In Real Life, Bankruptcy Does Not Work Like it Does in Monopoly

Thank you for dispelliing yet another internet created myth about Zuffa and the UFC, it’s amazing how many people on here don’t understand what’s going on.

So much of what people (mis)understand about economics comes from childhood experiences with monopoly. The whole zero-sum basis of the game, bankruptcy being death, etc. That game has done a ton of damage…and that’s coming from a huge fan of it ;)

I think the people looking for some “red meat” on Zuffa et al. might have a little more to sink their teeth into. As it stands, and I’ll defer offering a half hearted analysis in light of who me’s excellent synopsis, Chapter 11 just means they’ll be entering into a reorganization of their debts and affairs.

Chapter 11, as far as I understand it, is just as much a strategic corporate move as it is anything. Especially considering they purposely faulted on their monthly loan payment (from what I’ve read), I’d say that’s more the case.

Hey folks, just to live up to my nickname “Rabble Rousin’” I felt the need to come on here and educate everyone on a few salient points.

I have been investigating the Fertitta family for a little over 2 years now. I’m currently engaged in litigation with Fertitta Enterprises, and for the first time ever their law firm asked for me to pay their legal fees. The Fertitta family burden is being reported as $244 million paid by their family alone to put forward a pre-packaged bankrputcy, not by Colony Capital. The Fertittas were also recently sued by S. Blake Murchison, which is one of Station’s bondholders.

At any rate, the point is they will not emerge unscathed and likely won’t be billionaires on the back end of all this. With 90 percent ownership over Dana’s 10 the Fertittas will sell the UFC without a moment’s hesitation if they get the right price AND they have no other choice. Of course Dana always says it’s always for sale for the right price, the Fertittas would take a big offer at this point if they had no other major source of income.

The problem is the Fertittas are caught red handed with Station Casinos. Whether they go down with the ship is up for debate, but it’s not inevitable that they’ll get away scott free. Think about how they went public and then private again with Station and pissed a lot of other people off doing that. Think about the Xyience situation I’ve been fighting to expose for the last two years.

Xyience Really Sucks and Here’s Why

This is not a climate that’s going to be kind to such high level fraud. I’m not saying my lawsuit is likely to cripple them, but I can guarantee you my research on their tendencies, background, and modus operandi is eventually going to make its way to the folks the Fertittas try to screw over to get the bankruptcy they want. I have a feeling the bankruptcy is going to be far from prepackaged and involve a ton of mudslinging and fighting over the pieces. Bondholders and creditors know about Tillman Fertitta’s escape from debt due to the Savings and Loan scandal. Lorenzo and the two Franks thought they could manipulate their position to wind up in the same boat as Tillman. I think if the times were any different they would have been able to get away with it, but their tracks are clear. They’ve done this before and burned too many folks already for them to get away unscathed on this.

At any rate, those who have written so much above without the kind of intimate knowledge on “the family” that I’ve procured are basing your analysis on typical bankruptcies, which are of course nothing like Monopoly. Of course, I don’t contend this one is like Monopoly, but I say just don’t be so quick to conclude that it will all be clean this time around.

Also, I think it’s really premature to claim that no matter what happens with Station Casinos the Fertittas will not sell the UFC as a direct result of that situation. The Fertittas are really handcuffed to the UFC at this point. It’s their baby now and they want to raise it and watch it grow. They’d never put it up for adoption just because someone’s willing to give them a bunch of money, not as long as they can get their money elsewhere and still take care of their baby.

I think that they’ll sell it only if a combination of the right price and their financial troubles gets to a crescendo they can’t cope with. These guys are used to spending about a hundred million a year on themselves and their extended family. So, of course they’ll survive, but not necessarily as future billionaires forever. Someday their luck might run out, and they might not be as resilient as Trump.

So, flame me if you must, but consider this: anything can happen here and it’s already looking a little uglier than most people could have imagined. I’ll agree it’s not the end of the UFC no matter what happens, but as for this bankruptcy being good all around for the Fertitta “family” I have to disagree and inform everyone that the jury and the judge is still out on that conclusion so don’t commit to it.