Were Rousey and McG Test Runs for the new Owners?

[tuff juice]

There's no doubt that Rousey and McGregor have become more popular than any MMA fighters before them.

Do you think it's possible that WME/partners did a test run before buying UFC to measure their ability to put a fighter over in the mainstream using their marketing connections (stars, outlets, etc) outside of normal fight fan circles? Thing went super well so now they can confidently make the huge purchase?

Perhaps this is only the very start of UFC fighters going super-mainstream?


This isn't to take anything away from McG and Rousey. Both are gifted and charismatic and may have just been right place right time as far as Twitter /new media/ connecting with fans.

But these two seemed to go so far into the mainstream. Maybe they had more focused help than usual from the new ownership group?

 

[One MMA Fan]

 

[mjmj]

I think you have too much time on your hands. School starts in a few weeks, start getting ready.

 

[tuff juice]

If you don't think there's about to be a quantum leap in promotion and if you don't think it could have started already, well ...

 

[DaveHilly]

I think the thing is that for anyone to get that kind of main stream crossover success they also need to be a great fighter and win pretty much every single fight in dominant fashion. You can manufacture the marketing but you can't manufacture the win record.

 

[DaGenius]

If you don't think there's about to be a quantum leap in promotion and if you don't think it could have started already, well ...

You might be reaching with the test run but, from everything I know about the business, we are about to see a significant upswing in promoting and marketing. It's one of the reasons Ronda will be back.

 

[Exemplar]

Hmm... interesting concept. I do believe that I read somewhere that Ronda's contract falls under the WME-IMG umbrella. Does WME-IMG (or subsidiary) hold McG's contract rights?

 

[SG123]

Do

There's no doubt that Rousey and McGregor have become more popular than any MMA fighters before them.

Do you think it's possible that WME/partners did a test run before buying UFC to measure their ability to put a fighter over in the mainstream using their marketing connections (stars, outlets, etc) outside of normal fight fan circles? Thing went super well so now they can confidently make the huge purchase?

Perhaps this is only the very start of UFC fighters going super-mainstream?


This isn't to take anything away from McG and Rousey. Both are gifted and charismatic and may have just been right place right time as far as Twitter /new media/ connecting with fans.

But these two seemed to go so far into the mainstream. Maybe they had more focused help than usual from the new ownership group?

Do we think prospective buyers intentionally drove up the price of the asset they were trying to acquire?

I swear to God Sherdog erodes your I.Q.

 

[tuff juice]

Do


Do we think prospective buyers intentionally drove up the price of the asset they were trying to acquire?

I swear to God Sherdog erodes your I.Q.

Do do we think the WME did this without UFC's knowledge and the UFC just thought, hey, look at this unprecedented boom in mainstream awareness right this second, two biggest stars ever in the sport, we're about to be in Madison Square Garden/NYC,the one location we've publicly craved for all of these years, NOPE DONT WANT NONE OF THAT, let's get out before it gets even more mainstream? I get selling high for the above reasons, but to think the above is out of the question..

 

[SG123]

Do do we think the WME did this without UFC's knowledge and the UFC just thought, hey, look at this unprecedented boom in mainstream awareness right this second, two biggest stars ever in the sport, we're about to be in Madison Square Garden/NYC,the one location we've publicly craved for all of these years, NOPE DONT WANT NONE OF THAT, let's get out before it gets even more mainstream? I get selling high for the above reasons, but to think the above is out of the question..

What you're saying makes literally no sense. It's like renovating a house for someone before you buy it. Mentalist.

 

[Flokk]

At the end of the day fighters have to fight to be "popular," unless they have charisma or some other marketable asset. I'm unclear on what Ronda's value might be outside of fighting, which she has no apparent inclination to do. I guess being a fake role model for fat bitches? But even that can't last. Fat bitches don't buy athletic gear, let alone PPVs, and name recognition alone doesn't keep the lights on.

Conor will be a big draw for the UFC going forward, even when Nate besmirches him a second time. That can be brushed away by saying styles make fights, heavier weight class, etc etc. As long as the messaging is consistent and Diaz gets good matchups going forward, the neckbeards will buy it. And Conor should have continued success at FW (if he can make the cut under new rules; TBD!) by virtue of size alone. If Patient Aldo spoils that, Conor can put on fun fights at his actual weight class.

Lesnar will be a huge asset if he sticks around. I honestly think he might, even knowing that USADA is (rightly) going to set up a lap in his living room.

 

[tuff juice]

What you're saying makes literally no sense. It's like renovating a house for someone before you buy it. Mentalist.

It's literally nothing like that. At all.

 

[Dead Kennedy]

Wait for them to unveil the new line of 2017 superstars. They come in several different colors and styles.

 

[SG123]

It's literally nothing like that. At all.

So you drive up the companies income, which you would target purchase at a multiple of income? You would by definition have driven the price up by $100s of millions.

Or am I misinterpreting this lunacy?

 

[loisestrad]

Illuminati.

 

[tuff juice]

So you drive up the companies income, which you would target purchase at a multiple of income? You would by definition have driven the price up by $100s of millions.

It's ok I can shorten my sentences and even words if necessary.

UFC is only worth $100s of millions more (as you put it) in the hands of the right people.

Just like the value was only increased in the hands of Fertitas vs SEG because only the Fertitas could get it licesnsed in Vegas. This would be like the Fertitas doing a test run in Vegas, confirming they can make way more money than the current owners, as they suspect, and then going ahead and purchasing the organization.

The UFC will be worth more in the hands of the new group because of their marketing abilities, which blow the current UFC's abilities out of the water. But, before dropping $4B, perhaps they wanted to make sure they'd be able to use those abilities.

I hold that it is a possibility. You are arguing it's impossible. Keep arguing on behalf of impossibility. It needs your help.

 

[Roca]

No. Terrible thread.

 

[mjmj]

No one is saying it's impossible. We're saying it's a stupid idea.



Even if we lived in a fantasy land where businesses did things like this, there’s simply no way Zuffa can allow any other company to run their business. If your harebrained theory was true, and this new companies ideas failed, Zuffa would be fucked.


Again, stupid idea.

 

[SG123]

It's ok I can shorten my sentences and even words if necessary.

UFC is only worth $100s of millions more (as you put it) in the hands of the right people.

Just like the value was only increased in the hands of Fertitas vs SEG because only the Fertitas could get it licesnsed in Vegas. This would be like the Fertitas doing a test run in Vegas, confirming they can make way more money than the current owners, as they suspect, and then going ahead and purchasing the organization.

The UFC will be worth more in the hands of the new group because of their marketing abilities, which blow the current UFC's abilities out of the water. But, before dropping $4B, perhaps they wanted to make sure they'd be able to use those abilities.

I hold that it is a possibility. You are arguing it's impossible. Keep arguing on behalf of impossibility. It needs your help.

Nothing like this happens in real life. You need help, but I'm here to give it to you. This is why it is not a possibility:

Under acquisition the company is targeted at a certain multiple of earnings.

I can't find net income data, but we'll use EBITDA to illustrate the point.

An S&P report indicates EBITDA for 2015 was roughly $172MM.

This was reported as roughly a 40% increase on the prior year, making EBITDA for 2014 roughly $123MM.

The company was acquired for $4 billion, based on the $172MM EBITDA figure you have a multiple of roughly 23.

You're claiming that the purchaser intentionally drove up the EBITDA of its target from $123MM to $172MM. In the process driving up the purchase price from $2.8 billion (23 x $123MM) to $4 billion (23 x $172MM).

So this company's master stroke, to avoid risk and prove it could market the fighters, was to increase the purchase price by $1.2 billion. This is what you are claiming?

If you're genuinely standing by this you are truly a unique intellect.

Thanks for shortening your sentences to help me understand though, appreciate it.

 

[HHJ]

No. they were cash outs for the old owners.