Bloomberg features the Fertittas
August 6, 2012
Bloomberg ran a feature on the Fertittas and its ownership of the UFC. The feature provides details on the Fertittas as well as some interesting financial information.
The article states that the UFC brings in $500 million in annual sales. The Fertittas, according to Bloomberg, control a fortune worth at least $1 billion dollars.
In addition to their company stakes, they own real estate, art and four jet planes. The brothers hold their assets separately and through family trusts, they say. Las Vegas-based Fertitta Enterprises Inc., a single-family office that employs about 60 people, manages the Fertittas’ wealth. The office staff vets investment opportunities (it turned down a chance to buy stock in Facebook Inc. before its public offering), handles art transactions (each brother has a collection of art worth more than $100 million) and arranges for personal security.
The article also talks about fraternal disputes occurring in business and Bloomberg reveals a rather unique dispute resolution method for the Fertittas:
They had their lawyers draft a document that stipulates the brothers fight each other. “If we can’t resolve our differences, we’ll have three 5-minute rounds of sport jujitsu,” Lorenzo says. “It’s on a point system, so whoever gets the most points gets to vote the other guy’s share. Dana White would be the referee.”
A fight as dispute resolution? Maybe not the best way to settle things especially if White is the only judge. Kidding aside, the story is a comprehensive look as to how the Fertittas amassed its fortune.
One of the things not clear was whether the $500 million in sales is its revenue or total sales from its PPV business. The feature is fair on the perceptions of its business despite the graphic opening describing the Cain Velasquez-Bigfoot Silva fight in May in which Cain bloodied Silva. It also covered the Stations Casinos bankruptcy and details how the brothers reorganized the company. One of the other interesting things that Bloomberg highlights is the possibility that its business could soar if online poker is permitted once again.