Good Shari Spencer Interview on UA deal, signs Frankie Edgar

[MontrealMauler]

FYI I looked up the market cap of Under Armour and it's at 1.39 b at Friday's close, making it a bigger company than the UFC. I knew they were a fairly large apparel maker but they're bigger than I thought.

Spencer on UA-GSP Deal, Frankie Edgar, MMA Business : MMAPayout.com: The Business of MMA

It's too long to post in the whole thing in the OP.

[ironchefigor]

How do you know UFC's size if they're a private company.

[Rock Boulder]

Good read. Thanks for posting.

[MontrealMauler]

Originally Posted by ironchefigor

How do you know UFC's size if they're a private company.

Because we can guesstimate their revenues pretty closely and the value of a company that's not asset based is just a multiple of their revenues (the multiple is usually based on the industry).

Using entertainment companies with PPV models like WWE, MSNBC arrived at a value of 1 billion dollars market cap for UFC based on 200 million dollars in revenues in 2008.

That multiple can be argued with....If UFC stayed top dog forever the multiple should be higher....the reason it's as low as 5 is because the rug could potentially be pulled out from them at any time. A promotion is all smoke and mirrors, not like a car company which accrues assets.

[ironchefigor]

Originally Posted by MontrealMauler

Because we can guesstimate their revenues pretty closely and the value of a company that's not asset based is just a multiple of their revenues (the multiple is usually based on the industry).

Using entertainment companies with PPV models like WWE, MSNBC arrived at a value of 1 billion dollars market cap for UFC based on 200 million dollars in revenues in 2008.

That multiple can be argued with....If UFC stayed top dog forever the multiple should be higher....the reason it's as low as 5 is because the rug could potentially be pulled out from them at any time. A promotion is all smoke and mirrors, not like a car company which accrues assets.

Isn't 200 only their PPV revenues? And even then, I believe its closer to $250 from previous reading. You add in merchandise, DVD, etc, and it should be even higher.

[MontrealMauler]

Originally Posted by ironchefigor

Isn't 200 only their PPV revenues? And even then, I believe its closer to $250 from previous reading. You add in merchandise, DVD, etc, and it should be even higher.

Those numbers are from MSNBC and are widely accepted. I can't argue on their behalf.

[TIESTO]

Good article, thanks for posting. The Frankie signing is interesting, especially when she describes how it came about. Funny how she says they market Georges:

KP: GSP is a pretty unique entity in terms of being French-Canadian, a P4P type fighter, and he’s got that GQ look. How does Frankie compare, and how will you go about marketing him?

SS: I’ve always recognized Georges’ potential to reach an audience outside the sport or those that might not be huge fans. Georges’ fanbase tends to skew a bit more female (not surprisingly), and he’s the fighter that many guys say they can get their wives or girlfriends to watch alongside them. As a result, there’s been a very deliberate strategy not to associate too heavily with fight-related brands, so that the public would see him as an athlete first and a fighter second.

[TIESTO]

TTT, thought this would get more attention....

[coreyconway]

Congrats to Frankie. happy for him he's earned it.

[doyawanna]

Thanks for the post, MM.

I have often thought that the "elephant hunting" approach to seeking sponsors is a big risk for Georges, it looks like he, Shari, and CAA are having some success. Since I have no idea how much UA would pay vs. 5 organizations the size of Mickey's, I really can't say if this is good or bad overall.

I think a lot of the time to get these endorsements done has been Shari's learning curve on managing and MMA, plus CAA's learning curve on MMA. It's taken a long time...