UFC 2016/17 Numbers Comparison. More money for less interest

FrankieNYC

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In 2016, the UFC had EBITDA of $226 million
That is the first time we got concrete numbers for 2016.
If the 2017 projections of $320m hold up, that is a huge upswing for a down trending year (see below).
Part of it was MayMac, $55m was cost cutting & the rest were contractual deals that WME made & escalating deals from Lorenzo era

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Info From Meltzers Newsletter (with help from an old SD member @DezWalker):

The Fight Night on FS 1 ratings, which, while not necessarily the most important numbers, are the numbers that measure the weekly regular fan base the best, saw a decline from 965,111 viewers on average for the main cards to 795,412, or a drop of 17.6 percent.

-

The prelims for Fight Nights on FS 1 fell from 730,125 to 634,929, a drop of 13.0 percent. A key is that this percentage drop being less than the main card drop shows that the audience that is watching is more apt to watch longer. But theoretically that would be the case because the most hardcore fans who are willing to watch all five hours instead of two or three on Saturday are going to be less likely to give up their viewing habits.

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The live FOX main cards (and this factors out the big Christmas Eve number last year) averaged 2,084,500 viewers this year, as opposed to 2,661,600 last year, a decline of 21.7 percent. The reality is that the four UFC on FOX shows in 2017 were among the five lowest in the six year history of UFC on network television.

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PPV prelims on FS 1 dropped 28.6 percent from 1,168,500 to 834,000. But that’s to be expected, because those numbers are directly related to interest in the main event, and this year had fewer big PPV matches and shows headlined by marquee names.

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Not including the final show of the year, and if anything, that show will hurt the average rather than help it, the PPVs have gone from an estimated 558,000 buys in North America to 305,000 or a 45.3 percent drop. These numbers would not include the 12/30 show, which probably wouldn’t have changed the average by much in either direction.
The prelims drop tells a story. If the drops were identical, there isn’t much to learn from it. But the drops being less tells you that while all audiences declined, the audience willing to watch for free didn’t decline at nearly the rate of the audience willing to pay PPV prices.



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Interest is down & needs to be addressed, but even without MayMac, UFC would have had their best moneymaking year in history.
 
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thanks for the good read. very interesting. inb4 UFC is dying

You're welcome
what a weird year
WME knows how to make money, if they can go up that much in a bad year
 
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How about more main cards with names, and 2 top cotenders in the main event to boost ratings???
 
2018 will be a good year
Conor vs Tony
GSP vs ???
Jones vs DC 3

That's the Years profit on 3 fights
 
How about more main cards with names, and 2 top cotenders in the main event to boost ratings???
I'm sure they want to use some bigger names to help boost their free cards from time to time. But with injuries, suspensions and a lack of "draws" they keep the bigger names on ppv. It would probably help if we didn't get multiple title fights on a card and fringe top contenders maineventing the next PPV.
 
I'm sure they want to use some bigger names to help boost their free cards from time to time. But with injuries, suspensions and a lack of "draws" they keep the bigger names on ppv. It would probably help if we didn't get multiple title fights on a card and fringe top contenders maineventing the next PPV.

I would not be shocked if we go from 12-8 PPV cards in 2019
 
A huge part of the profit increase was due to 2 (almost certainly) not repeatable reasons.
1. Mayweather-McGregor - The UFC can't expect a windfall like that with so little expense to occur yearly, if ever again. However, I think if Conor had fought 2 mma fights instead of the 1 boxing match, the UFC would have made about the same, if not more.
2. The cost cutting was a HUGE part of the increase, and that's DEFINITELY not repeatable annually (though a new TV contract that removes the production costs from the UFC's expenses would help).

Agreed
But you take both out & they still beat 2016

Plus they are not adding back that $55m next year, it will still be in their favor

I said that UFC was a $100+m profit company without a single PPV sold
That might be about $200m in 2018
 
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2018 will be a good year
Conor vs Tony
GSP vs ???
Jones vs DC 3

That's the Years profit on 3 fights

u are 0 for 3 on those ideas. jon still looking at a suspention in some way.
conor never fights tony cause khabib beats tony first.
gsp also in my opition wont fight again 2
 
In 2016, the UFC had EBITDA of $226 million (@Myrddin Wild )
That is the first time we got concrete numbers for 2016.
If the 2017 projections of $320m hold up, that is a huge upswing for a down trending year (see below).
Part of it was MayMac, $55m was cost cutting & the rest were contractual deals that WME made & escalating deals from Lorenzo era

-
Info From Meltzers Newsletter:

The Fight Night on FS 1 ratings, which, while not necessarily the most important numbers, are the numbers that measure the weekly regular fan base the best, saw a decline from 965,111 viewers on average for the main cards to 795,412, or a drop of 17.6 percent.

-

The prelims for Fight Nights on FS 1 fell from 730,125 to 634,929, a drop of 13.0 percent. A key is that this percentage drop being less than the main card drop shows that the audience that is watching is more apt to watch longer. But theoretically that would be the case because the most hardcore fans who are willing to watch all five hours instead of two or three on Saturday are going to be less likely to give up their viewing habits.

-

The live FOX main cards (and this factors out the big Christmas Eve number last year) averaged 2,084,500 viewers this year, as opposed to 2,661,600 last year, a decline of 21.7 percent. The reality is that the four UFC on FOX shows in 2017 were among the five lowest in the six year history of UFC on network television.

-

PPV prelims on FS 1 dropped 28.6 percent from 1,168,500 to 834,000. But that’s to be expected, because those numbers are directly related to interest in the main event, and this year had fewer big PPV matches and shows headlined by marquee names.

-

Not including the final show of the year, and if anything, that show will hurt the average rather than help it, the PPVs have gone from an estimated 558,000 buys in North America to 305,000 or a 45.3 percent drop. These numbers would not include the 12/30 show, which probably wouldn’t have changed the average by much in either direction.
The prelims drop tells a story. If the drops were identical, there isn’t much to learn from it. But the drops being less tells you that while all audiences declined, the audience willing to watch for free didn’t decline at nearly the rate of the audience willing to pay PPV prices.



----------

Interest is down & needs to be addressed, but even without MayMac, UFC would have had their best moneymaking year in history.

Wow im really surprised to hear that without maymac it would have been best year in history.. thats crazy to me. So with that being said, are the people who run wme better business people than the fertittas? We see so many threads about them fleecing wme so whats the truth Frankie?
 
Wow im really surprised to hear that without maymac it would have been best year in history.. thats crazy to me. So with that being said, are the people who run wme better business people than the fertittas? We see so many threads about them fleecing wme so whats the truth Frankie?

WME are much better as far as cost analysts
Buth they could never of done what the Fertitta's did to build the company
So its tough to say in that regard

Anybody that says WME were fleeced are either trolling, uninformed or just plain foolish

There were 5 bids all in the same range for WME
Those bids were by some of the biggest companies from Fox to several Chinese conglomerates
They all felt UFC was worth over $3.5b

The fact UFC went up in value ($5b in September) & should go up even more with this year in the book, proves anybody thinking they were "fleeced' were wrong

Bottom line:
Fertitta's built UFC to the company they became
WME can streamline it & possibly take them to the next level

PS ... I told people all year long this would be the case for 2017 & UFC even surpassed my projections.
 
Someone (I forget, my apology) asked me about the year Dana would have had financially.

Here is what we know:
he gets paid a salary of 9% of profit
He owns 7% (he bought back into UFC when he shares were sold with Fertitta's)

If UFC profits $300 m in 2017, he would get around $30m in salary (his % would be before EBIDTA)
His 7% of $300m is $21m
Add in the company went up in value since he bought back in & he had a freaking HUGE year
 
Interesting read.

I wonder how much money they saved by firing all the hangers on that Dana and the fertittas let sit around
 
Someone (I forget, my apology) asked me about the year Dana would have had financially.

Here is what we know:
he gets paid a salary of 9% of profit
He owns 7% (he bought back into UFC when he shares were sold with Fertitta's)

If UFC profits $300 m in 2017, he would get around $30m in salary (his % would be before EBIDTA)
His 7% of $300m is $21m
Add in the company went up in value since he bought back in & he had a freaking HUGE year

how much of the ufc did dana own when it was fertittas?
 
Congrats WME, you had a "great" year putting out mostly absolute shit. All of that cost cutting benefited me about fuck all as a fan and consumer. Of course, they don't care, there is no genuine interest in the sport. But give me the Fritatas and their product any day of the week.

Would love to see the numbers after they crank up the big promo machine for one of their shit shows and it absolutely flops. A couple of those and the company'll be on the auction block quicker than you can say zuffa boxing.
 
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Meltzer confirmed to be completely and totally full of shit. He's been saying all year that "they need this fight", "they're having a bad year", "its a down year".

Time to stop listening to this guy. All he does is fill in the blanks when he doesn't have the information.
 
Interesting read.

I wonder how much money they saved by firing all the hangers on that Dana and the fertittas let sit around

A lot
That & flying private & most likely abusing corporate cards for <cough> business <cough>
The company used to be 80% Fertitta's so they could do that
WME has some heavyweight partners to answer to.
I figured $25m cost cutting, the fact that they did over 2x that shows Lorenzo & frank were Dons 7 WME are not kidding about making money.
 
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