Can Someone Explain the Economics of Dana White's Desperation to Hold Fights

[CaesarSinclair34]

I understand that he will make money from the UFC 249 ppv and any subsequent numbered UFC events on PPV, but why is he so desperate to all this from an economic standpoint. I doubt the PPVs will get enough ESPN plus subscriptions to make the effort, hassle and money spent on securing a private island to host fights worth it.

There isn't going to be any live gate money so what economic purpose do holding fight cards have? Is ESPN planning to compensate the UFC for just getting live sports back on their network?

 

[HHJ]

They put in way too much money into the card to not get some of it back. I still dont agree or like that they are going ahead with it,but thats the rationale.

 

[Zebra Cheeks]

They put in way too much money into the card to not get some of it back. I still dont agree or like that they are going ahead with it,but thats the rationale.

Because of the marketing? Didn’t that go out the window when the main event fell apart?

 

[CaesarSinclair34]

They put in way too much money into the card to not get some of it back. I still dont agree or like that they are going ahead with it,but thats the rationale.

They would have put in most of the money scrambling to save this card though, right?

 

[HHJ]

They would have put in most of the money scrambling to save this card though, right?

No idea,i just keep seeing alot of other non ufc or mma related stuff being postponed. "Cancelling (outright) is NOT an option"

But this is a special case because it wont be a public event. Its hard to say whats going on here.

 

[seanb1979]

More people are staying at home, so they're banking on more ppv buys. Also, contrary to everyone assuming White get's 100% of the revenue from fights, the fighters actually do get paid.

 

[TheNinja]

B/c there are currently like NO live sports going on right now. If Dana can show UFC events every weekend......even if they are free, he's going to get people, who normally don't watch the UFC, to tune in. It's a huge opportunity for him to grab some new "fans" and viewers who might become paying customers in the future.

It's like giving away a free 1-2 months of your product hoping people will enjoy it and pay for it later. And, as I mentioned he has ZERO competition right now. Heck, gamblers are betting on simulated games and eSports b/c there is no live gambling and gamblers gotta get their fix too!!

Put it this way.....sit at home and watch Tiger King for the 4th time or tune into some live sports liek the UFC?

 

[Sweater of AV]

Being the only sport on would be big for world fucking domination.

 

[RicardinhoPT]

They would have put in most of the money scrambling to save this card though, right?

What money is that? Making phone calls all day?

It's a fight promotion. No fights means no/less money, what is so complicated?

 

[theTKDguy]

I understand that he will make money from the UFC 249 ppv and any subsequent numbered UFC events on PPV, but why is he so desperate to all this from an economic standpoint. I doubt the PPVs will get enough ESPN plus subscriptions to make the effort, hassle and money spent on securing a private island to host fights worth it.

There isn't going to be any live gate money so what economic purpose do holding fight cards have? Is ESPN planning to compensate the UFC for just getting live sports back on their network?

I'm with you but, if they are doing everything they are doing, it's for a reason. Wme, espn know their shit

 

[TheLastEmperorReurns]

I think this just shows how desperate ufc is for an unending revenue stream.

they can’t go on complete pause like all the major sports leagues.

you have teams like the Patriots (let alone leagues) doing nation-state level humanitarian aid work and then you have Dana going insane to make 1 semblance of a card still function.

 

[DaleBoca]

Dana is trying to be this maverick where rest of the sports world is shutting down but the big bad ufc is going on. The reality is the ufc isn’t on the level of the major organizations of the world. The NY Knicks alone is worth more than the UFC*. Steve Balmer who owns the Clipper is also worth 50 plus billion and just bought the Forum for 400 million in cash. The UFC is not on the level and will never be that level, that is why they pay their fighters peanuts. They need to keep these events going so they can function.

 

[The XL]

He's not a pussy and is exercising his right as both an employer and as a free man

 

[Palani]

People are staying home, and they are starving for sports, or anything NEW and LIVE.
Look at the competition !
Tiger King, Episode 5 ?

 

[Zebra Cheeks]

I think this just shows how desperate ufc is for an unending revenue stream.

they can’t go on complete pause like all the major sports leagues.

you have teams like the Patriots (let alone leagues) doing nation-state level humanitarian aid work and then you have Dana going insane to make 1 semblance of a card still function.

To be fair if he doesn’t get his guys fights they don’t eat. Football players make their money whether they play half or a full season, not to mention right how’s the off season anyway. Dana probably has tons of guys who safe gonna be in major need of money real fast

 

[Wizzlebiz]

Massive branding opportunity here. Just the fact it's being talked about has already done alot.

 

[Bobby 3 Sticks]

It's simple.

The world loves sports.

How many major sports are being held currently?

There's WWE, some Chinese events are back, e-sports, and...?

This is a solid opportunity to attract some fans who are desperate for sports

 

[PeterTheGreat]

His workers probably get paid salary and are happy to not be bored as all fuck. They got into the job of marketing so I imagine they are fine doing the job they already have

 

[sdpdude9]

I’m not going to pretend I have a deep understanding of how businesses/sporting leagues are run but I believe there’s probably two main reasonings. One being that the UFC is a smaller organization when it comes to major sporting leagues and cannot afford to miss too many shows. The second reason being that UFC is looking to capitalize on a dead market with little to no competition right now and gain some fans and maybe some extra buys in the short term.

 

[TheLastEmperorReurns]

To be fair if he doesn’t get his guys fights they don’t eat. Football players make their money whether they play half or a full season, not to mention right how’s the off season anyway. Dana probably has tons of guys who safe gonna be in major need of money real fast

90% of ufc fighters make minimum wage level money.

they can file for unemployment and get the same money