UFC needs PPV to get back on track

[screaminleeman]

Assuming 52 events per year with 11 fights gets us 572 fights.

There are currently 10 divisions. That means there are 150 fighters in the top 10.

Let's assume top 15 fighters only fight against each other, and we want fighters to fight 3 times per year. Well, that's 150 fighters x 3 = 450 fights, right? Wrong. You have to divide that number by half, because each fight has two fighters in it.

That means that each top 15 fighter can fight 3 times in a year against each other and it only takes up 225 fights. That leaves us with another 347 fights for non top 15 fighters.

Learn how to do math please.

That would seem more like 100 than 150 to me but???

No math to it, fact there are amazingly exactly 572 fighters on the UFC roster. That means there are 562 non champion UFC mma fighters needing three fights per year.

562 fighters/2 = 281 fights x 3 fights per year = 843 fights for the current roster.

OK, you beat me on the math, but when the real numbers are presented, my main point holds firm.

WC & # UFC fighters on roster:
HW = 34
LHW = 36
MW = 72
WW = 105
LW = 106
FTW = 72
BW = 63
WBW = 29
FLW = 37
WSW = 18

Total = 572!

We can't hope for much over ONE contest between top 15 fighters within a division with the need to find 80% of the UFC roster that is unranked fight slots in the Octagon throughout the year!

Hopefully a simple math conceptual error does not allow the basic premise to be dismissed so easily.

 

[psyops]

So to those saying the ppv model is dead the numbers don't really back that up.

Average ppv buys

2010 598k
2011 397k
2012 463k
2013 421k
2014 256k

It was really just this year that tanked. Loss of gsp ppv king doesn't help either

 

[Jermei]

PPV is dead as renting movies from Blockbuster.

 

[Xaa]

At 54.99 (Lets' call it 55), they gross 27.50 per as the cable provider takes the other portion.

Their 100M per year Fox deal then is like 3.6M buys. It also gives them more exposure which allows them to make deals with Reebok and strengthen their partnerships with Bud, Harley etc.

They are clearly trying to move to a broadcast model The $100M revenue from fox opens way more doors than if they got an additional $100M in PPV revenue because more eyeballs see their sponsors..

 

[Jorge Luis Borges]

All teams in both the NBA and NFL (and even more prevalent in MLB) have minor league (Professional sport affiliate franchises) to select player to "promote" to their main rosters as needed.

The NFL does not have professional sports affiliate franchises.

UFC ideal division fight year schedule:
- 2 Championship title fights per division per year.
- 3 top 15 ranked contenders fights per ranked fighter per year.

That is an absolute minimum of 47 fights per division per year just to support only top 15 fighters per division/ weight class in the UFC.

The absolute minimum to fulfill that standard would be 25 fights. 2 title fights plus 22 top 15 vs top 15 fights, plus one top 15 vs non top 15 fight.

Lern to LOVE the frequency of 1 fight per year currently etched in stone by the brain trusts of the UFC.

1. Seems like most top fighters fight twice in a year. Where are you getting one fight year from?

2. Do you really think this is a policy put in place by the UFC? I think that is a dubious conclusion to draw.

 

[psyops]

Do the cable provider take 50% of the ppv revenue or is that just a sherdog wisetail? I know they take a percentage but that seems high. That's why I.said gross revenue. Just as when they tell you the gate they don't mention what percentage the arena takes.

 

[HelloJapan]

The model is DEAD. I don't care who they put on it, i haven't paid for a PPV in more then three years. I'am sure i ain't the only one. To many things keep going up and up in price, wherever we can get it cheaper (or free), it'll be done.

Smarter, not harder.

 

[EndlessCritic]

That would seem more like 100 than 150 to me but???

I originally did the post as top 10, but when I realized your calculation was based on top 15, I changed the post, and forgot to edit one number.

 

[filthynumber1]

They are transitioning the business away from the PPV model by getting tv deals in a bunch of countries. During the transition they are milking whatever they can from the American fans who have to pay $60 for PPV cards while the rest of the world gets the fights for cheap.

Canada too

 

[straight6]

Do the cable provider take 50% of the ppv revenue or is that just a sherdog wisetail? I know they take a percentage but that seems high. That's why I.said gross revenue. Just as when they tell you the gate they don't mention what percentage the arena takes.

Great question! 50% seems very deep. With all these cable providers on the mkt place the competition is quite high these days.

 

[screaminleeman]

The NFL does not have professional sports affiliate franchises.



The absolute minimum to fulfill that standard would be 25 fights. 2 title fights plus 22 top 15 vs top 15 fights, plus one top 15 vs non top 15 fight.



1. Seems like most top fighters fight twice in a year. Where are you getting one fight year from?

2. Do you really think this is a policy put in place by the UFC? I think that is a dubious conclusion to draw.

Fitzgerald Toussaint respectfully disagrees with you. http://www.baltimorebeatdown.com/20...ld-toussaint-promoted-to-ravens-53-man-roster

- While the NFL league minimum for NFL development league players is a pathetic $6,000 per week, it is still considered "professional". If $96,000 minimum per year is not considered "professional wages" I am uncertain what that says for MMA.

1. UFC HW division (2014).
- Cain = 0, JDS = 1, Werdum = 2, Browne = 2, Hunt = 2, Miocic = 3, Barnett = 0, Bigfoot = 1, The Reem = 2, Nelson = 1, Big Nog = 1, Mir = 1, Gonzaga = 2, Rothwell = 1, Schuab = 2, Struve = 1. (One ranked fighter Miocic hit the mark I mentioned)

 

[sparkyjohannsen]

Well shit man, just bring these points up in the next power meeting you attend with dana and lorenzo.

 

[Xaa]

Do the cable provider take 50% of the ppv revenue or is that just a sherdog wisetail? I know they take a percentage but that seems high. That's why I.said gross revenue. Just as when they tell you the gate they don't mention what percentage the arena takes.

You are talking about gross to the provider. That is who charges the $54.95.

This article talks a bit about provider cut estimating 50-60%.

http://www.bloodyelbow.com/2012/7/18/3167055/ufc-ppv-prices-directv-viacom-comcast

Cable and satellite companies take 50-60% of the money from pay-per-view orders. It's ultimately one of the biggest problems in the game right now.


Here's another talking about WWE

http://www.fool.com/investing/gener...ble-and-satellite-drop-wwe-pay-per-views.aspx

That shortfall was offset when traditional PPV sales for Wrestlemania XXX -- the biggest show of the year -- came in around 400,000 in North America, well ahead of the 295,000 buys the company had budgeted, according to The Wrestling Observer, the leading insider newsletter covering the pro wrestling industry. That's a short-term positive for the company -- the price of a single PPV is roughly equal to the $60 cost of a six-month subscription to the network (though the WWE only gets around a 50% share of PPV sales). But it also shows that customers might not migrate to the network as quickly as the company hoped.*

A third here

http://seekingalpha.com/article/208...d-could-add-millions-to-the-companys-top-line



After the cable company and others take their share, WWE ends up with roughly a 40% cut of pay-per-view revenue. At $20 revenue per buy, the company earns annual pay-per-view revenue of around $80 million (WWE officially reported $82 million PPV revenue in 2012). A 12 month customer subscription to the WWE Network nets $120 in revenue. If WWE hits even the low end of subscription estimates that $82 million figure turns into approximately $240 million. If they hit the high end, it turns into a real home run. You can begin to understand why WWE would think that a $10 per month subscription could make up for a lost $20 PPV buy.

 

[psyops]

That's a bloodyelbow article with no source for the ppv claims I would like to see actual real evidence that they charge that much if possible

 

[Xaa]

That's a bloodyelbow article with no source for the ppv claims I would like to see actual real evidence that they charge that much if possible

I added a few other industry articles to the post.

I don't care too much what you'd like to see. I'd love to hear it from a cableco executive too, but the prevailing information suggests 50-60% to the provider.

Feel free to refute it with anything you have that is more reliable. My mind is open to whatever you might have.

 

[Insaniteus]

Its not just the ufc. The ppv model is just dying in general. Look at boxing, and also WWE wasn't doing great,

The WWE is an example of what NOT to do with PPV events. The writing made PPV results worthless aside from Wrestlemania every year. On top of that, John Cena is killing the company faster than the NYPD raiding the NAACP HQ.

Boxing has a lack of stars and organized promotions holding it back.

The UFC will be fine in 2015 as long as less big fights get cancelled due to injury. That's what is bringing them down the most.

They should also likely start having all PPVs carry two title fights, since they have so many champions now. And if one cancels, then they have their backup.

 

[moreorless87]

My guess would be that PPV isn't a case of providers just taking a certain percentage, theres probably some agreement where you pay a fee or they take the money from a certain number of PPV buys beyond which the event organiser gets the income or a higher percentage of it.

If that's the case then say 10 PPV's selling 50,000 each could bring in a lot less than 5 PPV's selling 100,000 each.

 

[psyops]

I added a few other industry articles to the post.

I don't care too much what you'd like to see. I'd love to hear it from a cableco executive too, but the prevailing information suggests 50-60% to the provider.

Feel free to refute it with anything you have that is more reliable. My mind is open to whatever you might have.

You don't care much what I want to see? What possible good reason could you have for saying that. Obviously I don't have anything to refute with as I'm the one asking for the information. I just simply stated bloodyelbow is not a real source though it appears you may be right. Try to come off as less of a jackass next time

 

[Xaa]

You don't care much what I want to see? What possible good reason could you have for saying that. Obviously I don't have anything to refute with as I'm the one asking for the information. I just simply stated bloodyelbow is not a real source though it appears you may be right. Try to come off as less of a jackass next time

I'm trying but I still can't seem to care what you want to see.

You're the guy refuting the common usage based on a feeling. Bloody Elbow certainly has more journalistic credibility than your feelings.

 

[Oedad]

Fitzgerald Toussaint respectfully disagrees with you. http://www.baltimorebeatdown.com/20...ld-toussaint-promoted-to-ravens-53-man-roster

- While the NFL league minimum for NFL development league players is a pathetic $6,000 per week, it is still considered "professional". If $96,000 minimum per year is not considered "professional wages" I am uncertain what that says for MMA.

1. UFC HW division (2014).
- Cain = 0, JDS = 1, Werdum = 2, Browne = 2, Hunt = 2, Miocic = 3, Barnett = 0, Bigfoot = 1, The Reem = 2, Nelson = 1, Big Nog = 1, Mir = 1, Gonzaga = 2, Rothwell = 1, Schuab = 2, Struve = 1. (One ranked fighter Miocic hit the mark I mentioned)

The practice squad is not a development league. Each team is allowed 10 spots to keep players to supplement the 53 man roster during practice.

It is not used as a minor league system when stars rehab injuries or where they keep key players they don't have room for in the regular season only to bring them out in the playoffs as you sometimes see in the MLB.

You are not allowed to be on the practice squad for more than 3 seasons.

Any NFL team can sign any member of another teams practice squad.