UnderGround Forums UFC loses 100 Million in revenue in 2018

5/17/19 11:41 PM
12/9/13
Posts: 25720

According to the Moody’s report “[r]evenues for 2018 were well over $600 million.” This would signify a decrease from the previous year, when the promotion was reported to have generated “well over $700 million” in 2017.

According to both Moody’s and S&P Global Ratings, the UFC is expected to increase the size of their senior secured 1st lien term loan from $1.442 billion to $1.877 billion, an increase of $435 million. This additional debt was to be used to pay off their $425 million 2nd lien term loan as well as to pay related transaction expenses. Furthermore, their undrawn revolving credit facility will be upsized from $150 million to $162.75 million.

While EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was not given in either report, we can make an estimate using the reported pro forma leverage. With the change in the loans, the ratio of debt to EBITDA apparently increased from 7.7x to 7.8x for the 4th quarter of last year. With $1.877 billion in debt, EBITDA for 2018 would therefore be approximately $240 million.

 

https://www.bloodyelbow.com/2019/5/15/18310943/ufc-revenues-for-2018-were-well-over-600-million

5/17/19 11:44 PM
10/14/17
Posts: 1410


5/17/19 11:54 PM
3/17/14
Posts: 17567
First post does it again.
5/18/19 12:04 AM
7/27/14
Posts: 66

Does what? Sound jealous and hateful like Kirik?

5/18/19 12:07 AM
10/14/17
Posts: 1411
badtrip -

Does what? Sound jealous and hateful like Kirik?

Jealous and hateful? Nah. Couldn’t care less for a company that fucks over every single one of their fighters 

5/18/19 12:09 AM
4/8/07
Posts: 39714

i wish i could afford to lose 100 million in revenue and still be fucking killing it

5/18/19 2:24 AM
1/17/03
Posts: 14584

But Dana said it was the best year ever!!

Edited: 5/18/19 2:48 AM
12/9/13
Posts: 25724
Right Hand JO Power -

i wish i could afford to lose 100 million in revenue and still be fucking killing it

yeah sure, they are killing it, the sport that is!

the UFC is expected to increase the size of their senior secured 1st lien term loan from $1.442 billion to $1.877 billion, an increase of $435 million

5/18/19 3:57 AM
11/10/18
Posts: 2520
Right Hand JO Power -

i wish i could afford to lose 100 million in revenue and still be fucking killing it

Killing it? You’d pay over 4 billion to get a huge pain in the ass that made you 200 million per year? I’m sure that’s better now with the espn deal, but it’s still nothing special and they’re counting on growth of the sport that I guarantee we don’t see. People under 25 couldn’t give a rat’s ass about mma. One already beat them in Asia. Russia wasn’t anything like they’d hoped. The US market peaked 5 years ago. I bet WME tries to sell it before it becomes obvious what a turd it really is. Zuffa are still the smartest people in the room, and they played it perfectly. 

5/18/19 8:15 AM
1/1/01
Posts: 6426

^ I thnk you're right, the well try to sell but it's too late.  

5/18/19 8:18 AM
1/24/16
Posts: 901
Eskimo -
Right Hand JO Power -

i wish i could afford to lose 100 million in revenue and still be fucking killing it

Killing it? You’d pay over 4 billion to get a huge pain in the ass that made you 200 million per year? I’m sure that’s better now with the espn deal, but it’s still nothing special and they’re counting on growth of the sport that I guarantee we don’t see. People under 25 couldn’t give a rat’s ass about mma. One already beat them in Asia. Russia wasn’t anything like they’d hoped. The US market peaked 5 years ago. I bet WME tries to sell it before it becomes obvious what a turd it really is. Zuffa are still the smartest people in the room, and they played it perfectly. 

Yes yes and yes

5/18/19 8:23 AM
11/11/14
Posts: 2218
2019 will be worse than 2018. Didn't the last PPV not even have 100k buys?
5/18/19 8:40 AM
4/21/12
Posts: 8369

They have guaranteed massive revenue from ESPN (including the guaranteed PPV money) and enormous international broadcast rights, plus live gate, plus merchandise, plus Fight Pass, etc. With a 7-year income stream locked in, there's no reason to believe that the value of the company will drop. 

So, the ownership group has a net positive income picture and could sell the company at any time with a nice return on the investment overall. 

They've also got a virtually endless supply of young guys who aspire to be UFC fighters and are willing to accept a 12/12 pay rate with an average of 2 fights a year. A tiny fraction of their roster makes 100K or better per fight. The majority are disposable and can be cut from the roster at any time if they lose a fight.

For now, UFC's ownership is in a can't lose position. Last year's revenue drop - if it actually was a drop, when you consider the 2017 McGregor vs. Mayweather fight - was no big deal.

 

5/18/19 9:06 AM
11/20/08
Posts: 21145
BRUTELLYDUMBFOOTBALLHACK - First post does it again.

.

5/18/19 9:12 AM
7/9/07
Posts: 1529

excited to see them become a thing of the past.  

5/18/19 9:48 AM
1/1/01
Posts: 6427
Tug Dabone - 

They have guaranteed massive revenue from ESPN (including the guaranteed PPV money) and enormous international broadcast rights, plus live gate, plus merchandise, plus Fight Pass, etc. With a 7-year income stream locked in, there's no reason to believe that the value of the company will drop. 

So, the ownership group has a net positive income picture and could sell the company at any time with a nice return on the investment overall. 

They've also got a virtually endless supply of young guys who aspire to be UFC fighters and are willing to accept a 12/12 pay rate with an average of 2 fights a year. A tiny fraction of their roster makes 100K or better per fight. The majority are disposable and can be cut from the roster at any time if they lose a fight.

For now, UFC's ownership is in a can't lose position. Last year's revenue drop - if it actually was a drop, when you consider the 2017 McGregor vs. Mayweather fight - was no big deal.

 


Is ESPN the big loser if viewership is way down in the United States?

5/18/19 10:14 AM
1/1/01
Posts: 64242
springfield - 
Tug Dabone - 

They have guaranteed massive revenue from ESPN (including the guaranteed PPV money) and enormous international broadcast rights, plus live gate, plus merchandise, plus Fight Pass, etc. With a 7-year income stream locked in, there's no reason to believe that the value of the company will drop. 

So, the ownership group has a net positive income picture and could sell the company at any time with a nice return on the investment overall. 

They've also got a virtually endless supply of young guys who aspire to be UFC fighters and are willing to accept a 12/12 pay rate with an average of 2 fights a year. A tiny fraction of their roster makes 100K or better per fight. The majority are disposable and can be cut from the roster at any time if they lose a fight.

For now, UFC's ownership is in a can't lose position. Last year's revenue drop - if it actually was a drop, when you consider the 2017 McGregor vs. Mayweather fight - was no big deal.

 


Is ESPN the big loser if viewership is way down in the United States?


In a sense, but they really just want it to drive people to the ESPN+ online service, which I bet is working pretty well.
5/18/19 11:02 AM
7/15/17
Posts: 894

I haven't watched an event since it been on ESPN .. it's a cluster fuck now 

5/18/19 11:04 AM
12/9/13
Posts: 25728
Tug Dabone -

They have guaranteed massive revenue from ESPN (including the guaranteed PPV money) and enormous international broadcast rights, plus live gate, plus merchandise, plus Fight Pass, etc. With a 7-year income stream locked in, there's no reason to believe that the value of the company will drop. 

So, the ownership group has a net positive income picture and could sell the company at any time with a nice return on the investment overall. 

They've also got a virtually endless supply of young guys who aspire to be UFC fighters and are willing to accept a 12/12 pay rate with an average of 2 fights a year. A tiny fraction of their roster makes 100K or better per fight. The majority are disposable and can be cut from the roster at any time if they lose a fight.

For now, UFC's ownership is in a can't lose position. Last year's revenue drop - if it actually was a drop, when you consider the 2017 McGregor vs. Mayweather fight - was no big deal.

 

who made that deal from the ESPN side?, i am certain he will get fired, don't know when, but he will be fired.

5/18/19 11:05 AM
12/9/13
Posts: 25729

also, UFC has lost it stars, no stars, no vieuwership

5/18/19 11:10 AM
2/4/07
Posts: 29099
So wait, the UFC is losing money, but also the fighters are underpaid?
5/18/19 11:22 AM
10/21/10
Posts: 13504
Right Hand JO Power -

i wish i could afford to lose 100 million in revenue and still be fucking killing it

 

5/18/19 11:22 AM
3/23/12
Posts: 23798
Sandy Pantz - So wait, the UFC is losing money, but also the fighters are underpaid?

It’s not losing money in terms of revenue vs operation cost, but the purchase cost put WME way behind the 8-ball.  The future does not look good, though.  They are not building superstars, ESPN is losing viewers every day and I guarantee that UFC is losing viewers as a result of the ESPN deal, not gaining them.  MMA’s prime is long past.  

5/18/19 12:51 PM
3/12/15
Posts: 2469

Good. I hope they go out of business. 

5/18/19 1:36 PM
4/18/19
Posts: 16

You guys kill me. The ufc is in great shape and will be progressing. 

I wish we could see better fighter pay but it’s up to the fighters to make that happen... why in the hell would the ufc start Paying more money to fighters if the fighters don’t give a shit.