UFC Business Model Rare Bright Spot in Bad Economy

by Kid Nate on Feb 22, 2009 11:08 PM EST in News Comment 19 comments

So says Zach Arnold at MMA Memories:

The near-debacle in Quebec demonstrates what kind of financial power and momentum is currently on the side of Zuffa. At a time when the economy has hit all sports hard, it is not affecting UFC. With three straight domestic PPVs drawing 800,000 or more buys, the company is on rock-solid footing at the moment. Every day, sports fans read about bad stories in basketball (15 teams reportedly had to take out $12M USD loans from the NBA) or football (teams such as the Carolina Panthers laying off 20 employees). However, there's no bad news in the land of Dana White. He's pushing the envelope and laying the groundwork for the company to advance into Mexico. The organization just inked new TV deals in Europe. And with the Montreal event back on schedule, UFC is truly making a global push that other sports and sports leagues could only dream of in the current economic climate.

...

Despite a weak advance in London for the UFC 95 event (headlined by Diego Sanchez vs. Joe Stevenson), UFC's core business remains red hot. It may be tougher to sell tickets live when prices are $500USD, but selling $50 PPVs doesn't seem to be hard to accomplish. With major shows coming up in March in Columbus, April in Montreal, May & July in Las Vegas, and June in Germany, the organization is ready to run the table for the rest of this year and close out with a significant amount of steam. If UFC had been forced to back out of Montreal and run Las Vegas with Anderson Silva headlining, they would have did just fine selling tickets thank you very much. However, now that the Quebec Boxing Commission softened its stance, more than 20,000 fans will be at the Bell Centre to watch one of the two best MMA fighters on the planet fight in the main event. A message was clearly sent this week by Zuffa and the politicians in Quebec received it loud and clear - take our money or we'll go elsewhere. This was a proposition that politicians simply couldn't refuse.

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First!

by mjfuckenfra on Feb 22, 2009 9:00 PM EST reply actions 0 recs

That’s an interesting point you bring up and really illuminates the topic at hand.

by ricker2005 on Feb 22, 2009 9:08 PM EST up reply actions 0 recs

Lol

We’re getting invaded by the Sherdoggians.

by rainmaker6 on Feb 22, 2009 9:22 PM EST up reply actions 0 recs

Is that ban worthy?

"I see him beating Anderson Silva. I see him picking him apart. Him at a 131 years old...(trails off)." - Tito on Belfort at Affliction:DOR

by Rundownloser on Feb 22, 2009 9:26 PM EST up reply actions 0 recs

its close

"the spirit of your average dumbass with more overblown rhetoric" OR "the self-appointed savior of MMA"

by Kid Nate on Feb 22, 2009 9:29 PM EST up reply actions 0 recs

I already deleted his first “first” and warned him. His first action after getting that warning was to do it again.

Bolts from the Blue // "Game over." - Jamal Williams
Bloody Elbow // "Every normal man must be tempted at times to spit upon his hands, hoist the black flag, and begin slitting throats." - H.L. Mencken

by Richard Wade on Feb 22, 2009 9:49 PM EST up reply actions 0 recs

Really?

by rainmaker6 on Feb 22, 2009 9:51 PM EST up reply actions 0 recs

yeah he's banned

"the spirit of your average dumbass with more overblown rhetoric" OR "the self-appointed savior of MMA"

by Kid Nate on Feb 22, 2009 10:04 PM EST up reply actions 0 recs

ive always wondered why we dont have people in here doing that “1st! wooo!” thing.. other sites are littered with that crap.. so my theory is down to either, people here are just better? or every one who does that gets reprimaned/banned..

http://weoweoweo.deviantart.com/

by Anton Tabuena on Feb 23, 2009 1:02 AM EST up reply actions 0 recs

The mods here are First! nazis.

No “First!” for you!

A man should never waste an opportunity to keep his mouth shut.

by iiowyn on Feb 23, 2009 1:16 AM EST up reply actions 0 recs

holy….I didn’t know that was the case. Haha – I’ve been so tempted to write bs stuff like that so many times.

by rainmaker6 on Feb 23, 2009 1:38 AM EST up reply actions 0 recs

Take my money or I’ll go elsewhere? in pot sales as in MMA.

by subo on Feb 22, 2009 9:42 PM EST reply actions 0 recs

now that's a comment!

"the spirit of your average dumbass with more overblown rhetoric" OR "the self-appointed savior of MMA"

by Kid Nate on Feb 22, 2009 9:45 PM EST up reply actions 0 recs

I have my moments

by subo on Feb 23, 2009 4:26 PM EST up reply actions 0 recs

Nothing takes the stress out of a financial situation like having a few beers with your buddies and watching guys (or girls) kick the crap out of each other.

I think the UFC actually benefits from a poor economy, as the PPV on saturday night is a relatively “cheap night out” in contrast to going to a bar or to a live NBA game etc.

by DirtyML on Feb 22, 2009 10:40 PM EST reply actions 0 recs

Part of me...

Thinks that the more the sport is legitimized, and mainstreamed, this trend will stop. I think a lot of the casuals look at a night of fights as more of a spectacle than other sports, and therefore order fights as opposed to buying beers and simply watching whatever basketball game, or other sporting event that is on. The grand nature of the events, and the fact that its not something that you see on a nightly basis helps the growth right now…. I’m sure as long as the fights are promoted and packaged well they will always be a good option in terms of entertainment, but once it’s available on a more regular basis, I think the PPV numbers will be subject to the sheer popularity of the sport/fighters/org.

by Loot on Feb 22, 2009 10:53 PM EST up reply actions 0 recs

Ostrich method

Personally I am adopting the ostrich method of dealing with the credit crunch, which is putting my head deep in the sand, having long, scrawny legs, and feathers. And being a bird.

So, clearly, what I mean is, um, that… awesome.

Be water, my friend.
http://martialfarts.fightlinker.com

by Martial Farts on Feb 22, 2009 11:47 PM EST reply actions 0 recs

The UFC is going to get hurt less than other sports because of the model.

In a few months NBA teams are going to be asking season ticket holders to cough up the cash for 41 tickets. I’m sure baseball teams are having people trying to buy 81 at a time. The UFC doesn’t have this problem. They ask you to buy one ticket or 1 (or a fraction of 1) PPV at a time. In times like this, it’s a lot easier to make a 1-off purchase or plan a trip around a UFC event than it would be to plunk down for season tickets.

by Phildo on Feb 23, 2009 1:03 AM EST reply actions 0 recs