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Dave Meltzer's Weekly Newsletter (part, not whole thing)
The bidding period is expected to end this week, on or around 6/16, regarding a sale that is expected to be in the $4 billion price range for 100 percent ownership of the UFC.
William Morris Endeavor/IMG, China Media Capital and the Dalian Wanda Group of China were expected to put in final bids this week after the last rounds of due diligence are completed.
It is possible the current UFC owners, Lorenzo & Frank Fertitta, January Capital and Dana White, would not accept the bid and the current owners will stay in place. But it was UFC that went through Goldman Sachs to find potential bidders and provided confidential business information.
The big question involves what happens to Lorenzo Fertitta and White, who built the company over the past 15 years. The Fertitta Brothers purchased the dying company for $2 million in 2001, struggled with money losses through 2005, and have profited greatly over the past years. A significant percentage of the UFC’s profits over the years have gone directly to the owners in the form of annual dividends.
It is believed that some, if not all of the bidders want White to stay in UFC, and if they had their way, with an ownership interest. A guy used to having stock in what he devotes his life to isn’t going to be the same when put on salary, even a huge salary.
But White’s 8.99% of stock in a $4 billion sale would be $359.6 million in cash. The company purchase price is expected in bidding to be at in the range of that level. If White takes the cash, even though most expect him to remain with the company in some fashion as the symbolic face of the brand at least for a few years, the question is what his new role will be? White is so established as the company’s front man, and there are things like appearing on Ultimate Fighter, Looking for a Fighter and putting together the big show main events that he enjoys doing. His visibility has been greatly diminished in recent months, frequently not even appearing at post-match press conferences, even on successful shows, or if he does appear, he may take some early questions and then leave things to Dave Sholler. He’s still the guy who will do the media rounds to promote fights or put out fires, but is far less accessible than he had been when he was considered the most accessible “commissioner” in sports.
Other key issues include the status of Garry Cook, the UFC’s Chief Global Officer. If there is someone in the organization to take over as the heading the business who is already there, he would appear to be the favorite.
But even if the idea is that nothing will change, that they will still run out of Las Vegas (ground has broken for a new UFC Campus with tons of office space, a rehab center for injured fighters, a spacious gym, etc.), the fingerprints and DNA will still change. The experience Lorenzo Fertitta and White have from 15 years of dealing with fighters and managers, who are often difficult to deal with, particularly as they get more successful, and in all aspects of the business can’t by transferred by a stock purchase, nor can the instincts of making fights that will draw and figuring out who can be stars and knowing the process of making them.
The bidding period is expected to end this week, on or around 6/16, regarding a sale that is expected to be in the $4 billion price range for 100 percent ownership of the UFC.
William Morris Endeavor/IMG, China Media Capital and the Dalian Wanda Group of China were expected to put in final bids this week after the last rounds of due diligence are completed.
It is possible the current UFC owners, Lorenzo & Frank Fertitta, January Capital and Dana White, would not accept the bid and the current owners will stay in place. But it was UFC that went through Goldman Sachs to find potential bidders and provided confidential business information.
The big question involves what happens to Lorenzo Fertitta and White, who built the company over the past 15 years. The Fertitta Brothers purchased the dying company for $2 million in 2001, struggled with money losses through 2005, and have profited greatly over the past years. A significant percentage of the UFC’s profits over the years have gone directly to the owners in the form of annual dividends.
It is believed that some, if not all of the bidders want White to stay in UFC, and if they had their way, with an ownership interest. A guy used to having stock in what he devotes his life to isn’t going to be the same when put on salary, even a huge salary.
But White’s 8.99% of stock in a $4 billion sale would be $359.6 million in cash. The company purchase price is expected in bidding to be at in the range of that level. If White takes the cash, even though most expect him to remain with the company in some fashion as the symbolic face of the brand at least for a few years, the question is what his new role will be? White is so established as the company’s front man, and there are things like appearing on Ultimate Fighter, Looking for a Fighter and putting together the big show main events that he enjoys doing. His visibility has been greatly diminished in recent months, frequently not even appearing at post-match press conferences, even on successful shows, or if he does appear, he may take some early questions and then leave things to Dave Sholler. He’s still the guy who will do the media rounds to promote fights or put out fires, but is far less accessible than he had been when he was considered the most accessible “commissioner” in sports.
Other key issues include the status of Garry Cook, the UFC’s Chief Global Officer. If there is someone in the organization to take over as the heading the business who is already there, he would appear to be the favorite.
But even if the idea is that nothing will change, that they will still run out of Las Vegas (ground has broken for a new UFC Campus with tons of office space, a rehab center for injured fighters, a spacious gym, etc.), the fingerprints and DNA will still change. The experience Lorenzo Fertitta and White have from 15 years of dealing with fighters and managers, who are often difficult to deal with, particularly as they get more successful, and in all aspects of the business can’t by transferred by a stock purchase, nor can the instincts of making fights that will draw and figuring out who can be stars and knowing the process of making them.
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