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

[khabib time]

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 don't think it's economic right now. Dana is a control freak so it's not only money but the control and domination. The fact that someone is telling him it isn't safe and you can't do this or that is driving him crazy. I hate to side with Dana but I don't think he's wrong.

 

[lagofala]

He buys the island, gets fired.

Now he can cash out and stay on the island.

 

[KONG-D'SNT-TAP]

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

Big time fail edge lord post.

 

[Area809]

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?

Going idle for 3-4 months is very damaging. I’m sure there’s a lot of pressure from people they owe money to.

 

[Tyler Durden]

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.

It’s embarrassing.

 

[RicardinhoPT]

securing a private island is the glaring cost here. Sending khabib on private plane trips that don't amount to anything. Possibly forms of bribery in trying to get florida to hold ufc 249 etc.

The island is probably empty and will be just like renting a venue. The other two are BS and never happened

 

[kimocomplex]

other sports are on top for now
but with athletes complaining about pay/gender equality/racism/ etc.
UFC will overtake them all

#globaldomination

 

[cmw43]

Because the UFC is a C-level organization which will go belly up without making money for a couple of months.

Big boy sports leagues like EPL/NFL/NBA/La Liga/NHL can afford to take a break. UFC can not.

I mean, there's like a hundred players in the D-level Russian soccer league who make over a million euros per year guaranteed, without bonuses and sponsorships. Meanwhile some top-15 UFC fighters will probably end up on the streets if they don't fight at least once in 2020.

The EPL teams are worried the season will get cancelled and the TV companies will ask for their money back, also the players are refusing to take a temporary wage cut, could be trouble for the smaller clubs.

 

[juanM3]

Because he is a business owner? That's probably about everyone's goal. Why is the company I work for doing as much as they can to sustain business during this time?

 

[Riatyn]

I might be a little bit late to the party but I would think the strategy behind it would essentially running the event as a lost leader. Even talking about running the event without the intention of putting it on gains media attention. If he does manage it even at a loss it will build reciprocity in that an entertainment event was held while others weren't able too and it adds validity to "MMA is the UFC." Back to just talking about it though, it keeps the UFC brand in the limelight while others fall behind. Other organizations can't really attack it either because if they do they set themselves up for a backlash in contract deals. It's really a win win for Dana any way that you look at it.

 

[Only Here for Attachments]

- WME needs money
- WME employs Dana
- WME pressures Dana to make them money

 

[Conor_Is_Overrated]

No sports the planet Earth.
This should be quite an opportunity for the UFC if they can pull it off.

 

[Deleted member 512089]

I think it's to not get a huge penalty from the ESPN deal

 

[TRT Champion]

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

It's called a loan. And that 4.5B loan isn't going to pay itself.

 

[MCS]

They've held 8 events this year. The ESPN deal means 15 cards a year on ESPN for 150 mil for the UFC. UFC 249 would make the UFC 10 million without counting buys, TV deals, etc.

I don't think the important question is how much Dana will make, but how much the UFC and ESPN will gain from held events. And how badly WME needs revenue.

 

[lostdog000]

should sell great with everyone at home and no sports on

 

[Cleveland]

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?

See below:


Big Payouts & IPO Flops
In February 2020, the New York Post revealed that the UFC doled out $300 million in dividends to some of its biggest investors, including celebrities such as Mark Wahlberg and Charlize Theron, Gisele Bündchen, Ben Affleck and tennis stars Serena and Venus Williams. Other beneficiaries include UFC president Dana White and Endeavor CEO Ari Emanuel, all of whom reportedly pocketed more than $3 million each.

The massive payout marked the first time that the UFC issued a dividend payment since Endeavor purchased a 50 percent stake in the promotion back in 2016. It is also more than twice as much as the UFC paid its entire roster of fighters in 2019. (fucking ruthless)

According to the New York Post, UFC fighters cost the promotion less than “16% of its $900 million in revenue” in 2019, which is less than $145 million. This is in stark contrast to the 48-50% revenue split in Major League Baseball, the National Basketball Association, and the National Football League — organizations that also cover player expenses and provide salaries through the league and franchises. And yet, Mark Shapiro, president of Endeavor, told the Post the UFC pays its fighters “significantly more than any other MMA organization.”

 

[The XL]

Big time fail edge lord post.

It's just the truth.

 

[Alpha_T83]

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 mentioned this in another thread ... there have been several rumors that the UFC have bonuses in their contract with ESPN. I've seen it hinted that this is to do with total yearly PPV sales and/or the number of events they run on ESPN+.

So if they shut down for 3 months, then they won't meet their ESPN quotas (if the alleged quotas are true), and that in turn means they lose out on bigtime money.

 

[TestosterOWN]

Isn’t Dana trying to get into boxing promoting more? Prob just doing it for himself to show he can get things done.