CNBC’s “Fistful Of Dollars” Features the UFC

Darren Rovell of CNBC interviewed Lorenzo Fertitta on the “Fistful of Dollars” segment that featured the UFC growing from a 2 million dollar purchase to a 1 billion dollar brand. The segment also touched on the Bud Light sponsorship, UFC 129 success, and when they plan to cash out and sell.

 

Payout Perspective:

The interview touched on some very key points, but points nonetheless that we have heard before and that the UFC believes are important to stress to the public and their fanbase.  Here are some of the highlights from the segment:

– In 2001, Frank and Lorenzo Fertitta along with their training parter Dana White bought the UFC for 2 million dollars, have since turned it to a billion dollar brand.

– Points out that 53,000 tickets were sold to their “129th” event in a matter of hours.

– Lorenzo is expecting UFC 129: GSP vs Shields to sell “lots of PPV’s”.

– Lorenza said they are starting to weave on to the mainstream but they have a long way to go and grow domestically and international.

– They claim Lorenzo and Frank own 45% of the UFC each, and White owns 10% …  but we know that isn’t the case after the Abu Dhabi based Flash Entertainment purchased a 10% stake of the company, dropping Lorenzo and Frank to 40.5% of the company each and Dana White to 9%.

– Estimated that the UFC sold around 9 million PPV’s in 2010.

– UFC key sponsors listed in the interview were: Anheuser-Busch, U.S. Armed Services & Burger King.

– Average ticket price for a UFC event is $276, tickets usually priced between $50-$1,000.

– Anheuser-Busch resigning with the UFC shows how valuable the 18-34 male demographic is to them, will make the UFC a significant part of their sponsorship efforts.

– When Lorenzo was asked about any plans to cash-out on the UFC, he stated that he and his partners feel there is a ton more to accomplish in the sport still.

– They highlight that the first UFC Gym opened in 2009, they have a total of 3 at the moment. They also sell branded gym equipment.

– For Ancillary Revenue, they list Gyms, DVD’s, Video Games, and Collectibles.

– The UFC is in 147 countries/territories, 500 million homes worldwide, not including current deals they are working on in China, India, and other big markets.