Welcome to another edition of Payout Perspective! This week we’ll be taking a look at the UFC’s debut in Vancouver, British Columbia with UFC 115: Liddell vs. Franklin. The sold out event at General Motors Place featured a light heavyweight bout between two UFC legends – Liddell and Franklin – in addition to a co-main event tilt at heavyweight between Mirko CroCop and Pat Barry.
Liddell knocked out for fourth time in six fights
Chuck Liddell may have entered Saturday’s fight in the best physical shape of his career, but his reflexes and chin were very much those of a 40 year-old former champion with too many fights under his belt. He’s now been KO’d in four of his last six fights – nearly all of them in devastating fashion.
It’s hard to believe that this isn’t the end for Liddell – regardless of the prior promises that may have been made by Dana White in April 2009 – the writing is very much on the wall here. Even if you don’t buy the argument that Liddell fighting is a detriment to his health or his legacy, I’m not sure anyone can deny that interest in Chuck Liddell fighting is at an all-time low. MMA fans aren’t stupid; however nostalgic they might be, it’s hard to believe there’s a huge demand to see Liddell in the cage again.
Franklin breaks arm, UFC’s Fall schedule uncertain
It was rumored that the winner of Liddell vs. Franklin would take on Forrest Griffin (pending Griffin’s own health) in the Fall, but that’s unlikely to happen now that Rich Franklin is out with a broken forearm (an injury suffered while blocking a Liddell kick). The injury isn’t severe, but it should sideline Franklin for at least 6-8 weeks.
That recovery period will likely push Franklin’s next fight towards November or December, which effectively eliminates another non-champion main event option for the UFC’s Fall campaign (looking increasingly devoid of title fights from September through mid-November). The LW belt is up for grabs August 28th, the WW belt in mid-December, the MW belt in early-August, the LHW belt is out indefinitely, and HW is July 3rd (with a typically long turn around time).
Unless the HW or MW belts can turn around quickly, the UFC is likely to experience a period without title fights reminiscent of last Fall. My hope was that the UFC was going to be able to manufacture a few more interesting non-title headliners like Rashad vs. Rampage (although not on that level) to bridge the gap, but its options are decreasing by the day: Liddell’s loss more or less removes any possibility of a third bout with Ortiz and Franklin’s arm injury will delay his return.
I like the idea of a Rampage vs. Forrest rematch; Rampage is coming off a very popular fight (even if he lost) and the rematch provides a promotional angle to push the fight beyond 500k in PPV buys. Then there are guys like Lyoto Machida, Vitor Belfort, Frank Mir, and even Mirko Cro Cop that might be available. Further, I’d also propose pushing the Couture vs. Toney fight back one month and letting it headline an event (however, I think there’s also a very strong counter-argument there: you don’t want a former boxing champ headlining a UFC show in his debut).
Finally, there’s also the possibility that Anderson Silva crushes Chael Sonnen at UFC 117 and then vacates the MW title in search of greater challenges at 205lbs. However, even if this did open the MW title, I question what good it might do considering that the fans have been told for the last 3 years that no one at 185 is even close to Anderson. So, what interest does a 185 title fight without Silva hold?
UFC 115 sells out, but many questions linger
UFC 115 sold over $4.2 million at the gate on approximately 17,000 fans, which is very strong (especially for a non-title fight). However, it’s been widely speculated that the 30 minute sell-out this Spring was manufactured by scalpers that bought huge quantities of tickets anticipating strong demand for the UFC’s debut in Vancouver. Thus, while the demand for MMA in Vancouver is strong, the gate probably isn’t a sound reflection of the interest for this fight in particular.
There’s been further speculation that UFC 115 may have been a one and done for the UFC in Vancouver, because the cost of promoter’s insurance was exorbitant. It’s believed that the absence of any provincial regulation in British Columbia (or federal for that matter) meant that individual municipalities were liable in the event of serious injury or wrong-doing. Thus, the City of Vancouver rightly passed this burden onto the UFC – probably not a lot it could do.
However, I’m inclined to think that the worst case scenario is the UFC isn’t back in Vancouver for another year or two until regulation is brought about provincially (or perhaps federally). It’s too strong a market for the UFC to ignore and it seems unlikely the UFC is going to give up on such a market now that they’ve got a dedicated office in the country.
Prospect watch
It was an interesting night on the prospect front: nearly everyone looked impressive, but some exhibited more maturity than others which ultimately determined their success on the night.
Rory MacDonald was very impressive in the loss and showed tremendous poise for a 20 year-old. If he doesn’t take the fight to the ground in the third, he probably wins. I’m inclined to put him in the same category as a Jon Jones (perhaps minus the commercial appeal, but he does have the Canadian market) and someone to really keep an eye on.
Pat Barry also looked good before succumbing to his own hubris and failing to finish CroCop when he had the chance (perhaps a rematch is in order and the result is likely to be different). I really like the way he’s able to speak to the camera and work the crowd. If he can get his head on and develop some ground skills, he could be a force.
Evan Dunham and Claude Patrick also looked great in their victories. Dunham in particular took a very big step by defeating Tyson Griffin, and you’ve almost got to consider him a contender now. I’m not sure Dunham is the potentially dominating fighter than MacDonald is (or the exciting one that Barry is), but he’s a well-rounded contender and someone that should figure prominently in main cards from here on out.
Sponsorship watch
It was a really interesting night on the sponsorship side.
The Bud Light commercial during the UFC Prelim broadcast was another solid step in the relationship between the two organizations. If you missed it, the commercial featured two friends at a UFC viewing party that race each other to the store to pick up some Bud Light and in the process they bring a bunch of characters back with them to watch the fights.
Finally! Bud Light is now starting to integrate elements of the UFC culture into its advertising, and that’s something that’s going to help it better affect awareness in that target MMA demographic and push its sales goals within that demo. If Bud Light’s goal is to make its beer the beer of choice for UFC fans, then taking the approach of the “official beer of the UFC viewing party” is a wise one. In many ways, this is similar to the company’s tailgate approach to football.
However, I still think Bud Light could do better in terms of borrowing the UFC’s equity to reach that M18-34 audience. It all depends on what its ultimate objectives for the sponsorship are and how much its willing to invest to try and drill down to the value that’s there. Remember, it’s not just the association now that counts, but the future association between Bud Light and UFC as MMA continues to grow.
Some other points of interest:
- Anyone notice the Affliction banner ads on the Octagon posts? This is new and almost an encroachment on Tapout’s territory; clearly it doesn’t have an exclusivity hold on the clothing category, but the octagon has always been an exclusive domain for the company.
- LG’s new Ally phone was the presenting sponsor of the Prelims, which is a great pick up for the UFC and Spike. If there’s one category that hasn’t really jumped into MMA, but needs to, it’s consumer electronics: the fights look so much better in HD and there are so many different electronics that improve the fight experience (phones, TVs, DVRs, audio equipment). Let’s hope this is the beginning of more.
Note: I’ve made updates to the Blue Book since UFC 114 (mostly Bellator stuff), but I’ll have these UFC 115 adds made in the next day.
mmaguru says
Vancouver may end up being the first money losing event for the UFC in a long time. Rumors swirling that insurance costs as high as 12 million alone (http://www.mmamania.com/2010/6/8/1507693/it-may-be-one-and-done-for-the-ufc).
Even at 300K buys @ 30$ take for the UFC, your looking at 4.2 million gate + 9 million = 13.2 million in revenue. If you factor in the production cost, advertising cost, fighter salaries and miscellaneous it likely cost about 15 million or more to put on the event.
Does not look like they did very well in the theater circuit either.
http://www.bloodyelbow.com/2010/6/14/1517103/ufc-115-flops-at-the-movie-theaters
Machiel Van says
I for one would still relish a third Liddell/Ortiz fight. I just think he has Tito’s number, and it would be great to see him retire on a win. In a perfect world, Chuck knocks out Tito one last time and calls it a career.
Kelsey Philpott says
It’s certainly possible, but I think this was very much a long-term on the UFC’s part. It could have taken the event to Cincinnati and made a boat load, but it wanted to jump into the market, reward loyal Canadian fans, and apply further pressure on Canadian government officials to regulate the sport nationally.
jv says
>”but it wanted to jump into the market, reward loyal Canadian fans”
Dana aint Santa Claus. Every thing these guys do is to maximize profits. The travelling fights are like rock concerts. You may or may not make money of the concert. The point of the concert is a massive commercial for your real product. In the music business CD’s and in the UFC PPVs.
When the dollar is at par the Canadian viewers pay 50% more for a PPV than the people in Cincinnati. That makes it worth while to go to Vancouver and try and shake up more buisness for the PPV money pipe. Whether the one show makes money or not is irrelevant if they can drive up the PPV numbers for all the PPV;’s going into the future.
Brain Smasher says
I doubt the UFC could have taken this to Cincy and made money. The UFC always gets good crouds in Ohio but they charge the same ticket price as the larger metropolitian cities. UFC 68 solf 19K but only had a gaye of like 3 million. UFC 77 in Cincy had a much smaller gate and attendance. Same for 88 and 96.
As for MacDonald i think he looks to be good but not great. I dont think he is close to the Jones level. Jones has already taken out top fighters who been in the UFC scene for a while. Condit has made a career in smaller shows and has looked like crap in every UFC fight. Every fight turns into a war because he throws sloppy, loopy punches and eat punches for breakfast. McDonalds wrestling looked suspect as did his ground game. His striking was a little to wild. BUt he was quicker and crisper tha Condit which is why he was doing so well. He has potential but he will need to be given choice match ups. He just has to many holes. I dont think age plays much of a factor in their overall skills. People ussually dont get much better at that age from what i have seen. He can get bigger and stronger but their intangibles that make someone great would have already been there. Vitor Belfort was 19 in the UFC. He may have gotten a little better over the years but his overall standing in the sport didnt. Same with Dustin Hazelette. He started off good but his overall tools, style, and weakness will not change and he isnt going to be the top dog wether he is 22 or 30. In the end i think is McDonald was going to be a top dog he would have done better verses Condit who i am not impressed with.
Kelsey Philpott says
JV,
I’m not sure that’s accurate. The UFC has a history of philanthropy where it’s chosen to invest its money in projects or events that didn’t necessarily maximize ROI.
The point remains that the UFC jumped into Vancouver, regardless of the short-term financial impact, because it sees the long-term potential of the market.
BS,
The gate revenue accounts for very little of the UFC’s overall take on any given event, so the difference in the two markets would have come down to cost (or more specifically, the cost of insurance).
In regards to MacDonald, I think he’s got Jon Jones potential. I didn’t say he is at Jon Jones’ level currently.
What do you mean guys don’t improve past 20? Do you mean to tell me that his skill-set now is the skill-set he’ll have for the rest of his career – only his physical attributes will change? That’s crazy!
Kelsey
Brain Smasher says
I didnt say/mean they dont improve. But there isnt a giant leap to the next level. Take Jones for example. He is pretty much a rookie. But it is clear from his first UFC fight to his last his power is tremendous as is his speed and everything else about him. I think he has the skills to fight anyone at 205. Thats goes for his first fight to his last. The only benifit he gets as he gets older in terms of competing with the best of the best is the experience of fighting at that level and UFC jitters and conditioning.
Jones is beating top guys impressively already so minor changes couldnt make a difference wether he is champ one day. But MacDonald didnt win impressively. He looked good and his improvements with age will help him be able to beat condit. But it isnt goint to be a huge jump.
Look at Tamdan McCrory, People were talking like he was going to be a stud one day because he was young. He will never be great and probabley never be in the UFC again.At 20 you will already have the punching power and speed you will ever have.
I cant think of one example of anyone making some huge jump in MMA with age outside of someone who wasn’t previously training at all. Vitor, Lawler, Hazelette, McCrory, etc are/were all young fighters who didnt improve their standing in the sport as they got older.
JJ says
UFC 115 will probably do about 300k PPV buys. True that’s not great but that’s ok. UFC 114 probably did around 1M PPV buys. UFC 116 will probably also do about 1M PPV buys so the UFC will be alright. Nobody expected UFC 115 to do much as far as PPV buys.
mmaguru says
JJ, 300K would be low, and 1 million is way to high for 114. I don’t believe the early reports on 114, just like I didn’t for 113 and the buys for that end up much lower.
On another note – just posted – UFC has moved an event for the first time since Zuffa took ownership. MMA starting to plateau? or is UTAH just not a great spot to put on an event?
In a statement released by the organization Monday, UFC president Dana White cited a lack of ticket sales as the main reason the UFC on VERSUS 2 event was being moved.
According to White, it’s the first time in the company’s history a venue has been changed after tickets already went on sale.
“Our television ratings in Salt Lake City have always been strong,” White said. “When we finally found the opportunity to bring a UFC event there with a great card, I was very surprised and disappointed in ticket sales.
“As a result, for the first time in UFC history, I decided to pull the plug and move this August 1st event to the San Diego Sports Arena.”
Surgeio says
Question About Affliction Banner on octagon posts?….Looks like we saw the affliction logo on the Octogon posts and between fights,etc, Is Affliction paying ufc to post their logo or dose ufc take a cut of Affliction sales as part of the two companys working together and co-exsisting?
anyone know?
mmaguru says
Surgeio, Last I read the UFC bought the Affliction entertainment branch (the mma promotion). The logos on the cage were likely paid by Affliction as advertisment.
Stan Kosek says
early buy rate estimate is 520k.