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While things weren't always smooth, and it seemed there were twists, turns and crises on a regular basis, the story of the Fertitta brothers purchase of the UFC in 2001 for $2 million, and its sale 15 1/2 years later for $4 billion, was the ability to see in a nearly-dead product the potential of major mass appeal.
The original UFC, the brainchild of Art Davie, was about creating a fighting event where the best fighters from different disciplines would battle with almost no rules to see what fighter, and what fighting art, was superior. The original shows were successful, based on over-the-top marketing with the idea that there were no rules and claims the events were banned in 49 states.
Eventually that sensationalized marketing bit them, as in nearly every market, and years later with the expansion, in almost every country, the media decried fights that involved things, such as punching on the ground, or submissions like chokes, that weren't allowed in the boxing world they grew up on. The new UFC, when trying to get regulated in many states and provinces, and in going into new countries, faced those obstacles.
As a strictly pay-per-view event, the sport was on death's door when pay-per-view companies were pressured to stop carrying the events. When the Fertitta brothers purchased the company, the first thing they did was try to clean up its image. They pushed that this was a sport with regulations. Virtually all the current rules were in place before they purchased it, although most states didn't regulate it, and regulation became a key goal. The belief at first was simply that once they could get back on pay-per-view, things would be successful as they were in 1993-97.
But things had changed. The 2001-2004 version of UFC, back on pay-per-view, lost tens of millions of dollars. The original success was novelty-based. The only reason the sport survived those lean year was because of the deep pockets of the Fertitta brothers. Step one of the turnaround was getting The Ultimate Fighter television show on Spike. It was new, different, and cool to the younger viewers. Pay-per-view numbers exploded. Then, the television world was shocked in 2006 when the company put on a huge fight with Tito Ortiz vs. Ken Shamrock on television, and in the 18-34 male demo, it beat the numbers of several games of that year's World Series. Suddenly, the television industry started to take notice.
The company's business had its peaks and valleys over the past decade, with the peaks built around marketable stars and big fights. But even in a year when everything seemed to go wrong, like 2014, with a lack of both, the company still pulled a healthy profit. In 2015, as Ronda Rousey and Conor McGregor drew large pay-per-view numbers, the company had its biggest year to date, grossing $608,629,000 and ending with $157,806,000 in operating income.
In short...
LINK to full article: The Fertitta brothers, UFC's saviors, cashing out is pivotal moment in history of MMA
