UFC 135: Payout Perspective
September 25, 2011
Welcome to another edition of Payout Perspective. In the main event, Jon Jones defeated Quentin “Rampage” Jackson to retain the Light Heavyweight title.
Jones stops Rampage
Jon Jones handled Rampage Jackson to retain his Light Heavyweight title. Its becoming apparent that Jones’ length is his greatest attribute. Jackson looked motivated, in shape and had the correct game plan to deal with Jones. However, Jones was ready for Jackson and it was apparent that Jones could do whatever he wanted with Jackson. The 3rd round after the bell throw of Jackson and eventual choke served as notice that Jones is here to stay.
As for Jackson, it was weird for a loser of a bout to call out someone else. But, Rampage vs. Shogun Rua would help a UFC Japan card that has its share of skeptics.
Kos KOs Hughes
The fight was entertaining until the last few seconds of the first round when Koscheck poured it on and KO’d Hughes. For Hughes, the KO is the second of its kind as BJ Penn did the same to him last year. Its hard to say if Hughes will or should retire, but for a Hall of Famer to be knocked unconscious like that is not good for a legacy. For Koscheck, it was a nice return from December’s injury. The win should put him back into the welterweight title picture.
Attendance and Gate
Although not verified by the Colorado state athletic commission, Dana White announced the attendance at the Pepsi Center as 16,344 for a gate of $2 million. (h/t MMA Junkie)
Bonuses
MMA Junkie reports that the following fighters were awarded $75,000 each for their fights.
Fight of the Night – Jones vs. Jackson
KO of the Night – Koscheck
Submission of the Night – Nate Diaz
Diaz displayed his jiu jitsu proficiency in submitting Takanori Gomi. It was a textbook transition. Hopefully, in a push for an exciting fight, the UFC does not stray from its roots.
Promotion of the Fight
UFC Fight Night 25 featured a Jones-Rampage head to head debate. The same was done on ESPN. I have to say I am not a fan of these head to head debates. I know its supposed to draw heat but it seems forced.
More and more, UFC fighters are getting their chance on late night television. Jones and Rampage on Jimmy Kimmel to sell the fight.
It was a little weird to see the two sitting so comfortably close to each other and sharing their couch with Dr. Phil.
Press Conference
The Jones-Rampage press conference had its share of funny moments. The best being the picture of Rampage clowning Jon Jones’ “stare into the distance” when they both did the staredown at the initial press conference.
The drama of the alleged “spy” in Rampage’s camp brought some intrigue to the matchup. But, most people were interested in the matchup regardless of the “spy”.
Sponsorships
MMA Elite, Harley Davidson, MMA Authentics, Edge, Musclepharm, Xyience, Toyo Tires were all in the Octagon with Bud Light taking the center again. Video game Gears of War3 (for XBox 360) signage was also present in the Octagon. It also was the presenting sponsor for UFC 135. Noticeably a lot of different sponsors in the Octagon this time around.
Musclepharm – Not only did it announce its new partnership with the UFC earlier in the week, but its gym was featured during the UFC Countdown show as Rampage trained for the fight there. It also was the spot where Rampage discovered the “spy” from the Jones camp. Notwithstanding the implication that a MP exec was a spy, it was a good week of activation for MP. The MP gym was adorned with its memorable logo.
The US Marines maintained its Keys to Victory segment featuring Koscheck and Hughes.
FighterxFashion has a good rundown of the walk out wear from UFC 135 including Rampage “chains”. Just in time for Halloween…or your next street fight (j/k, I hope).
Interesting that Jon Jones did not have any special brand activation with any of his sponsors. If I missed it, let me know.
Odds and ends
- The high altitude coupled with the Heavyweight match-ups lead to two matches that slowed down considerably as the match progressed. Maybe some booking info to learn from in the future.
- Whenever Rashard Evans steps into the Octagon with a suit, he receives boos. It reminds me a little of Ric Flair. The pinstripes did add to the “heel” status he received last night. Notwithstanding, it was a little awkward for Evans after the stare-down with Jones since it looked like he wanted to leave but Rampage was still in the Octagon. It was like he was trapped a bit. It was a good spot but
- Don’t mean to talk about pro wrestling too much, but did Ben Rothwell come out to the Monday Night Raw theme?
- Did anyone notice Rampage’s corner-man whisper in his ear prior to his Rogan post-fight interview. It was like he reminded him to challenge Shogun in Japan.
UPDATE re PPV Buys
MMA Supremacy did an informal poll on the anticipated PPV buys for this pay per view. With Rampage, Jones, Hughes and Koscheck at the top of the card, many believed this to be between 500K-700K in buys with a smattering of people believing it to be 300-400K in buys. It will be interesting to see. Although Jones is the biggest rising star in the UFC, he has yet to become a PPV draw. The UFC hopes that this will change soon.
UFC Gym heading to Torrance, California
July 28, 2011
The UFC announced the opening of a UFC Gym in Torrance, California set to open in early 2012. This will be the fourth UFC gym in the state with the others in Concord, Rosemead and Corona, California.
Via UFC press release:
At over 40,000 square-feet, UFC Gym Torrance will feature all of the amenities seen in traditional fitness facilities, plus the cutting-edge training techniques that have helped the brand emerge as an undeniable force in the industry. With MMA programming such as Muay Thai kickboxing, jiu jitsu, self-defense classes, and team-oriented Daily Ultimate Training, as well as one-of-a-kind offerings such as a 32-foot Octagon®, UFC Kid’s Gym Fitness, Octagon Training Disciplines, and High-Octane Conditioning, UFC Gym Torrance will help members of all ages realize results like never before.
In addition to the four California gyms, the UFC will open a BJ Penn-UFC gym in Hawaii in 2012. MMA Weekly reports that there are no planned partnerships between the newest UFC gym and UFC fighters.
Payout Perspective:
Its interesting that the UFC is opening another gym in relative close proximity to other UFC gyms. One would think that it would at least open one in Vegas (before opening one in Hawaii). With the news of a BJ Penn gym, it was a little surprising that the UFC did not have a fighter tie-in with the Torrance gym. Regardless, with the expansion, one must assume that the UFC plan to enter the fitness industry is going well.
UFC Gym opens in Corona, Hawaii Next
May 16, 2011
MMA Weekly reports that the UFC and BJ Penn will partner to open a UFC Gym in Waikiki, Hawaii. The official announcement was made during the grand opening of the third UFC Gym in Corona, California.
Via MMA Weekly:
With Penn’s name attached to this new gym, one can only wonder if more fighters will follow his lead and partner up with the UFC and its gym brand around the country.
UFC vice president of community relations Reed Harris confirmed that Penn is only the beginning. In the coming years, the UFC and its gym brand plan to partner with other marquee fighters to open more gyms in several communities.
Penn indicated that the gym will have programs specifically for children. The initial plan is to have the gym in place by early to mid-2012.
The UFC and Penn have been working for a couple years to establish a gym affiliated with the former lightweight champ in Hawaii. An article from the Honolulu Star Advertiser states that the UFC was also working with Georges St. Pierre about establishing a UFC Gym in GSP’s native Montreal.
Payout Perspective:
The idea of UFC Gyms affiliated with its stars is a creative way to keep extending the UFC brand. With the names of fighters attached to the gyms, it could only help with name/brand awareness. Establishing a gym in Penn’s native state can only help with Hawaiian fans. Penn is very popular in Hawaii and one can only imagine the number of memberships the UFC could sell at a UFC/Penn Gym.
UFC opens third gym in Corona, California
October 25, 2010
Amidst the media buzz of UFC 121, the UFC announced that it would open a third gym, its second Southern California location, in the Inland Empire/Corona, California.
According to the UFC press release:
The Inland Empire will now have their chance to experience all that UFC Gym has to offer. Just weeks after the grand opening of the Rosemead location, New Evolution Ventures (NeV), and the UFC announced today that the third UFC Gym location is set to open in Corona, CA.
The third UFC Gym is expected to open in early 2011 and the location is currently selling memberships.
Payout Perspective:
It is amazing to see the rapid growth of the UFC brand into the fitness industry. The announcement of the third gym comes on the heels of the grand opening of its second gym in Rosemead, California. I am surprised that the UFC decided to open its third gym so close to each other and did not open a location in the Orange County or San Diego area. The Rosemead gym is about an hour and a half away from the proposed Corona site.
UFC to open second gym in Los Angeles area
September 14, 2010
The UFC announced in a press release sent out Monday that it would be opening doors to its second UFC GYM this Saturday, Sept. 18th in Rosemead, CA.
Many UFC stars will be on hand for the grand opening Saturday including Chuck Liddell, B.J. Penn, Chael Sonnen, Jon Jones and UFC ring girl Arianny Celeste.
The first UFC GYM opened January 23rd in Concord, California.
Payout Perspective:
The UFC gym brand continues to expand with its second gym, this time in the Los Angeles area. In a city with a wealth of health clubs, it will be interesting to see how the UFC GYM will fair. The gym will stand out from other health clubs as many will recognize the UFC brand. I would be interested to see the membership fees for UFC GYM and compare it to other health clubs in the area like 24 Hour Fitness, LA Fitness and Equinox.
Another interesting issue will be whether the association with MMA will help or hurt membership. After looking at the UFC GYM web site,you can tell that the gym is more than just mixed martial arts classes. In fact, the web site informs potential members that it has regular amenities and it is not an MMA specific gym. But, will people be deterred when they see the UFC brand and think it is just a place with punching bags and mats.
AKA Licensing Program
May 24, 2010
American Kickboxing Academy has announced that it will officially begin its licensing program at this weekend’s UFC Expo that coincides with UFC 114 in Las Vegas, Nevada.
The American Kickboxing Academy® is going to present opportunities to license its federally registered trademark at the UFC® Fan Expo™ on May 28-29 at the Mandalay Bay Convention Center in Las Vegas, Nevada. Several American Kickboxing Academy® team members will make appearances at AKA™’s booth, including undefeated heavyweight sensation Cain Velasquez, welterweight number one contender Josh Koscheck, and fan favorites Jon Fitch and Mike Swick. Fans will have the opportunity to purchase AKA™ apparel and collect autographs, as well as to win autographed items through contests. Clients interested in licensing opportunities will have the chance to discuss ways to partner with AKA™, including affiliated training facilities and product licensing.
Payout Perspective:
I can’t help but feel as though we’re finally starting to see a bit of a business evolution within the mixed martial arts industry. Some of these companies have realized that they have valuable properties with significant exploitable potential; and, as a result, they’re now moving to license or sell those properties to earn extra revenue. We saw it first with the UFC’s merchandising and collectibles initiatives – and many would argue that they took too long to do that – and now we’re seeing brands like Tapout and AKA explore more opportunities than what are just immediately in front of them.
High School Wrestling Participation Growing
February 2, 2010
MMAPayout.com has made references to the steady growth of martial arts facilities and participation in the United States over the last few years; a trend that many feel correlates with the rise of mixed martial arts and the UFC. We’re now seeing even more encouraging news out of the National Federation of State High School Associations (NFSH), which has released a series of surveys over the last few years that shows the number of amateurs wrestlers in the country is growing.
2006-2007: 257,266
2007-2008: 259,688
2008-2009: 267,378
Granted, this is in contrast to the decline in amateur wrestling that we’re seeing at the college level, but that is largely the result of Title IX striving for gender equality. Programs dominated by men, but without serious revenue generating potential – like wrestling – are being cut in order to the balance athletic scholarships provided for men and women.
Tapout Expands Training Facilities
January 20, 2010
CNNMoney.com reports that Tapout has expanded its line of training facilities by opening two new fitness centers away from the Las Vegas area; one in Gatineau, Quebec and the other in Boston, Massachusetts.
Truesport Alliances, Ltd. has cultivated an unparalleled client base consisting of the top MMA brands, including TapouT, the premier mixed martial arts apparel, gear and lifestyle brand. With the MMA culture quickly becoming a standard in sports excellence, TapouT Training Centers will offer a full complement of MMA training and classes open to the public.
The TapouT Training Centers will be the third and fourth stand alone fitness facilities of its kind to be built by the company, whose brand has become synonymous with the attitude and prominence of mixed martial arts. TapouT’s distinctive, authentic logo graces everything from clothing, accessories, and gear, to nutrition products and a magazine, as it does within the training center.
Designed for everyone at all fitness levels, the TapouT Training Center is predominately a class based fitness facility with a full schedule that features a spectrum of MMA themed training. In addition to a broad spectrum of martial arts instruction, the majority of the cardio/fitness classes are non-contact.
Payout Perspective:
The time to get into the MMA fitness facility business would appear to be now. The statistics point to something near 26,000 martial arts facilities in the United States, which is a number that grows every month along with new memberships and participation. Much like the UFC, Tapout sees an opportunity to license their brand in order to build it.
The only risk I see is that of any licensing venture: the commitment has to be there on the licensee side, because the threat of brand damage to the licensor is very real if expectations are not met. New members looking to enroll at a Tapout will come in with a certain set of expectations given the brand name. It looks like Tapout goes through a pretty rigorous screening process - as any potential licensor should – but nonetheless this isn’t a risk-free cash grab for Tapout.
MMAterial Facts (01/19/10)
January 19, 2010
- Lesnar’s likely return tops busy UFC agenda
- Truesport Alliances, Ltd. Opens TapouT Training Centers in Gatineau, Quebec and Boston, Mass.
- Martial arts athletes to visit area in fight against drug usage
- MotoUSA Heads to Big Apple for New York IMS
- NY Governor Introduces MMA Bill with State Budget Proposal
Lesnar’s likely return tops busy UFC agenda
Lesnar is scheduled to appear on ESPN on Wednesday morning to discuss his situation with diverticulitis, which forced him to cancel a Nov. 21 title defense, hospitalized him for two weeks, and has kept him on the sidelines ever since.
Lesnar will likely announce his return, possibly with a time frame. In the past week, two of Lesnar’s coaches – Greg Nelson and Marty Morgan – have said Lesnar would be returning, hinting it would be soon but saying they couldn’t confirm when. Others close to the situation have noted it has not been an easy decision for Lesnar to make; without having major surgery, there is a risk of another painful attack.
…The issue was whether he would need, or it would be advisable, to get surgery on his intestine, which would keep him out of action for more than a year. Such a lengthy absence would force him to vacate the heavyweight championship.
Another change made is in arguably UFC’s biggest fight on the books at this point: the Quinton “Rampage” Jackson vs. Rashad Evans match built on the last season of “The Ultimate Fighter” with the two as rival coaches. The match will likely take place at UFC 114 on May 29 in Las Vegas instead of the originally announced UFC 113 show on May 1 in Montreal. UFC president Dana White said in a text message Tuesday morning that Jackson vs. Evans will most likely take place in Vegas… (Yahoo! Sports)
Truesport Alliances, Ltd. Opens TapouT Training Centers in Gatineau, Quebec and Boston, Massachusetts
Truesport Alliances, Ltd. (OTCBB: SEWE) is officially opening the doors of the new TapouT Training Center in Gatineau, Quebec and Boston, Massachusetts.
Truesport Alliances, Ltd. has cultivated an unparalleled client base consisting of the top MMA brands, including TapouT, the premier mixed martial arts apparel, gear and lifestyle brand. With the MMA culture quickly becoming a standard in sports excellence, TapouT Training Centers will offer a full complement of MMA training and classes open to the public.
The TapouT Training Centers will be the third and fourth stand alone fitness facilities of its kind to be built by the company, whose brand has become synonymous with the attitude and prominence of mixed martial arts. TapouT’s distinctive, authentic logo graces everything from clothing, accessories, and gear, to nutrition products and a magazine, as it does within the training center…(CNN Money)
Martial arts athletes to visit area in fight against drug usage
Three professional mixed martial arts athletes will be in the area today and Thursday to encourage young adults to stay away from drugs, establish goals in life and continue their education so they can become productive citizens and successful professionals.
The athletes were brought to the area through the efforts of Magisterial District Judge John Gembic III and his cousin, Mark Gross, a Coal Township native who now lives in North Carolina, “Crazy Bob” Cook, a former undefeated Ultimate Fighting Championship (UFC) fighter who also serves as a trainer, coach and fight team manager at the renowned American Kick Boxing Academy in San Jose, Calif.
Jon Fitch and Josh Koscheck, UFC competitors from Fort Wayne, Ind., and Josh Koscheck of Waynesburg, respectively, will be appearing at 9 p.m. today at Sees’ M.A.T.S., located at the former Magic River Skateland on Route 15 , Danville.
The athletes also will address students at Shamokin Area Middle/High School at 1 p.m. Thursday, and will participate in a special ceremony that will honor them as “honorary police officers” at the Coal Township Board of Commissioners meeting at 7 p.m. Thursday. After the meeting, the trio will head to Brewser’s SportsGrille to continue spreading their message of eradicating drugs through education, hard work and setting an example for others… (Newsitem)
MotoUSA Heads to Big Apple for New York IMS
From the cruiser domain, Harley-Davidson is scheduled to make an announcement, Victory will be unveiling a limited edition motorcycle, and Star Motorcycles is breaking wraps on a Performance Machine Star Raider. For custom motorcycle fans, the Bikes & Beats Ultimate Builder Competition presented by TapouT will attract plenty of East Coast talent to the show, and Hardcore Choppers is set to debut its Datasol Speedster “iBike.” Hardcore will also have other customs on hand like its ‘P-40 Warhawk’ Special Edition Speedster and the ‘Bat Bike.’ Just look for the ‘Hardcore Hotties’ and you’ll know you’re in the right place.
To add to the show’s entertainment value, UFC fighters Roy Nelson, Jens Pulver and Rolles Gracie will be on hand to meet fans at the TapouT Champions Area this Friday night. If racing is more your cup of tea, Marlboro Ducati rider and former MotoGP World Champion Nicky Hayden will be at the Ducati display Friday at 7 p.m., and AMA Drag Racing champion Rickey Gadson is scheduled to be at the Kawasaki booth… (Motorcycle USA)
NY Governor Introduces MMA Bill with State Budget Proposal
Jake Encarnacao of Sherdog.com reports that New York Governor David Paterson has unveiled his state budget proposal for the up-coming fiscal calendar and it includes a bill that would effectively re-instate MMA in New York…
The gate tax is really quite high, which suggests this push to legalize the sport is more of a money grab than a recognition of MMA’s legitimacy. Moreover, the difference in tax levels between New York and neighboring states may provide smaller promoters – those which do not benefit from the status appeal of hosting a show in the Big Apple, for example – with the incentive to take their shows to states like Massachusetts, New Jersey, Pennsylvania, or even Rhode Island… (MMAPayout Perspective)
QUICK HITS
- UFC Primetime: GSP vs. Hardy (MMAPayout Perspective)
- Werdum vs. Fedor “99% confirmed” in April (Tatame Magazine)
- Ambriz out as Lashley opponent, officials at “square one” on replacement (MMAJunkie)
- Overlooked and Overshadowed, Greg Nagy Ready for Herschel Walker (MMAFighting)
- AKA Teammates Insist Herschel Walker Is Ready for MMA Debut (MMAFighting)
- UFC: Exclusive Paul Daley earns new six-fight deal and faces US wrestler Koscheck (Telegraph)
- Coenen: I can go strike-for-strike with women’s champ ‘Cyborg’ Santos (USA Today)
- WEC fighter urges fans to aid Haiti survivors (Las Vegas Sun)
- Remembering Bob Shamrock (ESPN)
- After title loss, Diego Sanchez returning to UFC’s welterweight division (MMAJunkie)
- UFC signs Rick Story to new four-fight deal (MMAJunkie)
- MMA fighters teach Marines skills for combat (Marine Corps times)
- Source: Ninja Rua fighting for DREAM in March (Fighters Only Magazine)
- Nam Phan in Title Fight, Eyeing Return to Japan (MMAWeekly)
VIDEO OF THE DAY
TV LISTINGS
- HDNet Fights Presents K-1 Classics (Asian GP 2008) at 8 PM ET on HDNet (01/22/10)
- InsideMMA (Ed Soares, Jose Aldo, Jon Fitch, & Randy Couture) at 9 PM ET on HDNet (01/22/10)
- HDNet Fights Presents Best of 2009 K-1 World MAX at 10 PM ET on HDNet (01/22/10)
- Best of Pride FC at 10 PM ET/PT on Spike (01/22/10)
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 TBD (01/30/10)
- KOTC: Toryumon from Okinawa, Japan on PPV (01/30/10)
New Jersey a Growing MMA Hotbed
January 4, 2010
Joe Favorito of New Jersey News Room, and formerly of the IFL, writes of the challenges MMA faces in its future growth and how New Jersey is well-positioned to be a hotbed for the sport moving forward.
The question is, how can brands find a way to make a cohesive tie to the grassroots while also drawing attention from the followers of the UFC? That is one of the issues that the sport needs to figure out if it is to continue to grow.
The conversion of young participants in a lifestyle sport to be followers of the professional side is generational and, in today’s world of instant ROI, can be difficult to find. Soccer, with its well organized millions of kids, still is making the transition to have those young people watch and follow the professional side after 15 years, and it may take MMA at least that long to do the same.
There is also the issue of violence. While many may argue that MMA is no more violent than football or hockey, the amount of bloody injuries in an average MMA event is still much higher than any other sport – and to be honest, the blood gives MMA its edgy appeal for most of its core. The appeal has also caused some potential sponsors still to not move off the edge and into the sport, for fear of brand damage. Yes that is slowly changing, in great part due to the UFC and their TV partner in Spike, but it is a slow conversion, especially in challenging times.
So can New Jersey be a great conduit for the continued growth of MMA? For the most part professional events have not done well from a business perspective in places like Newark and Atlantic City, again because of the high cost of staging events vs. the limited draw of a box office with no other revenue coming in (limited sponsors, no TV money, little value of digital rights). However, New Jersey has the unique combination that many sports need to succeed… a growing grassroots presence with the appeal of two major metropolitan areas in Philly and New York, so the potential for brand success for the sport overall, not just for the UFC, is strong.
Will it work for the State? There is little doubt the UFC event in Newark will be a success, and maybe that can continue the draw that would translate across the river to Madison Avenue, as well as into the local gyms. 2010 for MMA will be all about realizing potential that has been developing, and if it is to be realized, New Jersey is as good as a starting point as anywhere.
Payout Perspective:
Joe is right to point out that the lifestyle and training aspects of the sport are becoming very popular: There are over 26,000 martial arts facilities in the United States, and participation is growing at a steady pace. That growth is the reason why the UFC has moved forward with its UFC Gym concept; the type of brand extension that makes sense not only from a revenue diversification perspective, but also one of future fan base growth.
The challenge of converting grassroots participation into brand awareness and fan following is a long-term endeavour – especially on the athlete side – but MMA is well-positioned to generate new fans out of this grassroots growth for the following reasons:
1.) The close knit martial arts community: MMA is largely responsible for the renewed interest in martial arts, and for that reason the traditional martial arts are very much behind MMA. If you walk into your local dojo on any given Monday following a UFC event you’re likely to hear about it, but that isn’t the case with your local amateur soccer program and the MLS or Premier League.
2.) MMA’s place in pop culture is at an all-time high, and certainly more prevalent than any of the other “growth” sports (soccer, hockey, etc.).
3.) Simplicity. Everyone may not like MMA, but everyone gets it; and that’s one less barrier to converting fans.
Note: The entire piece is worth a read as Joe talks about some of the more popular MMA clubs that have started up in the state (like Schulman’s and Renzo Gracie). He also runs a sports marketing blog that is worth an RSS.
