Report: UFC sponsorship revenue up due to new deals with companies

March 12, 2019

Last week’s Sports Business Journal included a report by Terry Lefton about the UFC’s 25 percent increase in sponsorship revenue largely championed by new deals signed by the company.

Coming in with a heavy debt load after WME’s acquisition of the UFC for approximately $4 billion, the new owners felt pressure to produce.

In speaking with the UFC’s senior vice president of global partnerships Paul Asencio, the UFC’s partnerships with Modelo, Kraft Heinz (for its Oscar Mayer P3 “official protein snack” and Devour as “official frozen food”) a global rights deal with Nemiroff Vodka, an official poker partner in PokerStars and a large renewal with Monster Energy have helped the company with the increase in sponsor revenue.  In addition, it has forged deals with Motel6, Trifecta Nutrition, Blackheart Premium Spiced Rum, Van Heusen and BodyArmor all since the company was purchased by WME.

Certainly, the UFC has worked on brokering more partnerships with bigger brand companies and segmenting some of its sponsors to cater to different regions across the globe.

Payout Perspective:

There are still more categories for the UFC to fill with sponsors including automotive, insurance and gambling/sportsbooks which all should garner lucrative deals for the company. In addition, the report includes the possibility of looking into the CBD oil category from cannabis business as that industry is starting to grow. The partnership with ESPN will help attract new partners as well.

Payout Perspective: UFC debuts on ESPN

January 22, 2019

Welcome to a special edition of Payout Perspective.  We take a look at the UFC’s debut on ESPN and ESPN+ this past Saturday at the Barclay’s Center in Brooklyn, New York.

Cejudo KOs TJ in R1

Henry Cejudo may have saved the UFC Flyweight Division as he knocked out T.J. Dillashaw to retain his flyweight title.  Cejudo stunned Dillashaw with unassuming punch which knocked the bantamweight down. From there, Cejudo swarmed Dillashaw and the ref stepped in.

From first look, I thought that this was a quick stoppage as they usually allow a little more action for the fighter to recover in championship matches.  But after watching again, with less than a minute gone by in the round there was no way that Dillashaw could have held on and/or recovered.

Cejudo becomes the first champ to receive the new (and maybe controversial) UFC redesigned belt.  He also received props form Nikki Bella which may have been the biggest payoff. While Joseph Benavidez may be the next in light in the flyweight division, its clear that Cejudo would like to take this momentum and challenge Dillashaw for his 135 pound title.  One would think that Dillashaw will want a rematch as he claimed that the stoppage was too soon.

Hardy DQ’d in UFC debut

It was a controversial decision to have Greg Hardy fight on the ESPN debut.  It drew even more raised eyebrows when the UFC put him in the co-main event of the evening especially when you had Paige Van Zant and Donald Cerrone and Alexander Hernandez on the card as well.  Yet, Hardy faced Allen Crowder in a Heavyweight matchup.

While the imposing Hardy may have intimidated on the regional scene, it was Crowder that taunted the former football player.  But it was a knee to the head of a grounded opponent which, as Daniel Cormier described was “very illegal.”  There was no way for Crowder to continue after the knee and it was a disqualification.

Inauspicious debut for Hardy although the UFC does see something in him.  He is still a controversial figure considering his lack of contrition for his past domestic violence past.  We shall how the UFC books him in the future.  One thinks he will be a “Fight Night” athlete until he gets some more seasoning.

Attendance, Gate and Bonuses

The Barclay’s Center drew 12,152 fans for a gate of $1.23 million.  The last big UFC event at the Barclay’s Center was UFC 223 in April which drew 17,026 for a 3 million gate. Prior to that, UFC 208 in February 2017 which drew 15,628 for a gate of 2.275 million.

In comparison, the UFC’s debut on FS1 on August 21, 2013 drew 12,539 for a gate of $1.53 million at the TD Garden in Boston.  The main event was Chael Sonnen as he submitted Shogun Rua.

Pre-Fight Promotion

Having ESPN as a television partner dramatically increased the marketing and promotion of the event.  The UFC Countdown show for UFC 232 aired on ESPN and starting at the beginning of January you saw the UFC creeping into the network.  The fight library entered the digital platform for ESPN and during Fight Week there was a plethora of fights airing on ESPN2 and other networks.

Dana White did the ESPN car wash and was also on the Jimmy Kimmel Show among other outlets for the event.  ESPN+ also had a very good (if you could find it) shoulder programming featuring Dillashaw and Cejudo.

It was interesting that the criticism of having Greg Hardy and Rachael Ostovich died day during Fight Week.  This could be in part due to ESPN controlling the narrative and the airwaves and the casual ESPN media person not knowing much about the sport.  ESPN Outside the Lines did do a piece on Hardy but outside of that, there was not much else.

Sponsorships

The sponsors in the Octagon included Monster Energy sharing a post with Fastrac, Modelo, Toyo Tires, Nemiroff, Blackheart and Monster had the center of the Octagon.  ESPN+ was visible with signage in the Octagon as well.

UFC sponsor Van Heusen secured signage in the area where the corner stands outside the Octagon.  A new place for sponsors.

The prep point was given a new name and was sponsored by P3,

Also, Body Armor had all the water bottles and corner stools.

Paige Van Zant, who was dropped by Reebok prior to her fight on Saturday, picked up a new sponsor with Liv Body.

Odds and ends

Steven A. Smith on the broadcast was cringeworthy but he was not an embarrassment.  He relied on Michael Bisping and Daniel Cormier to do a bulk of the legwork when discussing the fight.  In addition, I thought Trevor Wittman did well as an “expert” chiming in on fight strategy, etc.

The pacing could have been better but it was on par with what the UFC did on Fox.  Notably, there were commercials on ESPN+.

It could have been a little confusing for fans that had to switch from the digital platform to see the early prelims, then watch the prelims on ESPN and then tune back on plus to get the main card.  Hopefully, they will avoid doing this in the future.

We’ll get to see the ratings for this event in the next day or so, although I would think it had to do well over 1 million viewers.

The lead-in to the ESPN portion of the Prelims started 12-15 minutes late.  Fortunately, the college game featured Duke-Virgina, a battle of two of the top 5 teams in the nation.  There was also an early NBA game on ABC which promoted the UFC card too.

The UFC had over 1 million google searches on Saturday which came in second to Chiefs with over 5 million which related to the Kansas City-New England game.  Greg Hardy and Paige Van Zant had over 200,000 searches.  Donald Cerrone had over 100,000.

UFC 232 Payout Perspective

January 2, 2019

Welcome to another edition of UFC Payout Perspective.  This time around we take a look at UFC 232 which took place at The Forum in Inglewood, California.

Jones tops Gus, calls for DC

Inside the Octagon, Jon Jones showed why you may consider him one of the best of all-time.  He thoroughly dominated Alexander Gustafsson and ended the fight by imposing his will on Gus, taking his back and reigning punches down on him to force the stoppage.

However, its outside the Octagon controversy and drama which makes people wince when they hear Jon Jones and USADA.  Moreover, the outright falsehoods and mistruths spewed by the people in control of the promotion makes you want to take a shower to clean off the grime of their words.

Jones made it clear he wants Daniel Cormier and it seems like the most logical fight to make.  While Anthony Smith and Corey Anderson made their overtures to the Champ, it’s clear that Cormier would be the fight that would draw most interest.

Nunes stops Cyborg, becomes double Champ

Amanda Nunes has now stopped, Miesha Tate, Ronda Rousey and Cris Cyborg.  The latter two Nunes stopped in the first round in impressive fashion.  Perhaps the KO of Cyborg was more impressive considering she had not lost since 2005.  Nunes used her superior speed to stun her with some big shots.

Nunes is now the Women’s Featherweight and Bantamweight champions.  The question is how it will market Nunes.  A lot of online debate took place over why the UFC has not marketed Nunes in the past.  It’s clear that she is the best women’s UFC athlete of all time despite the mainstream notoriety of Ronda Rousey and the dominance of Cris Cyborg.  It seemed as though the demolition of Cyborg validated UFC’s greatness.  Cyborg was the once-feared women’s MMA fighter that was too big and skilled for most women.  But, Nunes’ speed, accuracy and punching power proved too much for Cyborg.

Attendance, gate and bonuses

Despite the short notice, the event was a sell out with 15,862 for a gate of over $2 million.  To be specific, the gate was $2,066,604.  The Fight of the Night went to Chad Mendes and Alexander Volkanovski.  The Performance Bonuses went to Ryan Hall and Amanda Nunes.

The event was moved earlier this week from the T-Mobile Arena in Las Vegas to The Forum in Inglewood, California for Jon Jones.

Notably, UFC 199 drew 15,587 for a live gate of $2,1687,675 in June 2016.  The fight featured last minute replacement Michael Bisping winning the middleweight title from Luke Rockhold.

Lance Pugmire indicated that his sources said that the attendance would be soft.  But that was not the case.  Let’s read these tweets as this occurred within 30 minutes.

Next tweet from Lance in which the UFC gets to him.

There was also this…

And then after the event…

Payouts

There were 10 fighters that grossed over six figures for UFC 232.  It was topped by the headliners splitting $1M a piece.  $500K for Gus and $500K for Jones for those that were unaware.

Of those clearing six figures, Andre Arlovski ($300,000), BJ Penn ($150K) and Carlos Condit ($115K) are well-paid fighters that aren’t living up to their pay scale at this time.  Chad Mendes, who just came back from a USADA ban, made $87K plus $50K for Fight of the Night.  But then stated he would retire.

Sponsorships

Perhaps the most noticeable for UFC 232 was a new “cryptocurrency sponsor” Litecoin.

Also, of note PokerStars continued its sponsorship and it appears it will be the official fight odds for the UFC.  Pari Match, an overseas book for the UFC, was also present in the Octagon.

There were a lot of sponsors in the Octagon for this end of the year event.  They included Monster and convenience store AM/PM sharing a post.  Another post included Pari Mutual, Toyo Tires, TriFecta Nutrition, Nemiroff Vodka, EA’s UFC3 video game, Modelo, Metro PCS, P3, Air Asia, Pari Match, Harley Davidson, Poker Stars, the movie “Happy Death Day 2U,” and Monster had the center.

It was announced that TriFecta Nutrition would be used in helping athletes with its nutrition.  P3 also appeared on the fighter shorts.

Nemiroff is spending a lot on its UFC sponsorship from the outset.

Cyborg signed an individual deal with Monster Energy.  Jon Jones also was sponsored by Monster Energy.

It was interesting to note that Amanda Nunes had to place tape over her headphones (likely Beats) because the UFC has Monster Headphones as its sponsor.

Ratings

The UFC Weigh-Ins drew 123,000 viewers on FS1.  The UFC Countdown Show on ESPN2 Friday drew 99,000 viewers.

The UFC Pre-fight show on FS1 drew 198,000 viewers according to Nielsen (via ShowBuzz)

The UFC Prelims scored just its second rating over 1 million when the UFC 232 Prelims drew 1.148 million viewers.

The UFC Post Fight Show on FS1 drew 227,000 viewers.

Odds and ends

$6 Million.  The amount that Dana White claims the UFC spent to switch the event from Las Vegas to Inglewood, California.  One has to wonder when they put a deposit on the building.  Or, does the UFC have a practice of securing other sites just in case.

As the UFC begins its partnership with ESPN, the Worldwide Leader aired the UFC 232 Countdown show on ESPN2.

With Carlos Condit taking on Michael Chiesa, I noticed that both fighters had cats on their right oblique.  Chiesa had some new ink with a Tiger and Condit has had his lion on his side for some time.

UFC announced a lot of original and new content for UFC Fight Pass in 2019.  This includes a gambling show which will be interesting to see how that goes.

Notably, Chuck Liddell was in attendance at UFC 232.  White had revealed Liddell’s pay in a Kevin Iole article earlier in the month, but I guess there is no hard feelings when you are comped tickets.

Anyone else notice that Conor McGregor’s Proper Twelve Whiskey was a sponsor and ran commercial during the PFL’s Championships on New Year’s Eve.

Cris Cyborg was a champion in defeat as you can see with the troll job of Ronda Rousey. She took the KO in stride and congratulated Nunes for her victory.

The UFC announced its events for the second quarter of 2019 and there’s a lot of them.  Most on ESPN+

There were over 2 million google searches on Saturday night for UFC 232 which was behind Alabama vs Oklahoma in North America.  Jon Jones vs. Gustafsson drew 200,000 searches the same night.  Cat Zingano had an additional 100,000 searches likely due to the toe poke she received.

Conclusion

It was a strong ending for the UFC on FS1 with over 1 million viewers and the google searches on Saturday looks as though there was above average interest in the event.  Whether it was due to Jon Jones’ issues or the title fights, UFC 232 probably made out well even though the last minute change of venue really hurt fans.  I would expect a buy rate of between 350-375K total buys including traditional and digital.

 

 

UFC 230: Payout Perspective

November 7, 2018

Welcome to another edition of Payout Perspective.  This time around we take a look at UFC 230 at Madison Square Garden where Daniel Cormier took care of Derrick Lewis.

Double Champ takes care of Derrick Lewis

Daniel Cormier made easy work of Derrick Lewis using wrestling to negate Lewis’ KO power. DC easily tapped out Lewis in the 2nd round.

DC now sets his sights on Brock Lesnar with just one fight left on his contract.  However, you’d have to think that if Jon Jones pops up on the radar, that will be a fight to make.

As for Lewis, I would suspect he take some time off before getting back in the Octagon.  Two fights within a month is hard for any MMA fighter including a heavyweight like Lewis.

Jacare KOs Chris Weidman

Jacare Souza is a superior grappler, yet showed some flashy hands and dropped Chris Weidman in the final round.  The fight went back and forth and won Fight of the Night.  But Souza showed some strong combinations which stunned Weidman throughout the course of the fight and one to the former champ’s temple which put him down for good.

After this fight, Souza should be on the short list of fighters awaiting the winner of the Kelvin Gastelum-Robert Whittaker fight and perhaps he finally gets his title shot.

Attendance, gate and bonuses

UFC 230 drew 18,201 for a gate of $2,8471,718.16.  The bonuses of the night went to Chris Weidman and Jacare Souza for Fight of the Night and Israel Adesanya and Jared Cannonier for Performances of the Night. Each earned $50,000 bonuses.

According to secondary ticket seller SeatGeek, it was the second highest ticket for a UFC New York event outside of UFC 205.

Promotion of the Fight

Daniel Cormier joined the FOX NFL crew during halftime of Thursday night’s Raiders-49ers game to promote UFC 230.

He also did the intro on Fox Sports for his Saints.

Cormier did a lot of media.  He appeared on the Complex YouTube channel and played Connect 4 with Tony Mui.

As seen on Embedded, Derrick Lewis did a promotion at a Houston Rocket’s game and even sank a free throw to win money for his charity.

Sponsorships

The big sponsorship news for UFC 230 was the fast food wars that took over as DC and Lewis previously sparred over Popeyes Chicken.  The southern-based chicken restaurant forged a deal with Lewis.  In response, Carl’s Jr. came to the double champ’s corner.  It was an example of how sponsorships can happen organically.  Obviously, this may not happen for every UFC fighter but due to the visibility of the event and the social media followers for each, a sponsor’s deal became viable.

Embedded was sponsored by Air Force Reserves.

Motel 6 was also a sponsor of the co-main event.

Chris Weidman had a Monster patch on his walkout shirt and shorts which may indicate he has an individual sponsor with the company.

In addition, Cormier drew individual sponsor deals with Monster Energy Drinks and Nemiroff Vodka.

Inside the Octagon, Nemiroff Vodka, Modelo, Hospital for Special Surgery, Toyo Tires, the video game EA UFC 3, Metro PCS, Monster and convenience store Circle K shared an Octagon corner, Body Armor, P3 and Monster Energy had the center of the Octagon.

Modelo had the Fighter Prep Point.

Modelo also introduced its “Fighting Spirit” award of sorts to Daniel Cormier.

P3 had sponsorship space on the shoulder of the fighter’s walkout shirt.

EA UFC 3 was featured once again in pre-fight promos.

Toyo Tires also sponsored the Backstage Interviews.  This one included Megan Olivi speaking with Daniel Cormier.

Ratings

UFC PPV Prelims on FS1: 205,000

UFC Prelims: 635,000

UFC PPV Post-Fight Show on FS1: 188,000

Odds and ends

UFC 230 drew over 1 million searches which is above average and bodes well for the PPV buys.

Paul Felder did an excellent job as color commentator along with Joe Rogan and Jon Anik on the PPV.

The Last Stylebender has one of the best nicknames in the MMA game and is someone to watch.

Outside of the octagon, Ben Askren was the darling of UFC 230.

Notice that the gloves have the 25th anniversary logo on them instead of the usual UFC logo.

Lando Vannata-Matt Frevola draw should have won the FOTN honors.

The Jon Jones-Daniel Cormier rivalry remains alive despite the fact both sides say its over.

Conclusion

I was surprised by the amount of promotion for this event.  Granted, it was the UFC’s annual November show at MSG, but the main event did not look all too competitive on paper.  The event did have some good exposure with Cormier on Thursday Night Football’s halftime and the fast food wars with Derrick Lewis.  I would think this event does above average for a UFC PPV. One might expect a buy rate in the 375K-400K range.

UFC 229: Payout Perspective

October 9, 2018

Welcome to another edition of Payout Perspective.  This time it was one of the biggest events in company history with UFC 229 at the T-Mobile Arena in Las Vegas.

Khabib submits Conor, brawl ensues

You’ve likely read all about the post-fight brawl.  Despite MMA fan that like to downplay the incident, this was not how you showcase your product to the millions of fans that watched the fight.  Rather than be professional, both sides were not.  Conor’s antics prior to the night, and Khabib’s during it were both wrong.  It was a disgrace to the sport and overshadowed the dominant performance by Khabib.

At this point, the Nevada Athletic Commission will have to suspend and fine Khabib for some time to make it look like an authority.  With that being said, it’s clear that the UFC will take no action despite its ability to do something about it.  The UFC has maintained its alibi of hiding behind the regulation of a commission to do its bidding when it comes to these types of disciplinary issues.  It is clear that if they wanted, they could terminate Khabib’s contract.  Dana White stated that any fighter from Khabib’s corner would no longer fight in the UFC.  But what about Khabib?

Conor is to blame as well.  His antics have helped put him in the stratosphere of earners in combat sports and brought millions of dollars to Zuffa.  As a result, he’s been allowed to do anything without repercussions.

The whole scenario points to a suspension for Khabib and being stripped of his lightweight title.  We should have Conor face Tony Ferguson for the title and/or Diaz/Poirier winner facing Ferguson with the loser facing Conor.

Ferguson returns to stop Showtime

Tony Ferguson stopped Anthony Pettis in a blood-splattering fight that showed El Cucuy is back.  Both fighters had their moments and the movements in the fight were out of the ordinary and extraordinary.  Ferguson used a somersault to get out of the way of Pettis and Showtime used capoeira moves in attacking and defending.  Pettis was sliced by one of Ferguson’s strikes and was bleeding like a pro wrestler.  He did damage Ferguson as well.  In the end it was the relentless Ferguson that earned the victory as Pettis could not continue due to a broken hand.

Attendance, Gate and Bonuses

The event set a record for an MMA event in Nevada with 20,034 for a gate of $17.2 million.  It eclipsed UFC 200 held at the same venue.  The gate for UFC 229 fell short of the company record of $17.7 million for the UFC’s debut at MSG at UFC 205.

According to SeatGeek, a standing room only seat for UFC 229 went for over $400, with the get-in price at $1,234.  Again, it was second to only UFC 205’s get in price.

The bonuses went to Ferguson and Pettis for Fight of the Night, Derrick Lewis and Aspen Ladd for Performances of the Night.  Each drew the standard $50,000 bonus.

Payouts

The payouts were highlighted by Conor McGregor’s $3 million purse followed by Khabib’s $2 million.  But, the NAC has held up Khabib’s payout pending an investigation in the post-fight brawl.  While it has issued the check to McGregor, it’s held Khabib’s pay pending an investigation

The rest of the payouts can be found here.

Promotion of the Fight

Conor McGregor did not do a “world tour” for this fight which would have probably brought even more interest to the event.  He did promote when needed such as their first press conference.

The press conference which was held between Conor-Khabib prior to fight week was done without an audience but was shown in Times Square.  It was also on ESPN which had to use its censor liberally due to all of the profanity.  Conor’s late arrivals at the presser and ceremonial weigh-ins really put stress on the networks to deal with stretching out the time.  With more losses, networks will get tired of this habit.

ESPN did air the UFC Countdown show on its network in addition to it airing on FS1.

Dana White appeared on Jimmy Kimmel’s show to promote the fight.  Conor McGregor made an appearance on Conan O’Brien’s show and shared Proper 12 with his Irish counterpart.

In addition, there were multiple radio ads in addition to the television commercials.  Most of which highlighted the infamous Brooklyn bus attack.

Sponsorships

There were some new sponsors for this event including Conor McGregor’s Proper 12 Irish Whiskey and San Manuel Casino.  The latter sponsor is based out of Highland, California and was shown during the ceremonial weigh-ins.

One of the newest UFC sponsors, Portable Protein Pack aka P3, appeared on the front paneling of the UFC/Reebok shorts.  We may see more of this with existing official sponsors having secondary opportunities on fight gear.

In addition, Air Asia made a significant splash in its sponsorship activation which included stewardesses on stage with UFC Octagon girls during the ceremonial weigh-ins and with signage in the red corner of the Octagon to match the company’s branded color.

It was reported by Ariel Helwani that Conor McGregor signed a lucrative deal with Monster Energy which was said to be in the millions.

EA announced a new edition of its UFC3 video game featuring Conor McGregor.  EA conducted a fight simulation in which Conor McGregor KO’d Khabib in the 3rd round.

In the octagon, Toyo Tires, Harley Davidson, Bud Light, Nemiroff, Motel6, MetroPCS, P3, CircleK, Modelo, Air Asia, UFC3’s Notorious Edition, Autozone and the return of the Walking Dead and Monster Energy held the center. It was clear that there were more sponsors than ever before within the Octano on its corners and canvas.  Harley Davidson had the fighter prep point.

Ratings

The UFC Prelims on FS1 drew 1.3M viewers on Saturday.  The prefight telecast on FS1 drew 373,000 viewers.  The prefight show matched the one from UFC 223.  The 222-prefight show was the highest-rated this year with 431,000.

Odds and Ends

I wrote about the UFC brawl in depth and how the promotion of the fight allowed for this to happen.  The UFC faces a lot of fallout (good and bad) from the event.  Khabib and Conor are facing NAC sanctions for their actions and at least two fighters from Khabib’s team will likely be expelled from the UFC and from fighting in Nevada.  For a promotion that is looking to grow the sport and find blue-chip sponsors, one has to ask whether UFC 229’s brawl was good or ad for business.

Conor went after Khabib’s manager, Ali Abdelaziz, a controversial MMA manager that has been linked to terrorist groups if you believe McGregor and some journalists writing on the subject.  Despite these alleged ties, it seems that a majority of MMA fighters trust Abdelaziz with their career.  During the fight, Abdelaziz and members from both camps stayed in the back as the UFC tried to prevent what happened Saturday from happening.

The internet searches for this event were huge.  On Friday, UFC 229 drew over 2M google searches.  McGregor-Khabib drew over 2M searches as well.

Conor McGregor drew over 5M google searches on Saturday.  Derrick Lewis drew over 200,000 and Michelle Waterson drew over 100,000 searches.  “McGregor Fight” drew over 1 million google searches on Sunday.

Derrick Lewis’ post-fight interview was an all-time classic and was one of the reasons he drew as many google searches.  He took off his pants, said Donald Trump called him and told him to be Alexander Volkov.

Khabib appeared at the post-fight press conference and indicated he received congratulations from Vladimir Putin.

Matt Damon turned down the opportunity to be on Saturday Night Live to go to UFC 229.  There were many other celebrities drawn to this event as well and the aftermath had everyone on social media talking about it.

Internal numbers for Internet purchases of the event were up over 60% from Mayweather-McGregor according to Dave Meltzer.  This would be an indicator (although maybe not the strongest) the buy rate surged past the record of 1.6M PPV buys.  White indicated that it did not reach 3 million but was over 2 million.

The UFC received a ton of mainstream coverage due to post-fight brawl.  But, does this tarnish their image or encourage the promotion to try more of this?

Conclusion

Dana White touted that based on the viewership of Embedded episodes and YouTubes views compared with McGregor-Mayweather, the PPV would break the UFC record and it appears he will be right.  Despite the lack of expanded promotion of the event, its clear that the UFC hit all of the trigger points to garner the casual fans to buy the event.  The controversy is whether it was right to include footage of the bus attack or allow McGregor to continue personal attacks on Khabib’s religion, family and friends.  But, the PPV buy rate will likely go over 2 million (say 2.2 million) buys and show that marketing the bus attack footage helped more than it hurt.  There will be a rematch and you can believe that they will show the post-fight melee.

UFC 228: Payout Perspective

September 12, 2018

Welcome to another edition of Payout Perspective.  This time we take a look at UFC 228 which took place at the American Airlines Arena in Dallas, Texas.

Woodley submits Till

Tyron Woodley used a D’arce Choke to earn his BJJ Black Belt and retain his UFC welterweight belt.  Woodley submitted Darren Till and earned a performance bonus.  Despite the belief by many that Till was the contender to dethrone Woodley, the champion had little difficulty with him.

Next up for Woodley looks to be Colby Covington.

Mottano stripped of title

The second title of the evening was scrapped due to Nicco Montano being sent to the hospital presumably as a result of trying to cut weight.  As a result, her fight with Valentina Shevchenko was taken off the card and Dana White stripped the TUF winner of her flyweight title.  Shevchenko will have the opportunity to fight for the flyweight title at a yet to be determined date.

Stripping Mottano of the title hurts her pay scale since she now will receive only $3,500 from the Reebok Outfitting Policy.  As the champion, Mottano (who never defended the title) would have made $40,000.

Attendance and Gate

The event drew 14,073 for a gate of $1.7 million at the American Airlines Center in Dallas.  There have been 5 PPVs in Dallas and of that UFC 228 was the lowest gate of the 5 held there since UFC 103.

Bonuses

There were a variety of finishes and stoppage for UFC 228 that could have received the $50,000 bonus.  Woodley, Jessica Andrade and Irena Aldana and Lucie Pudilova earned the bonuses.

Ratings

The UFC 228 Prelims on FX were the lowest of the year drawing only 560,000 viewers and peaking with 683,000 viewers.

The prefight show on FX averaged 271,000 viewers according to Nielsen.

The post-fight show on FS1 drew 64,000 viewers.

Sponsors

Fight week saw the announcement of 3 new “Official” UFC sponsors.  Nemiroff became the “Official Vodka of the UFC,” P3 became the “Official Protein Bar of the UFC,” and Blackheart Premium Spiced Rum became the “Official Rum of the UFC” in the US.  Nemiroff and P3 were in the Octagon for UFC 228.  Also in the Octagon was Motel 6, MetroPCS, Modelo, Toyo Tires, Harley-Davidson the movie Predator was also featured and Monster Energy had the middle of the Octagon.

The movie, Predator also sponsored the Embedded episodes.

Toyo Tires sponsored the backstage interview which was seen on Facebook.

Odds and ends


The visual seems to tell the story that most BJJ practitioners know. It’s hard to be awarded black belt in jiu jitsu.

If you watched the Embedded episodes, you may have noticed Woodley wearing a CbdMD shirt which one might infer, he is a sponsor.  In fact, the company sent out a PR release congratulating him.  I’m sure this is something that Woodley and his camp have looked into and ensuring that he does not cross the UFC Anti-Doping Policy.

One of the judges in the Esparza-Suarez fight mistook Suarez for Esparza in the first round and gave Esparza, not Suarez a 10-8.

Xbox put out a tweet gaging interest in the event.

By the way, what was up with the poster? I realize that Till is taller but did they have to make him look like a giant?

This is an ominous tweet with a quote from Shevchenko’s manager.

One might infer that Shevchenko was not paid her fight purse or her win bonus for making weight despite her opponents’ trouble. Once again, this is an overarching issue that manager’s must handle in the contract. Until there is a union, association and/or collective bargaining unit that will address this situation, the athletes are at the mercy of the UFC.

There was a Fan Experience held in Dallas prior to UFC 228 with numerous sponsors and athletes:

There were over 200,000 google searches for Tyron Woodley Saturday.  On Friday, there were over 200,000 google searches for UFC 228.

Conclusion

UFC 228 was an entertaining event with a lot of finishes including Tyron Woodley making it known that he is one of the top UFC stars in the company.  But, going up against two other boxing events on the same night may have hurt PPV purchases.  Also, the big GGG-Canelo fight occurring the following week may have detracted the casual fan on a budget from purchasing this PPV.  It would appear that this event is likely to have drawn around 175,000 to 200,000 PPV buys.

UFC announces “Official Protein Snack of the UFC”

September 7, 2018

The UFC has announced P3 Portable Protein Pack as the “Official Protein Snack of the UFC.”  It is the third announcement of a new sponsor and sponsorship category this week.

The press release reads:

P3 Portable Protein Snacks deliver a tasty combination of meat, cheese, nuts, and fruits, all in one portable pack. They come in multiple varieties and sizes, all offering a convenient way for consumers to get their protein. Oscar Mayer established the Adult Snacking segment withP3 in 2014, and since its launch, the P3 brand has successfully built awareness and has grown in popularity with consumers. They are widely distributed in retail grocery and convenience stores across the country. The UFC partnership will further expand awareness to a new and coveted loyal MMA fan base.

Under the terms of this partnership, P3 will have a branded presence inside the world-famous Octagon® at select UFC events for the remainder of the year. Additional partnership activations will include the integration of P3 branding throughout UFC’s telecasts, digital media campaigns, and Fight Week integrations. At select participating retail locations, P3 displays will feature images of UFC athletes and official UFC logos at point of sale.

The first P3 activation with UFC will begin on Saturday, September 8, with UFC® 228: WOODLEY vs. TILL, featuring the highly anticipated welterweight championship bout that will see Tyron Woodley defend against undefeated No.2-ranked contender Darren Till.

Payout Perspective:

The announcement finishes a week where the UFC announced 3 new sponsors and categories.  It looks like Endeavor is swiftly moving to secure sponsors.  This may be in part to UFC 229 next month which stands to be a huge PPV for the company.  But, for the company it will get a lot of visibility with the coveted young demo of the UFC.