With the recent $4 billion sale of the UFC, the former majority stakeholders of the biggest MMA promotion company in the world are sitting much more comfortably.
According to Forbes, Frank and Lorenzo Fertitta who were already well off with their casino businesses are pocketing nearly $1 billion each with the sale of the UFC.
Following the sale, brothers Frank and Lorenzo Fertitta — who purchased the nearly bankrupt organization for $2 million in 2001 — are worth an estimated $1.9 billion apiece after netting out estimated taxes. The whopping buyout has helped boost each brother’s net worth by a half-billion dollars since March of this year.
In a press release announcing the deal in July, WME|IMG confirmed that it had brought in private equity firms KKR and Silver Lake Partners as strategic investors, and that MSD Capital, L.P. and MSD Partners, L.P. (owned by billionaire Michael Dell) would provide preferred equity financing. WME also stated that Frank and Lorenzo Fertitta would retain a “passive minority interest in the organization,” though representatives have declined to elaborate on the brothers’ new equity stakes. FORBES estimates that they will retain 8 percent apiece, and that they will each walk away with nearly $870 million in post-tax cash.”
What are your thoughts on the insane profits that the Fertitta brothers are going home with? Share your thoughts with us in the comment section!