MMA Payout recently detailed a the latest Zuffa credit report from Standard and Poor's.
Two points stuck out as particularly interesting:
The report reinforces that 75% revenues are event-related; PPV buys account for nearly 60% of all PPV event revenue while gate and sponsorships account for the rest. The remaining 25% of revenue comes from live and taped broadcasts on SpikeTV, merchandise, and digital media revenue; much of that is broadcast revenue, but an emerging portion is merchandise and digital media.... Debt: $50 million credit facility expiring in 2012; $425 million term loan due in 2015.
Standard and Poor's revenue percentages that are described above allow us to reverse engineer Zuffa's revenue for 2009 by using Dave Meltzer's reported pay-per view buys for UFC events in 2009, which came in at an estimated 8.055 million pay-per view buys.
Unfortunately there is no way for us to know how many of these buys were high definition versus standard definition, which in turn will hurt the accuracy of our math (not to mention that this doesn't include restaurant and bar purchases, which pay different rates) but we can at least look at the range of possible pay-per view revenue.
If all PPV purchases were in high definition at $54.95 then the estimated pay-per view revenue would be $442.6 million. If all purchases were in standard definition at $44.95 then the estimated pay-per view revenue would be $362.1 million.
By applying Standard and Poor's percentages we can calculate total revenue using the following method:
Estimated PPV Revenue = 60% of event revenue
Estimated PPV revenue / .6 = Event revenue
$442.6-362.1 million / .6 = $737.7-603.5 million
Event revenue = 75% of Total Revenue
Event revenue / .75 = Total Revenue
$737.7-603.5 million /.75 = $983.6 - 804.7 million
Zuffa's estimated total revenue for 2009 would fall within the range of $983.6 million to $804.7 million.
Obviously, these figures are not exact and I wouldn't expect anyone to take them as gospel. But they do offer a more tangible perspective on Zuffa's financial situation.
Cheat sheet of conclusions after the jump.
- Estimated Total Revenue - $983.6 - 804.7 million
- Estimated Event Revenue (75% of total revenue) - $737.7-603.5 million
- Estimated PPV Revenue (45% of total revenue) - $442.6-362.1 million
- Estimated Event Gate/Sponsorship Revenue (30% of total revenue) - $295.1-241.4 million
- Estimated Broadcast, Merchandise, Media and Digital Revenue (25% of total revenue) - $245.9-201.2 million.