How is the WWE worth only 1.4b market cap?

[Darth Nevets]

Nobody can know for sure because they don't release their numbers (as they have no obligation to), but the extreme cost-cutting measures that WME went through as well as their outrageous demands for the new TV deal to me show that they overpaid and are desperate to recoup as much ROI asap.

And things aren't looking as rosy for the UFC moving forward. This could be Rousey's last fight, Conor is taking time off and talking about exploring opportunities outside of the UFC. And you have fighter's associations forming, lawsuits to deal with, etc.

There's no way the UFC was worth 4 billion. The Fertittas made off like bandits.

There are two other big issues that show the Fertittas knew the score.

Firstly fighter pay is simply egregious, a legal challenge is almost inevitable especially concerning the status of the athletes as contracted help. If big names go on their own we could see a boxing-esque market form (this is why RR and Conor actually get money). Inevitably many first run MMA stars are going to start dying and with a brighter spotlight the money men might be turned off by the aberrant behavior of even top guys like Jones.

Secondly the sports market is rapidly declining after being the rock advertisers relied upon in the modern age. ESPN loses hundreds of thousands of subscribers every month and has gone from the most profitable channel ever to an albatross that sinks Disney (even with the five highest grossing movies of 2016 this has been a tough year). They might find that the age of sport has shifted to video game competitions and modest payouts. In 2011 ESPN agreed to pay 32 million dollars an hour for MNF, but now a ticket to a Jets game on MNF sells for less than a beer in the stadium.

 

[Luvhawky]

The graph shows they generate similar revenue, with the WWE slightly in the lead. But no, it doesn't show that the UFC is worth more.

That graph shows the WWE is a mature company, while the UFC is a growth play with more or less the same amount of revenue. Which company has a better opportunity to double their revenue? People don't buy companies based on historical numbers. They use those numbers to indicate future potential. UFC's potential is much higher according to that graph.

 

[brokenjaw]

WWE's largest fan base is in the US. I don't think they even do PPV outside the states.

 

[NotoriousMillions]

Pre-determined is fake, there is no difference there although Pride was almost an entirely legitimate promotion. The reason wrestling fans hate the word fake is because it stigmatizes the performers, even CM Punk mocked the business in this manner. Most troublesome the fake tag was used by WWE to escape litigation for their unsafe and unprofessional tactics that often exploit and ruin the performers' lives.

Paragraph two is simply wrong, many more people watch wrestling ESPECIALLY overseas. Even Japan (the third biggest traditional MMA market and the only other big economy to ever have a thriving scene) has a promotion that runs the Tokyo Dome annually and is effectively a full time company with 3 other mid-majors (the US has none of those) in the country. In the UK the scene is so massive WWE announced a UK title and a new roster of UK-only talent to get those dollars first (even without their biggest draw the biggest crowd in company history was in Wembley Stadium). If the USA has a wrestling problem it's the utter lack of competition that is shrinking the market.

Now everyone knows the acting isn't at the Mercury Theater level, nor could it be. But it mostly does the job, hell the world's biggest movie star is a damned wrestler and many people are watching reality TV. Not everything illuminates the human condition.

No, it's not. Paragraph 2 is 100% accurate. Last I checked, most people make fun of fake wrestling, not watch it.

 

[NotoriousMillions]

Find one. Quote them, for our entertainment and to prove you're not making shit up.

LOL...Who the fuck are you? You're out of your damn mind if you think I'ma go through this shithole to find a post to accomodate your nerdiness.

There's people that think aliens abducted them (probably you tbh), just by sheer probability alone there's weirdos that'll still believe it's real, and lucky for you - in an organization full of natural weirdos, the statistics would not be in your favor!

 

[WinZip]

WWE is much more widespread

As cliche as this is, it's also true: WWE's fanbase isn't exactly rolling in money. Maybe some are, but a lot of the fans are people under 18 without the disposable income to purchase several $60 PPVs per year. They can't go to Buffalo Wild Wings and get drunk and rowdy during an event that doesn't even start until 10pm.

Different market, different product, different market values.

 

[SuperNerd]

LOL...Who the fuck are you? You're out of your damn mind if you think I'ma go through this shithole to find a post to accomodate your nerdiness.

There's people that think aliens abducted them (probably you tbh), just by sheer probability alone there's weirdos that'll still believe it's real, and lucky for you - in an organization full of natural weirdos, the statistics would not be in your favor!

I thought so.

I don't believe you. Belittle me to feel better.

 

[Haj01]

cus stone cold said so

 

[wonderbread]

The white-trash to non white-trash ratio.

 

[Coolidge]

That graph shows the WWE is a mature company, while the UFC is a growth play with more or less the same amount of revenue. Which company has a better opportunity to double their revenue? People don't buy companies based on historical numbers. They use those numbers to indicate future potential. UFC's potential is much higher according to that graph.

The graph indicates that the WWE and the UFC are both growing, but that the WWE had a higher rate of growth for the last three years. As of August 2016, their revenue was up 20%.

 

[Luvhawky]

Your graph does not have 2016 data...so not sure where you see the 20%.

And the UFC's growth has been steady, the UFC's trend line over that period is more steep and less volatile. Not to mention they haven't penetrated a number of markets, leaving the possibility of more growth on the horizon.

The point is, you have no indication of who made off like bandits or not. And your graph isn't proof.

 

[BoomCannon]

Wwe is a publicly traded company. UFC is not. That is why.

 

[kuromusha]

There's a difference between market value and book value.

 

[Darth Nevets]

As cliche as this is, it's also true: WWE's fanbase isn't exactly rolling in money. Maybe some are, but a lot of the fans are people under 18 without the disposable income to purchase several $60 PPVs per year. They can't go to Buffalo Wild Wings and get drunk and rowdy during an event that doesn't even start until 10pm.

Different market, different product, different market values.

I hate to go this route but in 2014, 1/3 of American WWE fans are women and 59% are over 35 and only 19% are under 17. Also since someone went the redneck route (despite the south being WWE's weakspot) the company is more popular amongst African and Hispanic-Americans (but not Asian-Americans). People stopped buying PPVs because they weren't a good value, much like the UFC's fans and corporate offices will one day learn. You need to break a threshold (PPV has specific tiers of payout to the content producer) for it to be worth it and without a huge star it simply doesn't work long term.

I thought so.

I don't believe you. Belittle me to feel better.

The pathetic part is that after 3,000+ posts this troll is still so bad at it. He went full Trump for fucks sake.

 

[SuperNerd]

The pathetic part is that after 3,000+ posts this troll is still so bad at it. He went full Trump for fucks sake.

Add another zero fucktard.

 

[HectorG]

As cliche as this is, it's also true: WWE's fanbase isn't exactly rolling in money. Maybe some are, but a lot of the fans are people under 18 without the disposable income to purchase several $60 PPVs per year. They can't go to Buffalo Wild Wings and get drunk and rowdy during an event that doesn't even start until 10pm.

Different market, different product, different market values.

WWE pulls in more in merchandise at shows per person than any other sports/entertainment company. The average fan at a WWE show spends $5 more in merchandise than a fan at any other event. Their fans have money.

 

[Darth Nevets]

Add another zero fucktard.

I'm sorry if my post appeared in reference to your reply but I was referring to the troll you were replying too, who had also tried some nonsense directed my way as well. Sorry for the confusion.

 

[HectorG]

I hate to go this route but in 2014, 1/3 of American WWE fans are women and 59% are over 35 and only 19% are under 17. Also since someone went the redneck route (despite the south being WWE's weakspot) the company is more popular amongst African and Hispanic-Americans (but not Asian-Americans). People stopped buying PPVs because they weren't a good value, much like the UFC's fans and corporate offices will one day learn. You need to break a threshold (PPV has specific tiers of payout to the content producer) for it to be worth it and without a huge star it simply doesn't work long term.
The pathetic part is that after 3,000+ posts this troll is still so bad at it. He went full Trump for fucks sake.

Wwe quit having ppv's because they make more money with 1.5 million subscribers than they do by having pay over views. That's smart business sense. The ppv companies take 50% from the ppvs, now they don't

 

[WinZip]

WWE pulls in more in merchandise at shows per person than any other sports/entertainment company. The average fan at a WWE show spends $5 more in merchandise than a fan at any other event. Their fans have money.

Keywords: at shows

Should we compare overall merchandise sales between WWE, UFC, and, say, the NFL?

 

[SuperNerd]

I'm sorry if my post appeared in reference to your reply but I was referring to the troll you were replying too, who had also tried some nonsense directed my way as well. Sorry for the confusion.

I'm sorry also.