Report: UFC grosses $500 million/year in revenue

source: mmapayout.com
 

Bloomberg ran a feature on the Fertittas and its ownership of the UFC. The feature provides details on the Fertittas as well as some interesting financial information.

The article states that the UFC brings in $500 million in annual sales. The Fertittas, according to Bloomberg, control a fortune worth at least $1 billion dollars.

via Bloomberg:

In addition to their company stakes, they own real estate, art and four jet planes. The brothers hold their assets separately and through family trusts, they say. Las Vegas-based Fertitta Enterprises Inc., a single-family office that employs about 60 people, manages the Fertittas’ wealth. The office staff vets investment opportunities (it turned down a chance to buy stock in Facebook Inc. before its public offering), handles art transactions (each brother has a collection of art worth more than $100 million) and arranges for personal security.

read entire article...

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Recent Comments »

CindyO site profile image  

8/9/12 9:41 PM by CindyO

 Good for them, if true! Cindy

NaciVela site profile image  

8/9/12 3:29 PM by NaciVela

I'd agree that $500 mil is a good number to estimate for the UFC. Without concrete numbers for the 2011 year, it seems pretty safe. Anyone have any links to recent UFC numbers?

TheBear228 site profile image  

8/9/12 2:57 PM by TheBear228

I'm comfortable that PPV sales do not account for 75% of their revenue anymore. They have network TV deals, much larger advertising deals, a much larger merchandise/retail operation than in previous years. Not to mention all of the above is now translating into overseas markets, which wasn't the case before. The sport is bigger than its ever been in other countries, and a majority of the events are even shown for free in these places. Bloomberg isn't the type of entity to engage in wreckless reporting, it's not like we're dealing with Cage Potato here. An estimate is just that, an estimate....but to assume a few Monday Morning quarterbacks on the board have better intelligence on this than the people at Bloomberg....while it's not impossible, I wouldn't put any money on the case.

smac 2.0 site profile image  

8/9/12 12:09 PM by smac 2.0

Yeah, being able to watch tons of UFC on pay tv couldn't possibly detract from the number of people who pay $50 for a PPV.LOL @ "when the UFC was still hot?" There's a reason Burger King, Sharp, Gatorade, Budweiser, Harley Davidson, Nike, etc are latching onto the UFC now... it's not because it isn't hot.Some of you people are just really simple.The Fox deal is worth ~ $100M a year.PPV and gate revenue is > $200m a year.They have licensing agreements with networks in other countries.They have a netflix licensing agreement in some countries.They have video game revenue.The have sponsorship $$$ from HD, Victory Motorcycles, Budweiser, and move networks.Then there's licensing agreements for gear that they sell. T-Shirt Revenue etc.They also own Strikeforce.$500m is just a round # that Bloomberg picked and it's plenty accurate in context. If anything, it's probably low.

Steve4192 site profile image  

8/9/12 11:42 AM by Steve4192

The world may be bigger than the USA, but the PPV industry is almost exclusively a North American phenomenon.  The VAST majority of worldwide PPV revenues come from the USA and Canada.  The vast majority of the Zuffa's revenues are derived from PPV (around 75% according to S&P).  Ergo, the vast majority of the UFC's revenues are derived from North America. They have certainly made huge inroads into other markets outside of North America (most notably Brazil and the UK), but I doubt they are seeing much revenue from those markets yet.  They can't even find a decent TV deal in the UK (recently re-upping with ESPN for another year after shopping around for a better deal and coming up empty), and they are still on their first contract with Globo in Brazil.  Given how MMA has taken off in Brazil they'll probably make bank when it is time to renew, but it is doubtful that first contract was very lucrative since the sport was still unproven at the time they signed it.  

MagSlim site profile image  

8/9/12 11:26 AM by MagSlim

They let someone from Dubai buy a 10% stake in Zuffa for ostensibly getting them on TV in much of the Middle East and Far East. Don't you think they crunched the numbers and figured out that made a LOT of sense to do before they gave away 10% of their baby?Everyone is listing 'Foreign PPV deals' as the 5th or 6th revenue stream for Zuffa. Brazil, Canada and the UK are three of its biggest markets. I think those deals plus whatever the Dubai folks contributed make a lot more money than people think.Just my take on it. The world is a lot bigger than the USA.

catgobling site profile image  

8/8/12 10:59 PM by catgobling

did anyone notice that the article said the fertillas contractually do sport bjj with each other to settle disputes? with dfw as ref? fucking awesome

If it ain't Dutch, it ain't much site profile image  

8/8/12 9:03 PM by If it ain't Dutch, it ain't much

I am surprised it's not higher then $500,000,000.00 a yearYou get the following revenue streams that I can think of:1: PPV Revenue from US Market (14 PPV's a year)2: Sponsor for those PPVs (The names on the mat)3. Sponsor tax as it was called for the right to sponsor fighters on TV4. Merchandise sales at events and online5. Fox money (reported $90,000,000 a year6. TV rights for other countries7. Live fight gates (people paying for tickets)8. Licensing deals Thats what I can think of but sure I am missing a few.Even if it is $500,000,000 that is not much when you look at the over head the UFC has with as many workers they have and as many shows they put on.

IronTigerMMA site profile image  

8/8/12 8:37 PM by IronTigerMMA

some of us enjoy art

ElTriangulo site profile image  

8/8/12 8:19 PM by ElTriangulo

If I had a Billion dollar fortune I would not have that much art I think it's a waste of money