Mayweather-Canelo fight hits 2.2M PPV buys according to Showtime

September 19, 2013

Kevin Iole of Yahoo! Sports reports that “The One,” the fight between Floyd Mayweather, Jr and Canelo Alvarez will do about 2.2 million PPV units in the U.S. for $150 million making it the highest grossing boxing PPV ever.  As a result, its believed that Floyd Mayweather could make $70-80 million while Alvarez will make well over $10 million.

Another 26,000 fans watched the fight on closed circuit for a gate of $2.62 million.

According to the Iole article, in Mexico the fight airing on Televisa received a 41.1 rating and 71 share equating to 22.1 million viewers.

While Showtime believes that Mayweather will pocket almost double his guaranteed $41.5 million, Leonard Ellerbee believes Mayweather could make $100 million.

Payout Perspective:

The price of the PPV and the added ways to watch were likely culprits of why it was not going to surpass the PPV buy record.  Still, 2.2 million PPV buys is an incredible number considering the hefty $75 HD price.  The strong numbers from Mexican fans means that Canelo Alvarez has arrived.  While we reported that he was guaranteed $12 million (he actually was guaranteed $5 million), it now looks like he will probably surpass that $12 million figure.

“The One” Payout Perspective

September 16, 2013

Welcome to another edition of Payout Perspective.  This time we look at “The One,” the fight between Canelo Alvarez and Floyd Mayweather, Jr.

Mayweather dominates in Majority Decision

The look on Mayweather’s face when a Majority Decision was announced was not worth the $75 PPV price tag but it was still pretty good.  Notably, CJ Ross judged the Pacquiao-Bradley fight which makes one wonder if there are no other qualified judges out there.

The 36 year old did what he does in muting a game Canelo Alvarez.  While the judges may have thought it close, there was never a time that Mayweather looked to be in trouble.

Mayweather has indicated that he would like to fight Cinco de Mayo weekend 2014 with Danny Garcia and/or the winner of Amir Khan/Devon Alexander fight. A Khan fight may be the most entertaining based on the styles.  A Danny Garcia fight might be the best for promoting the fight with Angel Garcia and Floyd Sr. as sideshow entertainment.

Alvarez had a decent showing yet it would be hard to find a round you can say he won. People liked his utter disregard for Mayweather’s pleasantries which manifested itself with Canelo refusing to hold the belt with Mayweather post-weigh-in, during the fight a shoulder bump after a Mayweather liver shot and a low blow after having his head pushed down.

MayweatherVsCanelo

Garcia defeats Matthysse in slugfest

Angel Garcia is the father and mouthpiece for Danny Garcia and vowed he’d cut his own head off if his son would lose.  Although Matthysse was the challenger, he was the favorite coming into the fight.  But, Garcia was able to dominate Matthysse despite getting his mouthpiece knocked out (and replayed in slow motion) in the 11th round.  Garcia eventually dropped Matthysse in the same round.

Garcia is an understated champion and hopefully with all the viewers for this event, he’ll grab some fans.

Attendance, gate, etc.

The MGM Grand was a sellout of 16,746 for a record gate of $20,003,150.  The gate was an all-time record.

Moreover, the weigh-ins was at capacity with 12,200 people coming to watch the fighters get on the scale.

Closed circuit viewing of the event in Vegas were a sellout with tickets going for $100 and being sold for $150 on the secondary market.  Kevin Iole of Yahoo! Sports tweeted that Richard Schaefer indicated that it was a sellout with 26,355 tickets sold.

In addition, more bars across the nation showed the fight and the fight was available in more movie theatres (500) this time around.

Promotion of Fight

An unprecedented 11 city press tour which brought out thousands of fans.  So big was the fight that the Garcia-Matthysse fight was to have its own mini-press tour.

The four episode All Access Showtime show was available online so even if you did not have Showtime, you could check it out.  Nothing dramatic in these episodes, but a good primer for the fight. It was interesting that CBS did not show any of these episodes on the network.

One of the more underrated promotional tools for the fight is CBS Sports Network, Showtime and the 101 Network airing previous Canelo and Mayweather fights.  The best thing about it.  You get to see free PPV-quality fights.

ESPN The Magazine had a “Fight Issue” dedicated to the event and the LA Times also had a special section for “The One.”

Despite all of the platforms to watch the fight, PPV remains the central part of the business.  Although it was a $75 price tag (in HD), expectations are that PPV will exceed 2 million buys.

Via Forbes:

If the bout does hit its ambitious PPV goals, credit the all-out marketing blitz that mixes target markets with mass markets, and high tech with old school media and promotions. In addition to the natural Hispanic market, promoters say they’re going heavily after the youth and female markets, the better to take advantage of Alvarez’s youth and good looks.

On Wednesday or Thursday of fight week, various athletes and stars tweeted out the fact that they had ordered “The One.”  After comparing the tweets, it was obvious that it was part of a social marketing campaign for people to buy the PPV early.

 

Sponsors

The sponsors in the ring included AT&T, Nature Nutrition, Valvoline, O’Reilly Auto Parts, Mexico (we assume the tourism board), Fred Loya Insurance and Corona in the center.  Mexico sponsored the scale at the weigh-ins.

This event included record promotional spending of which CBS supported Showtime with $15-$20 million of promotional spots.

Valvoline offered a $35 rebate for the PPV if you purchased 5 quarts of motor oil.  O’Reilly Auto parts was the presenting sponsor at movie theatres showing the fight.  Corona had promotional displays at 15,000 stores in 32 states.

Canelo Alvarez’s sponsors included Under Armour which included a variety of workout shirts and his ring shoes (via FigherxFashion).  Online sales of his shirts were going at a swift pace.

Danny Garcia’s shorts was a sponsor’s nightmare.  It was hard to see the sponsors on his trunks unless you absolutely focused on them.  I could make out Western Union as one of his sponsors.  Also, Garcia had a Jumpman logo on the front of his trunks but wore Adidas ring shoes.

As if he needed more money, Floyd Mayweather pitched his line of “Money Wear” including shirts starting at $35 and his “TBE” hat going for $70.

Odds and Ends

-The weigh-ins included walk-ins for Matthysse, Garcia, Alvarez and Mayweather.  No one took advantage of the walk-in more than Angel Garcia.

-Lil’ Wayne and Justin Bieber walked to ringside with Mayweather which made him the obvious choice as villain for the main event.  Wayne rapped his way down to the ring without a shirt.  He also watched the entire fight without a shirt either.

-Maybe one of the harder shots Danny Garcia took was when his father hit him in the ear between rounds to wake him up.

-”USA, USA” chants were booed down by the pro-Canelo crowd.  A probable first in the states.

Conclusion

“The One” will go in the books as one of the biggest revenue generating fights in history.  This summary did not even cover the fact that Mayweather will receive a guaranteed $41 million without even factoring in the other revenue streams.  Canelo should receive at least $12 million not counting what he may earn from other revenue streams.

While we note how much will be made from this event, Mayweather Promotions, Golden Boy and Showtime did outlay a lot of money with the hope of scoring big…which it looks like it did.

The marketing and promotion for this fight was all over and despite a $75 price tag, we may see a PPV revenue record broken.  Will it exceed the number of buys of De La Hoya-Floyd (2.5 million)?  Its not clear, but it should be close.

PPV History (or lack thereof) of UFC 164 main eventers

August 31, 2013

As we get a UFC PPV just a couple days after a free TV event and a couple days before another one, we take a look at the PPV history of UFC 164 main eventers.

UFC_164_Bendo_vs_Pettis

Benson Henderson

Henderson’s last two fights have been on Fox cards and his last two PPV appearances were against Frankie Edgar.  So, it’s hard to gage how much of a draw he is to PPV.  While the network cards brought good ratings, the PPV appearances against Edgar were sub-par. Henderson was on the big UFC 129 card but not the real attraction for that show.

EVENT OPPONENT DATE BUY RATE Rating
UFC on Fox 7 Gilbert Melendez (w) April 20, 2013 3.7M
UFC on Fox 5 Nate Diaz (w) December 8, 2012 4.39M
UFC 150 Frankie Edgar (w) August 11, 2012 190,000
UFC 144 Frankie Edgar (w) February 26, 2012 375,000

Anthony Pettis

“Showtime” has not been in a main event position since his upset loss to Clay Guida at TUF Finale 13.  Pettis received KO of the Night for his performance against Joe Lauzon at UFC 144 in Japan.  Ironically, the same night Henderson won the title.

EVENT OPPONENT DATE BUY RATE Rating
UFC on Fox 6 Donald Cerrone (w)(KO) January 26, 2013 4.4M
UFC 144 Joe Lauzon (w)(TKO) February 26, 2012 375,000
UFC 136 Jeremy Stephens (w) (split decision) October 8, 2011 225,000
TUF Finale 13 Clay Guida (L) June 4, 2011 1.8M

Payout Perspective:

If you were wondering, the final rating for their famous WEC title match drew an average of 615,000 viewers on Versus.  The fight took place on December 16, 2010 and we still see the highlight everywhere.

As for the rest of the card, Frank Mir-Josh Barnett should be an intriguing fight.  I didn’t go over their respective card histories since Mir is not the same fighter or draw he was at UFC 100 (1.6M PPV buys) or even UFC 140 (485K PPV buys) when he subbed Big Nog.  It’s the Warmaster’s return to the UFC and a step up in opponents.

Is this a card that the casual PPV fan will be interested in, or does the fact its sandwiched between two free cards on FS1 hurt its chances?

UFC 161 and 163 PPV estimates low

August 22, 2013

MMA Fighting reports that early estimates of UFC 163 featuring the Korean Zombie fighting Jose Aldo are between 170K to 190K buys.  UFC 161 has been estimated at 135K to 155K PPV buys.

According to Dave Meltzer, both of the estimates are from individuals within the cable and MMA industry.  They indicated the estimated PPV buy range for KZ-Aldo had bested Hendo-Evans on PPV “by about 35,000 buys.”

The last time UFC PPVs dipped below 200K PPV buys was last June and August when UFC 147 (W. Silva-Franklin II) received 140K and UFC 150 (Bendo-Edgar II) received 190K PPV buys. It will be interesting to see what Henderson will draw next week when he defends his title against Showtime Pettis.

Payout Perspective:

The fact that UFC 163 was a card full of mainly Brazilian fighters made this less of an attraction despite Aldo’s title defense.  Also, UFC 161 was a definite low point in the PPV history of both Henderson and Evans.  Besides the main events, there were not many compelling matchups on either card unless you were a hardcore UFC fan.   The consensus is that with the UFC-Fox agreement and that there are more fights on free television, fans are more willing to skip PPVs.  It will be interesting to see how the UFC addresses this issue in the future especially with the new FS1 and 2.

Will the UFC decide to curtail the number of PPVs in order to stack cards for bigger PPV draws?  Or, will it be content to eat poor ratings for 1 or 2 PPV events each year?

Pricing out PPVs for rest of 2013

August 17, 2013

As fall is right around the corner, MMA Payout takes a look at the combat sports pay per views to look forward to through 2013.  The bottom line is that fans will be digging into their pockets for some extra money this fall.

The below is a list of major PPVs occurring through 2013.  The prices are in HD, because we know you like the best, and its the only way to watch these live events.

Date Event Price (HD) Comment
August 18, 2013 WWE Summerslam $54.95 Punk v. Lesnar is the MMA tie-in here in the company’s second biggest PPV of the year.
August 31, 2013 UFC 164: Henderson v. Pettis $54.95 Will we see a redux of The Showtime Kick?
September 14, 2013 Showtime PPV: Mayweather v. Canelo $74.95 The biggest boxing PPV in years with the biggest price tag.
September 21, 2013 UFC 165: Jones v. Gustaffson $54.95 Two title defenses on this PPV featuring best P4P fighter.
October 12, 2013 HBO PPV: Marquez v. Bradley $54.95 Last two fighters to defeat Manny Pacquiao meet here.
October 19, 2013 UFC 166: Cain v. JDS III $54.95 The trilogy to decide the Heavyweight title.
November 2, 2013 Bellator PPV: Rampage v. Tito $35-$45 (est.) Alvarez-Chandler real main event here.
November 16, 2013 UFC 167: Hendricks v. GSP $54.95 Johny Hendricks latest challenger to GSP’s title.
November 23, 2013 HBO PPV: Pacquiao v. Rios $69.95 (est.) Look for this PPV to be bumped to $75.  Its Pacquiao’s attempt to stop 2 fight losing streak.
December 28, 2013 UFC 168: Weidman v. Silva $54.95 The rematch everyone is waiting for plus Rousey-Tate should bring company a show close to 1 million PPV buys. 

If you purchased all of the PPVs you will be spending approximately $575.50 (assuming Bellator PPV on high end at $45.95) in addition to your cable bill.

Even with FS1 and 2 showing free UFC fights there are lots of interesting UFC events plus some boxing PPVs to look out for this fall.  Marquez v. Bradley may be the sleeper card as it’s a PPV that will be based on Marquez as the main draw.

UFC 163: Payout Perspective

August 4, 2013

Welcome to another edition of Payout Perspective.  This time we take a look at UFC 163 which was held in Rio de Janeiro, Brazil where Jose Aldo defended his Featherweight title against The Korean Zombie, Chan Sun Jung.

Zombie’s shoulder pops out leading to Aldo victory

It would have added to the lore and nickname of KZ if he had actually popped his shoulder back in and continued to fight.  But this is reality and Aldo took advantage.  Even if the fight continued, Zombie’s confusing decision to stand, literally, in front of Aldo was perplexing.  Moreover, his corner’s encouragement that he was doing great was just as confusing.  The only times Zombie did well was when he was the Zombie.  Moving forward and throwing shots.  Aldo was very good and despite the shoulder injury he was heading to a unanimous decision.

With a possible broken foot, the Featherweight division may be stalled unless we see an interim champion.  If that’s the case, Chad Mendes vs. Ricardo Lamas would be a good matchup.  Then again, could we see Anthony Pettis reemerge here?

ufc163

Phil Davis wins…really

Sure it was controversial, especially in Brazil, but Mr. Wonderful pulled off an upset over hometown favorite Lyoto Machida.  Despite the upheaval, it was a close fight and Davis scored takedowns at the end of the rounds to secure a victory.  The win keeps Davis relevant in the Light Heavyweight division while is a setback for Machida who was generally upset about the decision.

Attendance

The announced attendance at the HSBC Arena was 13,873 although it was clear that there were many empty seats.  This might have been a reason that the gate number was not released.

Bonuses

Bonuses were $50,000 each and were as follows:

Fight of the Night:  Ian McCall-Illiarde Santos

Submission of the Night:  Sergio Moraes

KO of the Night:  Anthony Perosh

Sponsorships

As with the Brazilian events, there were a healthy amount of Brazilian sponsors in the Octagon including Gillette, Head and Shoulders, IntergralMedica, Sky HDTV and TNT Energy Drink.  Also, Harley Davidson, SafeAuto Insurance, Corn Nuts (not usually in the Octagon) and Bud Light in the center.

Machida’s main sponsors were Venum and Head and Shoulders.  Davis was sponsored by GenOx, a company specializing in the transportation of gases.

Aldo wore Monster head phones to the Octagon and his soccer kit inspired Venum walk-in shirt.

Interesting note that several fight banners including Zombie and Aldo had a black tape over what appeared to be a sponsor at the top of their fight banner.  Not sure what happened but its likely that the sponsor did not pay.

Odds and Ends

Brandon Vera f-bombed Brian Stann based on his critique of Phil Davis winning.  Vera, a friend and training partner of Davis was taken to task by many posters since many backed Stann as an announcer (and of course he’s a military veteran).  Vera on the other hand has not fought in a year and could be facing his last fight in the UFC if he does not beat Ben Rothwell on August 31st.

Uncle Creepy versus John Lineker?  Do it.

Not related to UFC 163 except for the fact it was posted on the same day as the PPV.  But, if you get denied UFC media credentials, this can happen.  Deadspin potshots UFC reminding readers of Chuck Liddell falling asleep during an interview.

“Hands of Stone” John Lineker, “Mr. Wonderful” Phil Davis…I didn’t realize there was such a love for 1980s pro wrestlers.

Speaking of wrestling, there was a one hour special of this past year’s Wrestlemania on NBC and NBC Sports Network’s Fight Night opposing the PPV.

Conclusion

Don’t expect a big PPV number here.  Not even a mediocre number.  With another PPV at the end of the month and a world tour promoting the rest of the PPVs for 2013, this was a PPV most skipped.  Add the fact that lower weight classes do not do well on PPV and this was a Brazil card (lower buy rates).  Thus, we will likely see a number around 140,000 which was the buy rate for UFC 147.

Rampage-Tito on first Bellator PPV

July 31, 2013

During Bellator’s live event Wednesday night, it was announced that Rampage Jackson would meet Tito Ortiz on Bellator’s first ever pay per view on November 2nd in Long Beach, California.

The announcement was somewhat of a surprise considering most had thought that Jackson would be boxing Roy Jones, Jr.

Rampage-Tito

Via Bellator press release:

“To have two of the biggest names in MMA headline our first PPV is awesome,” Bellator Chairman & CEO Bjorn Rebney said. “Rampage vs. Tito is a fight I’ve wanted to see for years and to have it as our Main Event on our first Pay-Per-View is a spectacular next step in Bellator’s evolution. They’re both re-energized, excited and ready for a war. This will be a great fight.”

 

“Honestly, I feel like I’ve been re-born.,” Jackson said. “My excitement, energy and aggression, it’s all back and bigger than ever. I feel like a kid again. The Rampage you’ll see Nov. 2ndwill be better than any Rampage you’ve ever seen.  Everybody knows Tito and I have a very long history. He’s a former teammate and friend, and it’s one of the reasons I stayed away from the UFC as long as I did.  But, I want to be very clear; any sort of friendship we once had doesn’t exist when that cage door shuts. I’ve got a ton to prove on November 2nd, and unfortunately for Tito he’s the guy I have to make an example of. He’s in my house now and Saturday, November 2nd on PPV, it’s going to be a horrible night for Tito Ortiz.”

“I’m back,” Ortiz stated. “Over the last few years, my passion for MMA was completely killed, dealing with UFC politics and with Dana. I didn’t have that drive to compete, my heart wasn’t in it. I feel like a huge weight has been lifted off my shoulders. I’m free. Bjorn and Bellator put together an opportunity that made me part of the promotion, part of the family.  I feel like I can breathe again and my old friend is going to be on the receiving end of all that happiness turned into an old school Tito Ortiz ground and pound beating. I’ve fought and beaten the very best in MMA history and on Nov. 2nd, Rampage will be the next huge win on my record. This is a new era for the People’s Champion.”

Payout Perspective:

Having Roy Jones, Jr. at ringside for the announcement added to the “swerve” that was announced.  Ortiz had taken pictures that he had gone to the Bellator headquarters in Newport Beach, California so the possibility of a comeback in Bellator was plausible.  Although both may be past their prime, the fight is a legitimate MMA fight and not a sideshow boxing match.  Certainly something that Bellator/Viacom took into consideration.  There was also the issue of the possibility that Jones KOs Rampage.  What would Bellator/TNA do with Rampage then?  

But for Bellator, this is as good a play as it can do to promote its PPV.  It needed two big names in the world of MMA to market it.  At this point, Askren, Lawal and Chandler are not known commodities outside of Bellator.  But, we should expect all 3 (and my prediction Eddie Alvarez will be back to fight Chandler) to be on the PPV card.  The hope will be that the 3 will be able to make name for themselves for future PPVs.  

Report: UFC 162 does 550K PPV buys, UFC 161 grabs 150K buys (updated)

July 24, 2013

MMA Fighting reports the PPV buy rates for UFC 161 and 162.  The Anderson Silva-Chris Weidman fight drew 550,000 PPV buys whereas the unheralded Dan Henderson-Rashad Evans fight drew only 150,000 PPV buys.

In the post-fight press conference of UFC 162, Dana White had estimated 800,000 for the July 6th event.  It looks like based on the information that this estimate was off.  The 550K PPV represents a bump in viewership since Silva’s last appearance at UFC 153 (410K PPV buys) where he toyed with Stephan Bonnar.  But that event was in Brazil and those cards usually do not do as well as those in North America when it comes to PPV.  

In addition, UFC 161 only did 150,000 PPV buys as many fans decided that the June PPV would be one that they would skip.  While Henderson-Evans was a replacement main event, the Barao-Wineline scheduled main event would probably have not drawn more viewers.  

Update: From Wrestling Observer Newsletter, we get a bit more information on the PPV numbers. UFC 160 is estimated to have done around 380,000 buys while UFC 161′s full estimated range is between 135,000 and 150,000.

 

Payout Perspective:

Its almost expected that UFC 161was not going to do well.  The card didn’t have anything compelling and the numbers reflect the fact fans weren’t into it.  It seems that fans almost tune out on the June PPV.  Recall last year W. Silva versus Rich Franklin from Brazil drew only 140,000 PPV buys.  The year before that JDS-Carwin from Vancouver (a main event which could have been JDS-Brock) drew only 330,000.  Maybe June is a time UFC fans take off.

The PPV buy rate for 162 is a disappointment considering the expectations set by White post-fight.  Weidman was an unknown although the UFC utilized established UFC fighters (e.g. GSP, Rashad Evans) as the influencers to promote Weidman’s prowess and that he could upset Silva.  Well, fans didn’t buy it and it looks like that a good portion didn’t buy the PPV either.  This could be a reason why the UFC has gone on a full on assault with the hype for the last four PPV cards of the year.  Not only is it doing a press tour in various cities, it is producing Primetimes for 166, 167 and 168.  

The complexities of Internet PPV

July 12, 2013

Live streaming of events is a relatively new technology that smaller MMA/boxing and pro wrestling promotions have taken to as a way to expose its brand to a broader audience.  But setting a bigger footprint comes with growing pains as production costs must be weighed with exposing your brand to bigger audiences.

The biggest example of the problem with live streaming occurred this year when Invicta FC’s event in January had streaming issues running through Ustream.  The problem dealt with Ustream’s paywall which prevented access to the event.  “The issue was an overload of requests to purchase the event in a very short amount of time,” Ustream spokesperson Victoria Levy told MMAPayout.  Eventually, the paywall allowing viewers to pay for the event was taken down.  Ustream acknowledged an issue with a public apology.  Since that issue, Invicta ran another event on the Ustream platform without any substantial issues as Ustream addressed the issues. “The stability of the existing system was improved and basically the whole process was rebuilt to avoid this in the future,” explained Levy of the process to address the Ustream issues

Wrestling promotions Ring of Honor and New Japan among others have had multiple issues with live streaming online.  ROH indicated it would not offer live internet PPVs again after several issues with the streaming.  Its last iPPV experienced streaming issues during the main event.  This was not the first time its events were marred by streaming issues.  It has decided to tape delay its events to avoid further issues.

What is Internet PPV?  

As you can gather from the name, Internet pay per view, or iPPV, is a platform in which viewers can pay to watch a live show which is streamed online.  A company can have the iPPV on its own web site or have a third party, like Go Fight Live, host the event.

Who uses it?

Anyone.  From small to big, regional to national, MMA, boxing, pro wrestling and other combat sports utilize iPPV in order to promote its product.  The promotion usually fronts the costs for the technology and production costs in order to run the event.

Most promotions seek to establish a bigger footprint outside of its region and perhaps garner an internet following.

What are the obstacles to iPPV?

There are several barriers to entry when it comes to live streaming an event.  The first is the cost.

The costs of an iPPV vary.  But, according to Roy Englebrecht, promotions should focus on the look of the iPPV.  Production costs are very important in how the PPV will look to the viewer.  Englebrecht runs Fight Club OC in Southern California.  He has attempted iPPV twice but decided to forego online streaming to focus on the people in attendance. “Nobody wants to buy a small club show on the internet because there are not many quality fights and the production is not that good,” explained Englebrecht.

Fight Club OC

The second issue which ties in with the first is the production value.  Englebrecht brought up the issue that the promotion’s brand is out there for the public and anything less than a top notch looking product hurts the brand.

Englebrecht runs an instructional course on fight promotion and does not talk about iPPV or PPV because it makes no sense.

“There are many hard costs before making a dollar,” explained Englebrecht.  If a promoter wanted to run an iPPV Englebrecht estimated that at a minimum a promoter would have to spend $2,000-$5,000 on lighting alone.  A decoder, a technological piece that is needed for the PPV to work would cost at least $500. These are only a couple of the big ticket costs for an iPPV.

“The key for any promoter is to put on the best show for ticket buyers that are there,” Englebrecht added that if a promoter were to put on a PPV, they would be worried about the PPV broadcast rather the show.  “He’s hurting his bread and butter [the fans in attendance].”

Go Fight Live

GFNLOGO

One of the reasons why small companies use iPPV is to promote its brand and expand its footprint.  It offers a chance for those that cannot attend a local event to see it.  For fans of the organization that cannot make it, its a chance to watch it at home.

Go Fight Live (“GFL”) is a web site which airs iPPVs for MMA promotions, boxing, muay thai, professional wrestling and other types of combat sports.  It started in 2008 and has had over 2000 shows according to GFL’s president David Klarman.

“We’ve sold and had viewership in 199 countries,” stated Klarman.  “Our biggest buckets are the U.S., Canada and the UK.”

GFL offers a revenue share of 50/50 for an organization to use GFL to stream an event. It also includes GFL marketing, promotion, customer and tech support for the event. GFL charges the organization if it needs production (e.g., cameras, lighting, etc.)

GFL indicated that a 3 camera shoot with replay technology, audio technology and a commentator area would be at least $1,800 plus travel expenses.  A single camera shot would be only $300.  However, a one camera shoot may not look and feel as professional as having different camera angles.

GFL’s demographics is 70% male in the 18-45 age range.  Klarman indicated that 70% of GFL uses Apple TV, iPTV, iPads, tablets and mobile devices.

GFL has an internal process to ensure that live streaming occurs without any flaws.  Klarman stated that GFL has internal diagnostics to figure out issues.  GFL has staff to investigate the issue and determine if its a bandwidth issue or something else.

“Its far more complex than that cable that goes in the wall,” said Klarman.  GFL has customer service to address streaming issues and can let customers know if its experiencing issues.  In the alternative, if a customer could not access a stream they paid for, GFL would refund money.

The Future

Although iPPV and online streaming is still a new technology to most, there are signs of where it will be going.

Klarman sees a shift over the next generation that cable TV will change how it interfaces with the consumer.  Based on the viewership, more people may be turning to mobile devices.

“Live video streaming will absolutely expand to other platforms,” said Levy.  “  We’ve already seen a significant increase in mobile viewing over the past 6 months and we predict that mobile viewing will be as high as 60-65% by the end of the year. Live video streaming will continue to become available to everyone through multiple devices such as smart TV’s, mobile devices, and tablets.”

UFC 162: Payout Perspective

July 7, 2013

Welcome to another edition of Payout Perspective. This time we take a look at the unusual end to the title reign of Anderson Silva at the MGM Grand Garden Arena.

Silva kisses title reign goodbye

- “Uneasy lies the head that wears the crown.” – Shakespeare’s Henry IV, Part II

It was relief, not disappointment that seemed to be the emotion from Anderson Silva after his loss to Chris Weidman.  It was an unfortunate end to a great reign for The Spider.  He elevated the UFC by his complete dominance over a division.  Unlike GSP post-Serra, Silva put on some memorable highlight reel finishes.  But with his impressive wins came an heir of invincibility and arrogance.  This was highlighted by an irritating grandstanding performance at UFC 112 where he denigrated the talents of Demian Maia.  Despite threats of cutting Silva after his antics in Abu Dhabi, Dana White did nothing.  The Spider was just that good. He added an occasional showboat move here and there since 112 to add a degree of difficulty to his fights.  Last July he gave away the first round in his highly anticipated rematch with Chael Sonnen but proceeded to end him in the second.

But Saturday was something Silva’s legacy did not need.  A foolish end to what should be a respected title reign.  One has to wonder if Silva, who always appears to be in control in the Octagon, chose his own demise.  His immediate response to questions of a rematch was that he didn’t want one.  While we have to believe he will change his mind, maybe the pressures of being considered the GOAT have weighed him down.  Then again, would the GOAT ever do such a stupid thing in the Octagon and actually be a “goat”.

It’s perplexing to understand Silva.  He’s a martial artist but shouldn’t a martial artist not disrespect his opponent let alone underestimate him?  Moreover, his antics disrespected the event and platform he was given.  Yes, the idea was to intimidate Weidman on Saturday.  And to a certain extent, I understand the “no sell” of punches and smiling at Weidman.  It was part of Silva’s game plan – have Weidman melt under the pressure.  But, unlike others, Weidman stayed the course and did not fall into too much of a trap (although he did attempt to no sell punches too).

Weidman’s game plan was not tricky when it came to what to do if Silva clowned him:  Punch him in the face.  Or in his chest as his corner told him.  Not too hard to understand.

The UFC immediate plans go out the window here.  Superfights against Jones or GSP are out of the question.  An immediate rematch appears to be the only choice for Silva.  The Super Bowl card in New Jersey in 2014 appears to be the most practicable time for a rematch.  It will be coupled with Fox’s plan for a weekend of events to accompany its rights to the big game.

Looking at it with the glass half full, the UFC gets an American champion from New York with a great backstory.  Weidman’s story of having no home after Hurricane Sandy will be eaten up by mainstream media outlets.  He can also be the poster boy for another run at legalizing MMA in New York.  The UFC will have to build up the Weidman brand in order for him to get at or near the Anderson Silva level.  Yet, it can build from the ground up with Weidman although this will take multiple PPVs to get him a following.

UFC-162-poster

Edgar gets needed win against Oliveira

In one of the Fight of the Nights, Frankie Edgar had one of the best performances of the night against a game Charles Oliveira.  Both fighters constantly moved through the match and despite losing, Oliveira showed that he’s a threat in the Featherweight division.

Frankie looked sharp and I would suggest a meeting with Cub Swanson to see who gets to face the Featherweight champion.

Munoz transformation complete

“I ate because I was sad, sad because I ate.”  Mark Munoz paraphrased from the character Fat Bastard of the Austin Powers movie series in an interview earlier in the week to underscore his battle with depression which caused him to balloon up in weight.  Munoz lost over 60 pounds and looked phenomenal at the weigh-ins.  Moreover, he dominated a tough Tim Boetsch.

Maybe added motivation for Munoz was the fact that Chris Weidman, the guy who destroyed him about a year earlier, was in the main event.

Attendance and gate

MMA Junkie reports that the attendance for the event was 12,399 for a gate of $4.862 million.  These numbers were announced at the post-UFC162 press conference. The numbers are unofficial but White had indicated similar numbers earlier in the week.  UFC 160 had attendance of 12,380 for a gate of $2.9 million

Bonuses

Bonuses awarded were given $50,000 each.  With no submission of the night, the UFC decided to award two Fight of the Nights.  Thus, it paid out an extra $50,000.

FOTN:  Edgar v. Oliveira, Swanson v. Dennis Siver

KO of the Night:  Chris Weidman

Weidman was the obvious choice, but I would have liked to see Gabriel Gonzaga here too.

Promotion of the Fight

It was interesting that the UFC decided to utilize other fighters to establish the credibility of Chris Weidman by using other fighters to speak about how good he is.  The fact that so many fighters picked Weidman (and the UFC sent out a press release stating this) told you that he may be something special.  But, the UFC marketing was probably needed considering Weidman had been out for a year and although the Munoz KO was impressive, Munoz was heavy and battling injuries.

Speaking of Munoz, it was interesting how much press Munoz received with his “Husky Boy” pictures.  He spoke out about his depression and how he overcame it.  Certainly a good story and it almost trumped Chris Weidman during fight week.

Weidman appeared on the Jim Rome Show but there seemed to be little, if any, other national media for Weidman or Silva for that matter.

Sponsorships

Octagon sponsors included MetroPCS, TapouT, Ultimate Poker, Xyience, Dodge, Alienware, the 20th Century Fox release of The Wolverine and Bud Light in the center and at the prep point.  Dodge had a new logo for the Octagon, its Dodge “Ram” and its signature tag line, “Guts, Glory, Ram” on one of the corner posts.  Bud Light also did something new with its logo.

Tyron Woodley introduced The Wolverine clip which was shown right before the main event.  Interesting the UFC chose Woodley to do this intro.

Anderson Silva was sponsored by Burger King, Wizard, Nike, Axe Body Spray and Vicks.  The Vicks sponsorship is interesting but perhaps he could use it on his chin after being knocked out by Weidman.  The Axe Body Spray may explain the weigh-in “kiss”.  Silva also had new Nike t-shirts as well as ads for Nike Pro Combat.

Chris Weidman was sponsored by Bad Boy Clothing, Muscle Milk, Profile Performance, Air Force Reserve and American Ethanol.

Other notable sponsorships:

Chris Leben was sponsored by Sisu Mouthgards.  Tim Kennedy had RangerUp and RevGear.

It appeared that Frankie Edgar was sponsored by the UFC as his corner wore UFC hats and the UFC was the biggest logo on his fight banner.  In addition, he had Alienware and Affliction.

Among his sponsors, Cub Swanson was sponsored by PowerBuilt Golf.

Mark Munoz was sponsored by Lunarpages.  The same sponsor for Jake Ellenberger, his training partner.  He also donned the Oklahoma State colors.  A nice added touch.  He was also sponsored by Triumph United,  Osiris Shoes and Virus Action Sports Performance clothing.

Post UFC 162 Headlines

Chris Weidman, Frankie Edgar, Charles Oliveira, Mark Munoz and Cub Swanson all had impressive nights.  Despite Oliveira’s loss, the UFC found a gem and he’s only 23. Edgar and Swanson add some spice to a Featherweight division that just got harder for Jose Aldo.

Munoz has a great story and its a likely “wait and see” on how his path to a title shot occurs (or does not occur).  He’ll have to string together a couple more wins before he can be in the picture.  And at 35, the window of opportunity may be slight.

Weidman was the star of the night.  Regardless of how it was accomplished, he proved the fighters that sung his praises.  Now, its up to the UFC to make him a star.

On the flip side, the more compelling story may be what happens with Anderson Silva.  The fight will be analyzed and overanalyzed by all of us but whether it was overconfidence, stupidity or boredom with fighting, Silva’s performance was inexcusable.  With a 10 fight contract still in place, it will be interesting to see what Silva does from here on out.  Its likely that there will be a rematch and we’ll see a more focused, serious Anderson Silva, but he’ll be facing a more confident and experienced Chris Weidman.

Odds and Ends

- Silva was paid $600K with a $200K win bonus if he would have defeated Weidman.  Weidman earned $24K and $24K for a total of $48K.

- What would happen to your shin if you tried to check an Edson Barboza leg kick?.

- Fitting that Munoz wore a “Keep Olympic Wrestling” Shirt with his logo and he displayed the best wrestling in the Octagon of his career.

- For Dave Herman last night, BJJ does not exist if you get hit in the face first.

- With the craziness of the Weidman-Silva fight, Tim Kennedy must be happy to go through the night unscathed by scrutiny although Dave Meltzer indicated on The Figure Four podcast this morning that Dana White yelled at him in front of everyone at the fighter meeting.  

- Steven Segal was sitting next to Mike Tyson last night.  It would have been interesting to hear the conversation between the two.  

- One of the better things that happened with Silva losing, the talk of him fighting Roy Jones, Jr. in a boxing match should go away.

- The UFC handed out 11,000 towels to fans attending UFC 162 and let them pick between a U.S. flag towel or Brazil.  A good promo for the event and a way to highlight the main event.

Conclusion

As we indicated in our PPV History, the event was solely based on Anderson Silva.  While Edgar-Oliveira was a great fight, Edgar is not a PPV draw. As Meltzer pointed out, and many logically will conclude, the PPV replay will likely boost PPV sales simply because people who originally passed on the PPV because of the lack of interest will now gladly spend it to see Silva’s knockout and the other exciting fights on the card.  With that being said, its likely that the original live PPV buys will be around 600,000.

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