Star Wars Value = UFC?

[Saku Would Go!]

Just realized that Disney bought Star Wars from Lucas Films for 4 billion dollars. If the alleged sale of the UFC goes through for 4 billion dollars that would mean they have a roughly equivalent market value (minus the adjustment for inflation).

Either Lucas got robbed or the UFC investment group so severely over paid they will probably never turn a profit.

Is the UFC even close in value to the highest grossing movie franchise of all time? (forgive any grammatical errors)

 

[Degen Gambler]

Past revenues are irrelevant, the future earning potential is what matters.

 

[Saku Would Go!]

Good point but do you think the future revenues of the UFC are projected higher than the entire Star Wars franchise going forward?

 

[marcusnz80]

Interesting observation ts. The ufc apparently did over 600 mil in revenue last year. The entertainment/events industry often has healthy margins, so lets assume they netted 300 mil in profit. Disney currently has a pe ratio of about 17. Using that ratio, the ufc would be valued at around 5 billion. The S&P 500 has an even more generous pe of about 23 which would value the ufc at around 7 billion. Now obviously the ufc isnt a fortune 500 company, but depending on how bullish you are on mma and the ufc, maybe these ratios offer a reasonable gauge of its value. I think 4 billion is quite a good price but it depends tremendously on the details of the purchase.

 

[Saku Would Go!]

Good stats. That does make the 4 billion dollar price tag seem a bit more realistic. Although, I would think Star Wars provides a higher return on investment now and in the future than most if not all of Disney's current projects or investments.

I'm not as bullish on MMA going forward as the sale price suggest. I don't really have any good info to base that off of just a gut feeling. I think there is growing fatigue on how they are doing business. It seems to be leaning more toward the boxing model which has huge boom and bust swings.

 

[marcusnz80]

Good stats. That does make the 4 billion dollar price tag seem a bit more realistic. Although, I would think Star Wars provides a higher return on investment now and in the future than most if not all of Disney's current projects or investments.

I'm not as bullish on MMA going forward as the sale price suggest. I don't really have any good info to base that off of just a gut feeling. I think there is growing fatigue on how they are doing business. It seems to be leaning more toward the boxing model which has huge boom and bust swings.

Its certainly a gamble, especially with viacom backed Bellator doing good things and ready to take advantage of any ufc mistake and steal some market share. I also think for a fraction of the 4 billion they have at their disposal (say 700million) , they could set up a very profitable and competitive promotion, especially if they targeted the chinese, Russian and Japanese markets. The fighters DEFINITELY want another alternative to the ufc, dana, and the fighter pay structure. Either way, If I were an investor and had to choose between owning the starwars rights or the ufc for 4 billion, Id go with star wars.

 

[John Wick]

We'll generate about $600 million in revenue for the year 2015, which is a record for the company, and it's fairly significant growth coming off of 2014.” – Lorenzo Fertitta, UFC CEO

Source: http://www.mmaweekly.com/ufc-tops-600-million-in-2015-for-record-setting-revenue

Rumour has it the profit is in the range of $100 million for 2015.

Stars Wars :The Force Awakens made 2.2 billion. Theatres take 40% of the cut and marketing/production was like 400 million combined but that's still a $500+ million profit. That's just 1 movie not counting merchandizing, blu ray, and TV rights. They probably made a 1 billion off that movie in it's lifetime and they're making more.... That can justify a 4 billion price tag.

Now, either Star Wars's valuation was low or UFC's is high. I'm going with the latter.

 

[Striderxdj]

If the UFC is valued at what Star Wars was sold for, then Disney got the island of manhattan for some beads and blankets.

UFC is a very niche product with slowing growth and countless factors that can affect earning potential.

Star Wars is a cross generational, massively popular, endless money making Juggernaut with such a well fleshed out Universe and fervently loyal fanbase, you could just make movies of stories from the books every few years and they'll all take in 1-2 billion at the box office during the first run, guaranteed.


Thats not even considering merchandise.

 

[Saku Would Go!]

I totally forgot about merchandise an licensing. Crazy to think they had the same price tag. I bet Lucas still get some residuals from from the new movie.

We'll generate about $600 million in revenue for the year 2015, which is a record for the company, and it's fairly significant growth coming off of 2014.” – Lorenzo Fertitta, UFC CEO

Source: http://www.mmaweekly.com/ufc-tops-600-million-in-2015-for-record-setting-revenue

Rumour has it the profit is in the range of $100 million for 2015.

Stars Wars :The Force Awakens made 2.2 billion. Theatres take 40% of the cut and marketing/production was like 400 million combined but that's still a $500+ million profit. That's just 1 movie not counting merchandizing, blu ray, and TV rights. They probably made a 1 billion off that movie in it's lifetime and they're making more.... That can justify a 4 billion price tag.

Now, either Star Wars's valuation was low or UFC's is high. I'm going with the latter.

I totally forgot about merchandising and licensing fees. My guess is Lucas still get residuals from Star Wars moving forward plus the 4 billion.

 

[Clippy]

Wait I just thought of something

Aren't Jedis not allowed to take women, like priests?

Yet he clearly marries Amadilla and moves in with her and everything and nobody says boo about it

Wica-what?

I'm serious someone tell me answers

 

[Sp@cePeanut]

It will take a long time to get back that 4 billion. So much for fighter pay improving.

 

[Nickzor]

I love Star Wars but we're talking 40 years for Star Wars to get where it is now, much longer then it took the UFC to get where it is since Lorenzo bought it

 

[notsojollyrogerRIP]

Just realized that Disney bought Star Wars from Lucas Films for 4 billion dollars. If the alleged sale of the UFC goes through for 4 billion dollars that would mean they have a roughly equivalent market value (minus the adjustment for inflation).

Either Lucas got robbed or the UFC investment group so severely over paid they will probably never turn a profit.

Is the UFC even close in value to the highest grossing movie franchise of all time? (forgive any grammatical errors)

The UFC's value includes slave labor.

 

[MPD-Psycho]

They both have thousands of years of history if you think about it. Some are even shared like with pro-wrestling.

 

[Buff]

Wait I just thought of something

Aren't Jedis not allowed to take women, like priests?

Yet he clearly marries Amadilla and moves in with her and everything and nobody says boo about it

Wica-what?

I'm serious someone tell me answers

Everyone said shit about it... That's why he got all salty, killed everybody and then went athletic and explosive.

 

[Clippy]

Everyone said shit about it... That's why he got all salty, killed everybody and then went athletic and explosive.

Saying shit is one thing but they should have kicked him the fuck out of the jedi org immediately

 

[Clippy]

Like they would make an exception for a guy they aready barely trust and have concerns about

Ahhh he's fucking up, what evs, let's turn the cheek

bodacious

 

[Buff]

Saying shit is one thing but they should have kicked him the fuck out of the jedi org immediately

It doesn't work like that... You can't just kick out one of the most powerful dudes in the galaxy and just let him do his thing... Not without some counselling or some shit.

 

[lostdog000]

star wars has got to be more profitable

 

[Brawl in Buffalo]

Interesting observation ts. The ufc apparently did over 600 mil in revenue last year. The entertainment/events industry often has healthy margins, so lets assume they netted 300 mil in profit. Disney currently has a pe ratio of about 17. Using that ratio, the ufc would be valued at around 5 billion. The S&P 500 has an even more generous pe of about 23 which would value the ufc at around 7 billion. Now obviously the ufc isnt a fortune 500 company, but depending on how bullish you are on mma and the ufc, maybe these ratios offer a reasonable gauge of its value. I think 4 billion is quite a good price but it depends tremendously on the details of the purchase.

Just out of curiosity how are you assuming P/E on the UFC without knowing what EPS (earnings-per-share) is?