Virtustream, a company which offers enterprise cloud computing services, is not the type of company you first think of when discussing UFC sponsors. UFC’s fan demographic is largely composed of the adult males between the ages of 18-34. Is there some correlation between the demographic and enterprise cloud computing services? Not necessarily.
So why would Chairman/CEO of Virtustream Rodney Rogers, who is self admittedly a big MMA fan, go out of his way to sponsor UFC fighters? He explains it on a Virtustream blog post, which he titled “We Love the Boom”.
“So it’s probably not a huge surprise that we sponsor MMA fighters from time to time, mostly in Ultimate Fighting Championship (UFC) events. We are a young venture-backed technology firm and spend a very modest amount of money on marketing each year (~2% of revenue), so we are careful where we place our precious dollars and utilize avenues like social media and various forms of on-line interaction extensively. I think we do pretty well in terms of return on investment in this regard. Sponsoring an MMA fighter on prime time PPV or national TV (FOX) is not as expensive as you may think, if you follow the right process and know the right people. The primary reason we do this is to reach the 18 – 34 age demographic (loyal UFC viewers) for brand awareness, as this is the group our software engineers primarily come from. It has indeed helped us in a highly competitive market.”
Using the M18-34 demographic as a way to recruit employers is definitely an interesting tactic, and gives a whole different meaning to ROI (return on investment). But Rogers also stressed another benefit of sponsoring MMA fighters, their character.
“I have also found many of the athletes in this sport to be uncommonly good people. They conduct themselves with honor and generally all give back to their community. They are pretty amazing people, really. These characteristics are the ones that we hope to embody as a firm.”
Payout Perspective:
This is quite the different perspective we have come to know from many other sponsors. Aside from their most recent sponsorship endeavor with the UFC for the Fight for the Troops event which took place last week, Virtustream has also been involved in other events. They sponsored Frankie Edgar at UFC 156 and also Joe Lauzon at UFC 155.
One of the most interesting quotes from Rogers was his mention of UFC sponsorship cost – “Sponsoring an MMA fighter on prime time PPV or national TV (FOX) is not as expensive as you may think, if you follow the right process and know the right people.” That comment can be interpreted in several different ways, but it gives us one of the many different perspectives between sponsors and the UFC.
I’ve been curious about this. There do seem to be a lot of sponsors that end up in the Octagon in some form that seem very unlikely as far as Zuffa’s sponsorship fee is concerned.
Well it seems the UFC implemented the sponsor fee to raise sponsor pay for the fighter and the UFC. If they let Pepsi in the UFC it really hurts their chance to bring in Coke. So if you bring in Pepsi or allow them to sponsor fighters. You really have to make sure they don’t get in cheap. You have to make sure you cover the potential loss of Coke to make it worth allowing Pepsi. But with this company. It is t your typical sponsor. There isnt other companies like it to really go after to get more money from. Basically this is free sponsorship money with no negative side effect. This and the limited value for the company to gain from sponsorships of fights could explain why they are given a deal to get around the sponsor tax.
“Expensive” is relative term
Not when you are talking about number of eyes on the product or ROI. I doubt he would say that if he didn’t already know other advertising avenues with equal results, were not more expensive. HE has to be comparing it to something.
Also the UFC has always been a much cheaper way to reach viewers. For the number of people the UFC reaches they are cheap compared to any other sport. See what $30,000-$50,000 gets you in NASCAR.
Well Gatorade did not pay money for Jon jones for sponsorship so it’s a good business move hahahahaha
http://sports.yahoo.com/blogs/boxing/four-gold-medalists-simply-dropped-bob-arum-lap-212504176–box.html
Good article…global
Didn’t Gatorade come out and said those reports are false? That’s what happens when 1 stupid ass listens to another stupid ass who is making up rumors.
Again I will clown Tops just as I have Sampson Simpson. Here is Rovell eating his words after he come out and made up a bunch of rumors and Gatorade told him he is full of shit.
”
darren rovell ✔ @darrenrovell
Follow
Jon Jones’ 1-fight deal with Gatorade does involve some compensation. He is not wearing their logo for free.
“
Some? Cases of Gatorade? Hahaha
New Boxing Reality Show
http://www.boxingscene.com/new-boxing-reality-show-looms-more-details-surface–71640
Like they didn’t screw the pooch when they had The Contender. Biggest piece of crap ever put on tv. But that’s what happens when there is no structure in boxing and the individuals just jump at every dollar put in front of them. No one made the right choice. Just went after the money. So when boxing got a black eye because of the show. No one cared.
Edited fights with fake audience and sound effects added to punches. It was the biggest insult to someone’s intelligence ever!
Now boxing thinks it can do it since they can piggy back off the UFC and use their formula. Goes to show the UFC is the best thing to ever happen to boxing. Boxing has tried to change its ways and the popularity of the UFC has put more interest in boxing from tv execs.
Reality TV is on the decline, and TUF and Fightmaster are good indications that it may no longer be a viable promotional vehicle for combat sports in terms of drawing new viewers to combat sports. However, I think it could still be a useful tool to promote certain fighters if used correctly (TUF 18 is drawing a lot of interest in Miesha Tate, and despite the perceived negative attention it’s given Rousey, they’ve got fans talking about her and the upcoming fight). It will be interesting to see what angle they try and take with the new show, but is reality TV conducive to drawing interest from boxing’s core audience? I have my doubts.
Top Rank Signs 2012 Olympic Silver Medalist Falcäohttp://philboxing.com/news/story-89047.html
For the brazil market