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

[kflo]

They do, or very close to it. In the 12 years I've followed mma I've seen the number two org fold over and over again. Even their current number two is in rough shape and only surviving because they're backed by a corporate giant.

Because the fighters themselves aren’t a strong enough draw. That puts the power to the brand. There are plenty of orgs for fighters to sign with that out on big enough productions. Getting fans to care about established fighters fighting in other orgs though is what would sway the balance. But reality is the fan demand isn’t there. It’s not even there enough for the ufc as we see fans complaining about watching the same fighters you think are being woefully underpaid. Fans want them cut from the ufc but also paid three times more at the same time.

 

[Average_Sherbro]

Get rid of Ppv and make something like wwe network 15 dollars a month for every fight or Ppv

This. Still clueless why more sport promotions have not followed the WWE model. The WWE Network saved the WWE. Hate the new wrestling stuff, but that network gives you years of old footage from long forgotten promotions. Plus, they have some solid retrospectives, podcasts, etc. All in one place. Available around the world. Easy to cancel for a few months if you are busy. Reasonable price. Impressive.

 

[JRubin]

Lol. Wtf are you talking about???

They are running a business. They have different revenue sources. They dont have to put the revenue in separate buckets to only be used to pay expenses related to the revenue source.

Do you even business bro?

I have no idea what you’re talking about.

Lol ok I'll make it simple, the UFC wouldnt use their own money when they could use someone else's.

By your logic the UFC would be running a negative and would only recoup it in Q4 of 2023 *if* they dont re-sign.

 

[kflo]

Lol ok I'll make it simple, the UFC wouldnt use their own money when they could use someone else's.

By your logic the UFC would be running a negative and would only recoup it in Q4 of 2023 *if* they dont re-sign.

Lol. Just stop. You’re embarrassing yourself.

They had 600m of revenue. I have no idea what you’re saying.

 

[jeremyemilio]

That $100m was probably May Mac.

True. But let that sink in. Revenue and Profit are generally two very different things... but in the case of May Mac, that $100m in revenue was also pure profit.

I'd be pretty surprised of the UFC saw more than $100m in profit off of $600m in revenue after paying half of the PPV revenue back to the cable companies, paying the fighters, paying promotional costs, operations, paying Dana, etc.

Which would mean the UFC's profits were around half in 2018 what they were in 2017.

 

[JRubin]

Lol. Just stop. You’re embarrassing yourself.

They had 600m of revenue. I have no idea what you’re saying.

Because you jumped into the convo, which stemmed from my point in that ESPN had kicked in by Q4 of 2018.

And that in 2019 they had lost GSP, Jon Jones numbers are down by 25%, Conor is still not booked, and they are now selling 100k< PPV's per show.

That the UFC needs to uphold a net worth of 4.2 billion, and things aren't looking good for them.

 

[kflo]

True. But let that sink in. Revenue and Profit are generally two very different things... but in the case of May Mac, that $100m in revenue was also pure profit.

I'd be pretty surprised of the UFC saw more than $100m in profit off of $600m in revenue after paying half of the PPV revenue back to the cable companies, paying the fighters, paying promotional costs, operations, paying Dana, etc.

Which would mean the UFC's profits were around half in 2018 what they were in 2017.

They had to pay Mac with some of the revenue. And I don’t think the PPV provider share is a revenue and expense to the ufc. It goes straight to the provider as their revenue.

 

[kflo]

Because you jumped into the convo, which stemmed from my point in that ESPN had kicked in by Q4 of 2018.

And that in 2019 they had lost GSP, Jon Jones numbers are down by 25%, Conor is still not booked, and they are now selling 100k< PPV's per show.

That the UFC needs to uphold a net worth of 4.2 billion, and things aren't looking good for them.

You’re still not making sense. I jumped in because you made a nonsensical comment. And you’re proving you don’t know what you’re talking about. No offense.

 

[greatsantini]

they don't have a monopoly. again, you keep ignoring that the other orgs are competing for the same talent. there isn't strong fan interest in the fighters. only for them when they are associated with the brand. so the fighter doesn't get to get paid fully for the power of the brand. again, phil davis isn't going to get paid multiples more by the ufc just because the ufc will draw more revenue than bellator. phil davis is still phil davis if he's in bellator or if he's in the ufc.

You can have more than one promotion and still have monopoly power. Monopoly power, in the legal definition, is when one company can dictate price.

True. But let that sink in. Revenue and Profit are generally two very different things... but in the case of May Mac, that $100m in revenue was also pure profit.

I'd be pretty surprised of the UFC saw more than $100m in profit off of $600m in revenue after paying half of the PPV revenue back to the cable companies, paying the fighters, paying promotional costs, operations, paying Dana, etc.

Which would mean the UFC's profits were around half in 2018 what they were in 2017.

The article says EBITDA was $240 million last year and likely over $275 million in 2017.

 

[micahl]

It's good to actually see a source for once in topics like this. I've seen some ridiculous finance arguments like WME is a minority interest yet 100% of UFC profit counts as WME profit, UFC is automatically profitable because WME is, and that an increase in valuation counts as profit. <45>

They were 34% and bought out shares to get to 50.1% ownership. The rest I am not sure about, but UFC is only about 10% of Wme revenue.

 

[micahl]

You’re still not making sense. I jumped in because you made a nonsensical comment. And you’re proving you don’t know what you’re talking about. No offense.

He is funny to read though.