An interview I did explaining what it all means with
@Drake
UFC Financial Predictions for 2017 May Come As A Surprise | BJPenn.com
@Drake UFC Financial Predictions for 2017 May Come As A Surprise | BJPenn.com
UFC Financial Predictions for 2017 May Come As A Surprise
- Thread starter FrankieNYC
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This part:An interview I did explaining what it all means with
UFC Financial Predictions for 2017 May Come As A Surprise | BJPenn.com
DR:
How could this year be so profitable if interest in MMA is down according to the PPV and TV event ratings on Fox and FS1?
FNYC:
Excellent question that I get asked a lot on various forums. You need to remember that while PPV is certainly a huge part of UFC’s 2017 business model, it is not the driving force for their bottom line. UFC has escalating TV deals worldwide (meaning contractually they go up every year), plus they cut a lot of costs (early projections were $25-50 million per). Also, since the sale, UFC created new deals that help the bottom line. Before a single PPV is sold, UFC is a huge moneymaker. Also added into UFC’s 2017 EBIDTA is Mayweather vs McGregor. So while PPV is down, they still made a lot of profit just from UFC PPV. While TV ratings are down, they made more than the year prior due to existing contracts. Add in MayMac, budget cuts and new deals and it opens up the mind to how UFC can be so profitable in a year that seemed to have waning interest."
Is it possible overall ppv sales didn't reflect a wane?
This is what I found most interesting.
DR:
How does the surprising news of 2017 earnings relate to fighter pay?
FNYC:
That is a huge question. To even begin thinking about it, we must hark back to Dave Meltzer’s news that UFC paid 13% of revenue in 2015. That is about $80 million for the year. Without knowing what the 2017 revenue is, it is impossible to know. But, I would be surprised if fighter pay went up as far as a percentage went. When you look at fighter pay, a lot of the larger payouts in 2015 were PPV bonuses. With 2017 being a less stellar year in PPV, there would seem to be less PPV bonuses going to fighters. Also skewing the percentage would be MayMac which is not MMA related as far as having to pay MMA fighters for being part of an MMA event. If you are asking me in a roundabout way if UFC fighters should be looking at the projected EBITDA when it comes to negotiations? OF COURSE, if I pay enough attention to know this info, every single fighter and their team should as well. They are in business with UFC and should negotiate from a place of knowledge.
13% is just brutal. Remember when Tiny Swole suggested they paid out on the same levels as MLB, NBA, NFL (50%)?
View: https://youtu.be/ck0Lb8pDmVg?t=8m12s
DR:
How does the surprising news of 2017 earnings relate to fighter pay?
FNYC:
That is a huge question. To even begin thinking about it, we must hark back to Dave Meltzer’s news that UFC paid 13% of revenue in 2015. That is about $80 million for the year. Without knowing what the 2017 revenue is, it is impossible to know. But, I would be surprised if fighter pay went up as far as a percentage went. When you look at fighter pay, a lot of the larger payouts in 2015 were PPV bonuses. With 2017 being a less stellar year in PPV, there would seem to be less PPV bonuses going to fighters. Also skewing the percentage would be MayMac which is not MMA related as far as having to pay MMA fighters for being part of an MMA event. If you are asking me in a roundabout way if UFC fighters should be looking at the projected EBITDA when it comes to negotiations? OF COURSE, if I pay enough attention to know this info, every single fighter and their team should as well. They are in business with UFC and should negotiate from a place of knowledge.
13% is just brutal. Remember when Tiny Swole suggested they paid out on the same levels as MLB, NBA, NFL (50%)?
View: https://youtu.be/ck0Lb8pDmVg?t=8m12s
I will never forget Danus almost exploding on live tv when asked a question about fighter pay.
View: https://m.youtube.com/watch?v=8Ay4WujLR3A
Not sure exactly what you mean/asking.
MayMac was part of UFC's year, so it should have been
Also WME made money outside of UFC because they acted as agents in some over-seas deals & sponsors/advertisers
For those that like to calculate & are numbers guys
They paid about $80m in 2015, that shows AC reported pay is far from reality when it comes to fighter pay in UFC (& Bellator too)
Things like signing bonuses, appearance pay are all part of deals for various reasons.
Then you have the UFC bonuses & PPV cuts
A great listen is 54 minutes in
http://radioinfluence.com/MMAInsiders/Epsiode5.mp3
They paid about $80m in 2015, that shows AC reported pay is far from reality when it comes to fighter pay in UFC (& Bellator too)
Things like signing bonuses, appearance pay are all part of deals for various reasons.
Then you have the UFC bonuses & PPV cuts
A great listen is 54 minutes in
http://radioinfluence.com/MMAInsiders/Epsiode5.mp3
An update to the interview
I projected UFC cuts were 25-50%.
It was reported to be about 55%
I projected UFC cuts were 25-50%.
It was reported to be about 55%
Yes, with budget cuts & escalating deals, they are over a $150m profit company without a PPV sold
For instance, they are getting $160+ in 2018 just from Fox (US) alone. That is about $10-15m more then 2017
Thanks for that read, pretty insightful. I thought the PPV was the big money maker until this.
Holy shit is he slimy.
Landsberg or Danus? Landsberg looks like if you touched him he’s feel slimy.
Lol BOTH! Landsburg is gross no doubt. I only kind of like him because he doesn't mind grilling Dana once and a while.
Its like watching two loudmouths in a bar argue & knowing both are wrong
I'm asking if the perception of a wane in interest in the sport is overblown. It's hard to know without concrete ppv numbers, but I'd be interested to know if this past year:
1) Was a down year in ppv sales
2) If it was a down year, is it part if a trend of decline or are ppv numbers up and down for the past few years.
3) If it was not a down year, is interest only declining among a particular demographic.
Where does that come from, Meltzer's numbers? Also, was 2016 an outlier with Conor, Brock and Rousey or was it part of an upward trend? What are 2017's numbers like compared to 2014 and 2015?