UFC in action.
Ultimate Fighting Championship (UFC), home of mixed martial arts fight matches, has been bought by WME-IMG for a reported $4 billion dollars. WME-IMG will take over operating the organization from current owners, Lorenzo and Frank Fertitta who bought the company in 2001 for $2 million, in several months. Dana White, current UFC president, is expected to remain with UFC.
While WME-IMG will be the name of record and largest shareholder, it will be joined by Silver Lake Partners and KKR as strategic investors, with MSD Capital, L.P. and MSD Partners providing preferred equity financing.
The $4 billion pricetag is the amount that has been reported by major news outlets The New York Times and ESPN. UFC’s last event, UFC 200, held at T-Mobile Arena, Las Vegas, July 9, took in $10,714,178. Tickets sold for $205 all the way up to $1,255, with 15,493 people attending, as reported to Venues Today. UFC 196, held at the MGM Grand Garden Arena, Las Vegas, March 5, grossed $8,179,644 from 15,780 people with tickets that ranged from $204 - $1,454.
“I am proud to be from the city that created, from scratch, a new professional sport,” said Pat Christenson, president, Las Vegas Events. “While its impact has been felt around the world, no city benefited more than Las Vegas. The Fertitta’s and Dana White’s commitment to the fan experience through highly talented athletes and enthralling production mixed with the steady growth of media, enabled them to grow it to what it is today. I have no doubt the sale to WME/IMG and Dana’s leadership will continue to grow UFC.”
UFC is the largest pay-per-view event provider in the world. They are headquartered in Las Vegas with offices in London, Toronto, São Paulo and Singapore. UFC produces more than 40 live events annually. UFC is broadcast in over 156 countries and territories, to nearly 1.1 billion television households worldwide, in 29 different languages.
WME-IMG, which calls itself “the number one licensing agency in the world,” has a long history of building leading sports brands and puts on more than 800 events a year. The ties between WME-IMG and UFC run deep; they’ve been representing the franchise for over a decade. WME-IMG's plans for the franchise include leveraging the organization, renegotiating TV deals and optimizing UFC licensing potential.
For venues like Staples Center, Los Angeles, which only books UFC events once every three years, all deals are one-offs. “The sale of UFC has no impact whatsoever,” said Lee Zeidman, president, Staples Center for AEG.
“We’ve been fortunate over the years to represent UFC and a number of its remarkable athletes,” said WME | IMG Co-CEOs Ariel Emanuel and Patrick Whitesell in a statement. “It’s been exciting to watch the organization’s incredible growth over the last decade under the leadership of the Fertitta brothers, Dana White and their dedicated team. We’re now committed to pursuing new opportunities for UFC and its talented athletes to ensure the sport’s continued growth and success on a global scale.”
UFC was founded in 1993 by Rorion Gracie. He sold the company after a disagreement with a partner after one of the pay-per-view events abruptly ended before the fight was finished.
“No other sport compares to UFC,” said Dana White in a statement, “Our goal has always been to put on the biggest and the best fights for our fans, and to make this the biggest sport in the world. I’m looking forward to working with WME-IMG to continue to take this sport to the next level.”
Upon closing, Lorenzo Fertitta will step down from day-to-day operations, but Frank Fertitta III and Lorenzo Fertitta will both retain a passive minority interest in the organization.
Interviewed for this story: Pat Christenson, (702) 260-9032; Lee Zeidman, (213) 742-7255