New York's Economic Crisis Provides Opening for the UFC

by Michael Rome on Nov 11, 2008 8:53 AM EST in News Comment 14 comments

After a setback last year, the UFC is looking to get back into New York state. In order to convince the legislature to regulate MMA, they paid for a study on the economic effect of bringing the UFC to New York:

The study was authored by HR&A Advisors and commissioned by the UFC.  The study’s findings focused on two centers for event tourism in New York – Buffalo and New York City. The HSBC arena in Buffalo accommodates up to 19,200 people for events, while Madison Square Garden, the preeminent destination for combative sports, holds up to 20,000.  

According to the study’s findings, a hypothetical event in Buffalo could generate $5.2 million in economic activity and produce $350,000 in tax revenues for New York State. An event in New York City, presumably at MSG, could generate $11.3 million in economic activity and $917,000 in tax revenues for the state.

This new tactic is brilliant, and is likely to be very successful. New York state is in serious economic trouble right now, and has been forced to raise taxes and cut benefits to deal with serious budget shortfalls. The collapse on Wall Street is particularly brutal on New York, which has spent years operating with a booming tax revenue base due to the rapid growth in the financial sector.

The main opposition so far comes from Democrats, and I suspect the promise of more tax revenue right now will be enough to sway them. Look for a surprising turn in their opinion of MMA. The UFC should be at MSG by the end of 2009.

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I love how NY is in serious trouble due to the economy and needs to raise taxes but they have no problem taking 9.1 billion of tax money to help build the new Yankee stadium.

by steveoc24 on Nov 10, 2008 9:27 PM EST reply actions 0 recs

Money talks. BS walks.

I’ve always thought this downturn would be good for the UFC, both in competition (as in lack there of) and getting MMA sanctioned in places like NY. I suppose the idealist in me would like MMA sanctioned on the merits of the sport itself, but the reality is, some people will just not accept MMA, so if the UFC has to take advantage of the financial downturn, then so be it.

by pud333 on Nov 10, 2008 9:35 PM EST reply actions 0 recs

I think it’s politics that are keeping MMA from getting sanctioned. The merits of the sport take a backseat to political pandering. My guess is that it’s easier for legislators to claim moral high ground as opposed to doing research about the sport and making an informed (but possibly difficult) decision. Of course, money trumps all, so this angle could very well work.

by Cannon Jacques on Nov 10, 2008 10:37 PM EST up reply actions 0 recs

Money is going to be able to sway people who are otherwise morally against sanctioning MMA? You’re telling me that people who claim to have morals and values can be persuaded by a little talk of money? And these peoples are legislators? I would have never guessed.

Hypocritical dick bags.

by dropkick101 on Nov 10, 2008 9:53 PM EST reply actions 0 recs

NY

it would be awesome if ufc 100 could be at MSG in july of 2010. a perfect scenario.

by bdw on Nov 11, 2008 12:17 AM EST reply actions 0 recs

You know as soon as I read the headline and skimmed through it and did the math in my head this was the first thing that came to my mind. I was thinkin’ more like July of 2009. They like to do big summer cards. I mean who would they even put on that card, GSP vs Anderson Silva(who would most likely have 2 fights by then if not more), Shogun vs Chuck(or any other dream LHW matchup), HW Champ against his 1st challenger? Could you imagine how crazy this could be..Lets all pray it goes through to make it possible.

by Bwills23 on Nov 11, 2008 3:42 AM EST up reply actions 0 recs

It's definitely going to help

But I think getting to MSG by the end of year is a bit optimistic…

by rainmaker6 on Nov 11, 2008 12:20 AM EST reply actions 0 recs

i think BE meant by the end of next year, or this coming year. :)

by bdw on Nov 11, 2008 12:45 AM EST up reply actions 0 recs

I look forward to the day I’m rocking back and forth in my rocker. My kids are changing my depends and I wistfully state how when I was young and MMA was just starting it wasn’t even legal in many states. I remember when it was finally sanctioned in New York…

That would be so awesome. There’d be like, 25 grandkids all looking at me furtively.

by Dooda on Nov 11, 2008 1:01 AM EST reply actions 0 recs

This is a study based on past trends. Wall Street is the main money driver in NY. These are the people who would be paying the high ticket prices. Right now they aren’t doing so well. It remains to be seen how UFC will weather the coming economic crisis. Over the next few years we will see how popular they are. It’s going to take more than tax revenue to get UFC into NY. UFC doesn’t generate boxing numbers yet.

The issues with UFC deals with the sport in general. In many people’s eyes MMA looks like a cross between street fighting and pro wrestling. All the money in the world won’t change their view.

MMA still has many years ahead before it will be taken seriously.

by Akorn on Nov 11, 2008 1:21 AM EST reply actions 0 recs

damn you and your bleak yet realistic view of MMA’s future!

by Benicio on Nov 11, 2008 6:32 AM EST up reply actions 0 recs

UFC 100 @ MSG / July 4th is a long shot...

… but it is possible; they’d have to get New York State sanctioned inside the next three months and, if that happens, they could book the Garden for a July 4th show.

Taking the usual tactic of having three clear months to promote the event and sell the tickets, the show would need to be officially announced at the end of March ’09

Now, whether the political process could be nailed down in that timeframe is something I know nothing off but, as other folks have said – with the financial incentive for the state and city, there could be a sudden willingness to do just that.

by VikingPhotography on Nov 11, 2008 7:18 AM EST reply actions 0 recs

call me cynical...

… but i think we’re still a ways off from something like this happening in new york. hasnt the bill only been presented once so far? and was shot down by someone with zero knowledge of the sport? without more education for the parties involved, and a strong voice on the inside to champion the cause, and really try to push it through, it might take a few more tries. i suppose all of those wheels could be in motion, and i’m just unaware… i just tend to have a pessismistic view of new york state politics.

as for an event in buffalo (my hometown), i would LOVE for it happen. but buffalo is a very blue collar, working class city, and the ufc tickets come with a hefty price tag. i wonder what kind of numbers they could really do there. then again, if shows can sell out in some of the smaller markets in ohio, and other states, i suppose anythings possible. plus, buffalo is right on the canadian border, so the in flux of fans from the north would be a big help.

prove me wrong new york!

by woooburn on Nov 11, 2008 9:07 AM EST reply actions 0 recs