http://www.flocombat.com/article/41713-zuffa-in-talks-to-sell-portion-of-ufc
This makes more sense.
The Fertitta brothers and Dana White have been in the promotion business since 2001. But according to reports from ESPN, other media outlets and FloCombat sources, that may not be the case much longer.
Reports that the most prominent organization in combat sports surfaced on ESPN Tuesday evening. But whispers of the potential move have been lingering for several months now. Bleacher Report’s Jonathan Snowden tweeted out word of Zuffa selling the UFC to a China-based company back in March.
Follow
Jonathan Snowden
✔@JESnowden
Strong rumors that #UFC in talks with China Media Capital to sell the promotion. Looking for a $6 billion valuation. Crazy times.
1:56 AM - 18 Mar 2016
FloCombat sources said that the full company is not for sale, but rather a smaller percentage—ranging from 11-15%—that would allow CEO Lorenzo Fertitta to take a reduced role with the UFC and focus on his family's Station Casino business in Las Vegas while also aiding the UFC's efforts in global expansion, especially into the lucrative yet difficult Chinese market.
It was announced on Tuesday that the Fertitta brothers have purchased The Palms casino resort for just over $312 million. The family owns a network of "locals" casinos around the Vegas valley in addition to Red Rock Casino Resort and Green Valley Ranch; the latter two casinos are the centerpiece properties of their empire, along with the UFC.
Our sources said the talks are in the "due diligence" phase, which would indicate a deal has been agreed to on at least a conditional basis.
The Station Casino owners initially purchased the struggling promotion back in 2001, and spent their initial four years in MMA bleeding money and battling to stave off collapse. Fortunately for Zuffa, the first season of The Ultimate Fighter reality show would be their saving grace.
The groundbreaking show featured a tournament final bout between Forrest Griffin and Stephan Bonnar that has long been pointed as the single thing that saved the UFC from extinction. In reality, of course, things were different; a new television deal with Spike TV was agreed on before the Griffin/Bonnar bout took place. But that has not stopped White from claiming that the fight saved his company, and that a new deal was signed in a hallway huddle with Spike executives after the bout.
Today, the UFC is looking at a much different financial picture. Last year's promotional earnings, heavily reliant on the star power of both Ronda Rousey and Conor McGregor, gave Zuffa it's best financial year ever. A new television deal in 2019 is projected to bring in as much as 250 million per year in revenue, and the continual rise in live sporting television rights gives the UFC the power to demand big money.
This makes more sense.
