UFC sponsor MetroPCS merges with T-Mobile

October 3, 2012

Forbes reports that pre-paid wireless company and UFC sponsor MetroPCS has agreed to merge with telecommunications provider Deutsche Telekom’s (DT) T-Mobile. According to the article, the newly merged company will keep the T-Mobile name.

MetroPCS became an official UFC sponsor late last year.  The sponsor has been present in the Octagon during UFC events and during spots on the PPV broadcasts. Cain Velasquez and Frankie Edgar were stars in an often-run commercial for the company as well.  It also sponsored several fighters.

MetroPCS stock has jumped 15% based upon the merger talks over the past couple days.  This morning it is up 2% trading around $13.50.

Payout Perspective:

With news coming out this morning about the pending merger, it’s not clear what is the status of the sponsorship with the UFC.  Forbes describes the merger as a “complex deal” which is a “recapitalization” of MetroPCS and will have MetroPCs keep its stock listing but adopt the T-Mobile name.  It will be interesting to see whether T-Mobile will want to associate its brand with the UFC.  Last year, T-Mobile gave up its sponsorship with the NBA “due to a shift in business strategy and priorities”.  At this point, its too early to know whether T-Mobile is interested in sponsorship of sports properties or whether  it reemerge in sports with the UFC.

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