How was the UFC sold for 4.2B?

[Bodil]

I look at an event like UFC 202 (McGregor vs Diaz II) which is one of their biggest. It sold 1.65M PPVs and had a gate of 7.6M. At 50$ per PPV, that's a total of about 90M in revenue.

Once you pay for all the promotion, the graphic designers, the primetime / embedded montage teams and episodes, renting the venue for the fights, the hotel rooms, the plane tickets, the fighter's salaries, all the other employees salaries (HR, admin, FB mods, etc.) there really can't be that much left (and that's one of their biggest event). I'm guessing 15-20M net profit, at most?

I know they have other revenues, like UFC gear, TV deals, etc but they also have other spendings like the UFC training facility, etc.

Say you have 1 event per month like UFC 202, that's 20M x 12 months = 240M / year, it would STILL take 17.5 years to make that 4.2B back. Am I missing something?

On a smaller scale, if you were told to invest 420 000$ to collect 200$ monthly (which is the equivalent of the UFC deal), I'm fairly sure most people wouldn't.

 

[Weidman]

UFC sale was perfect example of the long con.

 

[Amianto]

TS, you should't try to understand economic principles that are clearly outside your mental reach.

 

[BoD 2.0]

PPVs aren't $50, this isn't the year 2000 anymore

 

[fiftywattmafia]

It was a bargain.

 

[Reach4theSky]

Fertitta brothers..

 

[wilKO]

Absolute bargain when you consider that UFC is as big as soccer.

 

[TheRassler]

The years and years of bullying by the mafia known as ZUFFA finally paid off, that’s how.

 

[markys00]

I'm not trying to be funny, but have u taken business classes at all?

Or owned property?

I don't just buy property for the monthly income. The 4.2 valuation is based off several things like current revenues/profits, projected net worth, etc etc. While I do agree 4.2 seemed a little steep wme has done decently with the UFC.. its worth over 5B now..? UFC in the next 2 years (with new TV deal) might see a tremendous shift that can significantly impact the company.

Zuffa boxing, here we come

 

[Rvd Slmr]

I know they have other revenues, like UFC gear, TV deals, etc but they also have other spendings like the UFC training facility, etc.

I'm pretty sure the UFC training facility is peanuts to them. The UFC also has franchised gyms, Fight Pass, international TV deals (that people always forget about), the rights for the various popular video games... You also completely ignored all the various sponsors and advertisements that's are all over the place, the TUF rights...

 

[Frank McEdgar]

Just wait until washed up celebrities and YouTubers are fighting and selling 10 times what the top fighters are today.

 

[TankvsNelmark]

Sherdog must have better accountants then wme

 

[bl0b]

I look at an event like UFC 202 (McGregor vs Diaz II) which is one of their biggest. It sold 1.65M PPVs and had a gate of 7.6M. At 50$ per PPV, that's a total of about 90M in revenue.

Once you pay for all the promotion, the graphic designers, the primetime / embedded montage teams and episodes, renting the venue for the fights, the hotel rooms, the plane tickets, the fighter's salaries, all the other employees salaries (HR, admin, FB mods, etc.) there really can't be that much left (and that's one of their biggest event). I'm guessing 15-20M net profit, at most?

I know they have other revenues, like UFC gear, TV deals, etc but they also have other spendings like the UFC training facility, etc.

Say you have 1 event per month like UFC 202, that's 20M x 12 months = 240M / year, it would STILL take 17.5 years to make that 4.2B back. Am I missing something?

On a smaller scale, if you were told to invest 420 000$ to collect 200$ monthly (which is the equivalent of the UFC deal), I'm fairly sure most people wouldn't.

If you're looking for a severe lack of understanding in economics. Look no further than the above post.

 

[Bend NvR Break]

They used projected numbers that included Ronda not being a professional wrestler, Jones not being suspended, USADA not knocking off more well fighters for months, McGregor not being retired for the most part and didn't take into account the growth/interest of MMA in general plateauing.

Zuffa played the game right.

 

[mma_genius]

I look at an event like UFC 202 (McGregor vs Diaz II) which is one of their biggest. It sold 1.65M PPVs and had a gate of 7.6M. At 50$ per PPV, that's a total of about 90M in revenue.

Once you pay for all the promotion, the graphic designers, the primetime / embedded montage teams and episodes, renting the venue for the fights, the hotel rooms, the plane tickets, the fighter's salaries, all the other employees salaries (HR, admin, FB mods, etc.) there really can't be that much left (and that's one of their biggest event). I'm guessing 15-20M net profit, at most?

I know they have other revenues, like UFC gear, TV deals, etc but they also have other spendings like the UFC training facility, etc.

Say you have 1 event per month like UFC 202, that's 20M x 12 months = 240M / year, it would STILL take 17.5 years to make that 4.2B back. Am I missing something?

On a smaller scale, if you were told to invest 420 000$ to collect 200$ monthly (which is the equivalent of the UFC deal), I'm fairly sure most people wouldn't.

Did you factor in that half of the PPV money gots to the PPV provider? (Comcast, Time-Warner, etc.)

 

[punky brewster]

Ever heard of merchandising, bro?

I mean, everyone in my family owns at least 10 UFC hot dog branders....

 

[acannxr]

PPVs aren't $50, this isn't the year 2000 anymore

If you're going to correct someone, at least use accurate information.

https://www.bloodyelbow.com/2015/10...odys-and-standard-poors-tell-us-about-the-ufc

 

[ZOD66]

Absolute bargain when you consider that UFC is as big as soccer.

No soccer have much more alcohol marketing because it is boring watching that without be drunk in 90 minutes

 

[MMAProfessional]

The money they are talking about offering Mayweather I'm guessing they are doing just fine...

 

[gspieler]

WME a overpaid, and UFC sold at (at least on paper) the peak of its market value.