On episode 38 of the Eye of the Storm MMA Podcast this week, guest Front Row Brian and I discussed, among other things, the intensifying rumors of the UFC’s potential sale. These rumors seem to pop up every few months, but something is different this time. Something feels more serious about these rumors, and there are a couple of reasons for that.
Exhibit A is the UFC’s schedule as of late. Doesn’t it seem like the UFC has been loading these cards up to an almost ludicrous degree in an effort to spike live gates in home territory, TV ratings, and PPV buyrates? It does to me, and it also seems like Zuffa hasn’t been thinking about anything past UFC 200. It could be that there is something in the works, and they’re hoping to make their product look as valuable as possible in order for that something to go through. I can’t think of a more logical explanation for throwing long-term considerations out the window in favor of rematches of recent buzz bouts. It would also explain why it seems like every second UFC card is taking place in Las Vegas. When you can all but guarantee high attendance by running shows in your home base, it can only look good to a potential purchaser.
Secondly, as Front Row Brian mentioned during the podcast, the reason the UFC sale rumors stay afloat is because Zuffa is indeed having talks with a lot of different groups. “They’re having a lot of discussions with people, with a lot of different private equity firms.” FRB stated during the episode, “Usually, William Morris Endeavor is going out and talking to people, and if they’re serious, if they think the private equity firm has the money and is serious to want to do it, then they’ll bring them to the UFC. They’ll start having some conversations, start exchanging some numbers.” Private Equity Firms, who are essentially aggregators of capital that spread debt around with large banks in an effort profit from a flipping of their purchases in 5-7 years, and there are some major players interested in the UFC. Brian noted a report initially made by Bleacher Report’s Jonathan Snowden, stating that China Media Capital was also in the sweepstakes to purchase the world’s largest MMA promotion. “That’s a huge private equity firm that invests a lot in the film industry… They invested in a holding company that is the owner of Manchester City Football Club of the English Premier League, they’ve invested heavily in the Chinese Super League.” the Filthy FRB Podcast host continued, “So that particular rumor from Jonathan Snowden makes complete sense.”
So are these sale rumors true? If disparate entities like myself, Jon Snowden, and Front Row Brian all see evidence there, then it’s quite likely that there’s a fire responsible for all this smoke. In the end though, as with all things UFC, we can only wait and see until something actually happens.
