Shine Fights give fans chance to pick matchups for PPV
August 24, 2010
Shine Fights announced that its fans will have the chance to vote online to decide first round match-ups for its eight man, one night lightweight grand prix tournament on September 10th. The fights will be on PPV.
From MMA Fan House:
Shine Fights announced its lightweight tournament earlier this month and has added a wrinkle with the fan balloting. In a release from the promotion, Shine said it wants to become “MMA’s most fan-friendly organization” and believes allowing fans to pick the first-round bouts heads it down that path.
The eight competitors for the tournament have already been chosen. But fans can set the matchups they want to see in the first round and e-mail those to GrandPrixPick@Shinefights.com. According to the promotion, the fight combinations that get the most votes will be the ones used in the tournament’s opening quarterfinal round.
“Every MMA organization tells fans what fights they are going to see, even though the fans are the ones paying the money,” said Shine Fights COO Jason Chambers. “We are saying, ‘You are buying the pay-per-view, you are buying the tickets, so you tell us what you want to watch. We feel it’s one of the most unique opportunities fight fans have been given to date.”
Payout Perspective:
The concept of fans choosing matches is not a unique idea. In professional wrestling, the WWE has used a Viewer’s Choice format when deciding match-ups. Fans would go to the WWE web site to vote on what matches they would like to see that night. Of course, since it is pro wrestling once matches are voted on, the outcome is likely discussed and choreographed. Still, the concept of fan interaction is similar.
Since its last attempt at a show failed, Shine has to do something to regain fan interest in its product.
The novelty of playing matchmaker should attract fans. The opportunity to have perceived control over what you watch is appealing from a fan standpoint. One issue that may come up is name recognition. Will a casual MMA fan know these fighters. Although the fighters include vets from other organizations, is that enough. Will Shine promote the eight fighters so that there can be some semblance or reasoning when picking the match-ups.
Shine hopes that the marketing strategy of a one night, survive and advance, winner take all tournament will give fans a reason to purchase tickets and the PPV.
MMAterial Facts 04/07/10: UFC 111 PPV Buys Update & Abu Dhabi Coverage
April 7, 2010
- UFC 111 PPV Buys Update
- Vince McMahon seeking to get UFC banned in key European countries
- UFC is caged and ready to rumble, finds its first Arab voice
- Dana White talks to MMA Business about everything!
- First hand look at MMA fails to sway Begel
UFC 111 PPV Buys Update
Updated UFC 111 numbers look to be coming in at around 770,000 buys. With Georges St. Pierre as the headliner, the numbers were strongest in Canada… (Wrestling Observer Newsletter)
***
MMAPayout Note: Previous preliminary UFC 111 PPV trending numbers had the event at 850K PPV buys, which appears to now be downgraded to 770K PPV buys. Coming out of the event, MMAPayout gave a buyrate estimate at somewhere in the range of 700K PPV buys, which may not be too far off the current projections.
Vince McMahon seeking to get UFC banned in key European countries
Sometimes the most intriguing wrestling news stories are broken or teased on the Wrestling Observer / Figure Four Online message boards. This is one such case, as UFC.com writer/German UFC commentator (and former German WWE commentator/marketing staffer/keeper of savage secrets) Oliver Copp let the news leak that Vince McMahon is attempting to sabotage UFC’s expansion into key European markets in a thread about Dana White’s recent ambition to hold an event at the newly opened largest domed stadium in the world, Cowboy Stadium in Dallas.(Wrestling Observer Newsletter, Cageside Seats)
UFC is caged and ready to rumble, finds its first Arab voice
For Lee Charteris, the director of operations for the event organisers, Flash, and the army of 300 staff and sub-contractors he commands, the work started in early December.
That was when construction of a purpose-built venue that will be able to hold more than 12,000 people at the Ferrari World amusement park on Yas Island began.
He said the structures his company built for the Aerosmith and Beyoncé concerts during the Abu Dhabi Grand Prix last year were impressive enough. (The National)
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Arab ears may not be accustomed to translations for brutal fight moves such as the “triangle choke hold”, the “clinch” or the “arm-bar technique”.
Come April 10, Mohammed al Housani, a 25-year-old Emirati, will announce those and other combat manoeuvres on Arabic-language television for the first time at the Ultimate Fighting Championship (UFC) event in Abu Dhabi. (The National)
Dana White talks to MMA Business about everything!
MMA: Let’s talk about television. Spike TV and Pay Per View seem to do very well for UFC events and for The Ultimate Fighter. But the networks or ESPN can deliver even more viewers. Is that a consideration?
White: I definitely consider this. I would love to get UFC together with either ESPN or a major TV network, but we haven’t been able to do that yet. We’ve been close to big deals like this. But I’m not gonna just jump at something. This might be stupid, but I think we’re bigger than HBO or CBS. I really do think UFC is bigger than any of those networks. I’m not gonna go in and cut some deals just because they are who they are. We’ll do what’s right for UFC and for our events. (MMA Business Magazine)
First hand look at MMA fails to sway Begel
For those who have been keeping score, I’ve been writing about how horrible I think Mixed Martial Arts is for several months. The guys (and they seem to be all guys) who have written in, have all complained that I’ve never even seen a match. They invited me to this one and I took them up.
The very nice guy who promoted the thing made every effort to, as he put it, “change my mind.”
No such luck, although there was one minor change. Instead of not liking MMA because of the brutality and violence, I also now don’t like it because it’s about as boring as a sport could possibly be. I mean excruciating. (On Milwaukee)
VIDEO OF THE DAY
IMAGES OF THE DAY
QUICK HITS
- Paul Buentello has been officially cut by the UFC after his loss to Kongo. (MMAPayou)
- Huerta, Hinton Cleared for Bellator Season 2 Debut (Sherdog)
- Lawal, Mousasi Wage Mental Warfare Heading into April 17 Bout (Sherdog)
- CEO estimates up to 12,000 attendance for “Strikeforce: Nashville” on April 17 (MMAJunkie)
- Strikeforce reserves June 26 for San Jose’s HP Pavilion, Fedor-Werdum talks ongoing (MMAJunkie)
- CBS to air Jason “Mayhem” Miller vs. Tim Stout on “Strikeforce: Nashville” broadcast (MMAJunkie)
- Full UFC 114 fight card released, Duffee and Sanchez on PPV main card (MMAJunkie)
- Tickets for Boston’s Bellator 17, Eddie Alvarez vs. Josh Neer “super fight” now on sale (MMAJunkie)
- White: Liddell vs. Ortiz to Headline UFC 115 (MMAFighting)
- Huerta: Locked In a Cage, But Finally Free (MMAFighting)
- MELENDEZ-AOKI COULD TRIGGER REMATCH IN JAPAN (MMAWeekly)
- ALVES EXPLAINS SURGERY AND DESIRE TO FIGHT FITCH (MMAWeekly)
- Anderson Silva vs Demian Maia UFC 112 Preview Video (Heavy)
TV LISTINGS
- HDNet Fights Vault: XFL Team Takedown at 8 PM ET on HDNet (04/09/10)
- Fighting Words with Mike Straka (feat. Matt Hughes) at 8:30 PM ET on HDNet (04/09/10)
- InsideMMA (Aaron Simpson, CB Dollaway, Javier Vasquez) at 9 PM ET on HDNet (04/09/10)
- HDNet Fights: K-1 World GP 2010 at 10 PM ET on HDNet (04/09/10)
- UFC 112 : Silva vs Maia at 10 PM ET on PPV (04/10/10)
UPCOMING EVENTS
- UFC 112 : Silva vs Maia at 10 PM ET on PPV (04/10/10)
- HDNet Fights: KOTC Bad Boys Too at 10 PM ET on HDNet (04/16/10)
- Strikeforce Nashville: Henderson vs Shields at 11 PM ET/PT on CBS (04/17/10)
- WEC 48: Aldo vs Faber at 10 PM ET on PPV (04/24/10)
- HDNet Fights: MFC Vindication at 10 PM ET on HDNet (05/07/10)
- UFC 113 : Machida vs Shogun 2 at 10 PM ET on PPV (05/08/10)
- Strikeforce St. Louis: Overeem vs Rogers at 10 PM ET/PT on Showtime (05/15/10)
- UFC 114 : Rampage vs Evans at 10 PM ET on PPV (05/29/10)
WWE Recruiting from USTA
March 15, 2010
Street and Smith’s Sports Business Journal is reporting that the WWE has just hired former U.S. Tennis Association executive Tandy O’Donoghue as its VP of Operations and New Business Development.
WWE has hired Tandy O’Donoghue as vice president, operations and new business development, making her the third former U.S. Tennis Association executive to land with the wrestling company.
She joins Michelle Wilson, the former USTA chief marketing officer, and Jared Bartie, the former USTA general counsel. Wilson is the WWE’s executive vice president of marketing, and Bartie is executive vice president and general counsel.
Payout Perspective:
The WWE has experienced a great deal of turnover in the last 18 months with the departure of both Linda and Shane McMahon. While Vince McMahon has since taken over CEO responsibilities, these latest hires now look to plug the remaining holes.
The Competition Debate in MMA
January 22, 2010
Danny Acosta of FIGHT! Magazine has an interesting short clip interview where he discusses the idea of competition in MMA with Strikeforce’s Scott Coker.
Payout Perspective:
MMAPayout.com has long talked about why competition is so important in MMA and Coker does a pretty good job of summarizing the position: competition helps to grow demand for the entire industry. How? It affords the consumer the luxury of choice in which they can experience the product in a different light, compare and contrast, and ultimately feel better, or more invested, in their purchase decision. All of those things lead to greater satisfaction, which in turn spurs further repeat business and referrals to the sport.
However, there are some limitations to the argument, and I’ll push back on what Scott has said merely to play devil’s advocate a little bit:
1.) The major limitation to the idea of competition spurring demand in the sports world is that product quality is highly dependent on a very limited source of human capital that cannot be duplicated or engineered the way you might develop a new piece of proprietary technology through R&D. Hence, there’s never been a truly successful model in North American professional sports (or the world, really) where two high level leagues were able to compete simultaneously in the same sport over the long term. There’s always been a merger to combine talent and resources: e.g., NFL and AFL, NBA and ABA, the NHL and WHA, etc.
While I certainly buy that competition spurs demand, I do so with a long-term perspective constrained by the notion that this will only be the case while the sport is moving through the growth phase of its product life cycle. MMA is still a very new sport to many people and it’s less about seeing the best fighters as it is experiencing the novelty of the sport itself. That will only be the case for so long, and we’re already starting to see the effects of a more well-educated MMA consumer (less booing on the ground, larger interest in martial arts programs around the US, fans being selective in PPV purchasing, etc.).
2.) The WWE and Pride are probably not the best examples to cite where competition played a huge role in industry demand. WWE and Pride both thrived on theatrics and the “promotion” aspect of the business that enabled them to go head-to-head with their competition. The quality of the product essentially became more about drama than it did the action.
The most popular MMA fights in Japan have all largely been freak show fights or gimmick bouts in which a former pro wrestler fights MMA. Pride worked to mimic a professional wrestling atmosphere in the sense that it built baby faces and heels to polarize the crowd. If you look at the popularity of professional wrestling in Japan today, I’m not sure it should be a surprise to anyone that Japanese MMA has fallen off as much as it has.
If MMA is going to work in North America it cannot be based upon gimmick fights or as a stop-over for every over-the-hill athlete in professional sports. It has to seek legitimacy as a bona fide sport . MMA can and should be story line-driven – all sports are – but it must be so in a manner that more closely resembles the way the professional sports leagues build-up a game between two rival teams.
Why? That’s where the mainstream money lies; there’s a reason wrestling’s growth has stagnated and its demographic skewed younger.
3.) The absence of competition certainly isn’t the only reason the ratings have fallen off in both cases. The WWE lost a great deal of its 90s writing group that produced such successful plot lines. The company also experienced quite a dramatic talent gap: John Cena, Randy Orton, and Batista…the new Rock or Stone Cold they are not. Likewise, Pride dug itself a hole with the Japanese mob and debt that ultimately impacted the day-to-day operating environment of the company.
UFC-WWE PPV Comparison
November 17, 2009
The UFC is the only MMA organization currently employing the PPV business model, so it’s difficult to compare the company to anything other than its own historical data. However, by taking a look at the WWE – somewhat of a substitute, using the same business model – we can put some of the UFC’s success this year into context.
Here are updated YOY figures for both companies:
UFC
| January | 80 | 225,000 | 93 | 350,000 | |
| Superbowl | 81 | 600,000 | 94 | 800,000 | |
| March | 82 | 325,000 | 96 | 350,000 | |
| April | 83 | 530,000 | 97 | 650,000 | |
| May | 84 | 475,000 | 98 | 635,000 | |
| June | 85 | 215,000 | 99 | 365,000 | |
| July | 86 | 540,000 | 100 | 1,720,000 | |
| August | 87 | 625,000 | 101 | 900,000 | |
| September | 88 | 480,000 | 102 | 435,000 | |
| October | 90 | 300,000 | 103* | 375,000 |
| Total | 4,315,000 | Total | 6,580,000 | |
| Average | 441,875 | Average | 658,000 | |
| Median | 477,500 | Median | 375,000 | |
| YOY: | 52.49% |
WWE
2008 2009
| January | Royal Rumble | 575,000 | January | Royal Rumble | 450,000 | |
| February | No Way Out | 365,000 | February | No Way Out | 272,000 | |
| March | WrestleMania | 1,041,000 | March | WrestleMania | 960,000 | |
| April | Backlash | 210,000 | April | Backlash | 182,000 | |
| May | Judgement Day | 252,000 | May | Judgement Day | 228,000 | |
| June | One Night Stand | 200,000 | June | Extreme Rules | 213,000 | |
| June | Night of Champions | 286,000 | June | The Bash | 178,000 | |
| July | The Bash | 196,000 | July | Night of Champions | 267,000 | |
| August | SummerSlam | 477,000 | August | SummerSlam | 369,000 | |
| September | Unforgiven | 211,000 | September | Breaking Point | 169,000 | |
| October | No Mercy | 238,000 | October | Hell in a Cell | 264,000 | |
| Total | 4,051,000 | Total | 3,552,000 | |||
| Average | 368,273 | Average | 322,909 | |||
| Median | 252,000 | Median | 264,000 | |||
| YOY: | -12.32% |
(Credit Dave Meltzer for the latest WWE figures.)
Payout Perspective:
There are few interesting things to note here:
- The UFC is still up over 50% on its YOY buyrate total – even despite two (likely three when 104 is fully trended) sub-500k shows.
- The WWE’s buyrate has actually decreased by 12%.
- In isolation one might look at the WWE’s numbers and then point to the economy, but the UFC’s results could indicate otherwise. It’s also a company experiencing a degree of management turmoil right now as Shane McMahon has stepped down from his position as VP of Global Media in order to pursue other opportunities. It’s been rumoured that he may try his hand at MMA – something he’s been longing to do for some time (he’d shown interest in purchasing both the UFC and Pride in the past).
- Regardless of your feelings about professional wrestling, the business models are still too similar to ignore the comparison. The WWE currently earns anywhere between 28% to 30% of its revenues from international markets, and they’re hoping to push that number to 40% by 2011. Lorenzo Fertitta has indicated the UFC desires to have a similar diversificaiton within its revenue streams, which is why he’s been so aggressive in putting together international television deals and seeking regulation.
Josh Koscheck/Anthony Johnson to Co-Headline UFC 106
October 28, 2009
Jeff Sherwood and Greg Savage at Sherdog are reporting that Josch Koscheck and Anthony Johnson have verbally agreed to co-headline UFC 106 as a replacement bout for Brock Lesnar/Shane Carwin, which appears to have been re-scheduled for January 2:
Koscheck announced Tuesday on his Twitter account that he would be fighting Nov. 21 in Las Vegas in a co-main event fight.
“I got some big fight news for me,” he wrote. “I am fighting nov 21 in Vegas. Co main event!!! Haha it’s on baby!!!!”
Payout Perspective:
As MMAPayout recently discussed, UFC was unlikely to sign a replacement co-main event for UFC 106 that would act as a suitable alternative to Lesnar/Carwin on ppv, and in fact Koscheck/Johnson, although an interesting match-up, is no game-changer.
Koscheck/Johnson won’t add one ppv buy outside the competitors’ immediate families.
UFC booked the fight in order to appease the fans who will be there live on November 21, who, unlike the ppv audience, have already in large numbers bought tickets expecting to see a heavyweight title fight as the night’s main event.
Koscheck vs. Johnson will not make these fans any more happy about not getting Brock vs. Shane but at least it’s evidence that UFC — unlike, for instance, World Wrestling Entertainment — cares about building and maintaining goodwill among its audience.
It’s also worth noting that Josh Koscheck is ending 2010 much as he did 2009, as a hero to UFC willing to take any fight at any time on any notice.
Hats off to Josh.
If Koscheck wins this fight, he’s more than earned another shot at the title.
Study Reveals Increased Dementia Risk in NFL Players
September 30, 2009
The New York Times reports that a study commissioned by the National Football League shows memory-related diseases appear more often in the league’s former players than in the population at large:
All rates appear small. But if they are accurate, they would have arresting real-life effects when applied across a population as large as living N.F.L. retirees. A normal rate of cognitive disease among N.F.L. retirees age 50 and above (of whom there are about 4,000) would result in 48 of them having the condition; the rate in the Michigan study would lead to 244. Among retirees ages 30 through 49 (of whom there are about 3,000), the normal rate cited by the Michigan researchers would yield about 3 men experiencing problems; the rate reported among N.F.L. retirees leads to an estimate of 57.
So the Michigan findings suggest that although 50 N.F.L. retirees would be expected to have dementia or memory-related disease, the actual number could be more like 300. This would not prove causation in any individual case, but it would support a connection between pro football careers and heightened prevalence of later-life cognitive decline that the league has long disputed.
Payout Perspective:
Here’s a study confirming what has really become obvious over the last several years: repeated concussions seem directly related to the onset of early dementia.
Former WWE wrestler (and Harvard University graduate) Christopher Nowinski has been at the vanguard of this issue since having seen his own career end early due to multiple concussions; having an NFL-commissioned study as support for his cause could help at least in terms of visibility of the issue. There was significant media coverage of the issue in the months following the Chris Benoit double murder-suicide in 2007 (Benoit, 40-years-old at the time, had a brain — due to its repeatedly being concussed — akin to an 85-year-old Alzheimer’s patient’s), but coverage has waned as that tragedy faded from public memory.
The study’s implications for our sport are clear. Although I believe Mixed Martial Arts is considerably safer than boxing (in large part because fights end in MMA as opposed to how boxing permits an already brain-injured fighter approximately ten seconds to recover in order to continue receiving punishment to the brain), KO’s are a big part of the game, and so therefore are concussions.
The best the sport can do is to create an environment making an inherently risky activity such as fighting as low-risk as possible. That means giving serious attention — at all levels, from promotion to commission — to the issue.
If in the end that means forced retirements for (and I’m just pulling a name, not a random one by any means, but just by way of example) someone like Sean Salmon, a fighter who has suffered what would appear to be more than his fair share of devastating knockouts, it’s preferable to the inevitable tragedies (perhaps not at a Benoit level, but there would be more homicides, suicides and the like) the coming decades could bring.
The MMA world needs to heed these studies.
WWE Investor Handout: Good Example for MMA
August 14, 2009
When MMAPayout talks about the importance of having a plan, setting objectives, and adhering to some sort of coherent strategy in building an MMA promotion it may just seem like aimless talk or rhetoric. What does any of that really mean, anyway?
I’ll show you.
In research unrelated to the topic I’ve stumbled across a WWE Investor Handout from March that provides a perfect example of the kind of organization, structure, and business strategy that is necessary to run a successful MMA promotion – ironically it comes from the WWE, but the comparables certainly make it relevant information.
For those without adobe, here’s a summary:
- WWE Introduction: company business model focuses on content creation, marketing, and distribution.
- Power of the WWE brand: TV shows in 28 languages, 145 countries has cultivated global recognition and fan base
- Diverse Revenue Streams: 26% consumer products, 24% live events, 20% television, 19% PPV
- Growth Opportunities: international expansion, digital media, improved efficiency
- Road Map for International Growth: looking to double international revenue by 2011
Not only is the investor handout a great example of the type of organization, structure, and strategy involved in running a promotion, it’s also a great marketing tool for a promotion. It’s something a promotion can take to potential sponsors, television networks, and fighters as if to say: “we’ve got our house in order, this is where we are and this is where we’re going.”
It is a business after all, so why not treat it as such?
Also, I just want to point out how well diversified the WWE truly is. The WWE has only one revenue category that accounts for more than 25% of its total revenues and its not PPV related, it’s consumer products.
To provide further comparison, nearly 75% of the UFC’s revenues are event-related, which exposes their revenues to a great deal of downside potential and volatility. However, to be fair, they’re working quite diligently to reduce that figure with new revenue streams like video games, UFC magazine, and the new merchandising agreement with Jakks and Round 5.
Very interesting stuff; give it a full read.
Behind The Scenes Marketing Key to Profitability
February 26, 2009
While most fans usually see the overt marketing efforts (TUF seasons, Countdown shows) in trying to get them to purchase a PPV, often there are back-end efforts that help make these PPV shows a huge success for companies like the UFC. Success often builds on success. Long term sustainability is driven by building and maintaining a customer base, and one of the keys in doing this are things like direct mailings. Deliver Magazine has an excellent article on the WWE’s efforts in this respect as a driver PPV sales:
WWE also does slightly more traditional mailings, too, as part of its overall integrated marketing formula. “We use direct mail as a direct-response tactic, dropping one to two weeks before our PPV events,” Richards explains. “We work with our cable and satellite partners, because they have the lead list to target WWE fans, so we know who our fans are.”
In explaining how WWE leverages its cable/satellite partners in direct mail, Richards offers the example of the company’s marketing campaign for its 2008 WrestleMania XXIV extravaganza. To push the event, WWE sent out 8-1/2 by 5-1/2–inch tiered “inline mailers” featuring a feast of information about the festivities and the related promotions/events.
Included in the mailers was a 2008 WWE pay-per-view calendar, info about a co-branded sweepstakes in which fans could register to win a custom WrestleMania chopper and details about WWE’s 24/7 On Demand gift-with-purchase promotion. WWE also provided space in the mailers for cable and satellite clients to hawk their own promotions. The mailers went out to 1.6 million fans in 24 states and three Canadian provinces in March 2008 — 10 days before WrestleMania XXIV. Sustainability
“We had our clients pull lists of all WWE pay-per-view buyers, so whoever purchased PPV in the last couple of years were targeted,” Richards says. “We use our partner’s database so we can profile and look at the crossovers. We can target anyone who purchases WWE pay-per-view, and we can target ‘like’ fans. So we really rely on (the cable/satellite provider’s) database.”
While the WWE is the basis of the article, the UFC is in much the same situation here. They have amassed large databases that they can work with cable and satellite providers in order to “get out the vote” so to speak when it comes to getting fans to purchase their PPV’s. Dana White’s video blogs have on occasion shown the UFC hosting the likes of Direct TV and the like at events, and the passage above notes the symbiotic relationship that the PPV providers and companies like the UFC and WWE. The increase in buyers over the past few events for the UFC are great from a revenue standpoint, of course, but they have also provided a wealth of new information upon which they can leverage for future growth.
WWE Pay-per-view Update
December 10, 2008
The Wrestling Observer Newsletter reports that WWE No Mercy drew 238,000 buys (150,000 in North America) while the company’s Cyber Sunday event drew 162,000 buys (102,000 in North America). By comparison, last year Cyber Sunday drew 194,000 buys while No Mercy drew 271,000.
With twelve events in the books and two oustanding, WWE has posted roughly 4,123,000 million buys for an average of 343,583 per event. Wrestlemania, the company’s marque event, drew 1,058,000 buys in March, putting it in the running with UFC 91 and De La Hoya-Pacquiao for biggest pay-per-view of the year.
