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[RBH]

The owners of the UFC are in advanced talks to sell the business, sources told ESPN.com.

At least four bidders are believed to have submitted bids for the organization, including WME/IMG, China Media Capital, The Blackstone Group and Dalian Wanda Group. The winning bid, should things proceed, is expected to be for a valuation between $3.5 billion and $4 billion, multiple sources with knowledge of the negotiations told ESPN.com.

Investment bank Goldman Sachs has been representing Zuffa LLC, which bought the UFC in 2001 for only $2 million. Sources with knowledge of the numbers presented to potential investors said that Goldman Sachs had represented UFC's last full year earnings in the $200 million to $250 million range, before interest, taxes, depreciation and amortization. A new television rights deal, which would begin in 2019, could add an additional $250 million in annual revenue to the bottom line, investors were advised.

Lorenzo Fertitta, who with his brother Frank owned more than 80 percent of the business at last public acknowledgment, told CNN in December that the private company grossed about $600 million in revenue last year. Besides the Fertittas, who are each worth about $1.6 billion, according to Forbes, the company has two other minority investors: UFC president Dana White and the Abu Dhabi government, which, under its Flash Entertainment arm, bought a 10 percent stake in the business for an undisclosed sum in 2010.

The leader in the bid to buy the biggest mixed martial arts business in the world is said to be Chinese-based conglomerate Dalian Wanda Group, sources said. Its chairman, Wang Jianlin, is the richest man in China, worth nearly $35 billion, according to Forbes Magazine.

The company has slowly been getting into sports. Last year, Wanda bought a 20 percent stake in soccer superpower Atletico Madrid for a reported $48 million. In March, amid the FIFA scandal, the company agreed to sign on as a FIFA partner, the highest level of sponsorship, through 2030.

Other bidders said to be in the mix are WME/IMG, which owns media properties and represents athletes, including Rousey, the former UFC bantamweight champion. Blackstone Group is also believed to be a bidder. A senior executive at the private equity firm, David Blitzer, owns a minority stake in the New Jersey Devils, Philadelphia 76ers and British soccer team Crystal Palace.

Another bidder is state-backed investment firm China Media Capital, which in October beat out Dalian Wanda and national broadcaster CCTV to win the broadcast rights for the Chinese Super League, the highest level of soccer in the country. In December, CMC, with another Chinese investment group, Citic Capital, bought a 13 percent stake of British soccer team Manchester City for a reported $400 million. UFC executive vice president Garry Cook was CEO of Manchester City from 2008 to 2011.

http://espn.go.com/mma/story/_/id/15503004/ufc-owners-advanced-talks-sell-promotion

 

[-Pyromaniac-]

Vince should buy it and do an invasion angle.

 

[olympia]

wow, huge news. i'm a bit surprised that the primary interest is from china

 

[The Silver]

 

[Neffarias_Bredd]

I dont know if this would be a good or bad thing for the UFC in the long term, but goddamn that is one helluva return on investment the Fertitta brothers are getting

 

[Azuran]

If Vince buys it, does that mean CM Punk is back in the WWE?

 

[Jarrod38]

 

[Vyer]

Are them Fertittas related to Tilman?

 

[Chesskid1]

its scary how much money top chinese companies have, they've been buying tons of stuff lately

 

[Kaladin]

If Vince buys it, does that mean CM Punk is back in the WWE?

What's CM Punk doing in the BellatorZone?

 

[iddqd]

Party at my house you guys!

 

[kirblar]

Makes more sense of that short-sighted Reebok deal.

 

[HyperCubed4]

If Vince has that much money, why doesn't he hire decent writers?

 

[Vigilant Walrus]

The Reebok deal was really destructive wasn't it? Other sports are going in a different direction. It's weird that they would shut down fighters revenue streams.

Fighters pay the heaviest cost of any type of athlete along with football players. The head trauma.. you're gambling with your brain.

 

[BennyBlanco]

2 mil ----> 4 billion

Probably would be the right move to get out now. Popularity has been waning last few years with some of the big draws retiring or the entire roster getting the injury bug.

 

[Kabuki Waq]

wow surprised it's still worth that much.

All the injuries to main eventers have taken a toll.

 

[K.Jack]

Makes more sense of that short-sighted Reebok deal.

The old okee doke. Can't wait to see what the fallout is.

I'd honestly miss how involved Dana is with every aspect of the business.

 

[Stinkles]

If I had 35 billion dollars, I would make Weeaboos fight to the death wearing Fedoras, over a rare copy of Gurran Langan accidentally signed by Haruki Murakami, atop a zeppelin, called the SS Honor and Shame.

 

[Luschient]

Maybe Rogan can buy it with all that AlphaBrain money.

 

[TimeEffect]

If Vince buys it, does that mean CM Punk is back in the WWE?

CM Punk will save the UFC

 

[smurfx]

the ufc already seems to have reached the peak of its popularity. things can only go downhill from here so they might as well sell the business while they can make a good profit from it.

 

[TheXfactor]

2 mil ----> 4 billion

Probably would be the right move to get out now. Popularity has been waning last few years with some of the big draws retiring or the entire roster getting the injury bug.

i wouldn't say their biggest draws have been retiring, they just got their ass kicked. Rousey and connor were getting huge then bam, they lost..bad i might add.

 

[styl3s]

If Vince buys it, does that mean CM Punk is back in the WWE?

It's the long con.

Vince had Punk infiltrate the UFC and burn it down from the inside in 3 months when the shane/steph angle ends it's gonna end with cm punking walking out on the ramp with Vince.

 

[Sarobi]

If I had 35 billion dollars, I would make Weeaboos fight to the death wearing Fedoras, over a rare copy of Gurran Langan accidentally signed by Haruki Murakami, atop a zeppelin, called the SS Honor and Shame.

 

[BennyBlanco]

i wouldn't say their biggest draws have been retiring, they just got their ass kicked. Rousey and connor were getting huge then bam, they lost..bad i might add.

True, but I was talking about Brock Lesnar, GSP, Anderson Silva, etc.

UFC seemed to be at the height of their popularity like 5-6 years ago.

 

[Bruce Springsteen]

Brock Lesnar was the last major star of UFC, because he was already a household name because of the WWE

UFC needs big name heavyweights again

 

[Golgo 13]

PRIDE Fighting Championships still remains the apex of the sport, but sad to see UFC get sold.

 

[Razgriz-Specter]

its scary how much money top chinese companies have, they've been buying tons of stuff lately

Its one of the problems I see coming in the future with regards to monopoly laws and such.

 

[Arc]

The UFC needs star power. No McGregor and Rousey is bad for business. Too volatile to be worth that much imo.

 

[Tatsumaki Senpuukyaku!]

The name on the contract does say McMahon...

 

[Stinkles]

Let him fight.

 

[The Albatross]

Brock Lesnar was the last major star of UFC, because he was already a household name because of the WWE

UFC needs big name heavyweights again

Wasn't Rousey in UFC? Or was she in a rival org? I think she was a bigger house hold name

 

[Fat4all]

*filthyfranku*

 

[NervousXtian]

The UFC needs star power. No McGregor and Rousey is bad for business. Too volatile to be worth that much imo.

Who the fuck were those 2 just a few years ago? New stars will rise, they always do. UFC created Rousey and Conor, like they created Ortiz, Couture, Silva, Shamrock, Penn, Liddell, Silva, Gracie, GSP, Hughes, Henderson... and so on. There's more guys training in MMA than ever before.

The sports biggest problem is going to be if they continue to sell PPV with all the free shows and the over-saturation of the sport.... but the TV deals will be lucrative and probably make up for it all... more eyes.. more sponsors.. more money.

 

[Big-E]

Bad buy I think. UFC could have some very disastrous years in the near future if they lose a couple of pieces. Though with Wanda buying it, they can get fucking everywhere in China as every mall is practically owned by them.

 

[Heel]

UFC created Rousey and Conor

 

[Anth0ny]

 

[parrotbeak]

I like how OP bolded the whole article but it's all just boring financial talk.

 

[Pristine_Condition]

True, but I was talking about Brock Lesnar, GSP, Anderson Silva, etc.

UFC seemed to be at the height of their popularity like 5-6 years ago.

Uh, UFC did much better on PPV in 2015 than they ever did during the GSP, Lesnar, Silva years. And the live gate numbers are WAY, WAY better.

Lesnar was a million PPV draw guy three times, but it took him three years to do it. He simply didn't work much. Like his role in the WWE now, he was very much a special attraction/rare event guy.

GSP wasn't a million draw and Silva only did it once (maybe twice if the second Sonnen fight was under-reported--it was very close.) GSP averaged 688,000 buys as a headliner. Silva averaged only 480,000 buys.

The biggest buyrate for Silva occurred 28 months ago, and not "the 5-6 years ago" you claim was "the height of their popularity."

Really, if you look at Anderson's numbers, especially the ones in the days when you are claiming business was so good, he was a pretty abysmal draw. He was highly-dependent on his opponent to be the draw. Without guys like a Belfort or Sonnen hard-selling the fight, he drew a lot of 300k-350k buyrates. IIRC, Anderson Silva was on some cards as the undefeated champ and wasn't in the main event. That is kinda hard to overlook.

And even beyond the live gate and PPV numbers, UFC is in a much better position worldwide in terms of mindshare than they ever were in those years.

 

[Dark Ninja]

If Vince buys it, does that mean CM Punk is back in the WWE?

After the entire WWE locker-room has been beaten up by the UFC invasion force, CM Punk will come from the parking lot to save team WWE.

 

[KazenY2J]

https://www.youtube.com/watch?v=QP1af7ilYpM

 

[krae_man]

How is UFC generating about the same revenue as WWE but earning a crap ton more profit?

Fighters are paid that terribly huh?

 

[kIdMuScLe]

Lol you think Vince is kicking himself for not buying UFC when Shane-o-Mac told him to?

 

[smurfx]

Lol you think Vince is kicking himself for not buying UFC when Shane-o-Mac told him to?

eh things might not have gone the same way with him running it. same reason why blockbuster not buying netflix isn't a big mistake. same people that made netflix successful would likely not have been running it.

 

[Fox318]

 

[PHOENIXZERO]

Vince should buy it and do an invasion angle.

IIRC Shane wanted to or wanted Vince to do it but he wouldn't because it was a dead fad or something.


EDIT: Beaten but yeah, people would've just looked at UFC as fixed like WWE and how the XFL was perceived or hell pretty much any of Vince's ventures outside the core business.

 

[BadAss2961]

That angle was hilarious.

 

[Acorn]

Good ol snapnuts

 

[NolbertoS]

The UFC is heading downwards. It used to be King of PPV all across Canada, but now, not as much action. Too bad the Fad is wearing out. Maybe having a real Kumite type tournament, promoted by the Chinese companies hungry for them, they might make a mint in Asia.

 

[vpance]

the ufc already seems to have reached the peak of its popularity. things can only go downhill from here so they might as well sell the business while they can make a good profit from it.

Bingo, Fertittas are smart investors. Guess this is why Rogan has been thinking of leaving too.

Hopefully new owners will mix things up, and maybe long standing NSAC BS rules can finally go away too. I'd love to see a Chinese company get their hands on it and organize some large scale international events or divisions.