UnderGround Forums WME buying the UFC turned out to be a great invest

Edited: 5/23/18 2:39 AM
7/25/15
Posts: 1199

They bought the UFC for 4 billion and everyone was praising the Fertittas for getting out while UFC was at its peak.  

But that espn 5 year tv deal for 1.5 billion.  That's almost half of the deal for just 5 years.  Not including ppvs or gate sells etc I'm sure there's enough there to pay the fighters and pocket more.  

In 10 years they could  break even as the tv deals keep getting better.   Not bad for an investment.

 

5/23/18 2:40 AM
1/23/06
Posts: 93086
Don't forget their apparel deal will be up in 2020? so they might get more for that too.
5/23/18 2:43 AM
7/25/15
Posts: 1200
CRE - Don't forget their apparel deal will be up in 2020? so they might get more for that too.

That's true 

Edited: 5/23/18 2:51 AM
1/23/06
Posts: 93088
JEWjitsu7 - 
CRE - Don't forget their apparel deal will be up in 2020? so they might get more for that too.

That's true 


I should have said they will get more for that. It was a bit undervalued back then and with inflation and WME/IMG at the helm the UFC brand is more hip/desirable in the mainstream. guys and gals like Wiz Khalifa, Machine Gun Kelly, Demi Lovato, Tom Brady etc. cosigning

5/23/18 2:54 AM
11/5/13
Posts: 4753

Who would have thought Ari Emanuale and 15 celebrities would  buy the UFC,   Make a TV deal not including ppvs for 300 mil a year with the fine folks at Disneyland.

5/23/18 4:07 AM
8/17/08
Posts: 14683

the value of the asset has also increased with this deal.

its probably worth over 7b now.

Edited: 5/23/18 8:01 AM
4/14/14
Posts: 21

Shows how much all the so called experts (schaub, etc.) know about the UFC. Everybody has been saying how much the UFC has been in decline, that they're desperate.

And all of a sudden they land a massive TV deal. I think the guys on top know what they're doing, and all the so called experts should stick to talking about fighting instead of business.

 

5/23/18 10:33 AM
12/31/10
Posts: 11056
martyfly -

Shows how much all the so called experts (schaub, etc.) know about the UFC. Everybody has been saying how much the UFC has been in decline, that they're desperate.

And all of a sudden they land a massive TV deal. I think the guys on top know what they're doing, and all the so called experts should stick to talking about fighting instead of business.

 

To be fair there are no experts in MMA when it comes to business. There are only experts when it comes to fights.

 

The one that comes closest is Dave Meltzer because he's been tracking PPV revenue for years, but even he is not that much into all the other financial aspects of the sport.

5/23/18 10:36 AM
3/21/12
Posts: 9141
martyfly - 

Shows how much all the so called experts (schaub, etc.) know about the UFC. Everybody has been saying how much the UFC has been in decline, that they're desperate.

And all of a sudden they land a massive TV deal. I think the guys on top know what they're doing, and all the so called experts should stick to talking about fighting instead of business.

 


The UFC product is in steep decline. Unless you're a shareholder why would you care about what the deal is worth? The fights and fighters seem to get less interesting as the years go on.
5/23/18 1:46 PM
12/7/10
Posts: 1553
martyfly -

Shows how much all the so called experts (schaub, etc.) know about the UFC. Everybody has been saying how much the UFC has been in decline, that they're desperate.

And all of a sudden they land a massive TV deal. I think the guys on top know what they're doing, and all the so called experts should stick to talking about fighting instead of business.

 

Massive deal?? The NBA got 24 bil, the NFL got 27 bil. The UFC deal is by no means massive.

5/23/18 3:37 PM
8/20/03
Posts: 132895

It's slowly losing it's ability to actually call itself a sport.

The product is now a social spectacle.

5/23/18 4:39 PM
1/26/08
Posts: 16319
stainlesssteel -
martyfly -

Shows how much all the so called experts (schaub, etc.) know about the UFC. Everybody has been saying how much the UFC has been in decline, that they're desperate.

And all of a sudden they land a massive TV deal. I think the guys on top know what they're doing, and all the so called experts should stick to talking about fighting instead of business.

 

Massive deal?? The NBA got 24 bil, the NFL got 27 bil. The UFC deal is by no means massive.

Massive for MMA, trying to compare MMA to the big 4 sports is just silly

5/23/18 4:47 PM
7/25/15
Posts: 1203
If it ain't Dutch, it ain't much -
stainlesssteel -
martyfly -

Shows how much all the so called experts (schaub, etc.) know about the UFC. Everybody has been saying how much the UFC has been in decline, that they're desperate.

And all of a sudden they land a massive TV deal. I think the guys on top know what they're doing, and all the so called experts should stick to talking about fighting instead of business.

 

Massive deal?? The NBA got 24 bil, the NFL got 27 bil. The UFC deal is by no means massive.

Massive for MMA, trying to compare MMA to the big 4 sports is just silly

Exactly, football has been around since the late 1800s  comparing to a sport that barely got off the ground and just started breaking into the "mainstream" around 2005.  Not a fair comparison.  Everything is subjective, he was comparing it to the previous.  It's massive compared to its previous deal.  

5/23/18 4:49 PM
7/25/15
Posts: 1204
TzTinkle -
martyfly - 

Shows how much all the so called experts (schaub, etc.) know about the UFC. Everybody has been saying how much the UFC has been in decline, that they're desperate.

And all of a sudden they land a massive TV deal. I think the guys on top know what they're doing, and all the so called experts should stick to talking about fighting instead of business.

 


The UFC product is in steep decline. Unless you're a shareholder why would you care about what the deal is worth? The fights and fighters seem to get less interesting as the years go on.

Because you want your sport to keep growing and do well?  

5/23/18 5:19 PM
6/17/16
Posts: 2988
JEWjitsu7 -
If it ain't Dutch, it ain't much -
stainlesssteel -
martyfly -

Shows how much all the so called experts (schaub, etc.) know about the UFC. Everybody has been saying how much the UFC has been in decline, that they're desperate.

And all of a sudden they land a massive TV deal. I think the guys on top know what they're doing, and all the so called experts should stick to talking about fighting instead of business.

 

Massive deal?? The NBA got 24 bil, the NFL got 27 bil. The UFC deal is by no means massive.

Massive for MMA, trying to compare MMA to the big 4 sports is just silly

Exactly, football has been around since the late 1800s  comparing to a sport that barely got off the ground and just started breaking into the "mainstream" around 2005.  Not a fair comparison.  Everything is subjective, he was comparing it to the previous.  It's massive compared to its previous deal.  

The NFL has not been around since the 1800's; by that metric we could say fighting and combat has been around as long as humanity.

It is no accident the Fertitta's used imagery and symbolism that invoked the Roman Colliseums.

5/23/18 5:25 PM
1/1/01
Posts: 46682
can not believe how much the UFC is getting for their tv deal. Blows my mind.
5/23/18 6:28 PM
1/9/11
Posts: 391

They haven't made their money back yet. And it seems it's in a bit of a decline. It could be a bad investment from ESPN too. 

5/23/18 6:31 PM
9/19/13
Posts: 1721

ya this isn't really showing a good investment on WME part as much as WME being able to get a good deal from ESPN.

5/23/18 6:48 PM
7/27/07
Posts: 17584
JEWjitsu7 -

They bought the UFC for 4 billion and everyone was praising the Fertittas for getting out while UFC was at its peak.  

But that espn 5 year tv deal for 1.5 billion.  That's almost half of the deal for just 5 years.  Not including ppvs or gate sells etc I'm sure there's enough there to pay the fighters and pocket more.  

In 10 years they could  break even as the tv deals keep getting better.   Not bad for an investment.

 

I love to make investments where I can break even for 10 years of hard work.

5/23/18 6:50 PM
12/9/13
Posts: 22990
JEWjitsu7 -

They bought the UFC for 4 billion and everyone was praising the Fertittas for getting out while UFC was at its peak.  

But that espn 5 year tv deal for 1.5 billion.  That's almost half of the deal for just 5 years.  Not including ppvs or gate sells etc I'm sure there's enough there to pay the fighters and pocket more.  

In 10 years they could  break even as the tv deals keep getting better.   Not bad for an investment.

 

i guess they don't have any costs

5/23/18 6:51 PM
1/1/01
Posts: 11577
PrettyBoy - 
JEWjitsu7 -

They bought the UFC for 4 billion and everyone was praising the Fertittas for getting out while UFC was at its peak.  

But that espn 5 year tv deal for 1.5 billion.  That's almost half of the deal for just 5 years.  Not including ppvs or gate sells etc I'm sure there's enough there to pay the fighters and pocket more.  

In 10 years they could  break even as the tv deals keep getting better.   Not bad for an investment.

 

I love to make investments where I can break even for 10 years of hard work.


lol
5/23/18 6:51 PM
12/9/13
Posts: 22991
MMALOGIC -

the value of the asset has also increased with this deal.

its probably worth over 7b now.

you say every day differents things and they never pan out

5/23/18 6:53 PM
1/1/01
Posts: 18694
PrettyBoy - 
JEWjitsu7 -

They bought the UFC for 4 billion and everyone was praising the Fertittas for getting out while UFC was at its peak.  

But that espn 5 year tv deal for 1.5 billion.  That's almost half of the deal for just 5 years.  Not including ppvs or gate sells etc I'm sure there's enough there to pay the fighters and pocket more.  

In 10 years they could  break even as the tv deals keep getting better.   Not bad for an investment.

 

I love to make investments where I can break even for 10 years of hard work.


$1.5 billion is ONLY for United States live events broadcast. It's not the only revenue source the UFC has. They will still be doing 12 PPVs year, tickets for live events, merchandise etc. I think WME is doing just fine.

5/23/18 6:56 PM
9/19/13
Posts: 1725

10 year ROI in a sporting league is nothing.

5/23/18 6:58 PM
11/9/17
Posts: 2302

As a fan I am not sure why you all pay attention to what WME-IMG paid for the UFC. I'd think we'd all be more concerned about quality fo product and that is something that has gone to complete shit under their ownership. Titles mean little to nothing, Interim titles flying around all over the place. Inmates running the asylum (holding out for "money" fights when they make no sense). 

The UFC has become a clusterfuck!