Bloody Elbow: An SB Nation Community

Navigation: Jump to content areas:



Sports blogs for fans, by fans.
New Blog: Backing the Pack for NC State Fans!


spread the word

UFC Cementing Place as Industry Leader

A recent article in the Sports Business Journal emphasizes how the UFC continues to build on its success while many would-be competitors are struggling to survive.  Notable excerpt:

Zuffa LLC, the UFC’s parent company, says it is turning a profit on $300 million in annual revenue. Pay-per-view accounts for more than half of that number, followed by television money generated from a deal with Spike TV, and event operations.

Gate receipts for PPV events are averaging $3.25 million this year, up nearly half a million from 2007. PPV buys were up approximately 8 percent in 2007, and another year-over-year increase is expected in 2008.

The UFC has steadily grown in the last few years by living off money generated by television and live events and using that cash to acquire competitors such as PRIDE and World Extreme Cagefighting. PRIDE was shuttered and absorbed into the UFC; WEC features lighter-weight fighters.

There are at least two things to take from this article in refrence to the state of the MMA industry.  First, the difficulties experienced by ProElite, the IFL, and others don't carry over to the UFC.  Zuffa is on its game, and continues to thrive.  Second, challenging the UFC at this point isn't a prudent strategy.  Their brand is too strong; their roster of top level fighters is too deep.  Any future competition will have to come from an organization that takes a measured approach in terms of growth.  Even a promotion that builds slowly and methodically faces an uphill battle, to say the least.

Fortunately for the sport, more mainstream sponsors are becoming interested.  From a second SBJ article:

While the early advertisers were energy drinks and video-game companies searching for the young male at a bargain price, Kay said the number and types of advertisers have changed dramatically in the last three years. Spike has signed 59 new advertisers for its MMA programming since the second quarter of 2007.

The UFC still attracts gaming and vitamin supplement companies, but programming is now pulling in big spenders in categories such as beer, quick-service restaurants, and men’s health products. “The list of people who won’t (advertise) is getting smaller as the ratings get higher,” Kay said.

Research compiled by Anheuser-Busch, a UFC sponsor and buyer of advertising, found its programming delivers young males better than any other televised sport except the NFL, an A-B executive said.

While most of the encouraging sponsorship news focuses on the UFC, Strikeforce is also doing impressive ratings on NBC.  This certainly won't go unnoticed.  Besides making promotions stronger, more sponsorship dollars directly benefit fighters' pocketbooks. 

Growth of the sport is important to all involved.  It's certainly hard to argue that Zuffa hasn't lead the way in this endeavor and is now reaping the benefits of that work.

 

HT:  MMA Payout

0 recs | Comment 14 comments | Share on Facebook Digg!

Story-email Email Printer Print

Comments

Display:

So. What remains before MMA is a legit form of entertainment? In Sweden, the situation is depressing. How about the US? It can’t be far off now, right?

by ununkvadrium on Nov 4, 2008 5:35 PM EST reply reply actions actions   0 recs

Research compiled by Anheuser-Busch, a UFC sponsor and buyer of advertising, found its programming delivers young males better than any other televised sport except the NFL, an A-B executive said.

That’s a huge quote, right there. That is no small proclamation.

by Blackout612 on Nov 4, 2008 5:36 PM EST reply reply actions actions   0 recs

Holy crap, a reasonable assesment of the UFC that ends in praise?

You, sir, are a maverick.

by subo on Nov 4, 2008 5:44 PM EST reply reply actions actions   0 recs

Man...

I’d think that between my generally very pro-UFC stance, Luke constantly shouting about the UFC as the leader in the sport….etc.

That people would stop with the “BE is negative on the UFC” thing.

Contributing Editor - BloodyElbow.com - SBNation's mixed martial arts headquarters.

by Brent Brookhouse on Nov 4, 2008 5:48 PM EST to parent up reply reply actions actions   0 recs

I concur..

I think those days are done (as in the notion).

by Blackout612 on Nov 4, 2008 5:50 PM EST to parent up reply reply actions actions   0 recs

Brent just wants to be a “maverick,” too.

by Cannon Jacques on Nov 4, 2008 5:51 PM EST to parent up reply reply actions actions   0 recs

I'm just reachin across the aisle

Contributing Editor - BloodyElbow.com - SBNation's mixed martial arts headquarters.

by Brent Brookhouse on Nov 4, 2008 5:52 PM EST to parent up reply reply actions actions   0 recs

We are the UFC. You will be assimilated. Resistance is futile.

by Ubernoober on Nov 4, 2008 6:09 PM EST reply reply actions actions   0 recs

And they hold a huge card by having the top product available to network TV.

http://eliotmarshall.com/

by BJJDenver on Nov 4, 2008 6:13 PM EST reply reply actions actions   0 recs

I very much look forward to the day when I can watch WEC without seeing penis enlargement ads 6 times per show.

by toxic on Nov 4, 2008 9:00 PM EST reply reply actions actions   0 recs

Nice article

I think the most important thing was the statement about building your organization.

Thats the problem with all these other promotions (IFL, EXC, Affliction) they want to step into MMA on equal terms with the UFC, but the money to do so is self defeating.

The UFC earned their place at the top of the industry and trying to replace them out of the gate is suicide.

by Razreshat on Nov 5, 2008 8:13 AM EST reply reply actions actions   0 recs

Comments For This Post Are Closed


User Tools

"All men are frauds. The only difference between them is that some admit it. I myself deny it." -- H.L. Mencken
Start posting on Bloody Elbow »

Join SB Nation and dive into communities focused on all your favorite teams.

FanPosts

Community blog posts and discussion.

Recommended FanPosts

N46600342_991_small
The Real UFC 100
Bob_sapp__potato_head_small
A Message For Our Troops
Weo_animation2_small
Exclusive: An Interview With "The Veteran Voice of the Octagon" Bruce Buffer
Stpierre_472917a_small
The Official UFC 100 Bloody Elbow Meet-up Thread
Chainlink_small
Quiet Before the Storm: St. Pierre-Alves

Recent FanPosts

Small
UFC 100 to Air in Korea; Akiyama and Kim Leading the Way
Yes__small
REMINDER: UFC's 100 Greatest Fights on Spike Tonight!
Weo_animation2_small
Gesias JZ Cavalcante to Compete at DREAM.11 But Not Against Eddie Alvarez
Weo_animation2_small
UFC 100 Preview: Paulo Thiago Talks Jon Fitch and Josh Koscheck
Ebola_small
Next MMA Fighter To Die?
Picture_010_small
Brock Lesnar vs. Bobby Lashley
Mirkneebaraim640_small
Dan Miller vs. Aaron Simpson Possible for UFN 19 in September

Post_icon New FanPost All FanPosts Carrot-mini

MMA Rankings

USA Today / SB Nation Consensus MMA Rankings