GSP in ESPN Commercial

November 20, 2010

This week ESPN debuted its first commercial with an MMA theme. The 15 second skit features UFC welterweight champion Georges St-Pierre and ESPN host John Anderson.

Payout Perspective:

ESPN is the undisputed ”worldwide leader in sports” and this commercial will lend credibility to the sport of MMA. It’s certainly a step in the right direction for MMA’s pursuit of mainstream acceptance. Furthermore, when you combine the commercial with ESPN’s support of MMA Live and the recent hiring of former Sherdog and SI analyst, Josh Gross, it would appear the network is beginning to throw its weight behind the sport.

However, I wonder whether this is a case of too little, too late for ABC/ESPN. If ESPN, or any other network, is to compete in the MMA space, it will need to be aligned with the UFC and its content. Yet, Dana White commented to Broadcast & Cable a few weeks ago that ESPN may regret passing on the opportunity to become the new home of the UFC. He then indicated making progress on some sort of network television deal; something that may either complement or replace existing deals with Spike and Versus that expire in a year.

My own opinion is that the ESPN platform is superior to all other network options currently available. It provides a superb combination of local and national coverage which is supported by many other touchpoints including online, mobile, and radio. ESPN has the ear of the mainstream sports fan. I question the ability of any other potential network partner to match that reach and influence.

The UFC’s Roadmap in China: Short-Term

November 4, 2010

Several weeks ago MMAPayout.com engaged in a discussion regarding the UFC’s three biggest challenges to entering the Chinese market: battling Chinese conservatism; generating material revenue; and, remaining patient in the short-term with an eye on the promising long-term. We’ll advance that discussion today, by focusing on a potential short-term roadmap to success for the UFC in China.

Objectives

The UFC needs to determine what it wants to accomplish with this expansion into China – both in the short-term and long-term – before it actually lays out a road map and sets down the path. Therefore, the following is a list of brief objectives the UFC is likely striving to achieve in the market:

1.) Generate awareness and educate the Chinese about MMA/UFC
2.) Cultivate interest in the UFC brand
3.) Accelerate the growth of grassroots Chinese MMA
4.) Establish a viable business model for UFC Asia

I’m sure there are others that the UFC has identified and its are likely more detailed, but this is the gist of what needs to happen.

The Short-Term Roadmap

1.) Television Exposure

The UFC is a controversial product entering a conservative marketplace. Its needs to generate awareness and educate the base Chinese population before it can truly begin cultivating a market in the country. The best way to accomplish this is through television.

Television in China gives the UFC a window into the mainstream with exposure that extends beyond the 18-34 demographic that the Sohu.com platform currently affords the company. Depending on the type of television deal(s) the UFC signs, it could have access to as many as 1.2 billion consumers. This access is crucial because it gives the population an opportunity to see what MMA really is and allow them sufficient time to grow comfortable with its existence. This television deal shouldn’t be a blitz, nor should it go unsupported. Exposure is something you build to a crescendo and complement with other content/information through PR, advertising, and social media – although the latter is difficult in China.

CCTV is the dominant television network in China and owned by the state. CCTV 5 is the defacto national sports channel and potentially a very powerful ally or obstacle to the UFC’s exposure ambitions in the country. If this were ten, or even five, years ago I’d say the UFC should be looking to do whatever it takes to do a TV deal with CCTV – even if it meant submitting to poor terms that might amount to zero rights fees coming back in the “exchange”. However, there are now those that believe CCTV’s monopoly on the Chinese television market is coming to an end with the emergence of bona fide regional networks that are supported by a strong demand for localized news. Thus, a potential alternative to a deal with CCTV might be to sign a string of regional networks in China (e.g., Mongolian TV) or at least those that concentrate around the major Tier 1 cities like Shanghai, Beijing, Guanzhou, and Shenzhen.

2.) Selling the Lifestyle

There are two main ways the UFC can sell the sport in China. The most obvious strategy comes via the natural appeal of the product; everyone “gets” fighting and some even like it. If given the proper exposure, many of those that like it will become UFC fans. The other strategy is to promote not just the product, but also heavily emphasize the MMA/UFC lifestyle. The emerging Gen Y’s in China – think 18-24 or even 18-34 – are heavily influenced by American and Japanese popular culture. If the UFC can manage to convince the Chinese consumer that the UFC is the next big thing in the US, it will instantly increase its credibility within the market.

There are case studies that support enhancing awareness and interest through lifestyle promotion. The NBA was the first (in many regards) to do this in the market, and the results have been fantastic. In addition to promoting the sports at the grassroots level and NBA games through television exposure, the league has also pushed very hard to integrate the basketball lifestyle into Chinese culture. There are a ton of factors that figure into the NBA’s success and it really stands as a compliment to their integrated strategy, but you wouldn’t believe the number of kids wearing basketball shoes, jerseys, and long shorts in Beijing or Shanghai. It’s consumer behavior perpetuated in large part by lifestyle promotion.

3.) Merchandising

It goes without saying that clothing, equipment and other related merchandise are necessary for the adoption of the UFC lifestyle. Just the same as Chinese NBA fans can buy a pair of Nike Zoom Kobe V’s, the Chinese UFC fan will need to be able to purchase UFC or Tapout clothing and different types of training equipment to fully embrace the UFC lifestyle.

However, the Chinese retail situation is comprised of a rather convoluted distribution system and greatly troubled by the black market counterfeit industry that exists nearly everywhere in the country. It would certainly behoove the UFC to move on establishing these connections now – which I’m sure will be one of Mark Fischer’s preliminary actions – because it may take a while to sort out.

Yet, establishing merchandise in the market will prove vital to the UFC’s agenda. Not only is merchandise necessary from a lifestyle perspective, but also from a promotion perspective. Merchandise acts as a non-funded form of promotion that helps to reinforce and perpetuate a brand message through a sort of third-party endorsement. The Chinese may be influenced by American or Japanese culture, but nothing influences more than a Chinese individual sporting the latest perceived trend.

Furthermore, the sale of merchandise also adds a much needed financial component to the UFC’s operations in the market.

Check back next Monday for the final article regarding the UFC in China. We’ll be taking a look at the UFC’s long-term roadmap in the country.

EA Sports MMA Comes Out Swinging On Launch Day

October 19, 2010

As of today, EA Sports MMA is officially available to all MMA and video game fans stateside (European fans will have to wait a bit longer).

EA certainly pulled no punches by hiring Paul Heyman’s production company “Looking 4 Larry” to create short commercials leading up to the release of the game, hosted an on-line launch party through USTREAM with fans and fighters revealing game features, and will also be hosting an official party later on in the day in Los Angeles where the likes of cover athletes Randy Couture and Fedor Emelianenko will be in attendance to meet the media and fans.  MMAPayout will now take a look at some of the promotional efforts from EA leading up to the launch date.


EA Sports MMA Reviews:

Game reviews for EA Sports MMA from video game media giants GamePro and Joystiq are already out, and the news so far has been very positive for EA’s first venture into MMA, where GamePro gives EA Sports MMA a score of 4.5/5 stars, while Joystiq said the game came out swinging, giving it 4/5 stars. Joystiq does a great job in reviewing the game and asks whether the market can support two MMA titles.

Comparisons between MMA and THQ’s UFC Undisputed franchise are inevitable, but the two games offer up very different experiences that are, for the most part, complimentary. MMA is a fuller game that celebrates the broadest scope of the sport with a loving precision, while UFC brings out a roster of more recognizable fighters for a more casual, beer-and-buddies experience.

It remains to be seen if there is enough interest to support both franchises, but with the series’ first outing, EA Sports MMA provides not only a must-play experience for fans, but a compelling argument for two-MMA-game world.


EA Sports MMA Hires Paul Heyman’s “Looking 4 Larry” To Promote Game

Here are the three videos produced by Heyman’s production company “Looking 4 Larry” as viral promos used during the lead up to the game’s release, which have received a great deal of attention and support from MMA and wrestling fans.  In fact, many have pointed out that this is exactly what Strikeforce needs to get their fighters over with the mainstream media and casual MMA fan.  On that note, the possibility of Heyman and Strikeforce working together next year are very likely once contractual obligations are met, so it should be another interesting venture to keep an eye out next year from Strikeforce.


Cung Le Promo:


Fabricio Werdum Promo:


Frank Shamrock Promo:


Nick Diaz Promo:

Official EA Sports MMA TV Commercial and Press Release:

Electronic Arts Inc. announced that EA SPORTS(TM) MMA is available in stores throughout North America starting today and will launch worldwide beginning October 22 and in Japan on November 11. EA SPORTS MMA, offering the most authentic, intense and broadest mixed martial arts experience to date, allows players to travel the world and learn a multitude of fighting techniques and skills. The game features a vast array of world-class fighters, and players can extend their gaming experience online through a first-of-its-kind feature – EA SPORTS Live Broadcast. (PRESS RELEASE)

Strikeforce Diaz vs Noons II: Storylines

October 9, 2010

MMAPayout will be taking a look at the storylines heading into Strikeforce Diaz vs Noons II, which will be held at the HP Pavilion in San Jose, California on Saturday, October 9, 2010.


Heyman Hustle Signs with EA Sports to Promote Strikeforce Fighters for MMA Video Game Release

Paul Heyman tells MMAFighting what he can bring to the table in regards to the EA Sports MMA video game campaign and Strikeforce fighters:

And Heyman says fans will be blown away by how the fighters will be presented in the clips.

“Not since the original Nike commercials with Michael Jordan and all the guys in the beginning has there been such a personality-centric campaign, and that’s what I would like to do. I think more so than other people, that’s what we can tap into here. Real personality-centric pieces and go after the guys. There’s a real market out there for guys. People have become too soft in their campaigns because they took their eye off the ball.

EA Sports MMA, which features Strikeforce as it’s top MMA promotion and includes a good amount of their fighters, will be be released on October 19th, just 10 days after their event this Saturday.  It’s no surprise the first Heyman Hustle piece featured Nick Diaz, who is set to headline the card this weekend.

EA Sports MMA Weigh-Ins Demo:


Strikeforce Officially Unveils New Logo, Product Line, and Online Store


World championship Mixed Martial Arts (MMA) promotion STRIKEFORCE will pre-launch its forthcoming online apparel store, StrikeforceStore.com, tomorrow/Saturday, Oct. 9, the day of its the world championship doubleheader STRIKEFORCE: Diaz vs. Noons II event live on SHOWTIME® at 10 p.m. ET/PT (delayed on the West Coast) from HP Pavilion in San Jose.

The pre-launch will provide fans with the opportunity to purchase apparel sporting STRIKEFORCE’s new, revamped logo.  The complete, new online store is expected to officially launch at the beginning of December, just in time for the holidays.

StrikeforceStore.com will offer men’s and women’s T-shirts and hooded sweatshirts with all apparel sporting a new STRIKEFORCE logo.  A military inspired line of men’s T-shirts with various designs will also be available at launch.  (Strikeforce Press Release)

New Logo and Branding:


Strikeforce Unveils Lineup for First DVD Release

A hard-hitting collection of brutal battles and thrilling knockouts featuring some of the greatest fighters of the world championship mixed martial arts (MMA) league, STRIKEFORCE MMA slams its way onto DVD October 12 from Showtime Networks, CBS Home Entertainment and Paramount Home Entertainment.  This two-disc set is a must-have for MMA fans and includes the hottest fights of 2010—previously seen only on SHOWTIME®—along with rare bonus features including never-before-broadcast fights and exclusive interviews. (Strikeforce Press Release)

The STRIKEFORCE MMA DVD is a two-disc set presented in 16×9 Widescreen with English 2.0 Stereo. The DVD is not rated in the U.S. and rated 14A (for violence) in Canada.  The total running time is approximately 5 hours 30 minutes.  The DVD disc breakdown is as follows:

Disc One:
•        STRIKEFORCE: Heavy Artillery Featuring:
•       Alistair Overeem vs. Brett Rogers, May 15, 2010
•       Antwain Britt vs. Rafael Feijao
•       Roger Gracie vs. Kevin Randleman
•       “Jacare” Souza vs. Joey Villasenor
•       Andrei Arlovski vs. Antonio Silva
•       Weigh-in
•       Undercard
•       Post Fight Interview

Disc Two:
•        STRIKEFORCE: Live Featuring:
•       Robbie Lawler vs. “Babalu” Sobral, June 16, 2010
•       Hugo Sandoval vs. Marcus Kowal
•       Jeremy Umphries vs. R.J. Clifford
•       KJ Noons vs. Conor Heun
•       Tim Kennedy vs. Trevor Prangley
•       Evangelista Cyborg vs. Marius Zaromskis
•       Weigh-in
•       Undercard
•       Post Fight Interview

•       STRIKEFORCE: Fedor vs. Werdum Featuring:
•       Fedor Emelianenko vs. Fabricio Werdum, June 26, 2010
•       Bobby Stack vs. Derrick Burnsed
•       Yancy Medeiros vs. Gareth Joseph
•       Bret Bergmark vs. Vagner Rocha
•       Chris Cope vs. Ron Keslar
•       Josh Thomson vs. Pat Healy
•       Cris Cyborg vs. Jan Finney
•       Cung Le vs. Scott Smith
•       Weigh-in
•       Undercard
•       Post Fight Interview

The Strikeforce 2 Disc DVD set is set to release on October 12, just 3 days after this Saturday night event and a week before the EA Sports MMA video game is set to hit the stores.


Strikeforce Fighters Herschel Walker, Cris Cyborg, and Evangelista Cyborg Featured on ESPN’s The Magazine “Body Issue”

Here is what Zack Smith, Sports PR Pro who has worked with Nike, Wilson Sporting Goods, Adidas Golf, and Upper Deck, had to say about the ESPN feature:

AKA, Strikeforce (MMA gym, promoters) get huge PR play (CEO featured) w Herschel Walker’s appearance in ESPN body issue http://es.pn/byPErp

If you recall, Gina Carano was featured in the magazine last year, so that’s two Strikeforce female fighters getting quite the mainstream attention.


Strikeforce and Showtime’s Advertising Campaign Finally Reaching Audience

Thought Industry blog writes about how “Showtime Integrates Twitter Into Its Promotion of Their Strikeforce MMA Card”.

Strikeforce, Showtime’s MMA rival to the UFC juggernaut may lack the talent and promotion to attract huge PPV audiences, but nobody can knock them for taking a step towards innovation with their recent ad campaign promoting their Nick Diaz vs. KJ Noons headline event this Saturday.

What compelled me to write the post was how Twitter was integrated into the unit. Instead of driving fans of either KJ or Nick to a microsite, the ad simply asked viewers to roll over and vote who they thought would win the grudge match between the two fighters.

So far the ad seems to be eliciting not just clicks, but conversation. Conversation that may capture the attention of Twitter’s growing 18-34 year old male demographic.

The Strikeforce Diaz vs Noons II – Collision Course series videos produced by AllElbows have also had a pretty big impact on advertising the event.  It’s a great way to build up the buzz coming into the event and have received quite a few compliments from MMA fans.  The only criticism right now is that they need to get these videos out into the public much earlier, and at some point provide the whole series in a 15-20 min show which can then possibly be shown on TV spots, though I hear they will see how successful this attempt was before they announce any more plans regarding any more videos leading up to the event. Here is part 3, released on fight day.


Saturday Night Event Notes:

Weigh-Ins:

Attendance:

According to Dave Meltzer, in his great write-up about the Diaz vs Noons grudge match, he states that Saturday night’s event is expecting 8,000 fans (I am calculating 8,000-10,000 paid), which is shockingly low for an event of this magnitude hosted in their home town.  When scheduling this event, it is not known whether the San Francisco Giants making the playoffs was taken into effect, but it was brought up as possibly being a huge factor by some in the industry.  San Francisco is currently buzzing over their Giants right now, and though there is no game scheduled for Saturday night, all everyone is talking about in the Bay Area are their beloved Giants overtaking the San Diego Padres and now battling the Atlanta Braves.

Meltzer also drops the interesting tidbit that Dave Bautista was one of the people who came in as part of Nick Diaz’ corner for today’s Strikeforce weigh-ins in San Jose.  Bautista has been working on his MMA skill at Cesar Gracie’s camp, where Nick Diaz trains, so that would make sense, but the latest reports regarding Bautista fighting in Strikeforce have not been too optimistic as of late, citing no PPV or CBS card in the near future and a disagreement in pay as big hurdles preventing a deal.  At the moment, Bautista is said to be working on his movie career with a few TV roles lined up.

Twitter:

It appears that Scott Coker (twitter.com/cokersf) has started to tweet now, which if you’ve read MMAPayout before, has been a huge point of criticism, where I believe Strikeforce needs to make themselves more accessible to the media and to their audience in order to build their fanbase and goodwill with the media.  UFC and Dana White do a great job at utilizing twitter and other social media to distribute information to it’s fanbase and to also announce ticket giveaway games before an event, something that fans have shown to be very fond of and it’s also another way to build their fanbase and fan loyalty.

***

Final Note:

As you can see, a huge portion of the storylines this time around didn’t necessarily have to do directly with the Diaz vs Noons event, but more so with the direction that Strikeforce is heading and what they are planning to do with their product.  Some of these announcements are information overload and some may get overlooked, but it was essential for Strikeforce to get them all out there to announce a new beginning starting with this weekends card.  A few days later, their DVD and video game will release, and we can start to really monitor what type of an impact they will have on the Strikeforce brand.

If you look at the Strikeforce event page, this is the first time I can recall that they have 4 events booked on their websites all filled with main and co-main event participants, which also address our criticism of giving themselves enough time to promote their cards.  As it stands now, they have events booked up until the end of January as of the end of September.

As for this event, I feel that more could have been done to market Noons vs Diaz as a huge grudge match, but I felt it was a bit tamed, and possibly done in fear of any bad situation arising before the event takes place.  AllElbows and HeymanHustle’s video do a great job at promoting the fighters, which is hopefully something we can expect more in the future.

UFC on Versus 2 Gets Split-Screen Commercials

July 29, 2010

John Ourand of the Sports Business Daily is reporting that Versus will experiment with the use of split-screen commercial breaks in its broadcast of UFC on Versus 2 this Sunday.

Versus will run “five or six” of its commercial breaks in a split-screen format next to its live coverage of Sunday’s UFC2 on Versus at 9:00pm ET. Versus during these ad breaks will leave its content in a box on the upper left-hand side of the screen. The ad will run in a bigger box on the right and center of the screen, similar to how Versus handles commercial breaks during its Izod IndyCar Series telecasts.

Payout Perspective:

This does not mean that commercials will now run during the fights. Versus will still only air commercials throughout the breaks in action such as between rounds or between fights.

I like the idea, because it gives the viewer an opportunity to continue watching the fighters as they go to their corners and helps maintain the relatively undisrupted feel of a PPV event.

However, I question how much value the split-screen will add to the viewing experience without any sound. The commercials will undoubtedly command control of the audio output for the duration of the break, which means the fans won’t be able to hear what’s happening in the corners or listen to Mike and Joe give their opinions.

I can’t image that advertisers are paying anywhere near the same amount for a split-screen ad as they are for full-screen (a Versus issue). This leads me to believe that Versus is likely to incorporate some in-program advertisements or presentation features for those taking part in the split screen commercials as a way to add value to their media buy.

UFC 116: Payout Perspective

July 5, 2010

Welcome to another edition of Payout Perspective! This week we’ll be taking a look at the highly anticipated UFC 116: Lesnar vs. Carwin that was held at the MGM Grand in Las Vegas, Nevada on Saturday, July 3rd. The event featured a heavyweight title fight between Brock Lesnar and Shane Carwin, but also showcased the talents of several UFC veterans such as Chris Leben, Stephan Bonnar, and Kendall Grove.

Humble Lesnar weathers the storm, submits Carwin

In the first round, Carwin did what many thought he would: stuff Lesnar’s takedowns, close the gap, and put enough pressure on the big man to drop him. He just couldn’t finish. More importantly, Carwin probably punched himself out. Lesnar took full advantage of a cramping Carwin in the second round where he once again demonstrated his quickness and power to take Carwin down and pass into side control with the choke.

If you thought Lesnar was a star before, just wait until his next fight. He was perhaps the most polarizing force in the sport, but the combination of his perseverance, submission skills, and post-fight class has endeared him to a whole new group of people. He went from being a heel that most people resented – some WWE castoff that didn’t respect MMA – to being “one of us” in 8 minutes.

The UFC will need Lesnar, too. The news broke this week that Shogun Rua will be out until next March, which means the LHW title is sidelined until then, and that leaves the UFC with few title fights between September and December. Silva fights in early August, Edgar fights at the end of August, and GSP is booked for December. Only Lesnar is available.

Good matchmaking, good asset management

UFC 116 was not only an incredible fight card, but also an example of smart matchmaking and asset management. The event wasn’t extremely attractive on paper, but it didn’t need to be with Lesnar on top. Joe Silva used that as an opportunity to fill the card with potentially entertaining bouts that had some meaning, but also conserve some of the UFC’s bigger names for future cards. Again, this is even more important given what I’ve mentioned above about the lack of title fights in the Fall.

In turn, because the event wasn’t extremely attractive below Lesnar, the expectations for this event as a whole weren’t tremendously high. I think that played a large role in many of the claims we’re seeing around the MMA community that UFC 116 was the greatest UFC card ever. No one expected to see what we all saw on Saturday, and that made a great night of fights even better.

The performance of the event is even more significant considering the stage. UFC 116 should prove to be the biggest or second biggest UFC event of the year, and there was literally no better moment for the UFC to have an outstanding event than with so many casual fans tuning in to watch Brock Lesnar fight. Those that were expecting just a heavyweight tilt got much, much more, and I’m inclined to think a whole new group of avid UFC fans was born on July 3rd, 2010.

This event reminded me a lot of WEC 34 that aired on Versus and generated more than one million viewers. I’d always wondered what might have happened to the popularity of MMA or the WEC had that show been on CBS (like EliteXC had been the night before). In the case of UFC 116, MMA finally has a standout performance when a lot of people are watching. It’s going to take many more before the sport finally breaks through, but this is definitely a “told you so” moment for MMA and all of its fans.

ESPN doesn’t send MMA Live for a pre- or post-fight show

ESPN moved MMA Live from the internet to a Thursday slot on ESPN2 in May for a four-week trial that even provided for special live programming to accompany UFC events (113 and 114). The show fared well in its television debut and drew ratings on par with what ESPN would normally garner in the Thursday slot. Thus, ESPN announced in Late May that it would be extending its commitment to MMA Live on ESPN2 through to the end of August.

The extension signaled a couple of different things: 1.) MMA Live had done well on ESPN2, but not well enough that ESPN was ready to sign on for a full year, and 2.) ESPN wanted an extra few months to kick MMA’s tires and this summer line-up of fights provided the perfect opportunity to do so (Lesnar vs. Carwin, Silva vs. Sonnen, Edgar vs. Penn II, Couture vs. Toney, etc.).

It was my expectation that ESPN would throw a lot support behind MMA Live in the next few months to give the program an honest look, but that may not be the case. MMA Live has been absent from the last two UFC events – the second of which, UFC 116, was a monster of an event that garnered a host of mainstream interest.

I do not want to speculate as to why MMA Live wasn’t at 116, but I do think it was a mistake.

The success of MMA Live is largely predicated on being able to deliver timely, unique and valuable content that users cannot get anywhere else. However, that’s difficult for a television show that only airs once per week. MMA Live is often in the difficult position of reporting news 3-4 days after its happened, which in the MMA world is enough time for new news to become old news.

In skipping the live event coverage related to UFC 115 and 116 – especially 116 – MMA Live is truly missing an opportunity to fill a void in the MMA marketplace for pre- and post-fight banter that really isn’t available to the fans. There’s really no pre-fight coverage of any kind and few fans have the capability or the patience to sit through the post-fight press conference. However, ESPN has the resources and distribution necessary to provide unique and relevant fight coverage to fans in a very timely manner.

MMA Live is the perfect complement to many “fight night” themes that households or local establishments put together for fight fans on a Saturday evening. It helps build last minute excitement prior to the fight and then puts a stamp on the evening by reviewing the best moments.

MMA Live’s audience is not the hardcore fan, but instead the casual viewer that doesn’t have time to keep up with every bit of news and can appreciate a week’s worth of information condensed into 40 minutes of programming. If MMA Live can build its reputation through live coverage of events, that should carry over to its weekly segments.

Perhaps this is something ESPN has already tried or thought about, but it would be interesting to see the network leverage the UFC’s relationship with the thousands of sports bars that show UFC events by tacking on information about MMA Live to the information distributions that are sent to bar managers about up-coming events. It’s safe to assume that just about every sports bar is going to have ESPN2, so it might help to highlight the partnership between ESPN and UFC in the distribution; and, even suggest that MMA Live is a way to improve the fight night experience of patrons.

ESPN does increase day-to-day coverage of UFC 116

Despite not sending Jon Anik and the MMA Live crew to Las Vegas for UFC 116, ESPN did noticeably increase its day-to-day coverage of the UFC during fight week and even after the event. In addition to extending the MMA Live segment on Thursday, the network also did several interviews with UFC personalities throughout the week, Lesnar was the main story on ESPN.com on Saturday night, and since the fight Lesnar has been on the network for several interviews.

It could be the network feels this is a much more cost-effective way of building its MMA audience. Certainly it’s hitting the proper target market – the casual fan – with this type of quick hit coverage. However, I’m still inclined to think that it live event coverage is necessary – especially for the big events like 116 (or the forthcoming 118).

Sponsorship Watch

This is always the segment that I look forward to the most, because I think the domain touches every aspect of the organization. Sponsorship literally has the potential to bring revenue to the UFC, put money in the pockets of the fighters, market and promote the fights to the masses, and even help educate people about the sport. It’s an extremely powerful tool.

With that said, there isn’t a whole lot to report from UFC 116 on the sponsorship side. I may have commented on this before, but for those that didn’t notice, Brock was sponsored by Jimmie John’s QSR. Shane Carwin was also sponsored by Bud Light, which should come as no surprise there considering what Brock said about Bud Light last year.

The only really interesting thing I noticed was more of a media buy than a sponsorship deal. In the UFC’s four page pull-out in the USA Today on Friday, Musclepharm had a very strong presence with ads displaying its new stock symbol. I’m not sure that I would characterize Musclepharm as having done an excellent job with its MMA marketing, but it’s certainly done well (and far better than BSN).

Strikeforce Fedor vs Werdum: Payout Perspective

June 30, 2010

Welcome to another edition of Payout Perspective! This week we’ll be taking a look at Fedor’s Strikeforce debut on Showtime, titled “Fedor vs Werdum”, which took place in the HP Pavilion in San Jose, CA.  The event featured 4 fights (1 title fight): Fedor Emelianenko vs. Fabricio Werdum, Cung Le vs. Scott Smith, Cris Cyborg (champ) vs Jan Finney at 145 lbs, and Josh Thomson vs. Pat Healy.

Strikeforce Fedor vs Werdum Reaction (AllElbows)

Fedor loses for first time in nearly a decade

I will provide a quote from Kelsey’s previous post “Fedor Loss Not the End of the World”:

He lost. He’s not the invincible machine that everyone thought. He’s human.

Is that not the beauty of this sport? Mixed martial arts has a way of mimicking the trials and tribulations of life in a manner that few sporting events can. The moment that Fedor decided to become more aggressive is the moment that he became perilously vulnerable. How often is that not the case in real life?

Forget the hyperbole you’re hearing. This is not the end of the world. Fedor lost, but losses happen – to everyone – in life and in sport. It’s the ability of someone to bounce back that really matters, and Fedor will have his opportunity.

That is why I’m inclined to think the situation is still very workable for Strikeforce. There was obviously interest in Fedor fighting Overeem, but there’s now probably even greater interest in Fedor fighting Werdum in an immediate rematch. Why? The fans will want to see whether Fedor’s loss was an aberration or a true representation of his fighting ability.

The key for Strikeforce here is to turn this situation into a positive.  Before Fedor vs Werdum took place, everyone assumed that Werdum was nothing but a speed-bump to a potential mega-fight between Fedor and Alistair Overeem.  Since Fedor lost, those plans have gone out the window, Werdum vs Overeem is the match-up that makes sense.

Well, not so fast.  Everyone is talking about how shocking it was to see Fedor lose his first fight in a decade, specially in the manner that it did.  The buzz around this weekends event is high and people want to see the rematch to see if it was a “fluke”.  Instead of having just one fight to look forward to, it’s Strikeforce’s job now to market this rematch between Fedor and Werdum as “the most anticipated rematch in the history of MMA”.  Putting on this fight on PPV or on CBS and having the winner face the Strikeforce Champ (in a perfect world scenario) is obviously the way to go here.

Fedor’s Fall Return?

I will again provide a quote from Kelsey:

The question is not, will Fedor be back or will the fans be interested, but what will Strikeforce do to leverage Fedor’s next, and potentially last, fight to improve the organization? The company cannot afford to have this fight accomplish nothing; to have this fight become another one-off that leads to zero gain in terms of awareness, interest, and product consumption. If Strikeforce is going to leverage Fedor in any way, the preparation has to start now.

The first step is to address the Strikeforce roster. The company has been working to sign some really great talent, but none of them have really been given the opportunity to fight on the big stage. If Fedor is gone after this next fight (worst case scenario), then who fills the void? The organization can’t ride UFC and Pride retreads into the limelight.

An obvious solution is to devote more time to showcasing homegrown or emerging talent. The forthcoming middleweight tournament is a perfect avenue to do so, but what beyond that is my question. There needs to be some sort of matchmaking structure and hierarchy that pushes these young guys up the ladder and into more prominent roles within each division.

Strikeforce has the roster to create stars, the problem is their inability to do so through Showtime and CBS so far.  By default, Fabricio Werdum will now and forever be known as the first guy to really defeat Fedor.  Strikeforce has to make a strong push using this angle for the rematch.  Fedor’s sell will be quite easy, and should capture everyone’s attention.  Will the greatest HW of all time be able to regain his old form or are his prime years behind him?  That angle should be good enough to have a successful show whether they have it on CBS or on PPV, that is as long is they also add some buzz creators on there like a Gina or Walker.

Another great boost for a fall event is the release of EA Sports MMA.  The release of the game should give an added boost to the brand and it’s fighters.  Creating buzz between both events and synergy for a big fall event.  The UFC has done this twice now with the release of UFC Undisputed 2009 last year and around the Rashad Evans vs Rampage Jackson fight this year, both considered very successful shows.

What to make of the Strikeforce HW division

If Strikeforce plays their cards right, they can take Overeem (Strikeforce Champ),  Werdum (who now has victories against Overeem and Fedor), and Fedor (waiting to avenge his loss and be crown the best HW in MMA again) and build these fighters up to have huge fights amongst each other.  What about the rest of the HW division you ask? Well, take a look at this.  Antonio Silva lost a heart breaker to Werdum, so one more solid victory can definitely put him on the driver seat for a title match.

Recently signed HW Sergei Kharitonov has victories over both Overeem and Werdum (you couldn’t write a better storyline for an instant contender), and others like Arlovski and Brett Rogers have some recognition but need to be built back up.  While the top of the division unfolds, HW prospects like Daniel Cormier, Shane Del Rosario and Lavar Johnson should use this time to further develop into future contenders.  The wild card in the division are the likes of Bobby Lashley and Herschel Walker, who will give whatever event they participate in a boost of interest to the casual fan and mainstream.

Questions that still linger

Quoting Kelsey again:

The other problem is PR. I’ve harped on it before, and I’ll do it again: there’s no consistent information flow between the organization and the fan base. The information gaps might be excusable if Strikeforce were only running four shows a year, but it’s running at least one show per month. Where is the content? This absolutely HAS to change. Strikeforce needs to be communicating with its fans, telling stories and driving interest in its product.

The Challengers Series is just sitting there for all intents and purposes. With the exception of last week, the series has yet to really gain any sort of traction with the fans, the media, or even Strikeforce itself. The organization should be using these monthly events as a way to develop a consistent relationship with the fans.

I think a lot of the dissatisfaction towards Strikeforce has been their lack of consistency and communication to both the media and fans.  There needs to be some sort of medium other than fight night for fans to care about the fighters and promotion.  UFC does a great job at doing this through Spike TV programming (TUF, Unleashed, Prime Time specials, etc) and social media, utilizing it for updates and one-on-one interaction with fans using websites such as Twitter and Facebook. Giving the fans and media a sense of acknowledgment and importance really goes a long way to creating a dedicated fan-base, which will ultimately drive up the brand and success.

***

Sponsorship watch

Strikeforce Fedor vs Werdum Cung Le Celebrates (AllElbows)

It was a really interesting night on the sponsorship side, specifically compared to their Strikeforce Los Angeles show.

EA Sports MMA and GoDaddy.com continued to be major sponsors to Strikeforce along with now veterans Full Tilt Poker and Rockstar Energy Drinks.  The new kids on the block were Clinch Gear and GameFly (who purchased commercial slots in the Nashville CBS show earlier this year) on the mat.

If you recall from Kelsey’s post, Tapout was supposed to sponsor Fedor for the event but the deal was nixed last minute due to pressure being placed by the UFC to ban them from the Octogon if they went ahead with the sponsor.  Needless to say, Fedor and M-1 were not to pleased with the situation, but Clinch Gear picked up where Tapout left off and sponsored Fedor for the event.  Due to this last minute ordeal, Clinch Gear’s role in the event increased significantly.  A source at the event told met that Clinch Gear did a great job selling their gear because it seemed like every other fan was sporting a Fedor shirt that night.

As I pointed back in the Strikeforce Los Angeles write-up, BestBuy appeared to be a local sponsor on the mat tied to the EA Sports MMA logo.  BestBuy was indeed gone from this event.  On the other hand, GameFly had big role as a sponsor, where it’s logo could be seen on the mat and on the cage.  It appears that more sponsors are starting to jump on Strikeforce, which can only be a positive for their future events and possibly their return to CBS.

Channing Tatum Sporting Cage Hero wear in Cung Le

Another big winner in the event was Cage Hero, which heavily sponsored Cung Le and his corner as you can see in the picture above (Channing Tatum).  It also had heavy advertisement on MMAJunkie heading into the fight.  Cage Hero also sponsors Strikeforce MW prospect Luke Rockhold, who is expected to make his return in August in the upcoming Houston event.

As I mentioned before, BlowOutCards.com was another winner in the show.  They sponsored Jan Finney in her 145 lbs fight against Strikeforce champion Cris Cyborg, who incredibly made it to the second round after taking an incredible amount of punishment in the first.  Great display of heart and courage by her, though many felt the fight should have been stopped in the first round.

Celebrity watch

Strikeforce Fedor vs Werdum Celebrities (AllElbows)

It has been an interesting trend to monitor, but more and more celebrities are starting to attend Strikeforce events.  When I attended Strikeforce in Los Angeles, I was shocked at how many celebrities were in attendance, but I assumed it had more to do with the event itself being in Los Angeles. Needless to say I wasn’t expecting that in San Jose, and I was completely wrong. Actors Channing Tatum, Micky Rourke, Forest Whitaker and many other professional athletes were reported to be in attendance.  This is something interesting to keep an eye out on for future events.

Actor Forest Whitaker was so caught up in the moment of Werdum beating Fedor, that he was spotted celebrating with Werdum’s entourage backstage (picture above).

Ratings, Gate, and Attendance

The reported attendance for the event was 12,698 total (11, 757 paid, 941 in luxury boxes) with a gate of $1,066,739.00.  If our numbers are correct, this would be their second gate ever over 1 million dollars, which is always a good sign.  That attendance number is the sixth biggest attendance and second biggest gate in Strikeforce history.

The ratings are still being sorted at the moment, but MMAJunkie is reporting that the ratings are up 56% from the last Showtime televised event and garnered the third-highest rated Strikeforce event on Showtime.

Early estimates for this past weekend’s historic “Strikeforce and M-1 Global: Fedor vs. Werdum” co-promoted event put the average Showtime viewership at approximately 550,000 viewers when including DVR and on-demand figures.

As is typical for mixed martial arts broadcasts, the viewership increased throughout the broadcast, and the ratings peaked during the main event between Fedor Emelianenko and Fabricio Werdum with a 2.1 household rating and more than 700,000 viewers when factoring in DVR and on-demand data.

Contrary to those numbers, SpikeTV has a press release which states that the Strikeforce show garnered a 1.38HH rating with an average viewership of 412K while drawing a 1.39 in M18-34 and 1.2 in M18-49.

Since the SpikeTV release, Dave Meltzer has reported updated ratings for the event, which he states as doing a 1.5 HH rating with a viewership of 492k. The main event peaked at a 2.1 HH and garnered 700K viewers. The show itself did a 1.48 in Males 18-34 and 1.08 in Males 35-49.

Fighter Payouts

Fabricio Werdum: $100,000
def. Fedor Emelianenko: $400,000

Cung Le: $100,000
def. Scott Smith: $55,000

Cristiane “Cyborg” Santos: $35,000 (includes $15,000 win bonus and $5,000 champion bonus)
def. Jan Finney: $6,000

Josh Thomson: $60,000
def. Pat Healy: $8,000

Chris Cope: $3,000 ($1,000 win bonus)
def. Ron Keslar: $1,500

Bret Bergmark: $3,000 ($1,500 win bonus)
def. Vagner Rocha: $2,500

Yancey Medeiros: $8,000 ($4,000 win bonus)
def. Gareth Joseph: $2,000

Bobby Stack: $2,800 ($1,500 win bonus)
def. Derrick Burnsed: $2,000

Total: $789,000.

HT: MMAJunkie

Event Notes:

  • Josh Gross: Fabricio Werdum signed a three-fight extension with Strikeforce prior to the Fedor fight, so he’s not going anywhere for a while.
  • ESPN: Fabricio Werdum makes ESPN‘s Ford Cross-Sport Power Rankings, ranked #3 in poll.  Reason given by ESPN: “He beat a guy who hasn’t lost since 2000. Enough said.”"
http://sports.espn.go.com/espn/news/story?page=cspr/

Strikeforce Fedor vs Werdum Buildup: Xbox 360, HDNet, MLB

June 25, 2010

The build up to Saturday’s Strikeforce event featuring the HW match-up between Fedor Emelianenko and Fabricio Werdum has had a strong late push.  We will explore some of the new ventures Strikeforce and Showtime took to promote this event.

Xbox 360 Advertisement:

Advertisements for the upcoming June 26 Strikeforce event could be found on the main dash board of Xbox Live.  Showtime  purchased this ad space to not only give Xbox Live users the ability to download a free Xbox Theme and Gamer Pics to use with their avatars, but also to watch the Fedor vs Rogers CBS bout from late last year to build some buzz for the fight on Saturday..

Strikeforce: Fedor vs Werdum Advertisement on Xbox 360

HDNet Airing Strikeforce: Fedor vs Werdum Weigh-Ins & Re-play of “The Last Emperor: Fedor”

HDNet is airing a great night of MMA on Friday night which consists of the weigh-ins, which will be a special edition of Inside MMA at 8 ET, HDNet Fights Vault featuring Fedor at 9ET, The Last Emperor: Fedor at 9:30 ET, and capping off the night with Sengoku 13 at 10 ET, which includes the much talked about Sandro vs Kanehara main event.

HDNet Strikeforce: Fedor vs Werdum Weigh-Ins

HDNet

ESPN MMA Live Strikeforce: Fedor vs Werdum Preview:

Scott Smith Throws Out First Pitch of Oakland A’s vs Cincinnati Reds Game:

Scott Smith threw out the first pitch of the Oakland A’s vs. Cincinnati Reds game at the Coliseum Stadium in Oakland.

Strikeforce

International Markets:

- Brazil:  HBO Plus will air Strikeforce Fedor vs. Werdum live this Saturday, 10pm Brazilian time.  There is good buzz in Brasil as one of their own in Fabricio Werdum will try to defeat arguably the best Heavyweight in all of MMA.  Also on this card is another hometown hero in Cris Cyborg, who will try to retain her belt against Jan Finney.  Talking to Brazilian MMA fans, not many know any other promotion in the US outside of the UFC, so it will be their second time (Fedor vs Rogers) experiencing Strikeforce this Saturday.

- Russia: NTV-Plus will be airing Strikeforce: Fedor vs Werdum as a PPV.  This is different than the last time M-1 c0-promoted the event with Strikeforce and CBS, which aired on one of Russias most popular channels, Channel One.

- Japan: Strikeforce and M-1 announced the creation of “MMA Channel” to air MMA video via the internet for the Japanese market. Tele Planning International Inc (TPI) has been contracted as the marketing company. Last year Fedor vs Rogers was streamed live free of charge. Despite the lack of advertising, the stream attracted over 50,000 viewers. TPI announced that they will stream the Fedor vs Werdum card live, and it will be the world’s first true HD internet stream. The cost will be 1,000 yen (~US$10.90).

Strikeforce vs Werdum Japanese MMA Channel

New Sponsors:

Blowout Cards is looking to make a splash on Saturday night, promoting their Topps UFC Tradingcards and other card collectible items.  They will be sponsoring Jan Finney in her title match against Cris Cyborg.  You can also see other sponsors that Finney was able to get for her fight on Saturday below:

BlowoutCards Sponsor of Strikeforce Fedor vs Werdum

MMAPayout: Detailed Report From E3 & Strikeforce Los Angeles (Pt. 2)

June 24, 2010

As 6 PM dawned upon E3 attendees,  LA Convention Center workers switched off the power to all gaming platforms and commenced to pry the controllers away from the gamers.  Sadly, we all knew it was time to go.  Slowly the crowd filed out, eventually making their way towards the Nokia Theater area where Strikeforce conveniently started their event one hour later. As I approached the Nokia Theater, there was an eye-catching display that read “Strikeforce – Tonight!”, just above a small gathering of fans and fighters, socializing and taking pictures with a few notable fighters like Dan Henderson and Yves Edwards.


The crowd for Wednesday night’s Strikeforce event was not the typical MMA crowd to say the least, but I was expecting that going into the event.  Let’s just say there was no lack of star power that night. Here is the list of attendees for the event:

MMA Stars: Dan Henderson, Frank Shamrock, Fabricio Werdum, Cris “Cyborg” Santos, King Mo Lawal, Gilbert Melendez, Mayhem Miller, Urijah Faber, Josh Barnett, Matt Hughes, Yves Edwards, Jens Pulver, Shane Del Rosario, Tyron Woodley, and Dan Hardy.  Recognizable MMA figures like Eddie Bravo, Tom Atencio, and Jeremy Lappen were also in attendance.

NFL Stars: Herschel Walker, Tony Gonzales, and Willie McGinnest were all there.  At the event, there were a few MMA folks talking about Herschel Walker making his return to Strikeforce around August, which at the moment means he may fight in the Strikeforce Houston event, which makes a ton of sense.  Herschel Walker has a huge following in the south, but Texas is definitely a second home to him due to his NFL days as a former Dallas Cowboy.

Celebrities: Britney Skye and friends. Yes… who earlier in the day was trying to score Strikeforce tickets for her and her friends on social websites like Twitter.  I was also sitting next to a few ex-pro athletes sprinkled throughout the crowd.  There were even rumblings that some of the Boston Celtics were in attendance for the Strikeforce card, just a day before they played Game 7 of the NBA Finals at Staples Center against the Lakers.

Pro Wrestlers: They were in full force that night, apparently ditching a THQ and WWE party that was being thrown that day to attend this event, according to Dave Meltzer.  Bill Goldberg, Ernest ‘The Cat’ Miller, Chavo Guerrero, Rey Mysterio, and Dave Batista all took in the event.  Batista, who at the time was rumored to have spoken with Scott Coker about fighting for Strikeforce, but sources say that they were just introducing themselves and “chit-chatting”.  In the ever changing landscape of MMA, TMZ recently reported that the conversations between Batista and Strikeforce have progressed, and scheduling and money are the only two issues holding up a deal.  Dave Batista was a pretty big star in the wrestling world, and some say he was making roughly 2 million dollars a year.  Not only that is that a major hurdle, but he has TV and movie roles lined up, which really affects his scheduling and most likely provide better pay than what MMA is offering him.  The book is still open on this and we will monitor it closely.

Observations Throughout the Night:


MMA Crowd: In terms of the MMA crowd, a good portion of them were supporters of  Babalu Sobral, Conor Heun, Hugo Sandoval, and Marcus Kowal, whose fights really got every one’s adrenaline pumping throughout the event.  Dan Henderson was definitely the star of the show, as fans stopped him whenever they could to take a picture with him.  When they showed him on the giant TVs, the crowd gave the biggest pop to Hendo, even compared to Herschel Walker, which I found interesting.  The fights that really went over well with the crowd were Sandoval vs Kowal, Noons vs Heun, and Cyborg vs Zaromskis.  The crowd gave all these fights a round of applause, and really erupted when Cyborg celebrated his brutal victory over Zaromskis on top of the cage.


MMA Venue: It was definitely an interesting setup, and most attendees who I spoke to said that they loved it.  It definitely felt like we were watching an upscale show.  Those same people I spoke to  said they hoped another MMA event would be held at the Nokia Theater, and would definitely return to catch it.  Now, there were some negatives with this type of setup, specifically regarding your view depending on where you were sitting since the cage was elevated on stage.  Some of this was alleviated by the looking to your left or right and catching some of the action on the big screens, where we were getting the Showtime broadcast feed minus the announcers.


Sponsors: The two new noticeable additions to the Strikeforce cage were the additions of GoDaddy and Best Buy.  Best Buy on the mat was tied to EA Sports MMA, which read “Pre-Order Now at” followed by the Best Buy logo.  I am assuming EA had something to do with this addition, as this is the first time I can recall seeing Best Buy in an MMA mat. Best Buy, who makes 50 billion dollars a year in revenue,  is fairly popular in the Los Angeles area, though it will be interesting to see if they stay as sponsors when Strikeforce ventures into other markets.

Contrary to Best Buy, GoDaddy was a much more noticeable addition to the list of Strikeforce sponsors.  If you recall, GoDaddy.com first jumped into the MMA scene when it announced itself as a major sponsor of the infamous Affliction Trilogy event, which was abruptly canceled at the very last possible moment.  Oddly enough, Tom Atencio (who was the Affliction Trilogy promoter at the time) was present at this Strikeforce event to witness GoDaddy.com venture into MMA once again. Here is GoDaddy’s reason as to why they wanted to jump into MMA market last time:

”The sport is exploding in terms of its growth. Its fans are fiercely loyal, the competition is exciting and the audience is Internet-savvy,” GoDaddy founder and CEO Bob Parsons said in a prepared statement. “This sport has a loud attitude. It’s right up our alley.”

The Internet giant, known for pulling publicity stunts, has sponsored athletes or events in other sports, including IndyCar, Nascar, PokerStars and the LPGA.

Though GoDaddy wasn’t quite able to debut as a sponsor with Affliction, they took full advantage of sponsoring the Strikeforce Los Angeles event.  The Strikeforce cage had GoDaddy.com logos on the mat and on the cage and a Strikeforce representative told me that they would most likely change their website to GoDaddy servers fairly soon due to this budding partnership.  In between rounds and fights, the two jumbo TVs alternated between playing the EA Sports MMA commercial and multiple GoDaddy.com commercials, like the ones shown below:

Without a doubt the big sponsor of the day was EA, who most likely had a big part in putting this MMA event together to coincide with E3.  Strikeforce and EA Sports MMA were hand in hand in both E3 and Strikeforce Live events.  In fact, after the E3 show was over, all EA Sports MMA personnel were treated to great seats to catch the Strikeforce event.  EA Sports MMA flyers were being handed out at E3 and during the MMA event, like the one seen below, among others.

Competitors: Before and after the Strikeforce event took place, there was a good sized THQ truck, attached with a large screen on its side, constantly playing Undisputed 2010 commercials as it slowly made its way around the block.  After the event was over, the whole Nokia Theater perimeter was surrounded by THQ employees, sporting THQ shirts and passing out flyers like the one shown below.   Interestingly enough, as I looked at the flyer I couldn’t help but catch the ever-so popular Best Buy logo, but this time attached to the UFC and THQ flyers and not the Strikeforce cage.  Best Buy definitely made a big investment through MMA video games that night.

As the event came to an end, it was finally time to head home, but not before picking up a few goodies and announcements made throughout the night, which I will share in part 3 of this writeup.

Lipton Brisk and Chuck Liddell

June 21, 2010

Earlier this month, Lipton Brisk released a digital short story entitled The Way of the Brisk: The Untold Story featuring UFC legend Chuck Liddell.

Payout Perspective:

The segment is really quite well-done and the perfect example of what we talk about here at MMAPayout.com all the time: the actual marketing or sponsorship activation directed towards an MMA audience must utilize elements of the MMA lifestyle or culture to truly be effective. This is something that seems obvious, but you’d be surprised how little it really happens (to my constant frustration!).

In this case, Lipton has taken elements of its brand – the very successful puppet concept from the 90s and early 2000s – and applied it to one of the most popular fighters in UFC history. It has Chuck doing what he does best, but in a humorous setting.

I tend to think that if you’re going to use MMA in your marketing material it either has to be funny or an association drawn to the hard work, dedication, and intensity that MMA requires. There really isn’t a market for advertisements that involve the hardcore fighting elements of the sport and typically anything in that direction is just going to limit your exposure; there are still a lot of people “disgusted” by the very sight of MMA and if you use the hardcore stuff, you’re immediately limiting your reach.

Humor and hard work are safe and stable concepts to work with – everyone gets them. If done right, a marketing team can even get a response out of non-MMA fans with MMA-related advertising along these lines.

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