Ppv is where the ufc has the potential to make the most money but they have been putting on for the most part sub par ppv events.
There are plenty of ways for the ufc to make money. Ppvs, fight pass, gate, advertising, sponsors, tv deals etc but besides the fox deal for 4 shows a year on the big network, ppv is by far the most lucrative opportunity.
For example most events do approx 1-2 million gate, the highest gate ever was 12.1 mil for gsp vs shields at ufc 129. A difference of 10 million profit.
Ppv has a much higher potential for profit.
Example
100k buys at 54.99 = 5 499 000
250k = 13 747 500
500k = 27 495 000
750k = 41 242 500
1M = 54 990 000
As you can see the difference between selling 100k and a million is almost 50m gross income.
Luckily for the ufc they signed the fox deal in 2012 when they had a higher ppv average. So they get 90m for 4 shows meaning each show is worth about 22.5m, which if you do the math would be worth the same as about 400k ppv buys per show. Their average ppv buys for 2011/2012 is 430k so this is about right.
In 2013 they did average ppv buys of 421k but this year a steep decline, the average for 2014 is only 256k.
They need to stop being stingy on the ppv main cards. Sometimes one good fight can elevate a card from ok to great.
This next ppv is a perfect example. Great main event and overall lacklustre card. Why go stingy on the main card.
If they would have stacked the card imo they could have really pushed this as a must see card instead of just a must see main event. This is the biggest fight in a long time and you don't stack the card?
They need to do a lot better next year with the ppvs and matchmaking, and it would probably be in their best interest to get a new matchmaker who understands what the people want. You can only blame injuries for so long.
There are plenty of ways for the ufc to make money. Ppvs, fight pass, gate, advertising, sponsors, tv deals etc but besides the fox deal for 4 shows a year on the big network, ppv is by far the most lucrative opportunity.
For example most events do approx 1-2 million gate, the highest gate ever was 12.1 mil for gsp vs shields at ufc 129. A difference of 10 million profit.
Ppv has a much higher potential for profit.
Example
100k buys at 54.99 = 5 499 000
250k = 13 747 500
500k = 27 495 000
750k = 41 242 500
1M = 54 990 000
As you can see the difference between selling 100k and a million is almost 50m gross income.
Luckily for the ufc they signed the fox deal in 2012 when they had a higher ppv average. So they get 90m for 4 shows meaning each show is worth about 22.5m, which if you do the math would be worth the same as about 400k ppv buys per show. Their average ppv buys for 2011/2012 is 430k so this is about right.
In 2013 they did average ppv buys of 421k but this year a steep decline, the average for 2014 is only 256k.
They need to stop being stingy on the ppv main cards. Sometimes one good fight can elevate a card from ok to great.
This next ppv is a perfect example. Great main event and overall lacklustre card. Why go stingy on the main card.
If they would have stacked the card imo they could have really pushed this as a must see card instead of just a must see main event. This is the biggest fight in a long time and you don't stack the card?
They need to do a lot better next year with the ppvs and matchmaking, and it would probably be in their best interest to get a new matchmaker who understands what the people want. You can only blame injuries for so long.