Ring Of Sports Marketing

UFC

UFC Sold For $4 Billion

Rumors have swirled for the last two months that the UFC was being sold in the neighborhood of $4 billion.  Chris Maathuis at CBS KLAS-TV in Las Vegas, says the UFC sold for $4 billion to outside inverstors.  Dana White and Lorenzo Fertitta are scheduled to make an appearance at 5 am on KLAS-TV.

According to LasVegasNow:

“The new owners include an alphabet-soup partnership of WME (William Morris Endeavor), the internationally known talent agency,  IMG (International Management Group) a global sports and entertainment company based in New York, and MSD, a private equity group headed by Michael Dell.  Also involved as a strategic partner is KKR, a global investment firm.

According to persons familiar with the deal, Lorenzo Fertitta will remain as chairman of UFC for 6-8 weeks during the transition but will step down after that. UFC president Dana White, who currently owns 9% of the organization, will continue in his role with UFC and will have a smaller ownership stake.”

ESPN reporter Brett Okamoto had some texts with Dana White that he posted on twitter:

Ringside Analysis:

The UFC selling for $4 billion would be the biggest deal in the history of sports.  The company has come a long way from when the Fertitta brothers purchased the UFC in 2001 for $2 million.  Last year Lorenzo Fertitta told CNN that the UFC had made $600 million in revenue, so the sale is going for seven times the reported revenue.

There is a lot more money behind the UFC with the new investors.  Between one of the largest sports and entertainment marketing companies and private equity and investment firms that have billions more dollars behind it the sport, as Dana White says, will be going to the next level.  The extreme money and unparalleled expertise now running the sport could really push the UFC to the mainstream, a goal that the Fertitta brothers and Dana White have been saying since they bought the company.

Personally, I’m extremely excited to see where this sport goes.

 

Leave A Comment