Sportico.com opined today that Jake Paul’s trolling against the UFC is a ‘win-win.’ The opinion piece written by JohnWallStreet indicates that Paul as disrupter wants “social impact to be “a part of [his] legacy.””
Paul and his business partner Geoffrey Woo intend to publish an economic White Paper that makes the case that evolution towards “an aligned, incentive-based model would drive-or at least protect-long-term EDR shareholder value.” To translate, the White Paper will provide evidence on why paying fighters more and providing benefits (i.e., healthcare) would provide long-term benefit for the company translating into shareholder value.
Paul stated that the investment fund led by Woo, Anti Fund, made an investment “in the low six figures” per Paul. This does not align with industry standards for an activist investor to cause ripples within the structure of the business. However, Woo seemed optimistic about the prospects that its influence would impact at least one of the main heavy hitters within the shareholders. He stated that Silver Lake, a controlling shareholder in Endeavor, would stand with Paul and Anti Fund citing that Silver Lake being a tech investor, it understands “how technology companies have been able to build enduring brands and enduring employee bases.”
This past week, the UFC announced a new promotional campaign involving Jon Anik. Modelo pays the UFC in the low-eight figures annually. Crypto.com signed on with the UFC and it is rumored that deal is more. In addition to the lucrative sponsorships, the UFC also has media deals it is signing overseas which are big deals for the UFC.
While Paul has caused UFC fans to coo over his trolling over Dana White and the UFC, its hard to believe that his investment will bring any major structural changes he claims to want for fighters. Certainly, Paul and Woo are winning the PR battle. Believing that Silver Lake will climb on board Paul’s vision is another thing.
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