According to a report by the Sports Business Journal, international television rights fees are driving the UFC business model while the PPV business is taking a step back in revenue for the company.
The article, which we earlier reported on regarding all-time PPV draws for the company, also wrote about the hard decisions the UFC must make in expanding internationally.
According to UFC executives that were interviewed for the article, the UFC expects a gate of $2 million in Mexico for UFC 180. However, if the event would have been in Vegas, they would have expected a gate of $6 million. For those wondering, the last time the UFC hit $6 million for a gate was UFC 168 in December 2013. The only other time a UFC event in Vegas went over $6 million was for Silva-Sonnen II in July 2012 which actually almost hit $7 million. The company also believes it will not get as many PPV buys as it would if it held the fight in Vegas. This is due in part that there will be less visibility in the U.S. in terms of marketing and promotion.
But, the reason for taking these steps back is the opportunity to take leap forward in international expansion. As we stated in an earlier post, revenue from PPVs has dropped from 45 percent of the UFC’s overall revenue in 2009 to 30 percent. in 2013. But, the overall business grew 50% due to the new TV deals it has brokered overseas. TV deals in Latin America, Mexico, Brazil and India are examples of the expansion.
Payout Perspective:
If you were wondering, no names were attributed to the statement that they believed that UFC could draw a $6 million gate it it was in Vegas. Only the mention of “UFC executives.” As for the statement, it does not seem that the card is that strong to draw such a high gate. Expanding the UFC’s global footprint has been an initiative for the organization for some time. Certainly, countries like Brazil, Ireland and now Mexico are hot areas for the company. The news of the quick sellout for November’s UFC 180 had to please the UFC. Even if the UFC were to lose money by placing the fight in Mexico City rather than Vegas, the hope is that the event will spark further interest in the sport. With its deal with Televisa and a subscription network set for the region, the UFC hopes to capitalize for long term growth rather than look at short term gain.
tops E says
today the u.s. Tomorow the world hahahaha….
tops E says
Global domination hahahaha
anti trolls says
You ever get tired to being a donk?
d says
Clearly their expansion has worked great and the sport as a whole continues to grow. When fighters like Rick Story are doing million dollar gates against non top 20 opponents, you know you are doing something right.
LeonThePro says
Yes the UFC can pull higher gates in new markets because of the novelty factor. But what they can do in years to come, remains to be seen (my point in other thread). Even for established markets you can see the interest is high at the start:
UFC 115 – 4.2M vancouver
UFC 131 – 2.8M ”
UFC 174 – 1.1M ”
They can continue to do “world expansion” and pop up with small shows in Spain, Portugal, and Timbucktoo but this still doesn’t solve their roster problem. I see 2015 having just as many injuries and switcharoos as this year – what will change? With so many events, and not enough stars, the UFC is
forced to explore alternatives because the US market is losing interest. Total viewers may be up, because of quantity, but viewers PER EVENT is down.
Jason would be interesting to know what the average ticket price is for a PPV UFC event, over the years?
d says
Leon the Pro, you love exaggerating.
New markets??? They’ve already did 2 shows prior in Sweden, this was the 3rd. As for Canada, I’m assuming you weren’t talking about there.
UFC 115 – Chuck Liddell vs Rich Franklin headlining with a solid undercard.
UFC 131 – Dos Santos vs Carwin- we can see where the star power is somewhat lower for this card.
UFC 174- Johnson vs. Bauganoonegivesashit – A low level fighter who has done gates under 2m in Vegas.
You should be embarrassed using this as an example and it is obvious you are a troll.
So Nostradumbass, how do you develop these powers where you can see the future where your assumption is not based on historical evidence?
The US Market is not losing interest, you aren’t bright enough to realize that they had a flood of injuries plus lost their two biggest stars which is why the ppv numbers are down, as for tv, their viewership is down because they are on a new channel that loves them because they are one of two sports keeping the FS1 afloat.
saldathief says
Yea its working great bahahahah 6 million to 2 million on a show bahahahah
d says
You must be confusing their Top Ranked counterparts Saldaqueef. HAHAHA!
d says
Hahaha. Sal thinks Rick Story cards cost 3 million to promote. Only a boxing paid gay would say something that stupid.
Saldathief says
mexico is the new New York bahahahahahahahah bhahahahahahahha
Saldathief says
The Ufc is keeping FS1 network afloat bahahaha FS1 was made and developed for the ufc bahahahah idiot
d says
HAHAHAHA!!! You are the dumbest human alive. FS1 was not at all created for the ufc you stupid idiot. That was FS2. I love it how someone who claims he knows the specific details of a tv deal which is undisclosed, doesn’t know basic information that has been announced and displayed publicly. You are so retarded.
Anti trolls says
Sal = pathetic
saldathief says
FS1 FS2 whats the difference, you are splitting hairs, both networks suck and have the viewership of a high school football game bahahha try again bahahha its a joke and we all know it INCLUDING FOX AND THE UFC bahahaha D is grabbing for straw, better grab some toilet paper and wipe your filthy ass crack bahahha better yet anti douche bag can wipe it for you with his face. Mexico City is the new NYC oh wait still no MMA in NYC wow half a billion and no UFC in the biggest sports market and the biggest city on the planet bahahha
LeonThePro says
D everyone on here can see the US market is losing steam. From viewership to ppv to TUF to gate – the points have been recycled here a million times over. You’re the only one who’s refusing (or choosing?) to acknowledge this. The excuse of injuries and star power is wearing thin.
We all want to know how much does the UFC pay for blogging?
tops E says
Notice all these press releases….first this international expansion now the forbes estimate on ufc value is just PR 101…spin doctors are trying hard to hype the ufc because of decline ppv,ratings etc…low fighters pay exposed…controversies outside d cage,ped etc…and the 500 million due this 2015…..hahahaha
More to come…
TRUTHspitter says
ahhhh feels good man http://www.mmaweekly.com/ufc-signs-croatian-broadcast-deal
duck says
No talk from the trolls on Al Haymon PAYING NBC $20 million to air 24 of his fights on NBC/NBCSN and take him and his fighters away from Showtime, Al Haymon has most of the Golden Boy roster and Mayweather as his clients.
d says
“FS1 FS2 whats the difference,” The difference is they are two different channels and you are a retard who thinks they are the same.
You keep spewing the same gay, geriatric bullshit over and over again you fucking idiot. You probably were raped by an mma fighter or ufc personnel to have this much animosity towards a sport and organization. The truth is though, every time you attempt to state a statistic or piece of information, I debunk it and you look like a retard.
d says
Leon, all of the idiotic trolls like you make those claims, but in reality, you cherry pick statistics to validate your irrational argument. The only difference any objective person can see is they have had a ton of injuries that have plagued nearly every major card this year and they lost their two biggest stars. You are ridiculously taking a 9 month window and using this as a barometer for how their product is going to be in the future with zero evidence to back up your claims.
But here is the truth about all of this, when they have a monster 2015 on ppv, I guarantee you will come up with more of your bullshit spin.
d says
Tops smells like turds.
LeonThePro says
Monster PPV in 2015 are you Nostrodumbass now? Injuries will likely plague the sport as per usual and there are no big stars on the horizon. 2014s biggest PPV thus far used to be 2010s average.
d says
No, idiot, I can tell the difference between a rare occurrence like what happened in 2014 and a consistent pattern of strong ppv results like we witnessed from the mid 2000s to 2013. You are taking 9 months, I am taking years and using them for my evidence.
No big stars on the horizon?? Chris Weidman has proven that he can sell a big ppv. He is a star, no question. There will be more stars that arise, it is just how the cycle works. I remember hearing that same bullshit when Couture/Liddell were at their end, then St Pierre and Silva emerged as the biggest draws.
tops E says
International expansion aka domestic decline hahahaha….mma promotions in japan folded up,china mma legend close shop onefc few shows….main hardcore mma market is north america….and its declining big time…..hahaha…so what smokescreen pr spin they do wont work
d says
………….Topps foaming at the mouth
LeonThePro says
Consistent patterns lol,… take a look at PPV numbers from 2010-now. Take a look at UFC on Fox 1 to the latest one – Jason has the chart up. There is no 9 month blip, its showing decline.
Chris Weidman AND Rousey only sold 500k ppvs together (more recycled points) so no he did not do that on his own.
Looking back, D used to rant about the major epic events coming up at year’s end… and that 2014 was just a bad start…. what are they? Now he’s assured us 2015 will have Monster PPV…, here comes the spin:
LeonThePro says
Total 2010 PPV – 8805000 (+ 10% from 2009) … average buyrate 587k
Total 2011 PPV – 6485000 (- 26%) … average buyrate 405k
Total 2012 PPV – 5835000 (- 10%) … average buyrate 448k
Total 2013 PPV – 6050000 (+4%) … average buyrate 465k
2014 PPV (8/12) – 2255000 … average buyrate 281k
If you were to average 2014 out it’s still only 3382500 which is almost a 50% drop from 2013 – that’s hard for any company to bounce back from. Also 8.8M ppvs to (possibly) 3.3 in 4 years is a decline whether you can admit it or not.
d says
Consistent patterns, yes. I was focusing on ppv, not tv when I made that statement, but regardless you still cherry pick stats like no one I’ve ever seen. UFC on FOX 1 was a major heavyweight title fight, and the early UFC on FOX fights featured much more prominent names. Now they have guys like Travis Browne and Demetrious Johnson headlining them. Early on they would have higher profile fights like 155lb title fights. You ignore overwhelmingly obvious facts and imply others don’t know what they are talking about when they present things like this.
As for the ppv, You proved my point by presenting the facts. Thanks for defending my argument. I guess you are just too stupid to realizing what that shows there. The uncharacteristic amount of injuries and no St Pierre/Silva were the cause for the drop off-not just random lack of interest. Clearly the numbers are skewed because of this and will return. I love your conclusions, “that’s hard for any company to bounce back from”. Amusing seeing how you have nothing to gauge that from and you just make up shit in your mind and pass it off as facts like Saldaqueef does. This literally never happened before where they had anywhere near the amount of injuries which was the biggest reason for the low ppv numbers.
Also, Chris Weidman proved he can do over 500k buys with a guy who is not a big draw. Yes Rousey was on the undercard, but as anyone knows anything about ppv, the undercard doesn’t hold nearly as much water as the headliner. If Rousey wasn’t on that card, the fight still would have done well over 400k buys. That is pretty good seeing how even Anderson Silva did numbers that low with mediocre interest opponents.
Haha. It is funny how deluded you are about reality Leontheamateur. You take one small segment in time in the UFC and act like this has been going on for years and then when someone calls you on your trolling bullshit, you act like they are the exaggerator. You’ve been spinning everything you can think of because you an idiot. When the ppv numbers bounce back in 2015 because they won’t have nearly as many injuries, what will your spin be then?
LeonThePro says
Nice try, the trend shows a decline, I don’t need 10 paragraphs to spin it. The FS1/Fox deal helped kill their PPV business – not make it better.
“When the ppv numbers bounce back in 2015 because they won’t have nearly as many injuries, what will your spin be then?”
Nostrodumbass, who says there will be any less injuries than now? Maybe there will be more.
d says
Hahaha. So when I completely debunk your moronic analysis, you just say “the trend shows a decline”. HAHAHA!! Thanks for acknowledging you are a moron who is dead wrong.
The FOX deal wasn’t attempting to improve the ppv business and it isn’t the reason why it is down this year idiot. Injuries and no GSP/Silva are the reason.
“Nostrodumbass, who says there will be any less injuries than now? Maybe there will be more.”
Again, you prove why you are a moron and you can see things that are overwhelmingly obvious. I am basing it on statistics. Go take a look at every single year the UFC has existed for and you won’t see anything anywhere near the amount of injuries they’ve had in the past 9 months. You are taking this 9 month period and saying this will continue because of the short span of time where the injuries plagued them. I am saying look at the prior 20 years where they didn’t deal with this level of injuries. Me…20 years worth of stats, you 9 months. I really hope you don’t attempt to get into polling or sampling, you wouldn’t make it to an entry level position. You are such a colossal moron and are beginning to give Sal a run for his money in terms of delusions.
FightBusiness says
MMA will always be around (I didnt say hte UFC) and it will have a nice niche audience. Nothing more. Sure new markets will do great but thats because there new. Once the honeymoon period is over it will be back to popular niche sport. Boxing is mainstream if two elite fighters fight (example Canelovs Mayweather) Pac vs mayweather would have done 4 million ppv’s years ago.
d says
Enter the moron known as Fight Business. Niche audience?? HAHAHA!!! Dominating the ppv industry, having a major network tv deal, expanding internationally on a rapid level with million dollar gates with non top 10 talent, having massive merchandising deals, and attracting far more people in the 18-35 demo, makes what you said beyond delusional. Honeymoon period?? Nearly 21 years is a honeymoon period?? Nice try moron. Boxing is losing ground and will eventually be a niche sport. Pac vs Mayweather would never have done 4 million buys, you simply don’t know what you are talking about and just make shit up. Idiot.
LeonThePro says
D how much does the Ufc pay for blogging, you still haven’t answered? Theres no way a normal human being runs around posting as much UFC propaganda as you do without a prerogative.
d says
Leontheamateur, how much do the boxing promoters pay you for blogging you turd? You still haven’t answered that. I could care less about the ufc company. I like the sport. I bet you anything, I’ve been to more non ufc related mma events than you will ever in your life. And by the way, you post constantly on this site, again, your idiotic bias kicking in. One must wonder why an individual who clearly doesn’t like a sport trolls on the site constantly?
LeonThePro says
Your not too observant, I think you’ve just lost track of all your incoherent ranting. I’ve never mentioned boxing once and I’ve stated this many times when you fallback on it.
d says
HAHAHA!!! YOU’RE not too bright, are you?
It isn’t about you declaring it. You obviously are a boxing troll based on your statements.
Pink Pig says
BB rating to BB-… they are having serious troubles.