General MMA Chat/News mk2

hendo111

The investors aint idiots,they will clear a nice chunk on this,I have to laugh though with all the staff changes lately I remember people saying on here nothing will change business as usual, Yeah right as if some crew are investing 4 billion to keep it the same,plus its made up of loads of different investors so its not one big shot worrying about the investment.

nomadchocolate

hendo111 wrote: »

The investors aint idiots,they will clear a nice chunk on this,I have to laugh though with all the staff changes lately I remember people saying on here nothing will change business as usual, Yeah right as if some crew are investing 4 billion to keep it the same,plus its made up of loads of different investors so its not one big shot worrying about the investment.

If super fights are the order of the day we will see lots of fights for 2 weight champions I would imagine. Jones to challenge at heavyweight springs to mind.

Maybe we will get to finally see Fedor in the UFC?

hendo111

Hopefully these big fights keep getting made but I wont believe it till I see it, McGregor Diaz wasnt a super fight in any sense, Conor Alvarez is the first and only one of late.

Lukker-

hendo111 wrote: »

The investors aint idiots,they will clear a nice chunk on this,I have to laugh though with all the staff changes lately I remember people saying on here nothing will change business as usual, Yeah right as if some crew are investing 4 billion to keep it the same,plus its made up of loads of different investors so its not one big shot worrying about the investment.

It'll have almost entirely new management by next year.

Apparently most of the low level guys are scared of losing their jobs, cost cutting has been the buzzword since WME-IMG takeover.

nomadchocolate

Lukker- wrote: »

It'll have almost entirely new management by next year.

Apparently most of the low level guys are scared of losing their jobs, cost cutting has been the buzzword since WME-IMG takeover.

That is a regular occurrence.

When Shahid Khan bought Fulham, my supported team, he insisted in a whole review of the club and who was costing what - down to what bus company the team traveled in.

wonderfullife

Acquisition 101.

Take over a company, sack a bunch of people, replace them with "yes-men" who can do the jobs of 2 people, look to streamline costs across the board.

I really and truly don't see Dana sticking out his 5-year contract with these guys. He can say what he wants but if his friends keep getting sacked or forced to walk (lorenzo, joe silva etc) he'll ultimately get fed up and go retire to play golf.

I don't see Conor sticking around for 5 years either. He'll be in and out before 2020 and off swimming with pigs in the Bahamas or in Africa in a jeep traipsing after gorillas analysing their movement.

Lukker-

wonderfullife wrote: »

Acquisition 101.

Take over a company, sack a bunch of people, replace them with "yes-men" who can do the jobs of 2 people, look to streamline costs across the board.

I really and truly don't see Dana sticking out his 5-year contract with these guys. He can say what he wants but if his friends keep getting sacked or forced to walk (lorenzo, joe silva etc) he'll ultimately get fed up and go retire to play golf.

I don't see Conor sticking around for 5 years either. He'll be in and out before 2020 and off swimming with pigs in the Bahamas or in Africa in a jeep traipsing after gorillas analysing their movement.

I don't think Dana will leave. Lorenzo and Joe Silva were voluntary. Sure Lorenzo seems to still be on good terms, he negotiated the deal for Weidman to fight at 205 even though he only retain a tiny minority stake.

Joe Silva might not have liked the direction the company was going but he made millions from the sale of the UFC and chose early retirement.

Dave Sholler looks to be the first casualty.

nomadchocolate

wonderfullife wrote: »

Acquisition 101.

Take over a company, sack a bunch of people, replace them with "yes-men" who can do the jobs of 2 people, look to streamline costs across the board.

I really and truly don't see Dana sticking out his 5-year contract with these guys. He can say what he wants but if his friends keep getting sacked or forced to walk (lorenzo, joe silva etc) he'll ultimately get fed up and go retire to play golf.

I don't see Conor sticking around for 5 years either. He'll be in and out before 2020 and off swimming with pigs in the Bahamas or in Africa in a jeep traipsing after gorillas analysing their movement.

Rumour went around that Joe Silva was Ariel's contact for the Lesnar leak which is why he left

Mellor

ASOT wrote: »

Wouldnt surprise me to see him get signed by One FC.

Wouldn't surprise me if he signed to UFC again either

Lukker- wrote: »

Interesting times, the Fed have recently been investigating the UFC's finances and specifically their debt. Profits should be no less than 6x the debt in a leveraged buy out and the current levels are something like 12x. They are going to need a lean year with some record breaking PPV's to achieve the 6x figure by years end. Expect job losses to make this happen.

That should be the other way around. Debt can only be 6x the Profits. Goldman Sachs are the ones in trouble afaik, not the UFC. They allowed too much debt verses annual profits to fund the sale.

wonderfullife wrote: »

If UFC 205 does 2 million as expected, then McGregor alone will be responsible for bringing in 5.25 million PPV buys.

They'll definitely post a huge year in terms of revenue. 196, 200, 202, 205.
But I don't know how PPV buys translate to profits. Massive PPVs create huge revenue, but also huge costs.
2 million buys is over $100m, but it gets shared around a lot. :cool:

wonderfullife

Mellor wrote: »

Wouldn't surprise me if he signed to UFC again either

That should be the other way around. Debt can only be 6x the Profits. Goldman Sachs are the ones in trouble afaik, not the UFC. They allowed too much debt verses annual profits to fund the sale.


They'll definitely post a huge year in terms of revenue. 196, 200, 202, 205.
But I don't know how PPV buys translate to profits. Massive PPVs create huge revenue, but also huge costs.
2 million buys is over $100m, but it gets shared around a lot. :cool:

Well the Deutsche Bank report indicated that the UFC traditionally comes out with 50% after revenue splits with Providers.

So let's say 2 million x $60 = $120 million x 50% = $60.0 million.

Their net profit for 2015 was 25.6% so i suppose if we apply it to this situation it would imply that their net profit will be $30,720,000 for UFC 205.

It might be lower in certain cases and nobody knows for sure, but that would seem to make some sense.

$30 million is a hell of a lot to make it one night.

Mellor

wonderfullife wrote: »

[
Well the Deutsche Bank report indicated that the UFC traditionally comes out with 50% after revenue splits with Providers.

So let's say 2 million x $60 = $120 million x 50% = $60.0 million.

Their net profit for 2015 was 25.6% so i suppose if we apply it to this situation it would imply that their net profit will be $30,720,000 for UFC 205.

That Deutsch bank report said average PPV was $52 in 2014. Might be 50/50 with SD and HD. So that would be $55m

Theres a mistake in the second part though. 25% of $60m is $15m, not $30m.
But don't think the average profit is relevant. Costs are high, plus millions are going to fighters with PPV shares.

Fromvert

UFC saying GSP is still contracted to them. Couture 2.0 legal battle incoming

Mellor

Fromvert wrote: »

UFC saying GSP is still contracted to them. Couture 2.0 legal battle incoming

He's not going anywhere imo. None of the others can match his PPV money. It's just a pressure play. To get closer to the terms he wants.

DrPhilG

Couture
Rampage
Aldo

There's a handful of massive names who have tried to break out of a UFC contract and failed (so far in Aldo's case).

Add to that, there's no way that Bellator will pay close to what GSP makes/wants even for a star of his status. I think the most Bellator have paid out was $300k to Tito Ortiz. GSP made a flat $400k (+PPV points) for his last fight with Hendricks and that was before Rousey and McGregor smashed the pay ceiling.

I'm sure he'd be expecting around $3-5M flat to return to the UFC, and there's not a hope in hell that Bellator would even come close even with the extra sponsorship he could make.

Lukker-

DrPhilG wrote: »

Couture
Rampage
Aldo

There's a handful of massive names who have tried to break out of a UFC contract and failed (so far in Aldo's case).

Add to that, there's no way that Bellator will pay close to what GSP makes/wants even for a star of his status. I think the most Bellator have paid out was $300k to Tito Ortiz. GSP made a flat $400k (+PPV points) for his last fight with Hendricks and that was before Rousey and McGregor smashed the pay ceiling.

I'm sure he'd be expecting around $3-5M flat to return to the UFC, and there's not a hope in hell that Bellator would even come close even with the extra sponsorship he could make.

GSP's management firm is CAA which is as big as WME. Couture, Rampage and Aldo all didn't have representation at the same level as GSP does. GSP also signed much more favourable terms with them with multiple get-out clauses.

This will be the the biggest test a UFC contract has ever come up against IMO. CAA the talent agency are actually almost enemies with WME, both firms frequently run ads and campaigns with the intention of making the other look stupid. CAA has a vested interest in it other than GSP and it will be added incentive for them to make WME look bad.

GSP has one of the biggest endorsements in combat sports, he would have dropped Under Armour by now if he could make more fighting in the UFC. He gets a massive flat yearly fee from them and then money on top for wearing their gear fighting. He's smart, why break that when he might only fight for 1 or 2 years again? He's contract with them was for like 8 years, you don't get that security in the UFC.

Lukker-

Mark Hunt looks to have sorted out his problems with the UFC. Back in the rankings at #7

nomadchocolate

Ariel HelwaniVerified account
‏@arielhelwani
Update on our UFC biz discussion on yesterday's #themmahour: I'm told around half of the UFC's Asia office has been let go.

Ariel Helwani ‏@arielhelwani 6h6 hours ago
Multiple sources have described the morale at UFC HQ in Vegas as "very bad." One equated it to "a morgue." Lots of uncertainty these days.

ASOT

60-80 layoffs reported.

nomadchocolate

http://mmajunkie.com/2016/10/wme-img-to-lay-off-under-15-percent-of-ufcs-total-staff

WME-IMG to lay off 'under 15 percent' of UFC's total staff

An industry source confirmed to MMAjunkie that the layoffs amount to “under 15 percent” of the UFC’s total staff, which is estimated to be around 400 employees worldwide.

Sad to see so many people lose their jobs

hendo11

Faber v Brad Pickett confirmed for the sacramento card,


Not that Uriah is a big puncher but Brad should not be fighting this soon after being smashed last week in Manchester,see hes back sparring already.

Lukker-

hendo11 wrote: »

Faber v Brad Pickett confirmed for the sacramento card,


Not that Uriah is a big puncher but Brad should not be fighting this soon after being smashed last week in Manchester,see hes back sparring already.

Think that fight was meant to be his retirement fight, but it obviously didn't go to plan.

nomadchocolate

Gegard Mousasi: 'Nick Diaz, That's a Good Fight for Me'

http://www.flocombat.com/video/1002343-gegard-mousasi-nick-diaz-thats-a-good-fight-for-me

I like that fight. Doubt it would get made, can only see Diaz returning for "money" fights

Lukker-

I wouldn't mind seeing that fight but Nick Diaz isn't a middleweight. I'd like to see Gegard fight the winner of Rockhold vs Jacare seeing as I think the winner of Weidman v Romero will get a title shot. Whoever wins would be next in line.

wonderfullife

To be fair, Gegard is saying "that's a good fight for me" about every name he's tossed in interviews!

I've heard him say in the last 24 hours alone that:

Daniel Cormier, Anderson Silva, Chris Weidman, Luke Rockhold, Shogun Rua, Michael Bisping and Jacare are all "good fights for me" and "excellent style wise for me".

There's one person he said is a bad style match-up and, weirdly, that's Yoel Romero.

So i think it's safe to say Gegard's confidence has been boosted lately :pac:

I'd love to see him fight DC to be fair. If he can avoid being ragdolled around and sat on for 25 minutes, i'd give him a good chance. If....

TimRiggins

Yet another GSP fight is gonna go to the judges!

ASOT

TJ only short of getting on his kness and begging cruz.

https://www.instagram.com/p/BLw8D5FhTkm/

Mr. Manager

Jeez that's kinda sad. He wasn't even remotely close in their last fight. It was embarrassing to watch almost

Swashbuckler

Would like to see that fight again for sure. Really enjoyed their first one.

EagererBeaver

Mr. Manager wrote: »

Jeez that's kinda sad. He wasn't even remotely close in their last fight. It was embarrassing to watch almost

Fight of the Night won by split decision. I had Cruz winning too but to suggest it wasn't "remotely close" is a stretch.

Mellor

It was a split, but that scorecard that went to TJ was bizarre. There's no way he took that 49-46