MMAjunkie‘s Steven Marrocco and Ben Fowlkes obtained an investor document that details much about the new UFC owners’ plans. The first article was about plans to grow earnings. Their second article details what happens when the FOX deal ends in 2018.
FOX was one of the bidders for the UFC, so the league has a very clear picture of what they think it is worth. But the new owners foresee four bidders for the next television broadcast deal – FOX, NBC, ESPN, and Turner.
The environment for securing sports rights in 2018 is anticipated to be seller-friendly, as MLB, PGA, and NHL will not be shopping for new deals until 2021.
Further, Hispanic rights can be separated out, further competition.
The $462,000,000 generated in 2015 was broken down:
•$236,000,000 (51%) from PPV
•$129,000,000 (28%) from domestic television
•$83,000,000 (18%) from international deals
•$14,000,000 (3%) from UFC Fight Pass
PPV tanked from $212,000,000 in 2013 to $116,000,000 in 2014 due to a series of high-profile injuries but rebounded well in 2015, and is doing better still in 2016. And as detailed in Fowlkes and Marrocco’s last piece, the domestic television revenue will escalate to $140,000,000 in 2016 to $168,000,000 in 2018.
So that is more revenue coming in, in a league that they estimate will rise to 1.31% of the US sports market in 2019, from .99% in 2016.
When the UFC sold for approximately $4,000,000,000 there were many questions about how the new owners could realize a reasonable return on their investment. Those questions are starting to get some answers.