OPINION: Selling UFC To WME-IMG Is Good For Business, Bad For The Sport

As if UFC 200 wasn’t big enough, two days after the big night it has been confirmed the Fertitta brothers decided it was a good time to sell the company.  They have impeccable business acumen as UFC sold for $4 billion to WME-IMG, the biggest sale in sports history.  WME-IMG is involved in sports, media, events and fashion.  The company represents athletes in negotiating contracts but has more recently become involved in growing less established sports.

The company is involved in Euroleague basketball, professional bull riding, and e-sports.  WME-IMG has even represented UFC athletes like former bantamweight champion Ronda Rousey.  WME-IMG also works with the NHL and NFL, which is somewhat comforting, but the UFC is still an adolescent in age compared to either of those two leagues.  It needs more time and dedication than the other two sports to ensure it maintains viewership.   

A minority interest in UFC at nine percent, White likely didn’t have any pull in this decision.  White said that fans shouldn’t be worried about the change in ownership because there is continued support to take the sport to the “next level.”  White’s certainty feels like crowd control, but it’s good he’s handling it this way since the longevity of UFC rests on his shoulders.  In any acquisition there is always change no matter how consistent you try to be.

The Fertitta brothers have taken UFC to great heights in 16 years of ownership.  They bought the business for $2 million in 2000, selling it for a 2,000 percent price increase.  UFC has the most Pay-Per-View events in the world, and there are 40 events per year that reach around 800 million households.  

UFC President Dana White will remain president and own part of the new business, and the Fertitta brothers will hold a minority share in the corporation, but Lorenzo Fertitta will be stepping down as CEO and chairman.

I believe WME-IMG when they say they want to grow the sport, but I don’t think it’s going to be the same or better than having the Fertitta brothers and White at the helm.

The main difference is that UFC used to be part of Zuffa, LLC (owned by the Fertitta brothers) that was in the business of sports promotion specializing in mixed martial arts.  It’s easier to grow a sport when most of the resources are focused on one thing.  WME-IMG has its giant fingers in many different pies, making it difficult for UFC to be a priority.

It could be said that the fan-base for UFC and the sport doesn’t need any more promotion, it’s already popular enough.  It’s popular, and in order to stay that way it can’t regress.

Is 2016 going to be the year we see MMA ratings and interest drop, but hopefully WME-IMG and White can work together to continue what Zuffa started.