MMA Fighting reports that the UFC’s television deals are why the UFC has withstood down PPV numbers. As previously reported by the Sports Business Journal and reflected in its latest S&P report, a combination of the television contracts and expansion overseas are seen as positive revenue drivers for the company.
In Dave Meltzer’s piece, he reports that a big PPV show that garners 1 million buys could generate between $22 million to $27 million for the company in one night. Thus, the reason to keep PPV around. Meltzer points out that Fox paid the UFC $2.2 million for UFC on Fox 11 this past April which he compares to a PPV with 85,000 buys.
It’s no surprise that television deals are the reason why there are more events on television. One of the hopes is that these shows will reveal new stars. As the SBJ article had questioned, there is a need for new UFC stars to carry the company on PPV. The overall UFC PPV history which was listed in the SBJ article did not name a current UFC star until Lyoto Machida at number 7 on the list. Similarly, the S&P report cites fighter injuries and juggling of matches as key reasons for the downgrade in the company’s credit rating. It also noted a need for the company to develop fighters that appeal to its core demo.
Payout Perspective:
The inference from the information from the Meltzer article, the SBJ article and the S&P report is that the company could be at a turning point in its business model. But, it has and still is a PPV driven company. One need only look at how much the company can net with a big event as a primary reason why PPV will still be a part of the company’s business. While the S&P report concludes that international expansion and television deals are stable revenue streams for the company, its PPV business is still a mainstay in its business model. In fact, 2013 saw its PPV/live event revenue increase from 2012 per the S&P report.
It’s clear the UFC has mapped out a business model that currently works despite porous PPV numbers. There are obvious concerns on the horizon as its television deals eventually plateau and/or the need to re-up with new deals.
LeonThePro says
Will be interesting to see how Canada unfolds since it’s a major MMA market. Will TSN be the new home or not? There isn’t really many alternatives.
TRUTHspitter says
meanwhile bellator takes the spike tv plate and shits on it with yet another violent case of extreme diarrhea resulting in 668,000 viewers with 0.23 and enormous bright red bloody monetary ass leakage…………LOL
dave says
Canada is interesting in that the UFC was/is on the #1 sports network in the country. It’s only move is down.
Saldathief says
Bahahha Canada? Canada has a smaller population then the state of California!
This Article should read ” Does TV deals aid UFC financials in PPV decline?????
Answer, The TV deals are no where near what the UFC did financially with PPV, Its a band aid on a gushing wound. .
d says
Saldaqueef with more of his gay Arum bullshit that everyone laughs at. Continue with your delusions.
Saldathief says
D is in therapy from his homosexual rape rage. It must really be hard being a victim your entire life!
Saldathief says
So whos laughing that Canada is smaller then the state of California,??? dip shit, No one is watching the ufc you ass clown TV DEALS DONT MATTER THEY ARE MOSTLY BULLSHIT!!! RATINGS SUCK NO ONE IS BUYING PPV YOU FUCK TARD
D is on so much medication from his life of being abused that he is a fuck tard bahahahaha
Logical says
The UFC made its mind a long time ago that this is the road they were taking–they look at the insane amount of money that all of these sport leagues are getting in media right deals; The NHL’s $650 million a year broadcast deals, MLB’s $1.5 billion a year, NBA’s new 9-year deal valued at $24 billion or $2.66 billion a year, and the King… the NFL’s huge $5 billion a year in broadcast deals.
That’s what they’re shooting for, and in order to get to that point they have to keep a huge stable of fighters and broadcast a lot of events (It just can’t be a once in a month type of thing anymore). The question is not whether they are willing to sacrifice PPV to get there (they have already done that), the question is will they be able to go back to PPV once they fail to meet such expectations. PPV is something that builds up slowly & takes a lot of trust from your consumers, and once that bridge is burnt then it’s gone for good.
Pink Pig says
Bellator has the perfect channel to errode UFC’s US brand.
It will be ugly for Pink Pig Sr. in the next few years…
d says
Logical with another illogical argument. The UFC hasn’t sacrificed ppv. The numbers are down primarily due to injuries. 2013 had the expanded cards and they did over 6 million buys.
d says
Sal has had too much Arum on his face today. He is all over the place with more of his gay, boxing, incoherent tirades. Bobbi needs to keep you on a leash. Hahahaha!
Saldathief says
Interesting point Logical, but why would anyone in their right mind give up a niche that they were very successful at? A niche that made million,s to take a chance on tv deals on a sport that is not accepted by most sports fans… D is a moron who cant have an intelligent conversation do to being gang raped in his high school locker room by fellow students, priests and teachers. D is a victim for life, he needs lots a therapy and medication and counselling for his hatred for gays,
d says
Interesting how obvious it is that Sal is a fag boxing troll working for Bob Arum and all he does is carry on here like a stupid homosexual. He just fabricates things and creates delusions that everyone laughs at. He smells like the shitty diapers he’s wearing.
Pink Pig says
Everytime I see the letter “d” as a commenter, I simply skip to the next comment. She offers nothing worth reading… ever. <==== Truest statement of 2014
d says
Everytime I see Jake, Pink Pig, Topps, Sampson(RIP), etc, etc. I watch him foam at the mouth and realize it is all the same person. Haha.
Random Dude says
Pink Pig is right. “d” is just plain boring and his posts aren’t worth reading. Nothing but a stream of adolescent vulgarity and nonsense.
Everybody would actually read Brainsmasher’s posts and reply seriously to them even though they may disagree with him. “d” is a boring nutcase who needs psychiatric intervention because of some deep issues and possible mental illness.
FightBusiness says
Saldathief- Donna White expanded his business despite niche success because he wanted to “Conquer” the world and swore the UFC was appealing enough to be bigger than soccer. He was delusional and felt his popular niche sport had mainstream appeal. Freakin meathead. According to midget meathead Joe Rogan Boxing should be dead by next year.
d says
Haha. Chalk up random dude to one of Topps’ aliases.
d says
Fightbusiness, I’d love to see your reaction to what happens when Pacquaio and Mayweather retire.
FightBusiness says
D- I will say “wow” two huge stars just retired. Cant wait to see whose next. Even if we have to wait 3 years the next mega star will come. He always does. Remember when they said after Delahoya retires Boxing is screwed? GGG could very well be the next PPV star. He has a 90% knockout ratio. By the way the UFC has a problem. There sport has so may weapons (knees, kicks, etc) that injury’s will become common. They should at least eliminate the elbow and have a standing ten count for a downed opponent. This will help reduce injuries.
d says
No you won’t. You will say, “shit” what am I going to do now? Boxing can’t produce any more mega stars that win consistently like that. The sport of boxing was very fortunate to have Mayweather for this long because he brings two very crucial elements to the table which make him a ppv superstar: he doesn’t lose…ever and the other being he is very good at selling a fight. How often in the history of boxing has there been someone like him? Almost never. He is one of the top 3 biggest sellers of all time in boxing. You aren’t going to get someone to replace him. They may get someone that turns into another star, I’m not denying that, but no where near Mayweather status.
The UFC’s various strikes are becoming a problem that will lead to more injuries becoming common. HAHAHAHA!!! When were those rules enacted? Because as far as I can remember, they have existed since 1993, and have been reduced gradually since in terms of contact. So explain to me why in the past this didn’t happen, but now all of a sudden it will be a consistent problem? By the way, those fighters that are getting injured are not getting injured because of those strikes typically. It is usually from grappling. The fact that you said they should give a fighter a standing ten count(I’m guessing you meant 8 count), goes to show how goofy you are.
FightBusiness says
D- Its a shame you mock my suggestions to protect the fighters GSP has head trauma. He mentioned that on Joe Rogans podcast. Alot of the trauma comes from all of the striking a fighter experiences when he gets knocked down and cant defend himself and h keeps getting hit. When a fighter goes down from a strike he should get a standing ten count. Studies are also showing MMA can be bad for head trauma. Michael Bisping has a detached retna because of elbows. Anyway, I think looking out for the fighter is a good thing and will make their careers last longer. In terms of PPV stars. delahoya was quiet as a mouse as is pac and they sell well. So it has little to do with trash talk. Also boxing may not get a mega star but who knows maybe it produces 5 guys who can consistantly sell 500k ppv buys. you just never know. It sounds to me like your promoting the whole “Boxing will soon die” argument. Cmon. 100 years and still going strong
tops E says
Dw pr spin at it again….rousey is keeping her salary a secret hahahaha…because its very low compared to other pro sports…they want to insinuate its a big number they wont reveal it hahaha…desperate ufc got exposed pays peanuts
FightBusiness says
d- I promised I would never address you again. I hope i dont regret my decision. You dont have to kiss my ass, just try not to go insane.
Pink Pig says
Brainsmasher > d
Canelo vs Cotto outdraws anything the UFC will produce in 2015. That is a fact. 🙂
d says
I am mocking your suggestions because they are so ridiculous. First off, the standing 8 count creates more damage to the fighter. It allows them to recover, in order to sustain more long term damage. Studies have proven that it is better to get put away quickly rather than to sustain damage throughout a lengthy period of time. Second, it is absurd to say they should include an 8 count because this isn’t boxing. It wouldn’t even be mma any more. You should stick with boxing and stop following this sport that you have dedicated a lot of time and energy in trolling. By the way, if you want to talk head trauma, you should focus on boxing- it is 1000x worse in boxing than it is in mma. The very face of boxing, Muhammad Ali has dementia directly connected to damage he sustained in his career. How many times was he violently ko’d? The damage he took was from taking long term beatings, not acute ones. Literally the opposite of what you are saying is true. Also- again, there is no such thing as a standing 10 count, because at that point the fight is over. Can you name me one mma fighter from a sport that has been going on for over 20 years now, that has been diagnosed with any form of dementia directly related to the sport? There has literally been no one. Gary Goodridge was, but even he admitted he took far more damage kickboxing than he did in mma. Michael Bisping doesn’t have dementia though. Sugar Ray Leonard had a detached retina from boxing that almost ended his career. What is your point? Your argument is useless. It makes no sense and has no flowing direction. You are claiming the rules in boxing make it safer than mma, when the exact opposite statistically is the case. Studies have proven the opposite of what you are saying about the type of blows, create dementia. You literally just fabricate things.
As for De La Hoya, he still had a ton of charisma, not to mention he was a gold medalist and had a ton of hype, plus the most important thing- he was a great boxer. You don’t have to talk shit, you just have to be able to persuade people to buy the fight. There are different types of selling point. Oh, and he was also, a great, hall of fame boxer. Pacquaio sold well(no where near Mayweather’s draws) primarily because he unlike Mayweather is a very exciting fighter who was on a long winning streak, of course, what happened when he lost? His ppv numbers plummeted. He did 475k buys against Rios. If that was Pac prior to the ko loss, it does at least 800k. I’m not saying that a fighter like Pac can’t come up, I’m just saying a guy like Mayweather probably won’t ever again. I never said boxing will die. I am just saying they are losing the market share.
d says
Topps=Pink Pig=100 other idiots(RIP Sampson). Haha. What a moron.
“Canelo vs Cotto outdraws anything the UFC will produce in 2015. That is a fact. ”
Excellent prophecy Nostradumbass, but judging by Cotto’s last ppv performance combined with the fact that in boxing just because there is talk about a fight, doesn’t mean it actually will go through. How many big fights in boxing get scrapped every year? Always a number of them.
tops E says
D is upset back to his long essays….hahahaha
d says
tops is back to his 30 aliases…hahahaha
FightBusiness says
D- I never said Boxing was safer than MMA. Boxing Is actually the worst sport for your health by far because there are only two tagets in the sport (head & body). MMA fighters havent been diagnosed with head trauma yet because its a new sport and fighters havent come out yet but look at football. After 60 years they are starting to acknowledge how bad it is for your head. If they provide a standing ten count in MMA it gives a fighter a chance to only get hit when they can protect themselves. Pac just got 750 k with Bradley so he is still a star. Holyfield was quiet as a mouse and he was a PPV star. Tyson was fucking insane and he was a star. there are many ways to be a ppv star in Boxing.
http://espn.go.com/mma/story/_/id/10690370/study-shows-mma-brain-injury-risk-higher-boxing
http://news.nationalpost.com/2014/03/26/mma-fighters-suffer-traumatic-brain-injury-in-almost-a-third-of-professional-bouts-study/
Pink Pig says
No reason to read anything d writes. Its so easy to skip her diatribes.
Carry on now.
d says
No reason to watch Pink Pig’s conversation with himself(Random Dude) which is the only time anyone agrees with him. He is presently accusing chestnuts of being lazy.
MMAtruth says
Lmao we have the ultra homophobic bigot in D and the Topsy Ten nicknames bantering back n forth.
How about some moderation for both payout?
d says
MMAfalse, you should include yourself with the moderation.
FightBusiness says
MMA Truth- I dont know you but be quiet with the whole PC bullshit. Homophobic blah blah blah. if you support dick sucking thats your deal.
d says
Fightbusiness, mma is not a new sport. It has been around for almost 21 years now. I’m not saying they are immune to dementia, what I am saying is the cases will be significantly lower than they are in football and boxing because of the lesser amount of blows they take in both training in competition.
It hasn’t taken 60 years to produce results of brain trauma in either of those sports, the NFL for example, has finally accepted the results of what doctors and their mangled ex NFL clients had been telling them. That was all money related. It isn’t as if these cases didn’t exist 20-30 years ago.
Again, you are missing the point and you are confused too. First of all, a standing ten count doesn’t exist for anything other than a ko. It is a standing 8 count. Now, if you added this to mma, it would more dangerous to the fighters, it would not work and is absurd. You presented a study that was an obvious hit piece written by a boxing financed journal. If you notice, it is not an actual study. There were literally zero samples taken, there is no critical analysis as to why this would occur, and it makes no logical sense. It is a joke of a study the same way it is a joke of a study when an oil company finances an analysis of how good refineries are for the environment. Go research all of the legitimate studies that have taken samples, which are peer reviewed that debunk that nonsense, they prove the opposite. Also, if you were to add a standing 8 count, would you do that to someone who was rocked on the ground? Are you going to stop a fight for someone who is taking a beating standing and then give them an 8 count? What happens if someone is setting up a submission on the ground and also pummeling someone? It is not practical and it would be more dangerous to the fighter’s health as Johns Hopkins proved years ago in a legit study.
d says
http://www.askmen.com/sports/fanatic_300/316b_which-is-more-dangerous-boxing-or-mma.html
“According to the Johns Hopkins study, head trauma and cerebral hemorrhages are the No. 1 cause of death in combat sports. The study concludes that boxing is the most dangerous combat sport in America.”
” So the next time you watch an MMA event, consider that when a fighter is knocked out, the fight is over. In boxing events, fighters that are knocked out get a standing eight count, and their opponent continues to inflict blows to the fighter’s already damaged head.”