Fuck the UG, I would never discuss this there.
As many of you know, the Fertittas secured their financing to maintain control of Station Casinos through a bond package taken against ZUFFA, which was to be repaid in three large installments, the final of which was due in 2015. The Fertittas, after the UFC turned in a dismal 2014 (mostly spurred by declined PPV purchases and then cancellation of an event), had to re-finance the 2015 installment due to the turndown.
They sold a 10% stake in ZUFFA to the Abu Dhabi group, and the casino industry has yet to see a real recovery. While Vegas on the whole saw a very slight increase in casino revenue last year, hotel revenue (including F&B) was on the decline. What's more, the increase in casino revenue can only be projected to be short-term, as the growth was spurred by Asian (mostly Chinese) gamblers, many of whom are finding it harder to get funds into Macau due to the Chinese government crackdown on corruption. The real metric for determining domestic (American) gambling trends is the slot machines, which saw revenue decline 6% for 2014. In an era of declining PPV buys, the UFC's response to consumer trends is to raise PPV prices yet again, which gives the impression of a short-term attempt to bump revenues, and wholly ignorant of the long game.
It would seem like the UFC has tapped themselves out, revenue-wise. With the new antitrust litigation, Zuffa has made every attempt to polish their public image. Dana White is almost completely absent from public events, and has polished his Twitter feed to remove any outwardly acrimonious statements that could influence the lawsuit or public opinion, with Lorenzo Fertitta taking on a larger role in public relations.
The UFC has every appearance of a company that is for sale. If the Fertittas were going to unload, now would be the time. Obviously, FOX would be a potential suitor, but the who's and when's of such a transaction would be beyond me. Is anyone else expecting 2015 to be the figurative end of an era?
As many of you know, the Fertittas secured their financing to maintain control of Station Casinos through a bond package taken against ZUFFA, which was to be repaid in three large installments, the final of which was due in 2015. The Fertittas, after the UFC turned in a dismal 2014 (mostly spurred by declined PPV purchases and then cancellation of an event), had to re-finance the 2015 installment due to the turndown.
They sold a 10% stake in ZUFFA to the Abu Dhabi group, and the casino industry has yet to see a real recovery. While Vegas on the whole saw a very slight increase in casino revenue last year, hotel revenue (including F&B) was on the decline. What's more, the increase in casino revenue can only be projected to be short-term, as the growth was spurred by Asian (mostly Chinese) gamblers, many of whom are finding it harder to get funds into Macau due to the Chinese government crackdown on corruption. The real metric for determining domestic (American) gambling trends is the slot machines, which saw revenue decline 6% for 2014. In an era of declining PPV buys, the UFC's response to consumer trends is to raise PPV prices yet again, which gives the impression of a short-term attempt to bump revenues, and wholly ignorant of the long game.
It would seem like the UFC has tapped themselves out, revenue-wise. With the new antitrust litigation, Zuffa has made every attempt to polish their public image. Dana White is almost completely absent from public events, and has polished his Twitter feed to remove any outwardly acrimonious statements that could influence the lawsuit or public opinion, with Lorenzo Fertitta taking on a larger role in public relations.
The UFC has every appearance of a company that is for sale. If the Fertittas were going to unload, now would be the time. Obviously, FOX would be a potential suitor, but the who's and when's of such a transaction would be beyond me. Is anyone else expecting 2015 to be the figurative end of an era?
