Dana: UFC valued at $7b now

capo245 said:
In what exacly does the value lie? I fought they were 500+ mills in debt ppv lower then ever, brand perception too and 7 billions thru 60$ per ppv would equals 116666667 viewers that buy every ppv. and thats when they make 100% profit so this would mean they at min need over 250.000.000 ppvers that buy every event and market up and downs etc would mean that a base of 450.000.000 viewers would barely push the 7 000000000. This claim is bs. just for comparison arm holdings a company that licencse over 90% of all cpus used in smartphones is only worth 3 billion (real worth patents license money at hand).
rhe ufc is at best worth 500 million and 400 of that is the potential mcgregor ppv who is now washed up.
Click to expand...

That might be the single most amazing post ever on sherdog
might as well close the forum
it will never be topped
 
1.5 billion in guaranteed espn money + ppv + ticket sales + international TV deals + sponsorship

If ESPN does a good job with its production over the next 5 years it could lead to an enormous extension. IMO the PPV model should/will shrink and the free televised fight market should grow. TV contracts for the other major sports are billions per season. The room for growth in the UFC TV deal in 5 years time is astronomical. It could easily grow to a billion per year 5 years from now

And of course there are risks to the downside or stagnation....
 
FrankieNYC said:
That might be the single most amazing post ever on sherdog
might as well close the forum
it will never be topped
Click to expand...

Yeah, someone needs to go back to english class.

and lol @ dana. I don't hate the guy or anything but it seems like every week the UFC's value goes up by a billion dollars according to him.
 
FrankieNYC said:
That might be the single most amazing post ever on sherdog
might as well close the forum
it will never be topped
Click to expand...
Dude went khabib/Conor end of round 2 on the ufc
 
My shit is worth 2 million if someone wants to pay for it.

The value is only as good as the market will bear.
 
capo245 said:
In what exacly does the value lie? I fought they were 500+ mills in debt ppv lower then ever, brand perception too and 7 billions thru 60$ per ppv would equals 116666667 viewers that buy every ppv. and thats when they make 100% profit so this would mean they at min need over 250.000.000 ppvers that buy every event and market up and downs etc would mean that a base of 450.000.000 viewers would barely push the 7 000000000. This claim is bs. just for comparison arm holdings a company that licencse over 90% of all cpus used in smartphones is only worth 3 billion (real worth patents license money at hand).
rhe ufc is at best worth 500 million and 400 of that is the potential mcgregor ppv who is now washed up.
Click to expand...

Debt does not affect the value of a company, only the value of the equity. If a company's worth is $1 billion and they owe $500 million in debt, the Company is still worth $1 billion - it's just that the debt holders have claim to the $500 million of value. When a private equity firm acquires a company, they think in terms of enterprise value, not equity value because they use a lot of debt to acquire the company and then pay the debt down with cashflow so when they sell, they get a multiple of the small amount of equity they put in.

And companies are generally valued (in the context of private equity) on a multiple of EBITDA - if they're making $700 million of EBITDA (and i haven't dug into the numbers), the enterprise value could easily be 7 bill. Lately, most PE deals have been done north of 10x EBITDA.

Although DW is a salesman so he'll say whatever he wants to pump things up.
 
capo245 said:
In what exacly does the value lie? I fought they were 500+ mills in debt ppv lower then ever, brand perception too and 7 billions thru 60$ per ppv would equals 116666667 viewers that buy every ppv. and thats when they make 100% profit so this would mean they at min need over 250.000.000 ppvers that buy every event and market up and downs etc would mean that a base of 450.000.000 viewers would barely push the 7 000000000. This claim is bs. just for comparison arm holdings a company that licencse over 90% of all cpus used in smartphones is only worth 3 billion (real worth patents license money at hand).
rhe ufc is at best worth 500 million and 400 of that is the potential mcgregor ppv who is now washed up.
Click to expand...

<TheWire1>
 
FrankieNYC said:
That might be the single most amazing post ever on sherdog
might as well close the forum
it will never be topped
Click to expand...
I know the english used is not the best but its a fact that nearly monopoly tech giants are barrely net worth of over 3 to 5 billions, so i cant see the ufc make 7 billions in a year let alone consistent every year.
 
capo245 said:
I know the english used is not the best but its a fact that nearly monopoly tech giants are barrely net worth of over 3 to 5 billions, so i cant see the ufc make 7 billions in a year let alone consistent every year.
Click to expand...

Hey man
it wasn't your English as much as the math that i was having fun with
But you took it in stride & that is/was very cool of you

You don't need to make $7b a year to have a company value of $7b
There is a lot of info in this thread, if you want to read up on it

but I'll give a fast example
WWE trades on the stock market
they were worth about $3b after 2017
UFC made 7x the profit WWE did in 2017
 
Great so it's worth less than some shitty startup app where teenagers can send photos of their hoohas to each other
 
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