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

Discussion in 'UFC Discussion' started by OneGloveGracie, Dec 15, 2016.

  1. OneGloveGracie Double Yellow Card

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    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.
     
  2. sirmorbach These violent delights have violent ends

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

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

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    Brilliant, a thread claiming something with no sources whatsoever...
     
  5. Prime Ang Kang Banned

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    Yep

    <{danawhoah}><{danawhoah}><{danawhoah}><{danawhoah}>
     
  6. One MMA Fan #1

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    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.
     
    Last edited: Dec 15, 2016
  7. Megatronlee Red Belt

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    I hope they FUCK it all up
     
  8. ZuffaExecutive Red Belt

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    The source is the mma beat
     
  9. MMAFanatic86 Brown Belt

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    CNN called, it wants its analysts back.
     
  10. OneGloveGracie Double Yellow Card

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    I'm an accounting tech and have a BA in Finance.
     
  11. ZuffaExecutive Red Belt

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    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
     
  12. DanaWhitesButler Brown Belt

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    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.
     
  13. Sonny Qc 86,425 Likes

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    why do you think they went on massive cost cutting ?
     
  14. Grappleboxing Brown Belt

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

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    So it could be true, half true or utter bs then..
     
  16. Tamriel Terror Silver Belt

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    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)
     
  17. Rozko Black Belt

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    When the WSJ starts releasing analysis I will care.
     
  18. DannyNL The King is BACK, baby! Banned

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

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    classic fail
     
  20. Nate Dogg Purple Belt

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    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.
     

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