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Dana, Lorenzo, Frank Getting Rich(er) Off UFC Undisputed

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"We've got a lot of what it takes to get along!"

The Las Vegas Sun was kind enough to provide a transcript of a Q&A Session with UFC owner Lorenzo Fertitta from the Fan Expo. He had some interesting things to say about UFC Undisputed: 2009:

Fertitta: "There is no such thing as banned, but this is something that does get under my skin and Dana's skin because when we had the opportunity to go out and build a video game who do you think the first people we called was? EA Sports… We sat in the room with them and I would have cut a worse deal just to be with EA Sports. I wanted them so bad. They looked at them and they told us they didn't think MMA was a sport. This was three years ago. They said the UFC was irrelevant and that we were wasting their time. So we went down the street and did a deal with THQ and they thought MMA was a sport. So we stick with the guys who stick with us. Now the UFC video game has been a massive success with three million copies sold. And guess what EA wants to do? They want to do an MMA game now… If you are young fighter coming up, it just makes sense to stay under the umbrella of UFC companies, sponsors and marketing to ensure yourself a cut of the action for the rest of your life."

So Lorenzo basically leaked out information that UFC Undisputed has sold a whopping three million copies sold, an amazing number. If you recall, Wall Street analysts predicted the game would move two million units in THQ's fiscal year, which ends next March. But the UFC and THQ have beaten that number by 50% in just a couple of months!

It's also notable that like Dana, Lorenzo is stressing loyalty over all else - this means that when the current UFC/THQ licensing deal ends in 2011, it will almost certainly stay with THQ. This lends credence to my view that EA should acquire THQ for the runaway success of the UFC Undisputed (it certainly doesn't hurt that THQ has some other very solid licenses and properties). EA's not going to get the license and not having a major brand name like UFC will hurt them big time in MMA.

As for my title, Zuffa is making a TON of money from UFC Undisputed. This game has already crossed the $100 million mark for THQ, and as with any video-game licensing deal, Zuffa is entitled to a piece of the action. One industry analyst pegs Zuffa's cut as 17%.

But even if its share is lower than that - Zuffa's going to make tens of millions, if not hundreds of millions of dollars from the video-game license over the long term.

Licensing dollars tend to be extremely profitable. Lending out trademarks, copyrights, and patents for money does not require much work or effort on Zuffa's part. That means the majority of that licensing revenue flows right down to Zuffa's bottom line.

Zuffa is a private company whose three owners keep what's left in the register each day. That means a huge chunk of the coming hundreds of millions of dollars in video-game licensing revenue will go right into the pockets of Dana, Lorenzo, and Frank.

So if you were wondering Frank is going to afford his new pad, the mystery is now gone!

The FanPosts are solely the subjective opinions of Bloody Elbow readers and do not necessarily reflect the views of Bloody Elbow editors or staff.

2 recs  |  Comment 12 comments

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 Big news! Zuffa earns big bucks off a computer game! Lorenzo announced tiny details of how many they sold, we have more ammo on fighting the war against that evil empire. Curse them for getting richer! Mwahahaha! (/end evil laugh)

by Anton Tabuena on Jul 12, 2009 11:04 AM EDT reply actions   0 recs

I wasn’t cursing anyone!

by MMAEruption on Jul 12, 2009 3:01 PM EDT up reply actions   0 recs

Relax I’m just playing with you.. I thought the guy who loves satires would get that easily. Hahaha. :)

by Anton Tabuena on Jul 12, 2009 8:10 PM EDT up reply actions   0 recs

All the more reasons to hate EA…

by cyph on Jul 12, 2009 3:40 PM EDT reply actions   0 recs

We sat in the room with them and I would have cut a worse deal just to be with EA Sports. I wanted them so bad. They looked at them and they told us they didn’t think MMA was a sport. This was three years ago. They said the UFC was irrelevant and that we were wasting their time. So we went down the street and did a deal with THQ and they thought MMA was a sport.

Or, more likely, they thought that MMA was like Pro Wrestling, which THQ has experienced success designing and developing games for. I’m just saying…

by madiq on Jul 12, 2009 4:25 PM EDT reply actions   0 recs

It doesn’t matter, one company believed that MMA could sell, the other didn’t.

by cyph on Jul 12, 2009 5:52 PM EDT up reply actions   0 recs

If this is true, (probably is)

EA is really looking like bandwagon jumpers who realized they could make a quick buck..

by Anton Tabuena on Jul 12, 2009 8:12 PM EDT up reply actions   0 recs

That is pretty much how EA has always been I think.

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

by iiowyn on Jul 13, 2009 10:49 AM EDT up reply actions   0 recs

2 things.

1. I don’t see this as any backup to your other point that EA should buy THQ, if Zuffa feels disrespected by EA, and that’s why they went with THQ, they probably wouldn’t enjoy EA going around them and buying the company to get the license, and there’s a possibility that they could just go to another video game company to make the UFC games after the current licensing deal is up.

2. It’s ignorant to say that because the company is private that all of the cash will go directly into their pockets. If you’re going by that logic, those 3 people have probably put more money into the sport of mma than any other group of 25 people in the world. To say that dana, frank, and lorenzo take all the profits and buy cars/houses/swim in the money scrooge mcduck style is just stupid.

by Phildo on Jul 13, 2009 1:55 AM EDT reply actions   0 recs

And Sponsors?

It would make sense to me that these official UFC sponsors that appear in the game have put up a substantial amount of cash to appear in the game, so I imagine a large chunk of money was made before they’d even finished the game. They also seem to have a underused but still present feature that allows them to change the adverts on the mat too so they have big potential there to change things up if need be although to date I’ve only seen them sneak in a UFC 99 ad, didn’t see one for 100 though.

by Gentleman on Jul 13, 2009 9:14 AM EDT reply actions   0 recs

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