brought in loads on its own
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I think you missed the most important part, which was that in 2018 all the contractual agreements kicked in, via ESPN, you also had a Conor bout vs Khabib which drew huge numbers, and a GSP bout which drew huge numbers as well as Jon Jones to end it off. With all of that they still fell 100,000,000$ short of 2017

The projection with 2019 seems far less promising than 2018, where they had lossed GSP, Jon's PPV number fell by 25%, Conor is still unbooked, and the ESPN+ PPV model is pulling in horrendous numbers.

With UFC being under WME which is operated by share holders, a loss in revenue by a significant magnitude could lead to investors withdrawing from the promotion.

The UFC could still generate 100 million in revenue and you could argue that it would still be doing well, but what you tend to neglect is that a company that pulls in 100 million in revenue isnt worth 4.2 billion $$
 
JRubin said:
I think you missed the most important part, which was that in 2018 all the contractual agreements kicked in, via ESPN, you also had a Conor bout vs Khabib which drew huge numbers, and a GSP bout which drew huge numbers as well as Jon Jones to end it off. With all of that they still fell 100,000,000$ short of 2017

The projection with 2019 seems far less promising than 2018, where they had lossed GSP, Jon's PPV number fell by 25%, Conor is still unbooked, and the ESPN+ PPV model is pulling in horrendous numbers.

With UFC being under WME which is operated by share holders, a loss in revenue by a significant magnitude could lead to investors withdrawing from the promotion.

The UFC could still generate 100 million in revenue and you could argue that it would still be doing well, but what you tend to neglect is that a company that pulls in 100 million in revenue isnt worth 4.2 billion $$
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do you really think anyone would think that an annual revenue of $100m for todays UFC would be "doing well"?
 
vgff said:
the crazy income from the Conor-Floyd fight in 2017 made revenue skyrocket in 2017. it's no surprise it would fall back to normal in 2018
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$600 mil in 2015

It is hard to find numbers for 2016. So yeah MayMac boosted them and then it went back to normal. No UFC dying here.
 
cooks1 said:
All I will say is $4 Billion is a huge multiple to pay for a business generating $700 million in sales. At a 25% profit margin on $700 million, that is a return of 4.3%.

For it to be even remotely worth it, they would need sales to be over $ 1 Billion at a 25% profit margin, and even that gets you only a 6.25% return.

But hell, I guess $160 million is $160 million no matter how you came by it.
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Companies are not valued like that. They are usually valued as a multiple of EBITDA or EBIT.

I can imagine that a company like the UFC is very profitable, say with a 25% EBITDA margin, which brings an EBITDA of 200M. 4 billions would imply a multiple of 20x, which is expensive yes but not absurd, given that it's entertainment and given past growth and the relative monopoly of the ufc.
 
Didn't they borrow almost 2 billion @ something like 8% interest to buy the UFC?
 
^^ oh and not to forget that they have Fighter Kevin Lee on the roaster.
 
Fertitas conned WME

UFC is dying

UFC already picked and its on decline

WMMA was a mistake
 
It's more or less the Conor effect.

If you read the whole article it basically says a large portion of that difference is probably directly related to Conor vs Mayweather bout and then Conor fighting once after that.
 
Cut fighter pay seems the most logical step here
 
Yacob said:
Biggest ppv in history and still lost 100m?


That doesn't make sense
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It kind of does. Stacked cards seem to come further and further apart. I don’t have any inside information or anything, but as a fan it really feels like they keep making one bad choice after another the last few years
 
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