- UFC’S WHITE, FERTITTA DISCUSS DEAL TO SELL 10% STAKE TO FLASH ENTERTAINMENT
- AP report: UFC sells 10-percent stake to UAE
- UFC sells 10 percent to Mideast company
- Abu Dhabi buys stake in Ultimate Fighting Championship
- WEC exec says much of criticism unwarranted, promotion enjoying continued success
- UFC Fight Night 20 a sellout with near-record $730,000 live gate
UFC’S WHITE, FERTITTA DISCUSS DEAL TO SELL 10% STAKE TO FLASH ENTERTAINMENT
UFC President Dana White and UFC Chair & CEO Lorenzo Fertitta appeared on CNBC this afternoon to discuss the company selling a 10% stake to Abu Dhabi-based Flash Entertainment.
Fertitta: “We actually issued new common shares to Flash. We diluted ourselves and we can decide to keep the money in the company or distribute it. We haven’t figured that out.” Fertitta added, “We have been successful growing the brand, growing the business in these other countries so far, but we felt like in order to really accelerate our growth in the Middle East, in parts of Asia, China, where the Abu Dhabi government obviously has tremendous relationships, we felt like that they could help us get along a little faster” (“Power Lunch,” CNBC, 1/12).
Bloomberg’s Greg Miles said, “Given UFC’s own valuation of the company, Abu Dhabi’s stake could be worth at least $100(M), and UFC’s new investor will be more than a silent participant” (Bloomberg TV, 1/12)… (SportsBusinessDaily)
AP report: UFC sells 10-percent stake to UAE
Flash is now ahead of Dana White in the ownership pecking order. White owns nine percent, Flash owns 10 percent while the Fertittas, Lorenzo and his brother Frank III, each own 40.5 percent…The infusion of money also opens speculation that the Fertittas could use the money as a crutch for their struggling gaming company, Station Casinos… (CageWriter)
UFC sells 10 percent to Mideast company
Zuffa carries $450 million in debt, including a $25 million credit facility due in 2012 and a $425 million loan due in 2015, according to a November report issued by Moody’s Investors Service. Moody’s, however, said Zuffa’s income, which comes largely from events and pay-per-view receipts, should be sufficent to make its debt payments…Moody’s said Zuffa’s financial outlook is stable with good growth prospects… (LasVegasReviewJournal)
Abu Dhabi buys stake in Ultimate Fighting Championship
The sale will dilute all existing owners proportionately, Zuffa said, and under the contract, Flash will not be able to purchase a larger stake nor sell its interest to a third party… Zuffa also said it has “no plans to sell any other UFC stakes.” It declined to disclose what the proceeds would be used for but said the “UFC has no financial issues. We did this deal because of the tremendous opportunities it provides for UFC’s global growth.”… Research firm SNL Kagan estimates that UFC is the most lucrative pay-per-view property in the U.S., bigger than boxing or pro wrestling, generating $270 million in buys in 2008. Last year, Lorenzo Fertitta told the Financial Times the company would generate more than $300 million… (MarketWatch)
WEC exec says much of criticism unwarranted, promotion enjoying continued success
On the surface, the numbers appear to indicate a significant loss. But as Dropick says, there is often more to a successful business deal than what lies on the surface… “The negative comments, part of it is people don’t know the business” Dropick said. “I’ve seen people talk about gates. Our deals are structured different ways depending on what venue we’re in – if we’re in a casino or if we’re renting a venue… “There’s a thing called site fees where I don’t control the tickets; the casino controls the tickets. So how the casino sells the tickets, comps the tickets, how they handle them, that’s up to them. Yes, they’re announced through the state athletic commission, but the revenue doesn’t go to us. That’s people that aren’t educated in the process. I don’t need to go out and explain it, though I basically just did. There’s been growth.” (MMAJunkie)
UFC Fight Night 20 a sellout with near-record $730,000 live gate
UFC Fight Night 20, held Monday at the Patriot Center on the campus of George Mason University in Fairfax, was announced as a sellout with 8,500 attendees, though the 10,000-seat arena used a modified seating configuration…UFC officials confirmed the attendance and a $730,000 live gate with MMAjunkie.com (www.mmajunkie.com) after the show. (MMAJunkie)
QUICK HITS
- UFC Fight Night 20 recap: Maynard edges Diaz, Dunham submits Escudero (MMAJunkie)
- Dana White Q & A (UFC)
- Rampage Jackson Wins Partial Victory in Contract Breach Suit (MMAFighting)
- Herschel Walker Starts Media Blitz for MMA Debut (MMAWeekly)
- Dana White: Frankie Edgar, Not Gray Maynard, to Face BJ Penn Next (MMAFighting)
- UFC Fight Night Payouts: Leben Earns $60,000 (Sherdog)
TV LISTING
- WEC 46: “Varner vs Henderson” Replay at 8 PM ET on Versus (01/13/10)
- HDNet Fights Presents K-1 Classics (Ruslan Karaev’s, Asia GP 08′) at 8 PM ET on HDNet (01/15/10)
- InsideMMA (Dan Gable, Guy Mezger, Scott Casber & Pat Miletich) at 9 PM ET on HDNet (01/15/10)
- HDNet Fights Presents Best of 2009 K-1 World MAX at 10 PM ET on HDNet (01/15/10)
- Best of Pride FC (Wanderlei Silva vs Rampage Jackson) at 10 PM ET on Spike (01/15/10)
UPCOMING EVENTS
“…but we felt like in order to really accelerate our growth in the Middle East, in parts of Asia, China, where the Abu Dhabi government obviously has tremendous relationships, we felt like that they could help us get along a little faster”
Great to see UFC building such relationships. I can’t wait to see the growth in 2010.
Jeremy Botter via Twitter:
Wow – Flash Entertainment is building an arena for the UFC? Good job @arielhelwani