Station Casinos: Judge Urges Negotiation
January 27, 2010
Cy Ryan of the Las Vegas Sun reports that a federal bankruptcy judge has advised Station and its creditors to re-enter negotiations in order to avoid a ruling that may not be in the best interest of the business.
After six hours of arguments, a federal bankruptcy judge advised Station Casinos and unsecured creditors to hold negotiations over a $2.3 billion debt, rather than face legal action.
U.S. Bankruptcy Judge Greg Zive withheld a ruling on the petition by the unsecured creditors to be allowed to sue over the arrangement of the 2007 leveraged-buyout deal that took the casino company private.
Susheel Kirpalani, attorney for the creditors, told the judge the creditors “were left holding the bag” while “insiders and fat cats” got big payouts in the $8.9 billion buyout by Colony Capital and the Fertitta family.
“The unsecured creditors were harmed by the transaction,” Kirpalani argued. He called it a fraudulent transfer.
But Thomas Kreller, attorney for Station, said a suit would result in “acrimonious litigation” and would disrupt the chances of coming up with a plan for the company’s reorganization.
He said denial of the unsecured creditors’ right to sue wouldn’t extinguish the money owed. But permitting a suit, Kreller said, would result in “significant and irreparable harm” to Station.
Scott Kane, attorney for the Special Litigation Committee of the Station board of directors, said it looked into claims and determined that the $8.9 million was not an excessive price to pay for the company at the time. There was nothing at that time to suggest the company would fail, he said.
The creditors claim it was too much and it saddled with company with an additional $1.7 billion in debt. But others suggest it was the downturn in the economy that crippled the company.
Zive said he didn’t see any evidence of fraud in the buyout by Colony and the Fertitta family in taking the company private.
Zive advised Station Casinos to allow the unsecured creditors to be a “meaningful participant” in the talks toward reorganization. He said he believed there would be “unintended consequences” if he permitted a suit go forward at this time.
“I find people negotiate when people have a little bit of risk,” in advising the two sides to talk, Zive said. “The creditors deserve to be heard.”
If there are no negotiations, Zive said “I’m willing to rule. It may not be in the best business interest but it will be on the law.”
Payout Perspective:
The news is slightly encouraging for the Fertittas as Zive has stated he doesn’t believe there’s any evidence to support that the buyout was fraudulent. Station management has until sometime in March to get their house in order and secure a new deal with creditors before a ruling would have to be made by Judge Zive – something that’s likely to be met with a great deal of trepidation from both sides.
UFC 112 in Abu Dhabi Official
January 27, 2010
Kevin Iole of Yahoo! Sports has the official confirmation from Dana White that UFC 112 will in fact take place in Abu Dhabi on April 10th in an outdoor venue.
The card, which will be held at the Concert Arena in Ferrari World on Yas Island, will feature two championship bouts. Anderson Silva will defend his middleweight title against Vitor Belfort and B.J. Penn will put his lightweight belt on the line against Frankie Edgar.
The UFC confirmed that veteran mixed martial artist Renzo Gracie will make his UFC debut on the card when he meets former welterweight champion Matt Hughes.
“This is one of the biggest and most significant nights in the history of the UFC,” UFC president Dana White said. “UFC 112 is our first ever outdoor event and it is taking place in the hometown of our brand new partners, Flash Entertainment. We are very happy we could deliver what fans around the world will recognize as a stacked card featuring the sport’s biggest stars.”
Payout Perspective:
There are a host of UFC officials and fighters currently in Abu Dhabi for the press conference that is expected to come Wednesday, so you can expect an update to this post tomorrow. I think the most interesting thing to come out of Dana is that the venue is the Concert Arena at Ferrari World on Yas Island – not the site which Flash and the UFC plan to build an arena on in the future.
MMAterial Facts (01/26/10)
January 26, 2010
- Affliction’s Motion to Dismiss Denied in Fedor Lawsuit
- LNF Ultra Cage MMA fighters raise money for breast cancer
- New Mixed Martial Arts Search Engine and Directory
- Ontario leads world in MMA devotion, UFC says
- UFC fights still not welcome in Ontario despite the sports growing popularity in the province
- UFC’s big hopes for the Big Apple
Affliction’s Motion to Dismiss Denied in Fedor Lawsuit
Fedor Emelianenko and his promotional team survived a first-round attack Monday in a legal battle that pits them against their former business partner, Affliction Entertainment.
Affliction’s attorney, Michael Bassiri, confirmed to Sherdog.com that a Los Angeles federal judge had denied Affliction’s motion to dismiss several claims made in a breach of contract lawsuit filed Oct. 28 by Emelianenko and M-1 Global.
The case is set to go to trial on Nov. 16.
Emelianenko and M-1 Global, a promotional/management group with which the fighter is closely aligned, have sued Affliction for damages following Affliction Entertainment’s decision to cancel its co-promoted “Trilogy” event, which was scheduled to take place Aug. 1 in Anaheim, Calif. (Sherdog) … [MMAPayout's Perspective]
LNF Ultra Cage MMA fighters raise money for breast cancer
“It ended up being a great show,” LNF Ultra Cage Fighters founder Dan Ferrie said. “We had enough entertainment for everybody. (Glen) Big Baby Davis came, so we had the stars out. From the kid’s demonstrations, to the Human Floor, to the fights—it had something for everybody.”
“It was a very good night,” LNF Director Greg Mendes agreed. “Everybody pulled together. You know, me and Dan did a lot of work, but the final result was a culmination of everybody picking up all the loose odds and ends. And we had everything, from boxing, to kickboxing matches, MMA matches, and (strict) grappling. In the fights nobody got hurt real bad, which is always good, and everybody joining together to raise awareness really shows what type of people we have in the surrounding communities out here.”
It also demonstrated the intense following of mixed martial arts on the local level. Despite several supposed setbacks, the Holiday Inn was swarming with eager fans.
“MMA is drawing fans better than ever,” Mendes said. “And if it’s this good now, just imagine five years down the road—it will be the biggest thing out here. And hopefully New England can be a Mecca for the sport.”
Before entering the event room, patrons were greeted by the thumping bass from DJ Al Martinez, who kept the atmosphere buzzing throughout the evening. Singer Angella Kronillis also delighted the crowd with a stirring rendition of “God Bless America.” (Taunton Daily Gazette)
New Mixed Martial Arts Search Engine and Directory
Bridgewater, NJ (PRWEB) January 24, 2010 — Index MMA has launched a mixed martial arts directory and search engine. Located at www.indexmma.com , this website is a database of all mixed martial arts websites on the Internet. The worldwide directory consists entirely of user submitted websites.
“The sport of mma is growing incredibly fast and there are new websites all over the world created daily,” said Shawn Ayre president of Zelfanet. “We created a website to accommodate this phenomenon. Now a mma fan can jump on one website and search through a plethora of websites that may have been buried or not even listed in traditional search engines. This is exciting news for mixed martial arts enthusiasts”.
The website was created by the web design group of Zelfanet LLC. Zelfanet is a leading provider of technology solutions based out of New Jersey, USA. (PR Web)
Ontario leads world in MMA devotion, UFC says
More than any other part of the world, Ontario has the most interest in pay-per-view shows for mixed martial arts, the Ultimate Fighting Championship says.
“When we look at our TV ratings and our pay-per-view buys, on a per-capita basis, Toronto and Ontario are the No. 1 places in the world,” UFC executive Marc Ratner tells the Toronto Sun. “It’s unbelievably popular in the province of Ontario and especially Toronto.”
Although Quebec has hosted UFC events and Vancouver plans to do so later this year, Ontario officials say MMA remains illegal in their province for now. But UFC can draw a crowd of 35,000 to 40,000 in Toronto, says Ratner, the promotion’s vice president of regulatory affairs. (USA Today) … [MMAPayout Perspective]
UFC fights still not welcome in Ontario despite the sports growing popularity in the province
On the phone from his office in Las Vegas, Marc Ratner says bluntly that if Ontario were to legalize mixed martial arts, the biggest-ever UFC event in history would go down in Toronto.
“We think we can draw 35,000 to 40,000 there,” said Ratner, vice-president of regulatory affairs for the Ultimate Fighting Championship.
Despite his desert locale, Ratner should know what he’s talking about when it comes to Canada’s most populous city. As the UFC’s expansion point-man, he’s spent years lobbying state and provincial governments to pass laws legalizing the controversial UFC. Most of them have. Queen’s Park hasn’t.
According to Ratner, there isn’t a place on earth that boasts more of an interest in UFC than Ontario.
…
Provincial athletics commissioner Ken Hayashi, who rightly or wrongly has been perceived by some as being anti-MMA because of his strict adherence to federal Criminal Code regulations, which in his interpretation outlaws mixed martial arts, didn’t respond to calls and e-mails from the Sun.
In a story last year by the Sun’s Steve Buffery, Hayashi maintained his stance that mixed martial arts is an illegal activity in Canada.
Until Sec. 83 is changed to allow for professional combat sports beyond what the law calls a “boxing contest,” there won’t be any UFC bouts in Ontario, Hayashi has said. (Toronto Sun)
UFC’s big hopes for the Big Apple
When Gov. Jim Doyle signs the bill sometime this week, Wisconsin will become the 43rd state to regulate mixed martial arts.
It’s one that doesn’t regulate it that still stands out, however. The Ultimate Fighting Championship has been desperate to get into New York and has spent thousands on its lobbying effort.
But there will be no MMA in New York any time soon, even if the state legislature sends a bill to the desk of Gov. David Patterson for his signature in the next few months. That’s because once the bill is signed by the governor, there would be a 120-day window that would have to pass before the bill became law and the sport became legal and regulated by the New York State Athletic Commission.
If the state does pass a bill this year, this is a thought that may essentially give UFC president Dana White a license to print money: Hold the company’s annual New Year’s Eve show in Madison Square Garden with a bout featuring reigning heavyweight champion Brock Lesnar. (Who knows if he’ll hold the belt then, but he should be the headliner regardless.)
January 1, 2011, is a Saturday, the day the UFC normally holds its pay-per-view events. How about a New Year’s Eve weigh-in and then a fight to kick off the New Year in the world’s most famous arena? (Yahoo! Sports)
QUICK HITS
- Hansen challenges Fernandes for DREAM title (Yahoo! Sports)
- Round 5 Announces UFC Ultimate Collector Series 2 (Round5)
- MMA fighting: Bobby Lashley ready for bout at BankAtlantic Center (Miami Herald)
- Bobby Lashley Sees Positives of Opponent Shuffling (MMAFighting)
- Herschel Walker to Debut in MMA (Financial News USA)
- Walker uses star power to hype fight (Las Vegas Review-Journal)
- Muhammed “King Mo” Lawal cautiously optimistic on potential bout with Gegard Mousasi (MMAJunkie)
- Tokyo Five Signs Matt Serra For Sponsorship At UFC 109 (FightLine)
- 11 Bouts Signed for UFC’s Versus Debut (Sherdog)
- Griffin vs L’il Nog at UFC 113 (Yahoo! Sports)
- Josh Gross: Stoic Zaromskis shoots for Strikeforce welter title (Sports Illustrated)
- Liddell, 40, has plenty of fight left in him (Las Vegas Review-Journal)
- Cole Konrad, Training Partner of Brock Lesnar’s, Wins MMA Debut (MMAFighting)
- Nick Diaz Happy With Welterweight Return (MMAWeekly)
- 12 Questions for Cris ‘Cyborg’ Santos (Sherdog)
- Shine Fights inks Dave “Pee Wee” Herman; bout with Jeff Monson likely for spring (MMAJunkie)
- Mauler Manhoef aware of shortcomings (ESPN)
- King Of The Cage Japan: “Toryumon” Preview (MMARising)
IMAGE OF THE DAY
TV LISTINGS
- HDNet Fights Presents K-1 Classics (Musashi Tribute) at 8 PM ET on HDNet (01/29/10)
- InsideMMA (Gegard Mousasi, Gilbert Melendez, & Tony Lopez) at 9 PM ET on HDNet (01/29/10)
- HDNet Fights Presents Best of DREAM Super Hulk GP at 10 PM ET on HDNet (01/29/10)
- Best of Pride FC at 10 PM ET/PT on Spike (01/29/10)
- Strikeforce Miami: Diaz vs Zaromskis at 10 PM ET/PT on Showtime (01/30/10)
- Countdown to UFC 109 at 12:30 AM ET/PT on Spike (01/30/10)
UPCOMING EVENTS
- Strikeforce Miami: Diaz vs Zaromskis at 10 PM ET/PT on Showtime (01/30/10)
- FCF 39: Women’s 135 lbs Grand Prix: Opening Round on PPV (01/30/10)
- KOTC: Toryumon from Okinawa, Japan on PPV (01/30/10)
- UFC 109 at 10 PM ET on PPV (02/06/10)
Affliction Motion to Dismiss Denied
January 26, 2010
J.R. Riddell of Sherdog.com reports that Affliction’s motion to dismiss M-1′s claims of breach of contract have been denied by a federal judge in Los Angeles.
On Monday, Affliction’s legal team urged the judge to dismiss a number of Emelianenko and M-1’s breach of contract claims, arguing that two of the three agreements at issue in the suit had expired well in advance of the “Trilogy” show. Emelianenko and M-1 Global’s legal team countered that the contracts had not expired, pointing to evidence that Affliction actively co-promoted the event with M-1, which in their view suggests that Affliction was acting as if the contracts remained in effect.
Bassiri, Affliction’s counsel, said that the judge denied the motion because at this early stage of litigation, she was legally required to accept Emelianenko’s allegations as true. The judge did not, however, make any binding decisions regarding whether or not Emelianenko’s claims were factually accurate.
Payout Perspective:
MMAPayout.com was the first to break word of the impending suit back in October and followed up with some detailed analysis of the situation which can be found below. Essentially the Fedor and M-1 camp filed a breach of contract suit against Affliction Entertainment and other unnamed parties citing failure to perform certain contractually obligated services.
Although the complaint itself is quite complex, it actually can be easily summarized in lay terms. Fedor had a three-fight contract with Affliction, and fought two of the three fights, and agreed to fight Josh Barnett to close the contract. Barnett failed a steroids test, Affliction had discussions with prospective replacements for Barnett (e.g., Vitor Belfort and Brett Rogers) but ultimately reached an agreement with UFC that would permit Affliction to once again sponsor UFC fighters so long as it agreed to exit the promotion game.
All contracts have what is called an implied covenant of good faith, and Fedor argues that Affliction, instead of satisfying its obligation of booking a third fight for Fedor by finding a suitable replacement for Barnett, chose the path of least resistance by returning to UFC and cancelling the third show altogether, leaving the contracts with Fedor unsatisfied.
The substantive issues in the lawsuit are interesting: in contract law there is what’s known as the excuse of impossibility, and here the argument would be that Barnett’s failing the steroids test rendered impossible the satisfaction of Affliction’s obligations on the Fedor contracts, with Fedor arguing that Barnett’s negative drug test was used as a mere pretext to allow Affliction to exit the promotion end of MMA and stiff Fedor.
But then we come to Affliction’s motion to dismiss, which throws a monkey wrench into the entire substantive analysis. You see, Fedor argues that Affliction breached its contracts by cancelling Affliction: Trilogy and reaching agreement with UFC in July 2009.
Affliction’s motion to dismiss, however, points to the language of the contracts, which calls for termination of the agreements on either (i) March 31, 2009; or (ii) the conclusion of the third fight, with the contracts specifically stating that they terminate upon the earlier of the two dates. Since there was no third fight, the earlier date was March 31, 2009, and Affliction argues in its motion to dismiss that it cannot be alleged to have breached a contract in July 2009 that had expired four months earlier.
Although this is an attractive argument, there are many complexities to the suit, including issues of equity (i.e., fairness) in which Fedor could conceivably recover foreseeable damages suffered by his reasonably relying upon promises made by Affliction, so I do not expect this motion to dismiss to entirely end the matter.
Moreover, the language Afflcition points to in its motion to dismiss has wriggle room that could be favorable to Fedor: the contract cancels on the earlier of the two dates “unless the term of the promotion agreement or any extension thereto is . . . extended further pursuant to this Agreement or pursuant to a separate writing . . . .” I would expect some — perhaps very creative — arguments from Fedor that indeed the contract term had extended either through explicit writing, oral agreement, or even something known in contract law as course of conduct of the parties.
UFC Can’t Afford 200 Millionaires
January 26, 2010
In an article published by Esquire magazine a few weeks ago, Dana White revealed that nearly 18 fighters in the UFC are making more than $1 million a year. Since then a debate has been raging as to whether that’s a sign of progress or a sign of how far the UFC still has to go.
Zak Woods of WatchKalibRun is one who argues that the UFC still has a very long way to go, and even goes as far as to compare the number of millionaires in the UFC to that of other professional sports leagues like the NHL and NBA.
Currently there are 219 fighters on the UFC’s roster, if only 18 are making over a million per year that means 8.2% of the roster is making over a million.
WKR used HoopsHype.com to count how many NBA players are making over a million dollars a year. The final tally: 378 players out of 452 make over a million dollars per year for a whopping 83.6% of the total NBA roster. Only 74 players make under a million and only eight, or 1.8% of the total NBA players, makes under a hundred thousand dollars a year.
WKR followed a similar methodology with the NHLsalaries for 2009-10; with 700 hundred active hockey players, 403 or 57.6% make over a million dollars a year leaving only 297 or 42.4% that make under a million (Note: the lowest salary is $475,000 per year).
Size Total Roster % of Roster paid
over $1million per/year
% of Roster paid
under $1million per/year
UFC 219 8.2% 91.8% NBA 452 83.6% 16.4% NHL 700 57.6% 42.4%
Why is this kind of analysis important? It is important to understand the tremendous chasm that exists between athlete pay between the major sport leagues and the UFC. If Dana White truly believes that MMA and the UFC will achieve a position of dominance within the sporting world in the next ten years these numbers will have to be dramatically different in that time.
Obviously the UFC’s business model is different than the NBA’s or the NHL’s but when one sets such lofty goals such comparisons are warranted if not vital.
Payout Perspective:
I can appreciate the point Zak and WKR are trying to make, but I disagree with the avenue they chose to pursue in doing so. The difference in athlete pay between the sports is complicated, and comparing industry revenues would have been far more effective to illustrate the divergence between the current state of the UFC and its goals.
However, seeing as a comparison of athlete salaries was introduced, I feel compelled to respond.
I understand the fighter pay bandwagon: the desire to reward fighters for their sacrifice is admirable. But to me, the entire movement represents a distinct lack of comprehension of the MMA business model.
Zuffa has dumped tens of millions of dollars into this sport and literally created an industry that can support thousands of people – all in the last 10 years. This is often ignored, as are most of Zuffa’s accomplishments, in favor of looking at what might or should be in all of our wildest dreams. (Note: that’s not an indictment of Zak and WKR as much as it is a general, blanket statement as to the prevailing sentiment within the hardcore community.)
The growth of any business or industry takes time; it doesn’t happen overnight, especially when you consider the broader, macro perspective. The UFC didn’t just appear out of thin air in 2005, but rather was conceived in the form of an idea in the 70s and 80s, took shape in the 90s, entered into the introductory stage of its product life cycle in the decade of the 2000s, and has now arguably hit the growth stage of that same cycle.
Fans can’t have their cake and eat it too. They can’t have industry growth and 200 millionaire fighters. The economics of the industry will not support that model – and that’s why organizations like EliteXC and Affliction have failed.
The UFC likely earned somewhere in the range of $300-$350 million last year, which absolutely pales in comparison to the estimated $2.7 billion the NHL will have made or the $3.8 billion of the NBA. It’s far easier to pay your personnel 50~% when you’re left with $1-2 billion in company coffers to cover expenses and provide some modicum of return. Even then it can be difficult to earn a profit, just ask the Phoenix Coyotes that have lost over $30 million since the year-long lockout that was supposed to deliver a miracle cure for the NHL’s business model ails.
Standard & Poor’s credit reports have indicated that the UFC’s operating margin hovers around 30%, which means that even in the best case scenario of $350 million in revenue, the UFC could only afford to pay roughly 100 fighters $1 million each. But if that were the case, the company would no funds left with which to grow the company, push for increased regulation, and expand into new markets.
Sure, the UFC could start milking this thing for every penny it’s worth, but there would be nothing left in five years.
It takes time and sacrifice to build something worthwhile – something truly enduring – and relative to the NHL, NBA, or any of the other sports leagues, the UFC is still very much an infant. To illustrate, the UFC just celebrated 100 shows (which is great), but the Montreal Canadiens just celebrated 100 years of hockey. Big difference.
The growth of the sport – and fighter pay – will come in time.
——–
The flipside of the equation is that Dana White and the UFC have set the bar of expectations so high that people are bound to start making comparisons of this nature, because as Zak correctly points out, they’ve pretty much asked for it. If you want to play under the bright lights, you better be prepared to get hit.
Then, again, I think there’s a certain balance that needs to be maintained. The MMA community is starving for business details, but every time the UFC divulges information, it’s immediately spun and crammed back down the UFC’s throat. There’s not a lot of incentive to reveal information there.
I’m not advocating that the media should serve up softballs on the UFC’s behalf – in fact I argued quite the opposite recently – but there’s a fair balance here that needs to be respected. I can, to a point, understand Dana’s apprehension when talking to the media in certain circumstances.
USADA: Commission Drug Testing a "Joke"
January 26, 2010
David Mayo of the Grand Rapids Press has done an interesting interview with CEO of the US Anti-Doping Agency, Travis Tygart, that discusses the state and sophistication of combat commission testing slates like those in Nevada:
Transcript via Mlive.com
Q: Shane Mosley obviously slipped through some cracks on urine testing alone in Nevada. …
A: “Let me correct that premise for you. The current state of drug testing done by these state commissions is a joke. They don’t test for EPO. They don’t test for designer steroids. They test for a basic, simple menu that anybody with a heartbeat will escape. I just hate to hear that Shane Mosley did something really sophisticated to get around their testing. No, he didn’t. He would’ve been caught dead to rights in our program. But it doesn’t take a whole lot to sidestep the simple kind of drug testing that these state commissions are doing.
“Again, I hope it’s familiarity, I hope it’s knowledge, because part of the growth is for entities, but also athletes, to become knowledgable about these issues. If you’re a clean athlete, or you’re a sport organizer, promoter, state commission, whatever, if you want to protect clean athletes’ rights, you’re going to put in a clean program.”
Q: And that includes both blood and urine testing?
A: “Blood and urine but it’s got to be an effective urine program. Again, just a couple tests here and there that everyone knows about, or 72-hour notice that you’re going to be tested, or 48-hour notice — it has to be true, no-notice testing. And it has to be a broad menu of tests. And they don’t test for EPO. What was reported on Mosley is that he was using EPO. And he could use it without regard for being caught because they weren’t testing it — and there is a urine-based test for most EPO. So you’ve got to start with an effective urine program and an effective blood program. And the reason, to answer your specific question, that you need to do blood is because there are certain, and several, potent performance-enhancers that are not detected in the urine. Of those, human growth hormone being one; HBOC, which is synthetic hemoglobin; certain forms of EPO, like Micera; and then, the transfusions.”
Q: If you blood test, is urine testing necessary at all?
A: “Yes, because there are certain things that you’re not going to find in the blood, that you can only find in urine, like most forms of EPO, steroids, designer steroids, insulin. You have to have a combination of the two. Look, I’d love to have one strand of hair. From a cost and logistical standpoint, the simpler whatever we collect, the better. Not that collecting blood and urine are difficult, but you have to have the proper procedures in place, and account for the shipping, and the state that you need the samples, once collected, to remain in a preserved state where they can be accurately analyzed. You can build those programs. It doesn’t take much. We obviously would prefer the simplest mechanism possible. But just pulling a strand of hair is not effective to protect a clean athlete’s rights because there is so much that can’t be detected in hair, or saliva, or other things.”
Q: What is the difference in cost — because obviously, with most state commissions, you’re dealing with tax-based, governmental agencies — what’s the difference in cost between a urine test and a blood test?
A: “There’s not much. Incremental cost. It’s certainly not cost-prohibitive and if you want to protect clean athletes, you’ll put it in place. Take half of one percent of what these two boxers were going to generate, or make for themselves, and you’ve paid for a couple years of your program. I always hear that is a defense to not wanting it to be done, but it’s really not. It’s frankly a weak excuse not to protect clean athletes’ rights.”
Payout Perspective:
The commissions – Nevada in particular – are no doubt going to have a response for the accusations of Tygart, but this interview is one that doesn’t reflect very well on boxing or MMA.
The to-do list for the sport of MMA can seem unwieldy at times – regulate, expand, merchandise, television, officiating, judging, etc – but the aspect of drug testing is often an after thought because it’s not readily visible. There are whispers, rumors, and the odd internet accusation, but largely it’s not a focus relative to everything else that’s right before our eyes.
New, strict measures that outlaw the use of performance enhancers would send a strong signal to the sporting world that MMA and boxing are serious. The last thing either sport needs is for someone to cheat and get away with it only to be caught outside of the regulatory scope.
—–
Tygart also addresses the feasibility of drug testing, but I’m not entirely certain he adequately covered the subject from a commission perspective. The current set of drug tests in place costs something near $250 per fighter, but the thought of several random tests, performed with no notice, by a regional commission, and on athletes spread throughout the world seems quite daunting.
Moreover, it would seem that the USADA benefits from scale economies the result of its singular focus or expertise as well as the near year-round testing requirements that Olympic athletes are subject to. Tygart is clearly in a more favorable position than a regional commission to handle such stringent testing procedures.
Perhaps, since he’s willing to comment, he’s also shown a willingness to take on the probably for the boxing and MMA communities? A thought for the future…
Edmonton Commission Grants Use of Pride Rules
January 26, 2010
Murray Grieg of the Edmonton Sun reports on how an Edmonton promotion looking to fight under Pride rules threatens much of what MMA has worked to build in Edmonton and the whole of Canada.
Partially due to concerns raised in this column last week, the ECSC on Wednesday was served notice by the Association of Boxing Commissions (ABC) that Edmonton risks being branded an outlaw city for boxing and mixed martial arts events because of an arbitrary decision to approve Japanese “Dream” rules for an upcoming MMA promotion.
The Missouri-based ABC monitors member commissions in the U.S., Canada, Puerto Rico and the U.S. Virgin Islands. The ECSC has been an associate member for the past 12 years.
Dated Jan. 20, the official notification from ABC president Tim Lueckenhoff sent to both ECSC executive director Pat Reid and the Edmonton Sun states: “This correspondence shall place the Edmonton Combative Sports Commission on notice that the Association of Boxing Commissions is not in support of these drastic changes to the Unified Rules of mixed martial arts as adopted by the ABC.”
Last month, without a vote or approval by the ECSC, Reid arbitrarily approved the Dream rules for the upcoming CCF-5 card promoted by Pasqualino Santoro, president and owner of Colloseo Championship Fighting.
Among other deviations from the Unified Rules of MMA, Dream rules allow knee strikes to the head of a downed/grounded fighter and kicks to the head of a downed/grounded fighter when both combatants are down.
Shoes can be worn in the ring and fights consist of a 10-minute opening round followed by a five-minute second round. In an interview with the Edmonton Sun on Thursday, Lueckenhoff said the ECSC’s obtuse stance has already drawn the wrath of other ABC members.
“There’s been discussion that if Edmonton goes through with this, there will have to be a discussion about their associate member status … and I’m sure there will be some adamant demands for it to be revoked,” he said.
“It’s embarrassing for Edmonton to be branded a rogue commission, absolutely.
Payout Perspective
This is just a stunt; a cash grab on behalf of this Edmonton promoter, Colloseo Championship Fighting, to try and draw a bigger portion of the MMA pie in a very competitive Edmonton market. It’s the type of gimmick show that MMA can and should do without; especially when there remain provinces in Canada that have yet to jump aboard the regulation train.
Moreover, the sudden rule change could very well lead to someone getting hurt. MMA is very much a game of instinctive reaction that relies on hours of training and practice. So, unless a fighter has Japanese fighting experience, he’s not training to knee/kick strikes to head while he’s on the ground. It only takes one pointed and undefended blow to hurt someone.
Here’s to hoping that the commission in Edmonton comes to its better senses and reverses its decision to allow the rule change.
Edit: It’s important to note that I once worked for the Maximum Fighting Championship in Edmonton, Alberta. However, I no longer have any connection with the promotion or its management. This is just an independent assessment of the situation.
MMAterial Facts (01/25/10)
January 25, 2010
Today’s MMAterial Facts illustrates the impact of social networks and media on MMA.
- Notes: UFC branding machine marches on
- Break Media Launches Social Game and Opens Game Studio
- From Motivational Thoughts to Bar Fights, MMA Turns to Twitter
- MMA Pro Fighter Tops the Facebook MMA Rankings
- Fight Biz: Fighters capitalize on social media to take stories directly to fans
- Midwest MMA Expo Exceeds Expectations
Notes: UFC branding machine marches on
The UFC Gym idea came from a series of meetings about 18 months ago between UFC president Dana White, CEO Lorenzo Fertitta, and Mark Mastrov and Jim Rowley, the founder and former division president respectively for 24 Hour Fitness, who had both left the company and to start their own new ventures, opening gyms like YogaWorks, Crunch and Steve Nash Fitness World.
The result is a merger of the 24 Hour Fitness-type of gym with a traditional martial arts gym. The gym features the traditional assortment of weights, treadmills, exercise bikes and other aerobic equipment, along with television monitors and blaring music. But the major differences are the obvious UFC trappings. An Octagon in the center of gym is used for martial arts classes. Huge wall photos of UFC Hall of Famers and life-sized cardboard cutouts of current stars decorate the interiors…
By the end of the day Saturday, which featured autograph sessions with the fighters and martial arts demonstrations by the kids classes, approximately 10,000 people had come through the doors. Many were the type of adult males you’d expect to see at a live UFC event, but there were a number of adults bringing young children. Mastrov noted it was the highest turnout for any gym grand opening in his 26 years in the industry.
UFC lines up Versus debut
“With the UFC viewers watching, we can push WEC events and our other products,” Fein said.
Fein said an advantage of Versus when it comes to live programming of both WEC and UFC is that they aren’t going to be as strict on the time slot.
For example, when Strikeforce had its debut event on CBS, there was a panic backstage because the network affiliates wanted to show to end at 11 p.m. ET because of the scheduled local newscasts. For Spike, the live UFC specials are usually there to build an audience for Spike to debut a series, so they want the new show being showcased to start as close to its advertised time as possible. Fein said if there is a great match on the undercard, they won’t have qualms about the show going well past the scheduled time slot to fit it in. (Yahoo! Sports)
Break Media Launches Social Game and Opens Game Studio
Break Media, the Internet’s premier entertainment community for men, today announced the formation of a game studio to drive its expansion into social gaming. The studio, located in Shanghai, China, will launch its first game on February 1: MMA FightPicker, a mixed-martial-arts-themed social game that will be featured on Break’s MMA property, CagePotato.com.
“Break’s success as a media company is predicated on a deep understanding of our audience and an ability to deliver the content they want,” said Keith Richman, CEO of Break Media. “Gaming is a natural extension of that strategy, enabling us to build on our existing strengths as a publisher to bring even more value to our users and open new revenue opportunities for Break and its advertising partners.”
The new game studio, which has been operating since Q4’09, is currently working on a half a dozen original titles for Break Media, all slated for release in 2010. The studio is expected to grow rapidly throughout the year, staffing up to more than three-dozen employees by mid year. Alex Lien, formerly COO of Chinese game development company Winking Entertainment, has been hired as General Manager, Greater China for Break Media and will manage the game studio and all other Break operations in the region…
MMA FightPicker, the first title from the Break game studio, combines elements of social gaming and fantasy sports games to provide players a unique way to interact with each other and the sport of mixed martial arts. In the game, players join pools and make predictions on upcoming MMA matches; the player who scores the most points wins the pool and status as a top MMA expert, as well as other potential prizes. Players will be able to purchase in-game currency called “potato chips” to join more pools and take advantage of offers from Break partners to earn free chips. (Business Wire)
From Motivational Thoughts to Bar Fights, MMA Turns to Twitter
Thanks to Twitter, Facebook and other social networking sites, a day — and night — in the life of a mixed martial arts fighter is now clearer than ever. Especially since many fighters treat their smartphone like a body appendage…
Following fighters on the Internet can involve taking things with a grain of salt, however. Former WEC featherweight champion Mike Brown had his Facebook account hacked while UFC light-heavyweight Keith Jardine found someone else masquerading as the Dean of Mean on Facebook.
Penn, one of the savviest fighters around when it comes to social networking, uses Twitter to link to www.bjpenn.com for a video offering commentary on his next title fight against Edgar…
Penn did his video in Las Vegas, where he was meeting with Dana White. The UFC president was also on Twitter, showing off a picture of him enjoying a small tub of Pinkberry yogurt.
Belcher, a middleweight, links via Twitter to video of him signing his new four-fight deal with the UFC.
…Loiseau, a Montreal-born middleweight with roots in Haiti, and others use Twitter for a more serious topic: “Praying for HAITI… Praying for all my family and friends.”
Former champion Frank Shamrock and UFC ring girl Arianny Celeste use tweets to urge donations to Haiti. (TSN)
MMA Pro Fighter Tops the Facebook MMA Rankings
Digital Chocolate, a quality leader in original and high quality games on all platforms, today announced that its recently launched game MMA Pro Fighter™ is already the #1 mixed martial arts application of any kind on Facebook. This top ranking includes MMA games, news apps, fan apps, video apps, quizzes, and trivia apps on the leading social networking site. The app can be played at: http://apps.facebook.com/mmaprofighter/
“The depth and quality of MMA Pro Fighter has already made it the favorite of mixed martial arts fans on Facebook,” said Trip Hawkins, CEO of Digital Chocolate. “We’re glad to bring MMA followers a whole new level of experience as they throwdown with their Facebook friends.”
Created specifically to take full advantage of Facebook, players can build and develop their fighter and compete with friends to reach the top of the ranks. Players can also customize their character’s look, gear, fighting styles and more, as well as meet the MMA Pro Fighter Ring Girls.
MMA Pro Fighter features an in-depth fighting engine that realistically simulates fights, blow by blow, using actual MMA moves and attributes. The game offers the opportunity to have your fighter learn up to 300 different bone-crushing fighting moves as you level-up in the game. MMA Pro Fighter provides stunning 3D graphics and high production values to deliver the best executed fighting game on Facebook. (Business Wire)
Fight Biz: Fighters capitalize on social media to take stories directly to fans
Welcome to the age of do-it-yourself reporting.
The social media revolution has given anyone with a keyboard and an Internet connection the means to communicate to the masses. Mixed martial artists are among the most passionate adopters of this type of self-generated media, which gives them the ability to connect with fans on their terms.
“Fighters are celebrities,” Darren Shuster, founder of Pop Culture PR, told MMAjunkie.com (www.mmajunkie.com). “They realize that they are their own brand and that their brand value can be increased in pretty measurable ways. For example, Twitter, with the number of followers.”
Fighters are turning to Twitter in droves. Chuck Liddell has amassed 43,000 followers. Some 28,000 fans are following UFC welterweight champion Georges St-Pierre while lightweight king B.J. Penn boasts nearly 31,000 followers. Posts to the social networking site give fans intimate access to the lives of fighters like never before, and no detail seems insignificant.
“Because of the nature of the MMA industry, it’s highly personal. Twitter is built as a personal medium, and fans have an insatiable demand for the very latest moves, rumors or how many times a fighter went to the gym that day,” Shuster said. “Details like that are very interesting to the real fan.”
No other fighter has capitalized on the emergence of social media and Web 2.0 quite like Penn, who never misses a chance to plug his Web site in the obligatory post-fight octagon interview. Penn has established a massive following on his popular membership-driven site, which gives fans a look into his life through video blogs. More than 110,000 members have registered for Penn’s site. Further demonstrating just how plugged in he is to social networking strategy, his official Twitter page isn’t listed under his name. Instead, it’s bjpenndotcom.
Penn’s use of social media was fueled in large part by how he felt he was being treated by the MMA media. (MMAJunkie)
Midwest MMA Expo Exceeds Expectations
To say that the first annual Wisconsin Combat Sports Midwest MMA Expo was a success would be a vast understatement; the unforgettable event was filled with energetic seminars and ultra-personal meet and greets that led to an unbelievably enjoyable weekend.
Hosted at the Lake of the Torches Resort and Casino in Lac du Flambeau, the weekend getaway was certainly a trek for many of the participants. However, a great atmosphere and some huge stars made it all worthwhile…
Michael Broderick, the Director of Marketing for the LOTC, was extremely excited with how the entire event unfolded.
“I think the event was fantastic,” said Broderick. “It was phenomenal for the fans, it was phenomenal for the fighters and participants, and it was phenomenal for the Lake of the Torches and Wisconsin Combat Sports. I couldn’t be happier with how the event ultimately unfolded.”
…
While increasing the length of the individual seminars may be on the agenda for next year’s event, one thing for certain is that the inaugural expo was undoubtedly a success…
The area’s first ever attraction of this kind allowed fighters and fans the opportunity to meet and even learn from some of the world’s best mixed martial artists. And best of all, it was free to every single person that attended. (Wisconsin Combat Sports)
QUICK HITS
- Hieron-Riggs to Air Live on EASports.com (Sherdog)
- Despite age, Walker no gimmick (Yahoo! Sports)
- The Making of Herschel Walker (MMAFighting)
- Bobby Lashley vs. Wes Sims official for “Strikeforce: Miami,” Jan. 30 card finalized (MMAJunkie)
- Machida Healed, Ready For Shogun Rematch (MMAWeekly)
- Mousasi Joins St. Pierre’s Camp, Eyes ‘King Mo’ Next (Sherdog)
- Andre Galvao vs. Luke Stewart targeted for “Strikeforce Challengers VII” in Fresno, Calif. (MMAJunkie)
- Ortiz taps McCullough, Soliz and Luciano “The Ultimate Fighter 11″ assistant coaches (MMAJunkie)
- Liddell selects Hackleman, Davis, Epstein, Shields as “The Ultimate Fighter 11″ coaches (MMAJunkie)
- Bibiano Fernandes vs. Joachim Hansen title fight in the works for DREAM.13 (MMAJunkie)
- Jorgensen Draws George at WEC in Columbus (MMAWeekly)
- Denis Kang Signs With Canada’s W-1 MMA (MMAFighting)
- Melvin Manhoef looks ahead to Strikeforce debut against Lawler (USA Today)
- Shooto titlist Inoue calls out Top-5 featherweight Hioki (USA Today)
- Gina Carano’s ‘Knockout’ film to start shooting Feb. 2 in Ireland (USA Today)
- N4G.com : UFC Undisputed 2010 gets May 28 release in UK (N4G.com)
- UFC Undisputed 2010 Trailer (VIDEO) (5OzsOfPain)
TV LISTINGS
- HDNet Fights Presents K-1 Classics (Musashi Tribute) at 8 PM ET on HDNet (01/29/10)
- InsideMMA (Gegard Mousasi, Gilbert Melendez, & Tony Lopez) at 9 PM ET on HDNet (01/29/10)
- HDNet Fights Presents Best of DREAM Super Hulk GP at 10 PM ET on HDNet (01/29/10)
- Best of Pride FC at 10 PM ET/PT on Spike (01/29/10)
- Strikeforce Miami: Diaz vs Zaromskis at 10 PM ET/PT on Showtime (01/30/10)
- Countdown to UFC 109 at 12:30 AM ET/PT on Spike (01/30/10)
UPCOMING EVENTS
- Strikeforce Miami: Diaz vs Zaromskis at 10 PM ET/PT on Showtime (01/30/10)
- FCF 39: Women’s 135 lbs Grand Prix: Opening Round on PPV (01/30/10)
- KOTC: Toryumon from Okinawa, Japan on PPV (01/30/10)
- UFC 109 at 10 PM ET on PPV (02/06/10)
New York MMA Bill Includes Broadcast Rights Tax
January 25, 2010
Sarah Evans of the Legislative Gazette reports some further details on the inclusion of an MMA bill in April’s New York state budget proposal, including a potential tax on broadcasting rights.
The budget plan proposes an 8.5 percent tax on event admissions, the same as boxing and wrestling matches, with no cap, as well as a 3 percent tax on receipts for broadcasting rights, with a cap of $50,000. The broadcasting tax would provide the most revenue for the state.
The bill that is currently in the governor’s proposal differs from last year’s legislative bill. In last year’s legislative bill, if someone with a license violated state rules and regulations, the violator would have to pay $5,000. In the governor’s bill, the same rules in boxing apply for mixed martial arts. A first time offense would cost $10,000 and those after would cost $25,000. Those fees would get paid to the state treasury and then credited to the General Fund.
Each year, those involved with mixed martial arts would have to pay license fees to the state Athletic Commission. Promoters have to pay from $500 to $3,500 depending on the seating capacity of the venue. Referees and judges have to pay $100, participants, managers and trainers, $50; and chief seconds, who act as corner men to the fighters between rounds, $40.
Payout Perspective:
The broadcast tax would cap at $50,000, but it’s likely in the case of major promotions like the UFC that revenue from the gate tax would exceed the broadcast rights cap. MMAPayout.com has stated before that there’s a certain cost to playing in New York, but it’s well worth it in the long term. The sport of MMA will soon have access to the world’s largest media center and some of the best promotional venues in the world.
Moreover, it’s possible that, given the current economic environment, MMA could lobby for a reduction in some of these rates as it proves its worthiness over the span of a few years.
UFC Needs More of "This is Semtex"
January 25, 2010
The UFC has long guarded against much of its content appearing on Youtube, but the following promotional video featuring Paul Daley appears to eschew that tendency. It’s a well-produced and effective marketing tool that the UFC should try to encourage in the future.
Payout Perspective:
I’ve never exactly understood why the UFC is so strict with its content usage on video sharing websites like Youtube. Some of the stuff that these fans put together is absolutely brilliant – like “This is Semtex” – and it’s essentially a free and very effective promotional tool for the organization. These videos are something to encourage, not frown upon.
The way social media is taking off, the UFC should be looking at leveraging the passion and creativity of some of these fans by establishing contests or other activation points around which it can build its brand and its fighters. Getting fans involved and letting them do part of the promotional leg work is never a bad thing.
Challenge some of these people to come up with the best UFC 111 trailer and then give them a free video game or some clothes or even a pair of tickets. Not only does that create some excellent content to help build the fights, but its the sort of thing that establishes a foundation for goodwill among the fans.
Note: The nice feature Youtube has implemented to provide users with an option to purchase the songs they’re listening to.
