IFL Transition Continues: Rutten Added to Management Team
January 24, 2008
Today the IFL announced the appointment of MMA legend Bas Rutten to the newly created position of Vice President of Fighter Operations. Early this week the company also unveiled a new logo and branding for the 2008 season.
The moves are the latest in a series of changes instituted by new IFL President and CEO Jay Larkin. For more details on the company’s new direction, see In Defense of the IFL.
EliteXC Update
January 23, 2008
Dave Meltzer recently reported in The Wrestling Observer Newsletter that EliteXC is expected to focus on Showtime this year as opposed to pay-per-view. The company’s contract with Showtime is structured in such a way that it needs 60,000 pay-per-view buys to match the money generated by airing an event on Showtime. Under the terms of a new contract, Showtime pays the production costs and a rights fee for EXC events aired on the premium network as opposed to last year when EXC paid Showtime.
There had been some speculation that Showtime’s commitment to EXC was waning, however, Meltzer reports that the network seems to be solidly behind the MMA product, but wants more communication between it and EXC.
The company is also embroiled in a dispute with Gina Carano over her involvement in American Gladiators and reportedly is involved in conversations for a late late Friday night slot on NBC.
UPDATED: UFC Sponsor Update: Harley-Davidson Official; Budweiser Coming Soon?; Xyience Files for Bankruptcy
January 22, 2008
Over the weekend Harley-Davidson officially announced its exclusive motorcycle sponsorship of the UFC and WEC. Key quotes:
“This is the first major worldwide sports sponsorship for Harley-Davidson outside the motorcycle/automotive category,†said Harley-Davidson Senior Vice President and Chief Marketing Officer Mark-Hans Richer. “We see our brand embodied in these fighters: young, aggressive, hard working individuals who cut against the grain.â€â€œLike Harley-Davidson, UFC is a true American passion that transcends cultures and languages, and shares incredible and growing popularity in the United States, Europe and around the world. Harley-Davidson is a powerhouse brand, we are proud to call it our exclusive UFC and WEC motorcycle sponsor and to have the historic Harley-Davidson Bar & Shield in the Octagon,†said UFC President Dana White.
While Harley-Davidson will occupy the center of the canvas, sources continue to tell MMAPayout.com that a deal between the UFC and Budweiser is believed to be eminent with the King of Beers set to take its place on the canvas as soon as April.
Additionally, this morning the Las Vegas Review-Journal reported that Xyience has filed for Chapter 11 bankruptcy. MMAPayout.com will have further details on this story in the coming days.
MMA Goes Hollywood
January 22, 2008
The latest issue of FIGHT! magazine is now available on newsstands. I have a piece called “MMA Goes Hollywood” focusing on the growing profile of MMA in Hollywood with quotes from Dana White, Randy Couture, and Couture’s sports and acting agents. Key quotes to wet your appetite:
“Most of these athletes at the end of the day want to take the celebrity that they’ve built on the field or through their sports and translate that into other opportunities whether that is business, entertainment, or whatever they may want to do,†Matt Walker (Couture’s sports agent) said. With Gersh, “I don’t have to go outside of this office, all I have to do is push the buttons, find the people here that believe in MMA, believe in my client in the same way, and then you can do it all internally.â€
…
As a fighter, Couture sees Gersh’s involvement as a welcomed development. “I think that there are a lot of athletes out there in our sport that are being misrepresented. They’re not being done justice in their fight careers. I think a lot of those purely fight managers don’t have the capability of helping athletes try to diversify and make the transition somewhere else.â€
…
“They’re parasites and what there job is to tell you how fucking great you are, how many other things you could be getting, how badly your getting fucked, and how much better they’re going to make your life,†Dana White said. “That’s there job. But with most of the things that these guys tell these fighters, they’re lucky if thirty percent of it comes true.â€
In only four issues FIGHT! has become the largest MMA publication in North America with over 6,000 subscribers and available in bookstores like Barnes & Noble and Borders nationwide. Since its inception the publication has gone from a bi-monthly format to monthly and expanded into Canada with expansion into Europe, Mexico, and Latin America on tap in the not too distant future. As part of an aggressive marketing plan, a full year subscription (12 issues) is now available for $18.95, at least $10 below the competition and 65% off the cover price.
Thanks to Donovan Craig and Matt Brown at FIGHT! who are both a pleasure to work with.
UFC 80 Review: Penn Point Perfect
January 21, 2008
In some respects UFC 80 delivered in spades. In the main event BJ Penn turned in a dominant performance in capturing the Lightweight Title, while the rest of the live card featured four strong fights with decisive finishes. It would be easy to dismiss pre-event criticism that the card wasn’t pay-per-view quality, however, it can never be forgotten that in terms of business exciting fights come second, stars come first. Exciting fights can create stars, but only stars mean business.
It will be extremely interesting to see how many buys this event draws. There are two parallels from last year. The result the company has latched onto, in defense of an ever increasing schedule, is UFC 78 which reportedly drew more than 325,000 with an arguably weaker lineup than UFC 80. However, there is another direct comparable in the form of UFC 72 which originated from Ireland last June, featured Rich Franklin v. Yushin Okami, and drew only 200,000 buys.
Only time will tell the effect of more pay-per-views, weaker lineups, at an increased price point of $45 (starting with UFC 81). For now the most important and immediate take away from UFC 81 is BJ Penn, who reestablished himself as one of the most dominant pound for pound fighters in the sport. Penn’s performance reinforced his own mythology, as the fighter that can only beat himself. Focused and dedicated, motivated to prove himself and establish his legacy, and in the best shape of his career, Penn looked unstoppable in dominating a game, but over matched Joe Stevenson.
Dominating fighters don’t just make for good conversation, they’re also good for business. From here Penn has a big money grudge match with Sean Sherk in May for the undisputed Lightweight Title that has a chance to do strong business. Penn could conceivably fight two more times after that bout with potential rematches with St. Pierre and Matt Hughes at 170 as his most lucrative immediate possibilities, in addition to defending the Lightweight Title.
I don’t see Penn ever becoming a truly elite draw of the caliber of Chuck Liddell, Randy Couture, or Tito Ortiz (all 205 pounders), but he could easily replace Matt Hughes as a solid to strong draw capable of carrying cards on his own name when given solid opponents.
The other bright side in terms of future business was Marcus Davis who had another strong outing and looks like a contender in the crowded 170 pound division. Things didn’t go so well for the company on the rest of the undercard with Kendall Grove and Gabriel Gonzaga going down, further exposing the already thin Middleweight and Heavyweight divisions.
In a testament to the state of the Heavyweight division post Couture, Dana White announced following the show that Fabricio Werdum is next in line for the Heavyweight Title thanks to his victory over Gabriel Gonzaga. This is the same Werdum who was dominated in a pathetic performance again Andre Arlovski in his previous fight. To say a lot is riding on Brock Lesnar is an understatement. Lesnar will need to be ready to challenge for the title by the end of the year.
Speaking of Arlovski, you may remember him as the former Heavyweight Champion who has spent the better part of the last year in the company’s dog house for refusing to sign a new contract. He will reportedly fulfill his current contract at UFC 82 in March, in what is looking more and more like his last fight in the company.
The company’s booking moving forward is becoming a little muddled, with a lack of challengers in the heavyweight and middleweight divisions, the light-heavyweight division on hold until mid-year, and the cluttered lightweight division flush with talented fighters but void of truly elite challengers for Penn/Sherk. Only the stacked welterweight division looks set with Jon Fitch and Karo Parisyan waiting for the winner of GSP/Serra. It looks as if top contender matches in the light heavyweight division will be asked to carry a lot of water for the company this year, particularly in the second quarter.
Quick Notes on Network TV: Progress for UFC-CBS; NBC Details
January 21, 2008
Sources tell MMAPayout.com that talks between the UFC and CBS are progressing after the UFC apparently softened its stance last week. At NBC, EliteXC is rumored to have emerged as the front runner for the Friday night late late night time slot with Strikeforce on Saturday. The NBC deals being offered are believed to be straight time buys. Under the agreements, the companies would pay the network $2 million for a one year contract (52 one-hour shows) and receive all the advertising time to sell on their own.
This report is based on information from anonymous sources within the MMA industry. As a result, it should be considered rumor or informed speculation at best. It also bears mentioning that the situation is fluid and can change quickly.
Hurt Clothing
January 21, 2008
MMAPayout.com is pleased to welcome Hurt Clothing as a sponsor. MMAPayout.com readers are eligible for free shipping using the discount code “MMAPAYOUT.”
Dana White on International Expansion, Internet Pay-per-view, and Network TV
January 19, 2008
Pramit Mohapatra interviewed Dana White for SI.com on the eve of UFC 80. White addressed several topics that MMAPayout.com has covered in the last week, including international expansion, internet pay-per-view, and network TV.
White dodged the timing question of international expansion, but did emphasis that the company never canceled UFC 83 from Manchester because it was never officially scheduled. White did offer some insight into where the company sees the industry heading in the big picture and how that relates to international expansion:
We want to get out there, get the brand known, get people into mixed martial arts. We’re taking the show around and traveling it to introduce it to people because the bottom line is if you’ve never seen mixed martial arts and you think, “Oh god, I wouldn’t like it — it’s barbaric,” all I have to do is get you inside that arena and you’re converted. It’s the most exciting combat sport in the world and it’s probably the greatest live sporting event you’ll ever see. I really believe that when this thing goes to the Internet, we’re going to be global.
The promise of internet pay-per-view is nothing new to readers of MMAPayout.com. This is the first time I’ve seen White publicly endorse the medium, however, the UFC has been an aggressive proponent of digital content with UFC on Demand.
On the topic of network television, White was again optimistic and surprisingly candid. He admitted that UFC 80 was originally a candidate for network TV and seemed to confirm talks with NBC in addition to CBS as MMAPayout.com reported earlier this week:
It will be ready when we cut a deal that works for us. I’m not going to go out there and cut any stupid deals. I use boxing as the blueprint of what not to do with this sport. And, no matter what, we’re out there, we’re working hard, we’re trying to grow the UFC and expose it to more people, and get it into other countries. But, we’re not going to cut any deals that don’t make sense for this business long-term.
UFC 80 Preview: Bang For Your Buck
January 18, 2008
If UFC 80 represents a new philosophy for the company, as illustrated by Lorenzo Fertitta’s recent comments about the success of UFC 78, then 2008 is going to be a long year for the company and its fans. BJ Penn v. Joe Stevenson, even for the vacant Lightweight Title, is not a pay-per-view caliber main event. No matter how successful this Saturday’s event is or how successful UFC 78 was, headlined by a similarly weak main event of Rashad Evans v. Michael Bisbing, running ever more frequent pay-per-views, at ever increasing price points, with shallower lineups and less star power is not a recipe for success.
UFC 78 and 80 look a lot more like boxing’s blueprint than Dana White’s talking point about the UFC being what boxing is not. The UFC brand is hot now, perhaps hot enough to carry UFC 80 to the same upside surprise as UFC 78. But if the trend continues of more pay-per-views at more expensive prices with fewer important fights and perhaps even more importantly further diminished star power, some of the luster will come off the brand. This is not uncharted territory, the results of this approach have already been bore out by the diminishing returns of the WWE and boxing, both languishing in mediocrity on pay-per-view, waiting once a year for a major event, Wrestlemania and Oscar De La Hoya respectively.
The Countdown show on the other hand provided a lot of bang for your buck, at least for Stagr, a sponsor of Joe Stevenson and MMAPayout.com. The episode had the place brand placement I’ve seen in the UFC, with Stagr prominently featured in almost every shot of Stevenson on camera, training or talking.
Stevenson’s agent Dean Albrecht engineered the Stagr deal and the placement. Albrecht represents over 15 fighters in the UFC, including Frank Mir, and is part of a growing number of agents in MMA with professional sports experience. “We focus on helping our fighter clients look great and helping our corporate clients attain excellent placement whether that means being on a shirt or a pair of shorts of a fighter of doing deals with some of the nations largest entertainment venues or like the Countdown show where we did the placement for Stagr on behalf of our client Joe Daddy Stevenson,” Albrecht told MMAPayout.com. “The goal is the stand out and match the brand of a corporate client to a fighter that fits the brand.”
“They did a great job! Dean’s a great manager and the relationship he has with the athletes has a lot to do with how promotions like this are maximized,” said Stagr’s Matt Foy. “Bottom line is they trust him and they know he’s always looking out for their best interest. We were completely surprised at how well it turned out and glad to have helped out Joe’s camp.”
The most notable development of the Countdown show was the frankness with which the Sherk situation was addressed. It was refreshing to see the issue finally addressed. At the very least it shows that the company is willing to address unfavorable facts when it absolutely has to, a small step in the right direction. Of course the fact that this development is notable, the fact that it seemed plausible that the company might never acknowledge the incident, shows just how far the company has to go.
BJ Penn was very introspective and came off well. He was presented as the star and played the part well. Stevenson was also well positioned as a hungry, determined contender, ready to step up against top level competition. But even after the hype, this still felt like a TV main event to me and the hype itself bore that out with a Countdown show that went through the motions, especially compared to the show that preceded UFC 79.
Penn is the heavy favorite and also the best bet for business. A focused Penn has a chance to become a dominant fighter and one of the company’s top draws. The rededicated Penn could be on the way to the biggest year of his career with a win over Stevenson. A Sherk-Penn fight for the undisputed Lightweight Title has the potential to do good business later this year built on the genuine dislike between the two in addition to each combatant’s impressive pedigree. Penn could also get another crack at Matt Hughes at 170 later in the year.
The build for the same main event is a daunting task with two relatively unknown Brazilians coming off unimpressive outings. Gabriel Gonzaga exploded onto the scene with his knockout of Mirko Cro Cop, but was quickly deflated by a rather one sided loss to Randy Couture. Fabricio Werdum is coming off a stale unanimous decision loss to Andre Arlovski that was particularly annoying to the UFC brass, who subsequently yanked Arlovski’s title shot for the boring fight (although one wonders if that was a convenient excuse to bench Arlovski with one fight on his contract).
White went with the hard sell, pushing the fight as a UFC career end-er for the loser, which is a particularly tough pill to swallow in the case of Gonzaga who is coming off a Heavyweight Title shot and is believed to be one of the best young heavyweights in the sport. A win should put Gonzaga back in the mix at heavyweight, while a loss would likely end Werdum’s UFC run.
The rest of the live card features Kendall Grove v. Jorge Riveria, Wilson Gouveia v. Jason Lambert, and Jess Liaudin v. Marcus Davis in bouts that appear to be booked to establish Grove, Lambert, and Davis.
Direct Electronics Partners with UFC and Huerta
January 17, 2008
This week Direct Electronics announced a deal making it’s Orion Car Audio brand the exclusive mobile audio partner of the UFC. The company’s marketing plan will rely on “web advertising, point-of-purchase displays, and association with one of the UFC’s top fighters, Roger “El Matador” Huerta.”
According to Jim Jardin, Director of Marketing for Directed: “The UFC is one of the fastest-growing and most popular sports in the world with young men — exactly the same hardcore demographic that has made Orion a legend in high performance car audio for over 25 years. We look forward to our exclusive mobile audio partnership with the UFC and Roger Huerta as we promote the launch of the affordable Orion COBALT(R) line of speakers, amplifiers and subwoofers, and drive new car audio customers to Orion dealers.”
