The Roar
The Roar

Advertisement

The immediate impressions of a $4 billion UFC sale

UFC is reportedly about to change ownership hands. (AP Photo/John Locher)
Expert
22nd June, 2016
1

Overnight, seasoned combat sports scribe Jeremy Botter reported that Zuffa LLC, the UFC’s long-time parent company, has sold the sports league to a group helmed by several billion-dollar agencies.

According to the report on Flo Combat, the group purchasing the elite mixed martial arts promotion is led by the William Morris Endeavor-IMG agency.

Additionally, the investment group reportedly includes the Dalian Wanda Group, China’s largest property developer and owner of the Hoyts cinema chain; Tencent, one of the world’s biggest Internet providers; and The Kraft Group, a privately-held company best known for owning the NFL’s New England Patriots.

It is believed that WME-IMG and The Kraft Group will serve as the face of the group in North America while the Chinese-based Dalian Wanda Group and Tencent will operate out of their homeland.

China is an incredibly lucrative market, and one the present-day owners of the UFC have failed to crack.

True, they have hosted successful events in the Asian nation and aired a Chinese-only version of the reality series The Ultimate Fighter, but it’s fair to assume the current regime has barely scratched the surface.

With Asia’s rich history of martial arts heroes on the big and small screen, it seems like a no-brainer for the UFC’s brand of caged combat to someday become a national craze in China, but that is yet to become a reality.

Before moving forward, it’s worth pointing out that at the time of writing, the UFC still publicly remains steadfast that the company is not being sold, denying the persisting reports of a sale for months now.

Advertisement

On Tuesday MMA Junkie obtained an internal memo – signed by CEO Lorenzo Fertitta – which was sent to company employees.

“A report today by FloCombat.com indicating that the company has been sold is false. This follows other false speculation in the press recently,” it reads.

“Such misrepresentation of facts in the media negatively impacts our business, staff members, and athletes. We have instructed our attorneys to investigate and take all appropriate legal actions against the parties publishing and contributing to these false stories.”

Nobody from the UFC has publicly commented since Botter’s most recent report, indicating the multi-billion dollar sale is a done deal.

However, assuming the Flo Combat news is accurate, what does this actually mean for the future of the Las Vegas-based promotion?

In the long term, it could be the beginning of a brave new world – for better or worse. But in the short term, very little is expected to be altered about the UFC.

According to multiple outlets, UFC figurehead Dana White is likely to stay on board as the promoter and president of the promotion if the deal goes ahead as reported.

Advertisement

White currently owns a minority stake of 8.89 percent in the UFC. To persuade the influential figure to stick around in his current position, the Flo Combat report has revealed that the investment group would grant White a new ownership stake.

Behind-the-scenes movers and shakers within the company, such as matchmakers Joe Silva and Sean Shelby, as well as PR guru Dave Sholler, are all predicted to stick around in their current positions as well.

One possible modification to the UFC in a post-Fertitta era that could cause an uproar would be the probable departure of long-time commentator Joe Rogan.

The uber-popular play-by-play man, comedian, and podcaster has previously stated on The MMA Hour that there is a “100 percent” chance he’ll leave the promotion when his contract expires in August if the company changes hands.

Lastly and most importantly, the biggest change to daily operations would be the exit of Lorenzo and Frank Fertitta, the Las Vegas casino execs who have been majority owners of the UFC since 2001.

This move would leave Lorenzo’s CEO chair open for business. Who would take over that role is currently a mystery.

close