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Is the UFC sale indirectly responsible for Reebok and the USADA?

KreamPuff

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TLDR - In a long term goal to sell the UFC, did Zuffa bring in Reebok and USADA to help make the UFC more mainstream and increase the overall value of the company?


While the UFC is highly profitable (estimated at ~$50-$200M a year), that doesn't seem to match the $4B+ price tag the UFC sold for. That means the Buyers and bidders saw significant growth potential for the sport and brand. Since WME IMG is a sports/marketing company it further indicates that the new owners see the MMA becoming more "mainstream." With Ronda and Conor, the UFC demonstrated by luck or skill they were able to create some mainstream stars.

USADA - In my opinion the UFC has done a great job turning the sport from human cockfighting to a legitimate sport. It's pretty much accepted and regulated in every US state along with many countries, but to many people it's still a niche sport. Being able to bring in the USADA was a move to bring more legitimacy, without introducing a governing body that would potentially cause the UFC headaches. IMO, it's like giving the fighters health insurance to deincentivize the fighters to try and unionize. While the negatives involve losing big name fights and dollars due to fighters getting busted for PED's, in the long run, Zuffa can point to the USADA and say they're doing everything in their power to make the sport legitimate.

Reebok - While Nascar has logos plastered everywhere, most major sports do not. While I miss the condom depot ads plastered across the ass of fighters, most people saw it as a money grab for Zuffa to control the sponsorship dollars of the fighters. I'm wondering if this was really a ploy to get rid of "undesirable" companies attached to the UFC same.


My question is, do you think Zuffa had planned on selling the UFC years ago? Did they sacrifice short term profit in order to increase the value of the brand? Was the FOX deal more about prestige of being on network TV versus profit?
 
Yes. you don't decide to sell a company that big over night.

they probably started thinking about it for a couple of years at least.

My guess, after they saw the Clippers get sold for 2.1 billions lol
 
Everything they do is to increase the value of the company.

So yes?
 
Maybe but... maybe they sold because the Reebok deal was a huge flop and they realized mainstream success was unlikely
 
The uniforms for sure. I believe it was originally at the request of TV executives who felt that the product looked dirty.
 
It'll be interesting to see if the Reebok deal makes it through the sale. There are certainly better options for all parties involved that the current thing with Reebok. Which, as already mentioned was an actual flop financially, but also just a fucking shit show of an option for everyone.
 
The entire premise of owning a company is to increase its value. Whether you intend to sell or not. Most businesses operated off of loans, and the lenders want to see an increase in value.
 
I think so, ever since the Reebok deal was announced I've been saying they're looking to sell.

Tbh, they've always said they'd be willing to sell... IF the right offer came along. They weren't paying down the debt on their loans either, which is a sign that they weren't in it for the long haul.

Here's what Dana said about the Reebok deal:
“Every year we take this thing to another level, and this is another step in that direction still,” White said. “All the money goes to the fighters. … It’s a very big deal, not just financially, but it makes the sport even more professional.”
http://www.ufc.com/news/dana-download-dec-4?id=

We know they didn't do it for the fighters.

My question is, who were they trying to impress by making the sport more professional? They were already locked into a long-term TV deal with FOX, they don't have anymore sanctioning issues, who were they trying to impress? Investors, that's who.

If they wanted to be more professional they could've had Dana act like a respectful human being. Instead they took a deal that pissed everyone off, the uniforms suck. But it got them more money in the end.
 
They definitely planned to sell it years ago. IMO I think the Fertittas used their connections to get the MMA banned when they bought it, then got it unbanned, made it as mainstream as possible and got out before the trouble will inevitably start. They're smart businessmen and know that in the long run UFC isn't worth that much. It will always cause controversy.

I'm pretty sure that the UFC will have major problems in the future when the first octagon casualty will inevitably happen or someone gets McClellan'd. Then there's the Ali act being enforced, the fighters union, possible competition with Bellator etc. And yeah, at this rate USADA will ban half of the roster in few years. I'm pretty sure that people will look back at the last few years as the golden age of UFC MMA.
 
I guess another question is, would Reebok and USADA be dealing wtih the UFC if Zuffa hadn't planned on selling?
 
http://www.bloodyelbow.com/2015/7/1...ust-lawsuit-motion-to-stay-discovery-mma-news

I'm gonna go out on a limb and say this was the reason for the sale of UFC. If this wins, it wins BIG.

This opens the floodgates for other fighters.

By selling it negates the further actions of a lawsuit against Zuffa.

Why has no-one else raised the class action suit as a reason for the sale?

Its like everyone forgot about it.
 
I did the tldr but the probable knowledge of a sale at the time of signing both Reebok and USADA would undoubtedly play a role on the decisions. Any business decision made after they decided to sell would have taken it into consideration.
 
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