It’s been an interesting couple of weeks in the mixed martial arts talent market. With news that Fedor Emelianenko has been rumored to be leaving M-1 Global, the stage is set for another showdown between the MMA promotions to fight for his services. ProElite, DREAM, World Victory Road, HDNet, and the UFC will most likely be involved in some sort of talks with the Russian Sambo champion at some point in the coming months. There is another entry into the sweepstakes that many people may be dismissing due to their recent entry into the market.
Golden Boy Promotions is the newest player in the mixed martial arts scene, and they have also been included in the increasing number of promotions that will vie for Fedor Emelianenko’s services. Headed by one-time Swiss banker Richard Schaefer and boxer turned to businessman Oscar De La Hoya, the promotion seems to have a stable background that could translate into the business turning a profit in the industry. Golden Boy is one of the most powerful boxing promoters in the boxing scene, and produced one of the biggest boxing matches in recent history in Floyd Mayweather vs. Oscar De La Hoya. De La Hoya may have lost, but his company netted huge profits from pay-per-view figures and sponsorships.
The next venture for Golden Boy will be a challenge for De La Hoya and company. Golden Boy has partnered with MMA clothing company Affliction to create a new mixed martial arts promotion. After a Fedor Emelianenko and Randy Couture photo shoot that pitted the fighters face to face as a promotional advertisement for Affliction, the UFC booted Affliction from its events and banned the label. Now, Affliction has crept into bed with Golden Boy Promotions… maybe Affliction knows something we don’t.
With a high profile MMA clothing company as a sponsor, Golden Boy will now have to concentrate on obtaining talent. MMA has grown big enough to where talent is hard to come by these days and building from the ground up can take an extensive amount of time. Smaller promotions haven’t been so lucky at building talent and most organizations act as feeder systems to the UFC. How can Golden Boy compete?
According to an article by Kevin Iole at MMAJunkie.com back in February, Golden Boy CEO Richard Schaefer commented that there appears to be “turmoil” in the mixed martial arts business in which new companies are forming and fighters are revolting against the current business practices. Tito Ortiz is mentioned in the article as having a representative reach out to Golden Boy to see if the two sides could work together.
Is Golden Boy Promotions is the true dark horse in the mixed martial arts scene? The company has a solid background with big profits and is diverse in not only boxing, but in real estate and potentially other sports. They’ve been rumored to have already signed middleweight fighter Matt Lindland, and are now in the running to possibly sign Fedor Emelianenko to a deal. Could they actually pull this off and turn a profit? History tells us a resounding “No”.
Once again, we move into the realm of thinking that was parallel to the thinking when M-1 Global entered the market. First and foremost, the UFC is the only mixed martial arts promotion to have made a large profit in the North American market. Nearly every single promotion besides the UFC has lost money to an extent in the United States, and it will likely continue. The UFC has not only locked up many of the best fighters in the world, but they’ve also managed to grab a cable television network deal, loads of sponsors including blue-chip sponsors, and their pay-per-view buyrates are steadily bringing home the bacon.
Golden Boy won’t be able to secure top talent in the market. Tito Ortiz can draw people, but who will he fight? Fedor Emelianenko has already proven to be a poor draw in his battle with Matt Lindland in BodogFIGHT, so what are the real benefits for Golden Boy? The biggest upside is their relationship with HBO, but how do they draw more fans to HBO than EliteXC has drawn to Showtime? It’s essential for a promotion to draw big numbers to make a profit, and I don’t see Golden Boy’s roster exploding with enough great fighters to make a fan buy the HBO package or even tune in.
Is Golden Boy the dark horse? I don’t think so. Tito Ortiz and Fedor Emelianenko may turn a profit for one event if Golden Boy happened to sign them, but the fact is that in the long run, Golden Boy will run into the same problems that other promotions have. The only thing that may keep them alive is the simple fact that the company is diverse in its revenue streams, but would you want one stream bringing down your profits? No, not if you’re a businessman.