Depends on the type of lawsuit, if the antitrust is actually successful, UFC is going to be majorly screwed. They will have to change their entire business model and how they contract with fighters. They will lose exclusive agreement with champions. UFC is endeavors biggest asset, they would get crushed if this lawsuit is successful.The stock ticker is EDR for Endeavor. Their stock has been holding steady over the week or 2. Companies get sued all the time, it doesn't necessarily cause their stock price to go down.
The stock ticker is EDR for Endeavor. Their stock has been holding steady over the week or 2. Companies get sued all the time, it doesn't necessarily cause their stock price to go down.
If you think it would be a good stock to short, then you would already have shorted it - you wouldn't be waiting. So tell us, have you shorted it?
The stock ticker is EDR for Endeavor. Their stock has been holding steady over the week or 2. Companies get sued all the time, it doesn't necessarily cause their stock price to go down.
ur smokedI forgot how many millionaire investors who train UFC, bang 10s hourly and bench teh 275 there are on Sherdog......thanks for remimding me.
Not advice, just saying to watch the stock. The judge already ordered that a lot of the internal documents obtain from discovery in the lawsuit will be released.
It’s bound to affect the stock price when it comes out. Will be interesting how it develops for the company.
Endeavor (EDR) has been slowly, consistently dropping since its IPO. It closed at a 4% loss on day two. Its currently down 12% since its IPO. I don't think its fair or accurate to say this news of a second suit, which serves the sole purpose of extended the class by moving the date forward beyond 2017, is what has moved the price. It flopped right out of the gate.
Of note, they did beat EPS for 2020 Q4 and Q1 of 2021. Next report is out August 15th.
Frankly the UFC has been a piggy bank for Endeavor and it floated the company through the pandemic. They've been holding it upside down shaking money out. A lot of the right people got their payday at IPO.
My bet is current stakeholders - who already have fortunes in the hundreds of millions - will have their money out of EDR before this class action is resolved. I think a settlement at this point is out of the question and this goes to trial. This will take years.
I think EDR is a bad buy because of their over leveraging of debt. Its a high risk low reward play.
https://static1.squarespace.com/static/60663d496017a751ed8ca929/t/60df2c273adee60e31b3fe0e/1625238569003/Antitrust+Class+Action+Complaint+(Johnson+and+Dollaway+v.+Zuffa).pdf
The second lawsuit filed against UFC, the Johnson complaint
Stock has been dropping since the second complaint was filed.
Keep watch guys, if the antitrust lawsuit takes root and starts revealing internal discovery documents, might be a good short.
I got WME as a potential stock to short if there’s anymore negative developments coming. Might be some easy and quick money.
Buy $24 December Puts?
I just took a look at the timeline of the case, I didn't even realize the original case already had UFC move for a motion for summary judgment and it got denied.
Discovery must be pretty much over then, I presume we will see this case go to trial really soon. I'm interested in the unmasking order the judge gave out. We'll get to see a lot of juicy internal documents regarding fighter pay.
Edit: I do think you are correct, that the drop in stock price isn't due to the second lawsuit. The second lawsuit actually is pretty identical to the first, it just covers the time period that first lawsuit failed to cover since it's filing (this will take into account damages from the original first lawsuit, leading into this one).
I do think though that EDR is overvalued, and the resolution of this antitrust suit is only going to hurt this company a lot more. I think it's safe to bet that UFC will have to redo how they do business and it's going to be a lot less profitable for them in the future.