The British Pound is trading nearly 30 cents higher since the UFC last visited the UK in February for UFC 95.
Payout Perspective:
The gate revenues from UFC 105 – an event rumoured to be nearly sold-out – will convert back to the American dollar with a greater pop than the last time the UFC visited the UK. It’s a consolation prize for an organization that will likely pay the majority of its fighters in greenbacks. However, the current exchange rate is nothing compared to January ’08 when 1 GBP would fetch 2.2 USD.
Similarly, the Australian dollar has been one of the best performing currencies in the world over the last few years, and is nearly trading at par with the USD (up from about 60 cents in January ’09). That will have a material impact on the UFC’s show Down Under, this February.
It’s an interesting discussion that you really don’t hear a lot of in sports these days: paying players and other expenses in one currency, but earning revenues in another. The only case that really comes to mind is that of the NHL where 6 of the 30 teams are Canadian, yet 33% of league revenues come from those six. The league has really benefited from the appreciation of the Canadian dollar over the last two years.
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