Newly released UFC documents reveal plans to increase profits

October 27, 2016 8:31 pm

With the UFC now under new management, some serious changes have occurred within the company, and newly released documents on the UFC’s plan to grow their profits reveals some interesting facts about the future of the world’s leading mixed martial parts promotion.

Under the UFC’s plan, WME-IMG stands to make $250 million more in “earn-outs”, that is if the company meets it’s two performance goals within the next two years. In the larger scope of that deal, $250 million makes for a mere 6.2 percent of the UFC’s reported total worth of just over $4 billion.

The UFC laid off just under 15 percent of their workforce last week, leading to the dismissal of several big names and while also wiping out several regional offices around the globe.

That bloodletting was in a larger effort to save the new owners $71 million, according to recently released documents.

CRAIG L. MORAN/REVIEW-JOURNAL Business—Lorenzo Fertitta at his West Sahara office Wednesday June 18, 2008.

An analysis of the UFC by highly-regarded consultants showed that employee compensation was the biggest place to save costs. The report shows that the company will end up saving over $55 million following the layoffs, reducing payroll by just a few percent shy of 45 percent.

A newly restructed deal with FOX will account for another $48 million increase as well.

The company has undergone other massive changes following the Fertitta Brother’s sale of the company in July for $4.2 billion to WME-IMG, a Hollywood talent agency and media powerhouse. Those same UFC reports reveal that those who cashed out on the deal at Zuffa received $3.7 billion of that $4.2 billion, having paid over $200 million in bankers fees, according to the documents.

Dave Sholler, a prominent UFC executive who famously was tossed like a rag doll by Jon Jones during a press conference face-off with Daniel Cormier leading into UFC 187, parted ways with the company, taking a job recently with the Philadelphia 76er’s management.

Contract negotiations between longtime champ Georges Saint Pierre and general unrest from a growing handful of fighters who are vocalizing their displeasure with the UFC’s exclusive deal with Reebok, have led to an uncertain climate.

What do you think of these recently released plans for the UFC’s growth and savings? And how do you feel about all these recent changes within the promotion? Sound off, PENN Nation!


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