The UFC has a license to print money. The company's (Zuffa) rise from the ashes is legendary - five years ago, when attempting to sell the money-losing UFC, they could only get offers in the $2 to $4 million range. Now the company is valued at over a billion dollars (Flash Entertainment paid $120 million for 10% of the company in 2010, which would make its valuation at $1.2 billion).
But everything is not rosy in Zuffaland, as the UFC had a down year in 2011 (in comparison to 2010). While Zuffa isn't a public company and therefore don't have to disclose their financial records, several of the company's key financial info is out there in the public for us to analyze. These would be the UFC's pay-per-view buyrates, its live gate and its fighter salaries. And taking a look at those stats, Dana White and the Fertitta boys probably wish it was 2010 again.
Pay-Per-View Buyrates
A large chunk (reported to be 75% of total revenue) of the UFC's profit comes from the plethora of events they offer on pay-per-view every year. And the UFC's PPV buyrates steadily increased every year starting in 2008. But, as the following chart shows, the streak got snapped this past year:
2010 | 2011 | |||
PPV | Buyrate | PPV | Buyrate | |
108 | 300,000 | 125 | 270,000 | |
109 | 275,000 | 126 | 725,000 | |
110 | 240,000 | 127 | 260,000 | |
111 | 850,000 | 128 | 490,000 | |
112 | 500,000 | 129 | 800,000 | |
113 | 520,000 | 130 | 325,000 | |
114 | 1,050,000 | 131 | 325,000 | |
115 | 520,000 | 132 | 350,000 | |
116 | 1,160,000 | 133 | 310,000 | |
117 | 600,000 | 134 | 335,000 | |
118 | 570,000 | 135 | 520,000 | |
119 | 295,000 | 136 | 225,000 | |
121 | 1,050,000 | 137 | 280,000 | |
123 | 500,000 | 139 | 290,000 | |
124 | 785,000 | 140 | 485,000 | |
141 | 800,000 | |||
Total | 9,215,000 | 6,790,000 | ||
Average | 614,333 | 424,375 | ||
PPV $ | $230,375,000 | $169,750,000 | ||
Difference: | $ (60,625,000) |
Live Gate
2010 | 2011 | |||
108 | $ 1,969,670 | 125 | $ 2,174,780 | |
UFN 20 | $ 753,962 | UFN 23 | $ - | |
109 | $ 2,273,000 | 126 | $ 3,600,000 | |
110 | $ 2,500,000 | 127 | $ 3,500,000 | |
Live 1 | $ 568,125 | Live | $ 471,450 | |
111 | $ 4,000,000 | 128 | $ 2,140,000 | |
UFN 21 | $ 590,685 | UFC 24 | $ 1,182,850 | |
112 | $ 3,500,000 | 129 | $ 12,075,000 | |
113 | $ 3,270,000 | 130 | $ 2,580,000 | |
114 | $ 3,895,000 | TUF 13 | $ 440,150 | |
115 | $ 4,221,787 | 131 | $ 2,800,000 | |
TUF 11 | $ 430,000 | Live | $ 562,000 | |
UFC 116 | $ 2,053,990 | 132 | $ 2,304,500 | |
UFC Live | $ 489,685 | 133 | $ 1,500,000 | |
117 | $ 1,560,000 | Live | $ 539,000 | |
118 | $ 2,800,000 | 134 | $ 2,310,000 | |
UFN 22 | $ 595,900 | UFN 25 | $ 685,000 | |
119 | $ 1,600,000 | 135 | $ 2,089,575 | |
120 | $ 2,560,000 | Live | $ 706,775 | |
121 | $ 2,237,000 | 136 | $ 2,230,000 | |
122 | $ 600,000 | 137 | $ 3,900,650 | |
123 | $ 2,100,000 | 138 | $ 1,500,000 | |
TUF 12 | $ 380,025 | Fox | $ 1,072,187 | |
124 | $ 4,600,000 | 139 | $ 1,268,000 | |
TUF 14 | $ 452,700 | |||
140 | $ 3,900,000 | |||
141 | $ 3,101,000 | |||
Total | $ 49,548,829 | $ 59,575,617 | ||
Difference | $ 10,026,788 |
Now, on a positive note, the company pulled in over $10 million more in gate receipts in 2011 than 2010, thanks to holding a couple of extra events plus the mammoth haul from UFC 129 in Toronto. This despite making no gate receipts off the free Fight for the Troops event they put on.
Fighter Salaries
2010 | 2011 | |
$ 26,827,700 | $ 30,939,714 | |
Difference: | $(4,112,014) |
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