The Wall Street Journal reports on the UFC’s drive to put on shows is spurred on by money.
As most know, UFC Holdings, Inc. has loans out on it that it must pay back. The Journal article notes that the company’s move to go forward with events starting April 18th is being “cheered by the debt markets.” Getting back in action is helping the debts rebound from distressed levels.
The UFC is $2.3 billion in debt in a strategic move which was buoyed by the company’s $1.5 billion contract with ESPN. Earlier this year, before the pandemic hit stateside, the company cashed out investors with a huge payout from last year’s earnings.
The article states that the UFC’s contract with ESPN requires the company to put on 42 events in 2020. At this point the UFC has seven.
A media analyst believes that the UFC could earn around $750 million if it can put on the contracted number of events in 2020.
Payout Perspective:
If it wasn’t clear enough, the reason for the hasty return is the money. The UFC cannot get too far behind in its schedule of events. While its only lost 3. They have to get to 42 which means several events each month and if the stay-at-home orders go in the summer and there is a pause with Dana’s island, you can see it having to scramble to put on fights at the end of 2020.
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