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UnderGround Forums >> Bloomberg: UFC Revenues $500 Million Per Year


8/8/12 8:11 AM
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Macedawgg
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 mmapayout.com/2012/08/bloomberg-features-the-fertittas/

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8/8/12 8:45 AM
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Motivated Penn
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8/8/12 9:03 AM
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EckY
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Edited: 08/08/12 9:03 AM
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Othello - From the Bloomberg article:
will host 14 pay-per-view events this year, bringing in $500 million in annual sales.


I would love to see a breakdown of how the UFC could possibly make 500 million in sales from 14 ppvs. Pretty ridiculous statement. Seems like the article is filled with lots of speculation and no facts.

 You do know that they average about half a million people buying each of those 14 ppvs at 50-60 dollars?
8/8/12 9:06 AM
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Macedawgg
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 I'm waiting for the calls of this is a bogus source, the numbers are ridiculous, the article is hokey, etc. . .
8/8/12 9:09 AM
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Macedawgg
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Edited: 08/08/12 9:13 AM
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Othello - From the Bloomberg article:
will host 14 pay-per-view events this year, bringing in $500 million in annual sales.


I would love to see a breakdown of how the UFC could possibly make 500 million in sales from 14 ppvs. Pretty ridiculous statement. Seems like the article is filled with lots of speculation and no facts.
Ah, yes, that is the only revenue stream the UFC has--just PPV.  They get no event sponsorship money, no money for the Fox deal, no money from the website, no money for the sale of DVDs, no money for the video game license, no money for the sale of site memberships to watch videos and purchase early access tickets, no money from advertisers. . . 

It is amusing watching people jump through hoops to support a flag. . .
  
8/8/12 9:15 AM
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Humphrey
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Macedawgg - 
Othello - From the Bloomberg article:
will host 14 pay-per-view events this year, bringing in $500 million in annual sales.


I would love to see a breakdown of how the UFC could possibly make 500 million in sales from 14 ppvs. Pretty ridiculous statement. Seems like the article is filled with lots of speculation and no facts.
Ah, yes, that is the only revenue stream the UFC has--just PPV.  They get no event sponsorship money, no money for the Fox deal, no money from the website, no money for the sale of DVDs, no money for the video game license, no money for the sale of site memberships to watch videos and purchase early access tickets, no money from advertisers. . . 

It is amusing watching people jump through hoops to support a flag. . .
  

don't forget merchandise (dolls, shirts, hats, gloves etc)
8/8/12 10:04 AM
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MMALOGIC
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 from the bloomberg article:

"will host 14 pay-per-view events this year, bringing in $500 million in annual sales."

that's not Zuffa revenue... that's ppv sales where at least half goes to the ppv distirbutors (direct tv, dish, comcast, etc...)

8/8/12 10:07 AM
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clattymine
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 I'm surprised it's that low.
8/8/12 10:11 AM
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Plunkett
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MMALOGIC -  from the bloomberg article:

"will host 14 pay-per-view events this year, bringing in $500 million in annual sales."

that's not Zuffa revenue... that's ppv sales where at least half goes to the ppv distirbutors (direct tv, dish, comcast, etc...)

That would indicate more than 10 million buys combined for the 14 shows, which they aren't coming close to this year and didn't come close to last year.

The $500 million revenue estimate is the highest I've seen for Zuffa and I'm sure it's false. Phone Post
8/8/12 10:11 AM
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rufus
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 I know a certain real estate attorney/fake fighter advocate who must be salivating at those numbers, if they're anywhere near accurate.  "It's for the fighters, man!  It's for the fighters!  I'll just wet my beak a little bit."
8/8/12 10:16 AM
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MMALOGIC
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 ^ the article doesnt say zuffa revenue... it says "ppv sales"  which includes the money that the ppv distributors like comcast, dish, direct tv, etc... keep.

It's an estimate based on Zuffa's best year and the assumption that the fox deal was gonna take the ufc to another level.
8/8/12 10:19 AM
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zedlepln
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MMALOGIC -  from the bloomberg article:

"will host 14 pay-per-view events this year, bringing in $500 million in annual sales."

that's not Zuffa revenue... that's ppv sales where at least half goes to the ppv distirbutors (direct tv, dish, comcast, etc...)

I would think the entire number goes on their GL under revenue.
8/8/12 10:21 AM
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MMALOGIC -  from the bloomberg article:

"will host 14 pay-per-view events this year, bringing in $500 million in annual sales."

that's not Zuffa revenue... that's ppv sales where at least half goes to the ppv distirbutors (direct tv, dish, comcast, etc...)

everyone says it,but it dont make sense.after a certain # of buys the price should go dn.

just read that floyd makes uo to 50% of the total ppv money


 
8/8/12 10:22 AM
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Edited: 08/08/12 10:27 AM
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8/8/12 10:31 AM
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REDRUM_NYC
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UFC is in line for 600 Million just from Fox alone.
8/8/12 10:48 AM
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MMALOGIC
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zedlepln - 
MMALOGIC -  from the bloomberg article:

"will host 14 pay-per-view events this year, bringing in $500 million in annual sales."

that's not Zuffa revenue... that's ppv sales where at least half goes to the ppv distirbutors (direct tv, dish, comcast, etc...)

I would think the entire number goes on their GL under revenue.
It doesnt because the money doesnt go to zuffa first... it goes to distributors first (comcast, dish, direct tv, etc...) and then they send roughly half to Zuffa.  the half is revenue for zuffa.
 
8/8/12 11:39 AM
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zedlepln
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MMALOGIC - 
zedlepln - 
MMALOGIC -  from the bloomberg article:

"will host 14 pay-per-view events this year, bringing in $500 million in annual sales."

that's not Zuffa revenue... that's ppv sales where at least half goes to the ppv distirbutors (direct tv, dish, comcast, etc...)

I would think the entire number goes on their GL under revenue.
It doesnt because the money doesnt go to zuffa first... it goes to distributors first (comcast, dish, direct tv, etc...) and then they send roughly half to Zuffa.  the half is revenue for zuffa.
Yeah, I know, but accountants do weird things. Especially in broadcasting. I've actually been curious about this for a while. I may ask around.
8/8/12 2:35 PM
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TheDecider
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Haole - 
Othello - 
Haole - You dont think the UFC can pull 500 million in all encompassing revenue?

They sure can


Of course they can't. Go ahead and give a theoretical breakdown of their revenue and lets see how close you can get to $500 million.

for fun, completely made up...

400K buys avg per over 14 PPV @ $25 per buy (half) = 140 million

Fox deal I believe breaks down to 80 Million a year?

Thats 220 million BEFORE gates, global merch, Foreign TV deals, sponsorship & Ad revenue (TV, online, event, etc.), etc.


How many organizations are generating PPV numbers like the UFC? If is very likely they have a favorable arrangement and make more than half.

8/8/12 2:57 PM
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chawkins
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Haole - 
Othello - 
Haole - You dont think the UFC can pull 500 million in all encompassing revenue?

They sure can


Of course they can't. Go ahead and give a theoretical breakdown of their revenue and lets see how close you can get to $500 million.

for fun, completely made up...

400K buys avg per over 14 PPV @ $25 per buy (half) = 140 million

Fox deal I believe breaks down to 80 Million a year?

Thats 220 million BEFORE gates, global merch, Foreign TV deals, sponsorship & Ad revenue (TV, online, event, etc.), etc.


Bear in mind that according to CNBC's piece on MMA, UFC had revenue of $275 in 2008.

Can we all agree that they're making more than that now?

OK, good. But let's just say that all their 2008 revenue streams are still earning them the exact same $275 million they were earning 4 years ago.

We know that the Fox deal and the $100K sponsor tax is new. So let's just add that to the 2008 revenu and see where it gets us.

Sponsor tax = $100K per PPV fighter. 14 events x 10 PPV fighters each = 140 fighters, giving up $14 million in sponsor tax alone.

Fox deal = $80 million, like you said.

So take their 2008 revenue of $275 mil and add the $14 mil and the $80 mil that we know is new. That gives us $369 mil.

And like you said, we haven't even touched merch, global TV, event sponsorships, or PPV ads.

I do not doubt that the boys at Zuffa can scratch up another $130 million in merch, licensing, global TV and other corporate ad/sponsorship revenue.

I don't know why anyone would think this is impossible.
8/8/12 3:16 PM
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Rival School
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Its interesting to listen to guys throw around numbers that are assumed to be correct. The lay per view takes half has been excepted with zero proof. Second what about business like bars and bw3s or different venues playing it? They do not pay 60 they pay much much more and on top of that how many pay that? So much you and I don't know. Phone Post
8/8/12 3:19 PM
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Rival School
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What does bud light pay? What does Harley pay? Corn nuts? Any sponsors? Website and Xbox buy? Phone Post
8/8/12 3:29 PM
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Strykr619
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Edited: 08/08/12 3:31 PM
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 Bloomberg didn't become what it is today due to false reporting, I will take their advice over ANY anon person on the internet. 

500 million a year is pretty good, I Wonder what their overhead is..... I would guesstimate maybe 60-80 million a year?

Interesting note, 

Station couldn’t make payments on the $7.3 billion in debt the Fertittas and Colony had saddled the company with during the buyout. It filed for bankruptcy in July 2009. “For two years, we thought we were going to lose the company almost every Friday,” Frank says. “It’s a family-run business started by our father. There was a massive sense of pride in fighting for it.” Frank Jr. died in 2009 following heart surgery.

Station hired former Deutsche Bank AG analyst Marc Falcone as its chief financial officer, and he set to work renegotiating with banks to eliminate $4.8 billion in debt.

In June of last year, the company exited bankruptcy. The brothers invested $238 million -- much of it cash they had taken out of the company four years earlier -- for a combined 58 percent stake.

http://www.bloomberg.com/news/2012-08-01/fertittas-made-billionaires-by-head-blows-with-chokeholds.html 

 

 



 
8/8/12 3:41 PM
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CindyO
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chawkins - 
Haole - 
Othello - 
Haole - You dont think the UFC can pull 500 million in all encompassing revenue?

They sure can


Of course they can't. Go ahead and give a theoretical breakdown of their revenue and lets see how close you can get to $500 million.

for fun, completely made up...

400K buys avg per over 14 PPV @ $25 per buy (half) = 140 million

Fox deal I believe breaks down to 80 Million a year?

Thats 220 million BEFORE gates, global merch, Foreign TV deals, sponsorship & Ad revenue (TV, online, event, etc.), etc.


Bear in mind that according to CNBC's piece on MMA, UFC had revenue of $275 in 2008.

Can we all agree that they're making more than that now?

OK, good. But let's just say that all their 2008 revenue streams are still earning them the exact same $275 million they were earning 4 years ago.

We know that the Fox deal and the $100K sponsor tax is new. So let's just add that to the 2008 revenu and see where it gets us.

Sponsor tax = $100K per PPV fighter. 14 events x 10 PPV fighters each = 140 fighters, giving up $14 million in sponsor tax alone.

Fox deal = $80 million, like you said.

So take their 2008 revenue of $275 mil and add the $14 mil and the $80 mil that we know is new. That gives us $369 mil.

And like you said, we haven't even touched merch, global TV, event sponsorships, or PPV ads.

I do not doubt that the boys at Zuffa can scratch up another $130 million in merch, licensing, global TV and other corporate ad/sponsorship revenue.

I don't know why anyone would think this is impossible.

Sponsor tax = $100K per PPV fighter. 14 events x 10 PPV fighters each = 140 fighters, giving up $14 million in sponsor tax alone.

Uh, could you elaborate on this? If so, then perhaps the rest of your facts will make sense. Thanks.


Cindy


8/8/12 4:16 PM
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George Hill
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WWE is a tons bigger company, particularly internationally, and they don't bring in $500 million in revenue each year.

Except for pay per view, name one category where UFC is even remotely close to WWE.

Arena business. 320 shows per year all over the world vs. 35 or so.

Merchandise. Give me a break.

DVDs. Not close

Television. WWE is on all over the world, UFC not close.

Let's be nice and say UFC will average 400,000 buys on 14 shows this year at $44.95. That's $251.7 million, half of which go to the cable companies.

So that's $126 million. Add $105 million for TV. $40 million for ticket sales. $40 million merch and licensing. With everything, you can get to $300 million, maybe $350 million.
8/8/12 5:34 PM
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Orcus Knows MMA Better Than Goku
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