Dana White and Vince McMahon to buy the UFC?
From what I've heard about Thursday it looks as though it will not be a dream match between Chuck Liddell and Andersen Silva, but instead Vince McMahon and Dana White buying the UFC from the Fertita Brothers. Why? How?
From what we gather at the muffin after the great TV ratings that awful Elite XC achieved Vince is shaking in his boots. WWE has been suffering dismal ratings lately...has anyone seen that they are giving away $1 million dollars on every episode of RAW? Take a look at their stock price.
So what is in it for Dana? Well the Fertitas initially bought the UFC and rolled it under the ZUFFA umbrella and elected Dana to be the president. They initially lost over 30 million dollars trying to save the UFC and have over the last few years watch the business explode into a cash cow, but what is next? Well I think Dana feels that with Vince being an investor he'll get better marketing, more doors for TV and possibly access to the holy grail an Initial Public Offering. I realize Dana has said repeatedly that he would not do a business where shareholders have a say in the fights he arranges and such but if he wants to sign fighters like Fedor and ensure they get ample Pay Per View buys for the event going IPO would give them a war chest of cash.
Also Vince holds exclusive rights to Madison Square Garden for any Sports Entertainment. I assume he plans on helping Dana get the UFC approved in New York and hopefully offer it exclusively agreement so Elite XC, Strikeforce or any of the other 2nd tier leagues do not step foot in New York.
I have my suspicions this deal will also not come to fruition for the sheer reason why would the Fertitas sell now unless they feel the business has peaked? They havent seen over one million buys since 2006 when Tito Ortiz fought Chuck Liddell and TUF ratings have been suffering year over year.
Personally myself and the muffin can not wait for Thursday.

1 comments:
There have been rumors about the UFC selling for a while, and it makes sense. The truth is that the league is not profitable by any means. The only way the Fertittas and White were able to make any real dividends was through a $350 million financing package they got last summer. Anyone who buys the UFC assumes that debt. The whole Forbes article about the UFC a while back was nothing but a sales circular. The Fertittas have been getting hosed in their other investments and are bogged down in new real estate projects and casino dealings. They can't afford to put any more money into the UFC in this kind of economy while at the same time maintaining their lavish lifestyle.
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