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7/9/09 10:00 PM
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UG News
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The Underground News
 

Cuban Now a Zuffa Bondholder

MMAPayout.com has learned that Mark Cuban is now a Zuffa bondholder. The size of Cuban’s position is unknown, however, being a bondholder has its privileges. In addition to potential financial returns, he now has access to Zuffa’s financial results. While he cannot make those results public, he will be able to closely monitor the company’s financial status.

Zuffa is a privately held company and closely guards its financial results. The most reliable information concerning the company’s financials have come from periodic reports issued by credit rating agencies such as Standard & Poors.

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7/9/09 10:15 PM
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worldfightfan
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Wow - Dana White was calling Cuban names not too long ago .. now Cuban has some financial stake and knowledge about Zuffa. My money is on Cuban for something sneaky! Good for him.
7/9/09 10:19 PM
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Mad Xyientist
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LOL....Cuban is brilliant.
7/9/09 10:24 PM
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EvilMaster
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If you can't beat them. Or even challenge them in the least. You might as well try to make money with them.
7/9/09 10:28 PM
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Outlaw'sBrother
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Hopefully HD-NET can show UFC highlights on inside MMA or have a UFN shown on HD-NET!!
7/9/09 10:33 PM
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Newbiebad
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Well... he wouldn't be a shareholder so Cuban would be making money "with" them. Cuban would just own some of Zuffa's debt.

Cuban is one sneaky mofo.
7/9/09 11:41 PM
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mediafly
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Bondholders are not owners of the company, they do not share in dividend payments or vote on company matters. The return on their investment is not usually dependent on how successful the company is. Bondholders are entitled to receive the amount of interest originally agreed upon, as well as a return of the principal amount of the bond, if they hold the bond for the time period specified.
7/10/09 1:32 AM
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Harmon_Whistler
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microscopic cog in a catastrophic plan, imo
7/10/09 1:39 AM
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Fugazi
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I'm curious what Zuffa's strategy is here. They can't be thin on cash, can they? Or are they planning some type of large expansion and couldn't get enough credit during these banking crisis days?

I'd love to know what Cuban laid down for this bond.
7/10/09 1:40 AM
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Crooklyn
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I'm dense on matters like this, so I'm wondering if this can strategically position him for some level of corporate raid.  Any informed answers for my enlightenment are most appreciated.
7/10/09 7:33 AM
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LiftStrong
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This is kind of interesting. But not a really big deal. Cuban is probably just having fun here and getting people talking. He has enough money to play games.
I presume, he could take the financial information and develop a blueprint for operations, using Zuffa's cost structure.
7/10/09 7:40 AM
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jdesko23
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I'll take this opportunity to say FUCK time warner cable for dropping HDNet.   I know it was a business decision and both sides couldn't come to an agreement.  But still, FUCK you time warner.  Take away my precious HDNet where I can see MMA 40percent of the day, and replace it with 'MavTv'  where I can see shitty, wannabe Spike programming 24/7.  

I miss Inside MMA =(   and DREAM, and K-1........


7/10/09 7:59 AM
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Zedlepln
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Crooklyn - I'm dense on matters like this, so I'm wondering if this can strategically position him for some level of corporate raid.  Any informed answers for my enlightenment are most appreciated.
No.

Zuffa is a privately owned company. Raiding (think Richard Gere in Pretty Woman), or a hostile takeover, involves purchasing of stock not owned by the members of the board, then voting for a new set of board members. Since all of Zuffa's stock is owned by Frank, Lorenzo and Dana, nobody is gunna be kicking them off the island.
7/10/09 8:26 AM
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Mr. Malcolm
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EvilMaster - If you can't beat them. Or even challenge them in the least. You might as well try to make money with them.

 
7/10/09 1:48 PM
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Crooklyn
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Zedlepln - 
Crooklyn - I'm dense on matters like this, so I'm wondering if this can strategically position him for some level of corporate raid.  Any informed answers for my enlightenment are most appreciated.
No.

Zuffa is a privately owned company. Raiding (think Richard Gere in Pretty Woman), or a hostile takeover, involves purchasing of stock not owned by the members of the board, then voting for a new set of board members. Since all of Zuffa's stock is owned by Frank, Lorenzo and Dana, nobody is gunna be kicking them off the island.
Thank you.  I was just curious, because, if they purchased some of their debt, it made me wonder if this was like purchasing a piece of the company.  I am daft when it comes to things like this.
 
7/18/09 4:49 PM
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Unseen
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It just gives Cuban access to a certain amount of privalaged information regarding Zuff'a finances.

Anyone one here know how SEC regulations effect private companies?  Let's say Zuffa has big plans in Mexico and knowing this through financial data that he now has access to, Cuban decides to purchase certain enities in MX that would be crucial for Zuffa's expansion there.  Is that ilegal?

Brian P.
7/18/09 5:50 PM
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TheBear228
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Crooklyn - 
Zedlepln - 
Crooklyn - I'm dense on matters like this, so I'm wondering if this can strategically position him for some level of corporate raid.  Any informed answers for my enlightenment are most appreciated.
No.

Zuffa is a privately owned company. Raiding (think Richard Gere in Pretty Woman), or a hostile takeover, involves purchasing of stock not owned by the members of the board, then voting for a new set of board members. Since all of Zuffa's stock is owned by Frank, Lorenzo and Dana, nobody is gunna be kicking them off the island.
Thank you.  I was just curious, because, if they purchased some of their debt, it made me wonder if this was like purchasing a piece of the company.  I am daft when it comes to things like this.
 


The transaction that transpired was basically this.

1. Zuffa is looking to raise capital in the short-term. Since they are a private company, they can either a) go public and issue stock b)stay private and issue a bond.

2. Zuffa issues a bond to Mark Cuban. All this means is that Mark Cuban purchases the bond (gives UFC a specific amount of money). When that bond matures (end date of bond), Mark Cuban gets his money back plus interest.

The easiest way to look at it is a loan. However, it's not a loan in the sense the UFC is broke, it's just a loan in the sense they need some liquidity in the short-term, for whatever reason.
7/18/09 6:02 PM
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THP
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K-Dub-"T" - lol. Cuban = The Mole.

watch for a hostile takeover within 5 years.


The hostile takeover of a private company.
7/18/09 6:24 PM
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Crooklyn
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Thanks for clarifying.  
7/18/09 9:09 PM
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Chomas
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TheBear228 - 
Crooklyn - 
Zedlepln - 
Crooklyn - I'm dense on matters like this, so I'm wondering if this can strategically position him for some level of corporate raid.  Any informed answers for my enlightenment are most appreciated.
No.

Zuffa is a privately owned company. Raiding (think Richard Gere in Pretty Woman), or a hostile takeover, involves purchasing of stock not owned by the members of the board, then voting for a new set of board members. Since all of Zuffa's stock is owned by Frank, Lorenzo and Dana, nobody is gunna be kicking them off the island.
Thank you.  I was just curious, because, if they purchased some of their debt, it made me wonder if this was like purchasing a piece of the company.  I am daft when it comes to things like this.
 


The transaction that transpired was basically this.

1. Zuffa is looking to raise capital in the short-term. Since they are a private company, they can either a) go public and issue stock b)stay private and issue a bond.

2. Zuffa issues a bond to Mark Cuban. All this means is that Mark Cuban purchases the bond (gives UFC a specific amount of money). When that bond matures (end date of bond), Mark Cuban gets his money back plus interest.

The easiest way to look at it is a loan. However, it's not a loan in the sense the UFC is broke, it's just a loan in the sense they need some liquidity in the short-term, for whatever reason.
7/18/09 9:20 PM
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evil veiled
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Unseen - It just gives Cuban access to a certain amount of privalaged information regarding Zuff'a finances.

Anyone one here know how SEC regulations effect private companies?  Let's say Zuffa has big plans in Mexico and knowing this through financial data that he now has access to, Cuban decides to purchase certain enities in MX that would be crucial for Zuffa's expansion there.  Is that ilegal?

Brian P.


Cuban has access to financial statements, you know, like Income Statements, Balance sheets, and cash flow statements. I doubt he gets any sort of strategic insight into the company's plans, from the info he is provided. They will usually tell you the PAST in a financial statement, by the way.

So, no, it wouldn't be info that he could use against them that way, but it will help him get an idea of how much money to spend on marketing, lighting, camera work, production values, and fighter salaries (although it is public, Cuban now will know how much of a share the headlining fighters get)

Clearly he wants to launch a competitor!

Strikeforce is doing well, but maybe they need to stick to what works for them, and Cuban will have to start from scratch!
7/18/09 9:43 PM
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ranier wolfcastle
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 hes a smart investor and ufcs another smart investment
7/18/09 10:33 PM
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Unseen
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evil veiled - 
Unseen - It just gives Cuban access to a certain amount of privalaged information regarding Zuff'a finances.

Anyone one here know how SEC regulations effect private companies?  Let's say Zuffa has big plans in Mexico and knowing this through financial data that he now has access to, Cuban decides to purchase certain enities in MX that would be crucial for Zuffa's expansion there.  Is that ilegal?

Brian P.


Cuban has access to financial statements, you know, like Income Statements, Balance sheets, and cash flow statements. I doubt he gets any sort of strategic insight into the company's plans, from the info he is provided. They will usually tell you the PAST in a financial statement, by the way.

So, no, it wouldn't be info that he could use against them that way, but it will help him get an idea of how much money to spend on marketing, lighting, camera work, production values, and fighter salaries (although it is public, Cuban now will know how much of a share the headlining fighters get)

Clearly he wants to launch a competitor!

Strikeforce is doing well, but maybe they need to stick to what works for them, and Cuban will have to start from scratch!

 Thanks, that's interesting.
7/19/09 1:12 AM
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Tahiti Bo
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Edited: 07/19/09 1:14 AM
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Mad Xyientist - LOL....Cuban is brilliant.
Cuban?...  or UFC?... or both...
7/19/09 1:52 AM
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madmav
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it's just another nail in the coffin for affliction..

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