Fertitta: We're going to lose money Saturday

source: sportsbusinessdaily.com
 

“We’re flat out going to lose money on this fight,” Fertitta said. “But that’s the investment we’re making. Those are the steps we’ve got to take to make Cain and Junior pay-per-view stars and lift up the whole thing.”

Fertitta envisions an opportunity to create 100,000 new pay-per-view buyers from the exposure the UFC gets on FOX Saturday night. Surveys show that buyers will buy four pay-per-views a year, on average, he said.

“Maybe we think a little funny here,” Fertitta said, “but that’s well worth forgoing $16 million. Take that out over the next 10 years and we get a healthy return.”

For its part, Fox says it will deliver the UFC a brand bomb unlike any it’s gotten previously. On top of all the promotion across its networks, Fox will produce a two-hour prefight show that will air live on Fuel, hosted by analyst Jay Glazer, which will include red carpet arrivals and interviews with celebrities, fighters and White. That leads into the 9 p.m. Eastern start on Fox. Its prefight show will include features on both fighters, as well as live locker room interviews, followed by the walk-ins for which the UFC has become known.

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tags: Lorenzo Fertitta   UFC   FOX   


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Recent Comments »

FullPint site profile image  

11/10/11 1:23 PM by FullPint

I don't see why this is newsworthy. Seem pretty obvious to me. Virtually every company on the planet makes investments, which they expect to make a return on. Ford and GM lose money (i.e. make an investment) every time they build a new factory.

NorthFromHere site profile image  

11/10/11 12:50 AM by NorthFromHere

I think the 16M $ he is talking about comes from 100000 (new customers) X 4 (average PPV buys per year) X 40 (UFC's cut of the PPV price) = 16000000 $

daba site profile image  

11/9/11 11:13 PM by daba

I wouldn't say they're losing money if Fox is paying $90 million a year or whatever was reported to bring the UFC over.

Hessian site profile image  

11/9/11 10:58 PM by Hessian

.

BlueDream site profile image  

11/9/11 10:53 PM by BlueDream

didn't they get like 950 mil from fox for this deal?

BrunoMcGyver site profile image  

11/9/11 6:37 PM by BrunoMcGyver

Is Lorenzo the OFF-CAMERA President? If so, I don't read much into what he says, get yaself on camera before ya wanna make big public comments.

smiter site profile image  

11/9/11 6:10 PM by smiter

They arnt really losing 16 million. The real loss is the PPV difference between UFC in San Jose with Hendo Rua as opposed to Cain/Junior.I'm guessing 200k difference in sales, to offset some of that you have the Anaheim live gate, and Fox are paying them to air this.The real money loss I'm going to say 5 million.

bhealthy site profile image  

11/9/11 6:05 PM by bhealthy

its not about making money its about promoting steroids, all junkies got thier first fix free.didnt yall watch the twilight series or 'they live'? wtf?

Jack Skellington site profile image  

11/9/11 3:59 PM by Jack Skellington

 It's like the way the NHL teams lose money with their AHL franchises. They know they are gonna lose money but it's the best way to develop talent, so it's worth it in the long run.

SleepBomb site profile image  

11/9/11 3:44 PM by SleepBomb

 fox has to be paying the UFC something. they can't be losing 16 mill on each fox fight.