UFC Sold for $4billion

Lukker-

finglashoop wrote: »

How did they get such a price?

And if that is the value if the company, the fighters are getting screwed

Chinese investors looking to diversify their portfolios before the Chinese economy crashes.

They've mainly being doing it via property so far, driving up prices in European and American capitals but sports and media is the next step.

jmx009

I wonder if this buyout will cause any changes to the way the company is being run. More importantly, will the fighters get better pay considering the fact that the company is worth 4 Billion USD !

Wonder if Conor is going to make a play at this... questions.. questions...

Interesting times ahead !!

MyPeopleDrankTheSoup

finglashoop wrote: »

How did they get such a price?

And if that is the value if the company, the fighters are getting screwed

the fighters getting screwed is why the company value is so high. less expense on fighters, more profits

callaway92

The new owners definitely have plans to create some blue ocean products/services no doubt. The UFC has probably hit its peak of valuation as it is, so there has to be plans to expand.

BorneTobyWilde

I dunno what a UFC is .
I first thought it was United Football Club , as in Man u.
But no it's some pretend wrestling thing.

'I hit you then you chase me ''

Mod: Banned for a month for trolling..

callaway92

BorneTobyWilde wrote: »

I dunno what a UFC is .
I first thought it was United Football Club , as in Man u.
But no it's some pretend wrestling thing.

'I hit you then you chase me ''

Swashbuckler

Looks like Toby has been on the blue meth again.

Devastator

Swashbuckler wrote: »

Looks like Toby has been on the blue meth again.

1/Nope. Recognize that username from another forum, thats actually about the height of his trolling abilities. How he's not been kicked off boards I don't know, must just be going around forums getting banned from them all.

2/Fighters were not shareholders(at least 99.9% of them anyway) so they are not getting screwed. They have no right over anything the owners have agreed for themselves. The existing contracts that they signed will still be in effect.

That_Guy

Wild prediction: I predict a buyout of ONE FC. If the new owners are supposedly wanting to stretch their legs into the Asian market, I wonder if they'll want the monopoly.

Like I say... Wild prediction.

but1er

This worries me alot,

So unknown to what they could do.

Stadium shows better in place?
Rebook going or staying?
Fox?
Bt sport for us in uk will new owner see new change and make it go ppv on box office?


So many questions only time will tell.

callaway92

That_Guy wrote: »

Wild prediction: I predict a buyout of ONE FC. If the new owners are supposedly wanting to stretch their legs into the Asian market, I wonder if they'll want the monopoly.

Like I say... Wild prediction.

Realistically that's more than likely smallfry stuff compared to what they are considering doing (I would assume).

Gamebred

I dont really care too much what fighters earn none of my business but I'd love to see them form a union now to demand proper pay for putting their life on the line for the new owners and the fans,the jealousy amongst them is a massive stumbling block.

callaway92

Fighter pay is a liability against the purchase. They aren't going to go raising pay just after purchasing for $4 Billion, automatically slowing down potential profit. It would make no sense from a business point of view. Ethically it would be great of course.

That_Guy

Gamebred wrote: »

I dont really care too much what fighters earn none of my business but I'd love to see them form a union now to demand proper pay for putting their life on the line for the new owners and the fans,the jealousy amongst them is a massive stumbling block.

Which is why a union will never happen at this moment in time. Look at the amount of fighters hating on Sage at the weekend. I get that rivalries exist in fighting and it's what sells a lot of fights but vitriol from weight classes way above Sage's division having a pop is why it won't work.

I'm sure 90% of fighters will agree with a union in principle but it's certainly an interesting time given what the value of the company is worth.

JoeyJJ

If they paid less the Roi would be shorter and fighters may have benefited. I'd say things will remain in that aspect for a while.

I'd be making Choi a big name in Asia, what a talent for kos

Gamebred

Likes of McGregor Brock Ronda 3 biggest stars will be long gone in 5-10 years, I dont see any big stars at the moment coming through you'd wonder if its a wise time for buying these people are smarter than me but I'd say the sellers got the better deal here Ideal time for selling after 2 great years especially of business.

Tigger

Lukker- wrote: »

Chinese investors looking to diversify their portfolios before the Chinese economy crashes.

They've mainly being doing it via property so far, driving up prices in European and American capitals but sports and media is the next step.

its the Japs and American property all over again

Paully D

Dana's first interview as UFC president in 2001:



:pac:

Mellor

Gamebred wrote: »

There will be changes for sure these people arent spending 4 billion on a company to let it run the same way.

Gamebred wrote: »

You'd be very naive to think these billionaires dont have plans for the company,why buy at all so?

Why buy it at all?????
To make money. That's the only reason. And you're calling others naive, :pac::pac::pac:

If somebody, bought Apple or Microsoft, they'd probably just sit back and reap the rewards without changing a thing. There's a huge difference between picking up a successful company, and a trying to turn around a failing one for a profit (like the Ferdittas did with the UFC).

The new owners might have some ideas to boost profits, but for the most part all they care about is the bottomline and nothing about the state of MMA itself.
Unless one of the owners is appointed as CEO I wouldn't expect won't be making day to day decisions.

Gamebred

Mellor wrote: »

Why buy it at all?????
To make money. That's the only reason. And you're calling others naive, :pac::pac::pac:

If somebody, bought Apple or Microsoft, they'd probably just sit back and reap the rewards without changing a thing. There's a huge difference between picking up a successful company, and a trying to turn around a failing one for a profit (like the Ferdittas did with the UFC).

The new owners might have some ideas to boost profits, but for the most part all they care about is the bottomline and nothing about the state of MMA itself.
Unless one of the owners is appointed as CEO I wouldn't expect won't be making day to day decisions.

Yeah good luck getting that 4 billion back anytime soon,it needs to expand to make the investment worthwhile theres no chance it stays the same Dana White will be gone by this time next year hes only sticking about as part of the deal to keep the show running while they get themselves a new president comfortable in the role,

At the moment its ran by the 3 boys Frank Lorenzo and Dana,its quite unprofessional they make rash emotional calls I can see it being much more professional now,no taking journalists credentials ect.

Mellor

Gamebred wrote: »

Yeah good luck getting that 4 billion back anytime soon,it needs to expand to make the investment worthwhile there's no chance it stays the same Dana White will be gone by this time next year hes only sticking about as part of the deal to keep the show running while they get themselves a new president comfortable in the role,

At the moment its ran by the 3 boys Frank Lorenzo and Dana,its quite unprofessional they make rash emotional calls I can see it being much more professional now,no taking journalists credentials ect.

Expansion is only useful if it doesn't saturate. There's a reason why it stopped growing and scaled back number of events in the last few years.
There's talk of moving into asia, but I'd see that as a volitile market. Maybe as a separate entity/promotion.

Dana is apparently retaining a share of the company, not as much as before, but a significant share. He'll be paid a salary to act as president.

I'd imagine the path to recapitalize the $4bn is to post a few years of profits, ride out the current deals, sign lots of bigger deals with Fox, Nike, etc. Then float the company. I'd expect these ruthless in the lead up to that.

Gamebred

Mellor wrote: »

Expansion is only useful if it doesn't saturate. There's a reason why it stopped growing and scaled back number of events in the last few years.
There's talk of moving into asia, but I'd see that as a volitile market. Maybe as a separate entity/promotion.

Dana is apparently retaining a share of the company, not as much as before, but a significant share. He'll be paid a salary to act as president.

I'd imagine the path to recapitalize the $4bn is to post a few years of profits, ride out the current deals, sign lots of bigger deals with Fox, Nike, etc. Then float the company. I'd expect these ruthless in the lead up to that.

If they can make a quick buck on this im presuming the new owners will be gone in a flash 5 billion offer comes and their out I'd say,by quick I mean a couple years when they get their own deals in place doubt this is a long term project?

SureYWouldntYa

Gamebred wrote: »

Likes of McGregor Brock Ronda 3 biggest stars will be long gone in 5-10 years, I dont see any big stars at the moment coming through you'd wonder if its a wise time for buying these people are smarter than me but I'd say the sellers got the better deal here Ideal time for selling after 2 great years especially of business.

Where was McGregor 3 and a half years ago? Promising prospect coming out of Europe with a bit of a mouth, ya might have said he had the potential to go to the top but that's said a lot

Ronda made her MMA debut little over 5 years ago

People can become big in no time, just takes the right set of circumstances

Gamebred

SureYWouldntYa wrote: »

Where was McGregor 3 and a half years ago? Promising prospect coming out of Europe with a bit of a mouth, ya might have said he had the potential to go to the top but that's said a lot

Ronda made her MMA debut little over 5 years ago

People can become big in no time, just takes the right set of circumstances

Thats true as Helwani said today after gsp bj penn ect nobody would've predicted Conor or Ronda coming along but it is possible that there could be some baron spells,there is a certain risk to the purchase in that way I reckon.

SureYWouldntYa

Gamebred wrote: »

Thats true as Helwani said today after gsp bj penn ect nobody would've predicted Conor or Ronda coming along but it is possible that there could be some baron spells,there is a certain risk to the purchase in that way I reckon.

UFC as a brand though holds so much value, stars will come and go but the brand holds so much value the sport of mma is often known as the sport of ufc

No purchase is without risk, but at the same time there's little chance of the whole thing tanking

Mellor

Gamebred wrote: »

If they can make a quick buck on this im presuming the new owners will be gone in a flash 5 billion offer comes and their out I'd say,by quick I mean a couple years when they get their own deals in place doubt this is a long term project?

Nobody is offering $5b anytime soon though. I'm talking about in a couple years also.

The valuation over the next few years will increase in line with revenue. A 25% increase in revenue might not even be reflected in the valuation, as the $4b figure is 8x revenue, which is a very high ratio.

I honestly think they'll float the company in a few years. Makes the most sense, especially considering they'll have moved from owners with emotionally investment to a more corporate ownership.

Lukker-

Gamebred wrote: »

If they can make a quick buck on this im presuming the new owners will be gone in a flash 5 billion offer comes and their out I'd say,by quick I mean a couple years when they get their own deals in place doubt this is a long term project?

I highly doubt they are looking to flip it for a quick profit. The Chinese investors are looking at long term investments like football clubs and property. Historically they tend to hold onto them, it's better for them to have assets spread around the world.

They might float 5-10% of the company publicly a few years down the line to provide some ROI or just to raise some capital.

Lukker-

Also I think fighter pay is probably in line to increase a bit. The likes of Dana, who a few months ago was saying he'd quit if the UFC was ever sold, the same as Joe Rogan, it was most likely posturing on their behalf, to get more money and in both cases has appeared to work.

The new investors seem keen on brand continuity, so any big stars coming to the end of their contracts are probably in a very good position when it comes to renegotiating contracts.

Fromvert

The chinese group aren't involved.
WME-IMG (Talent Agency, the guy Ari Gold is based on is one of the CEOs), Michael Dell's Investment Firm and a couple American of private equity firms are the people involved.

The interesting side is WME-IMG represent some fighters, Ronda, Weidmann, Cain I think. This isn't allowed in boxing so it'll be interesting to see how their fighters are matched up, portrayed etc.

Lukker-

Fromvert wrote: »

The chinese group aren't involved.
WME-IMG (Talent Agency, the guy Ari Gold is based on is one of the CEOs), Michael Dell's Investment Firm and a couple American of private equity firms are the people involved.

The interesting side is WME-IMG represent some fighters, Ronda, Weidmann, Cain I think. This isn't allowed in boxing so it'll be interesting to see how their fighters are matched up, portrayed etc.

Hadn't realised that, on holidays for last 2 weeks, so somewhat out of the loop. I knew WME-IMG were a talent agency but I thought they were in a partnership with Chinese investors as had previously been reported.