An Investment in Human Capital … Defence as the Best Offence … UFC Saturation of the Worldwide MMA Market

by nidge on Mar 17, 2011 4:32 AM EDT

Right now the UFC cannot significantly add to its roster. White’s assertion that the league needs more fighters does not hold water. If White wanted the cream of the Strikeforce crop he would simply bide his time and outmanoeuvre Coker when contracts finish (buy out bidding him or forcing Coker to pay crippling salaries).

Zuffa want more then contracts. I believe the UFC has invested in Scott Coker more so then in the current Strikeforce roster. Zuffa wishes to use the talent behind the scenes at Strikeforce to realise its planned increase in output over the coming years. Just like the purchase of the WEC, Zuffa has taken some the most talented staff out there under its wing. Zuffa recognised the abilities of Scott Adams and Reed Harris and retained their services after the eventual merger, they see the same potential in Scott Coker.

A second parallel with the WEC acquisition is the defensive aspect of the move. The UFC used the WEC to tie up mid level talent and prospects in the lightweight, welterweight and middleweight divisions. The WEC also enabled Zuffa, without cluttering UFC cards, to frame the history of the featherweight and bantamweight division in the minds of fans unaware of the Japanese scene.

The UFC could likely have continued its previous defensive tactic of forcing Strikeforce to either pay above market price to obtain high profile fighters or take UFC cast offs. Instead they took the more aggressive option of buying Strikeforce. This option has many significant implications.

A week ago, while unlikely, there was a significant chance that a competitor to the PPV market might materialize. Now the UFC can tie up promotable but sub-par fighters such as Manhoef, Le and Walker. It can mop up enough Japanese fighters to keep whatever promotion emerges firmly in second place. Scott Coker’s contacts in Japan will play an important role in this regard. Zuffa can find a home for fighters that are cut by the UFC but still marketable in another promotion. Finally Zuffa has tied up Showtime for the next two years, blocking emerging leagues access to the only major television outlet currently in the MMA game.

Zuffa has not just bought its closest competitor, it has shut the door on a new EliteXC, Affliction, Strikeforce, IFL, PRIDE or DREAM emerging. Now no new promotion can realistically find financial backing and hope to get lucky by taking a significant cut of the PPV market.

When Zuffa decides to merge the UFC and Strikeforce (and they will unless the promotion provides a gateway into Japan) it will not only have access to the vast majority of the worlds best and most marketable fighters. It will also have access to the brains and infrastructure to saturate the MMA market globally. The Zuffa monopsony (monopoly, dominance, whatever you wish to call it) is now set. It is in the company's own hands and will only be taken away by a major blunder from the powers that be.

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

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very good post

with both the mergers, i’ve never really thought about locking up the men running the show. makes sense to pick up as many of the quality minds in the game as possible, even if that means buying them out, if they want to get as many shows as they say.

by Nesbitt on Mar 17, 2011 8:58 AM EDT reply actions

In order to maintain the PPV model that is the bread and butter of Zuffa and the UFC, buying Strikeforce and eventually merging the two orgs is very important. The PPV buys were becoming stale in the months before the WEC merger. Since the Merger, UFC fight cards have become stacked and top to bottom a better overall product. I truly believe this is another attempt to strengthen the PPV model. Since, we all know the UFC isn’t gonna go way from a tried and true cash cow; the best long term strategy is too continue to strengthen the PPV cards in the hopes that the enormous buy rates will encourage a network TV company to sign the UFC to a sweetheart deal. Now, Strikeforce cannot be dissolved immediately, so, Zuffa will use it’s ability to market as a vehicle to gain traction amongst crossover fans. Ultimately, the Strikeforce fighters will “cut their teeth” in Strikeforce til the tv contract with ST is complete. Then a merger will inject new blood, fresh rivalries and unbefore seen storylines into the PPV cards. Brilliant if you ask me. Plus, the ability to possibly sign a new, long term deal with ST will potentially kill any inroads M-1 Global is making with ST. Love them or hate them, Zuffa know business.

If Russia attacked Turkey from the rear, Do you think Greece would help?

by whardiek on Mar 17, 2011 6:40 PM EDT reply actions