once WME pays off their debt.. what do they do next?

[Pied Piper]

its obvious that WME has been milking super fights and immediate titleshots for opponents who are draws rather than those who have worked their ways up the rankings so they can take huge cash grabs and pay off their debt. and even allowing the MAYMAC fight, so they can take a cut. once they finally break even, how do they manage the UFC? what is their big plan with the company that they felt it was worth 4.2 billion?

 

[La Elefante]

Spoiler

The debt never gets paid off

 

[Pied Piper]

Spoiler

The debt never gets paid off

how does one company dun goof THAT bad

 

[Obama]

how does one company dun goof THAT bad

Maybe you should pay attention to the show Silicon Valley.

 

[Why did you]

Very likely the idea is to achive more profit than what the UFC is making now.

 

[Pied Piper]

Maybe you should pay attention to the show Silicon Valley.

at least theres a high demand for programmers.

MMA is a niche sport and 4.2 billions. god damn the fertitas made out with a fortune

 

[Pied Piper]

Very likely the idea is to achive more profit than what the UFC is making now.

yeah but how

 

[MikeHoncho4]

A private company with stable cash flows will almost always be levered. The returns are better when you are playing with someone else's money.

 

[jeremyemilio]

its obvious that WME has been milking super fights and immediate titleshots for opponents who are draws rather than those who have worked their ways up the rankings so they can take huge cash grabs and pay off their debt. and even allowing the MAYMAC fight, so they can take a cut. once they finally break even, how do they manage the UFC? what is their big plan with the company that they felt it was worth 4.2 billion?

We're looking at, what, 40 years into the future?

What am I, Nostradamus?

 

[tithas]

its obvious that WME has been milking super fights and immediate titleshots for opponents who are draws rather than those who have worked their ways up the rankings so they can take huge cash grabs and pay off their debt. and even allowing the MAYMAC fight, so they can take a cut. once they finally break even, how do they manage the UFC? what is their big plan with the company that they felt it was worth 4.2 billion?

The same thing every company does, profit and reinvest in future earnings. I understand that business is complicated to most posters here though.

 

[tithas]

We're looking at, what, 40 years into the future?

What am I, Nostradamus?

10-15 if they get the new TV deal.

 

[Mikey Palangio]

I am not economist, but I think wealthy people don't pay off their debts, they just sell it to other wealthy people. I could be wrong.

 

[RJ43]

Step 1: Buy UFC
Step 2: ?
Step 3: Profit

They're right on track so far.

 

[Idonotbelieveit]

There are so many investors it will take ages

A multi billionaire chinese would have been better imo

 

[kflo]

2.6% of the companies in the s&p 500 carry no debt. that's 13 out of 500. debt is normal.

 

[Pied Piper]

The same thing every company does, profit and reinvest in future earnings. I understand that business is complicated to most posters here though.

yeah but how

 

[MilesAbove]

I don't think TS understands how big business works. That debt will never be paid off. Ever.

 

[Marc A]

Would you like to buy an mma company ?

 

[Raise Your Fist]

Sell it back to the Fertattasss

 

[jeremyemilio]

10-15 if they get the new TV deal.

How do you figure? If the new TV deal pays out 300 million per year, as reported, it's probably going to come with some demands for more big shows on free TV rather than as PPVs and/or a PPV partnership with Fox.

Those shows are going to cost money to promote, to organize, and to fund fighter pay.

In a perfect world they keep $100 million of that. That's in a perfect world, but I'm feeling generous.

Then you add in $150 million or so in profits from other revenue streams. That's also very generous considering the highest profit they have ever made was just over that, including the current TV deal and a full PPV model that is likely scaling back with the new TV deal, and happened at the height of Ronda Mania, while Conor was also huge.

So that's $250 million per year.

At least $150 million of that goes to servicing the current debt. (Being very conservative here, as well.)

That leaves $100 million per year to:

a. Pay down the debt.
b. Expand the company.

Still feels like 40 years to me.