UFC owners Zuffa maintain stable 'BB' credit rating

by Jose Mendoza | source: mmamania.com
 

Standard and Poor’s has maintained Zuffa’s credit rating at “BB” based on the belief that the company’s strong EBITDA margin and healthy cash flow are sustainable over the “near-to-intermediate term” as Zuffa continues to grow and benefit from it’s well-recognized (UFC) brand and dominance in market position.

On the other hand, the following S&P concerns kept Zuffa’s credit rating from being upgraded:

- Risk of revenue and EBITDA volatility given the company’s primarily event-driven business model

- Vulnerability to changing consumer preferences and susceptibility to variability in discretionary spending

- Management’s aggressive financial policy

- Although the UFC has a strong fan-base, in order to maintain their advantage, they need to continue to develop fighters that appeal to the 18-34 demographic.

- Preserve current regulatory acceptance of the sport. Fatal injury or change to the rules and regulations governing the sport and legal status could have meaningful impact to the company’s business model and long-term viability.

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read more at MMAPayout.com

November 2007 – S&P Cuts Zuffa Rating, BB to BB-
July 2008 – Zuffa Rating Goes Negative to Stable
July 2009 – Cuban Now a Zuffa Bond Holder
October 2009 – S&P Re-Affirm BB-, Slide Recovery Rating Down
December 2010 – S&P Raises Zuffa Rating, BB- to BB

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Recent Comments »

MMASuPreMaCy site profile image  

11/4/11 3:14 AM by MMASuPreMaCy

 goku: Sounds like that was the point the MMAPayout was making. It needs to change to have a less volitile business core.

MMASuPreMaCy site profile image  

11/4/11 3:14 AM by MMASuPreMaCy

 goku: Sounds like that was the point the MMAPayout was making. It needs to change to have a less volitile business core.

slamming site profile image  

11/3/11 11:42 PM by slamming

How many stomps to the face have cause fatal or even serious injury? Does that mean it's smart business move to legalise stomps?The sport is considered brutal enough and is struggling to get legalised all over the world. It's dumb business.

slamming site profile image  

11/3/11 11:42 PM by slamming

How many stomps to the face have cause fatal or even serious injury? Does that mean it's smart business move to legalise stomps?The sport is considered brutal enough and is struggling to get legalised all over the world. It's dumb business.

RickMartelsArrogance site profile image  

11/3/11 1:54 PM by RickMartelsArrogance

How many 4 point attacks have caused Fatal or even serious injury?

RickMartelsArrogance site profile image  

11/3/11 1:54 PM by RickMartelsArrogance

How many 4 point attacks have caused Fatal or even serious injury?

goku site profile image  

11/3/11 1:53 PM by goku

 the payout perspective is wrong..the summary clearly states taht tv is only part of the 25% of revenues and the  75/25 shift is likely to change due to the fox deal

goku site profile image  

11/3/11 1:53 PM by goku

 the payout perspective is wrong..the summary clearly states taht tv is only part of the 25% of revenues and the  75/25 shift is likely to change due to the fox deal

Gnarls Gnarlington site profile image  

11/3/11 1:47 PM by Gnarls Gnarlington

yay Zuffa! you did it.

Gnarls Gnarlington site profile image  

11/3/11 1:47 PM by Gnarls Gnarlington

yay Zuffa! you did it.



 

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