WME-IMG has to pay $100mill/year just on interest

[OneGloveGracie]

I don't think they have as much cash as people may think. They run a very high risk of falling into debt.

If they don't get that Fox deal, this was definitely a terrible investment.

 

[sirmorbach]

If they don't get that Fox deal, this was definitely a terrible investment.

$4.2 billion was already a terrible investment regardless of Fox deal if you ask me.

 

[DanaWhitesButler]

I love these kinds of threads when the Sherdog business savants just come out of the woodwork to give us their analysis

 

[dim_]

Brilliant, a thread claiming something with no sources whatsoever...

 

[Prime Ang]

$4.2 billion was already a terrible investment regardless of Fox deal if you ask me.

Yep

 

[One MMA Fan]

Well I'm sure they’re not all stupid... as much as we like to make fun of them.

They looked at the financials and said this can be done and come out good in the long run.

 

[Megatronlee]

I hope they FUCK it all up

 

[ZuffaExecutive]

Brilliant, a thread claiming something with no sources whatsoever...

The source is the mma beat

 

[MMAFanatic86]

I love these kinds of threads when the Sherdog business savants just come out of the woodwork to give us their analysis

CNN called, it wants its analysts back.

 

[OneGloveGracie]

I love these kinds of threads when the Sherdog business savants just come out of the woodwork to give us their analysis

I'm an accounting tech and have a BA in Finance.

 

[ZuffaExecutive]

If they get the kind of tv deal there looking for they will have done well,also they get about half that interest payment just from fight pass a year

 

[DanaWhitesButler]

I'm an accounting tech and have a BA in finance.

Nice. I actually believe you. I have a B.S. in Finance, though I work in IT. My modest education in finance has taught me that I don't have nearly enough information to assert anything about this UFC deal, but people with no education or analysis whatsoever will confidently tell us why it was a terrible investment.

 

[Sonny Qc]

why do you think they went on massive cost cutting ?

 

[Grappleboxing]

Looking the total though, 4.2 billion, wouldn't 100 million be just less than 2.5% apr? Not terrible, considering the loan amount?

 

[dim_]

The source is the mma beat

So it could be true, half true or utter bs then..

 

[Tamriel Terror]

its of course very risky and thats a lot of debt, hence why they are going to aim for a large tv deal and also hopefully get rid of the reebok deal for more lucrative offers and chances of advertising.

Also they're massively cost cutting (which happens in the majority of sales)

 

[Rozko]

So it could be true, half true or utter bs then..

When the WSJ starts releasing analysis I will care.

 

[DannyNL]

Maybe they'll go under and the Fertitas buy it back for a fraction of what they sold it for.

 

[phatron]

Well I'm sure their not all stupid...

classic fail

 

[Nate Dogg]

I think WME saw the major growth over the past couple of years and extrapolated that to getting their ROI much sooner. They're also a huge talent agency and from the outset their underlying motive is not to showcase the best fighters, but the best talent that could crossover into entertainment (ie: Ronda, Conor, Paige).

Plus the UFC brand itself puts them ahead as a global brand for the best fighters to flock to.