Selling the UFC? Zuffa won’t budge

by LR 2/5/2008 4:30:00 AM

One of the prominent stories in the last month or so has been the rumor flying around regarding the possible sale of the UFC to any interested third parties. MMA Payout has an article that revolves around the recent comments by Dana White on a Steve Cofield radio interview, and he also talks about the history of the rumor. Here’s the main point:

MMAPayout.com first heard that the company was for sale back in December. At that time, the rumored asking price was in the neighborhood of $220 million with the profile of the prospective buyer being described as a media company, preferably international. Including the company's $350 million debt, that asking price would put Zuffa's value at more than half a billion dollars. Since then sources have told MMAPayout.com that the rumored asking price is significantly higher.

So, why was this rumor ever an issue? Most people think that it’s because of Zuffa’s struggles in the British market, and trying to expand to anywhere else but that region is going to be a problem since money is being used up in the United Kingdom. There are some flashes of hope that I believe will begin to help their expansion efforts.

The UFC did manage to get a TV deal in the United Kingdom. Sentanta Sports and the UFC have a deal in the region, and it should do well considering mixed martial arts has a good following there. Also, the UFC seems to be moving into Scotland, an area of the world where MMA has flourished. We could also see them tapping into the newer Swedish market of fighters and potentially opening up talks about television, pay-per-view in the entire region. You would think that the next area may be Holland, where many of the kickboxing elite reign from.

The fact is that the UFC has at least positioned themselves in an ideal market for mixed martial arts to gain a good size fanbase, enough to turn a profit. Once those profits begin to materialize, other regions may follow as far as television and pay-per-view deals. The notion that the UFC can’t make it in those countries is a bit premature. Scotland will prove to be a good size market, and for most fans who don’t realize how big of a market, they’ll sell out their next event.

It’d be idiotic to sell the company, but I see why it has come up, especially considering the rumored losses in the United Kingdom, the slowdown domestically, and with concerns over fighter talent leaving the promotion. It could be a precursor to the idea of selling the company, but I think the UFC is on the verge of breaking out in foreign markets. Only time will tell.

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Comments

February 5. 2008 05:55

I may be the millionth person to say this, but they had better stop the globalization before it kills them. The haven't even locked down one nation, let alone a continent, and they're already trying to lock down more? I think we should be getting far more mainstream before we start going somewhere else.

They need network TV on a regular basis in the states before they think of doing this overseas shit again. They need to get out of debt before they start spending on expansion.

On the other side of the coin, do you think they wanted to pull a MacMahon/WWE and use "global" as a way to get over with networks and sponsors here in the states?

Love the blog man, always a good read!

Asa us

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