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.
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