There is only one attribute to Tito Ortiz that deserves the admiration of mixed martial arts fans everywhere, and that’s his ability to market himself in a way that makes the promotion he belongs to profit immensely. Whether you love him or hate him, people still buy pay-per-views to see Tito either thrash his opponent or get crushed by his opponent. It’s a win-win for the promotion, and Tito Ortiz did his job in securing enough pay-per-view buys to make a substantial sum of money. You really can’t find anyone who does it better in the industry.
Of course, every man has his fault, and it looks like Ortiz suffers from poor math skills and visions of grandeur. Ortiz appeared on the Howard Stern show and had this to say about the UFC’s profits for pay-per-view events:
“They make about $43 million on pay-per-view, which doesn’t even include (the live gate), which is another $5 million, and not to mention merchandise sales,” Ortiz said.
Maybe I am way off base here, and I could be completely oblivious to the actual dollar amounts that the UFC brings in, but I’ll take a stab at some guesswork. Normally, successful events garner anywhere from 400,000 PPV buys to 600,000 PPV buys with the odd 1 million mark for an epic event such as the one that Tito was a part of. At $40 a pop on pay-per-view, we could see anywhere from $16 million to $24 million on the low and high end of a very successful card. On the 1 million viewer card, we see closer to $40 million. Honestly, tell me where I’m wrong if it is the case.
So, it seems that Tito is basing his statement on ONE Pay-Per-View card, exactly one event that reached the largest PPV buy rate in MMA history. Add in the live gates, which normally never hit $5 million dollars. Let’s say the norm would be around $2-$4 million dollars. On the low-end, we could come to an estimation of $16 million + $2 million at the gate. $18 million total for a lower-end, but very successful UFC card. A higher end card that produced bigger buys could reach $28 million total with $24 million in buy revenue and $4 million in live gate revenue. Again, these are estimations to support my point.
What’s my point? Tito needs to rethink his argument. $43 million is only referring to one card that actually reached a very large number of buys. Liddell vs. Ortiz II reportedly hit over one million buys and a $5.3 million dollar gate. That is the only card that reaches the levels that he is claiming.
There is another problem. Apparently Ortiz forgot that the UFC pays money to the venue, production values, marketing, and other pieces to the puzzle that sap the revenues. In the end, they may only make half that amount. Even with that said, I’m sure Tito still considers the fighters of the UFC to be getting paid far less than they should be making. I understand the argument. The problem is that Ortiz is looking at boxing numbers, a sport that has been around for far more time than MMA, and thinking to himself, “Why am I not making that much?”
MMA has only just begun to get a lot more interest, but the more interest it gets, the more money that these fighters may be able to make. One thing is for certain, the Clay Guida’s of the world should be making far more than what they have been getting.
Ortiz hints at starting his own MMA promotion
Ortiz also talked about future endeavors and even hinted at starting his own MMA promotion. If there is one thing Tito Ortiz shouldn’t do, it's starting his own promotion. Unless he plans on keeping it fairly small, which doesn’t sound like the Ortiz way, the potential for a money pit is definitely there.
The only way Ortiz can really capitalize is by getting some good backing and promoting a big name fight between himself and another big name fighter, much like what Frank and Ken Shamrock are both trying to do. Frank is reportedly going to fight Ken on their very own promotion card, which would give them the profits instead of an organization. Of course, the battle between the two brothers isn’t entirely confirmed, but it’s the idea here that is the focus.
The latter idea that Tito could headline his own promotion seems like the more likely of the two scenarios. To be honest, I can’t see Tito taking a MMA promotion anywhere with his business skills, especially considering the over-inflated numbers he gave to Stern during the interview. It’s his name and ability to create hype out of thin air that really make his fights take off. It almost seems better for him to market a wrestling promotion.
Here’s a thought
The rumors around the Internet are churning with news that a Frank Shamrock vs. Tito Ortiz battle may occur outside the promotion. That’s a great way to get started outside the UFC and to get moving in the right direction in Tito’s post-UFC days. I think it’ll sell as well, especially when you have two guys who love to talk smack.
It’s either that or Tito re-signs with the UFC, talks down to nearly everyone, creates a bunch of hype, and creates a bunch of matchups out of thin air for himself. We know he can do it, and the UFC will only win because of it. Of course, I’m sure the current contract situation revolves around money for Ortiz, and he may very well get what he wants in the end. For now, we’ll just have to listen to Tito’s ridiculous statements.