UFC Valuation Part 2 - Zuffa Investor Alerts

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A Zuffa Valuation Exercise, Part II
In part one of our valuation exercise, we dismissed comparisons of the UFC to other iconic
sports franchises with their own stadiums and league-wide revenue sharing, and we
compared the UFC to WWE (World Wrestling Entertainment) and estimated that the
company had a valuation of approximately $2.23 billion. We also said that if the UFC were
growing fast, one could argue for a higher EV/EBITDA valuation multiple for the company.
But is it growing fast? We address that question in this report.
In this part two of our valuation exercise on Zuffa LLC, we review the UFC’s attempts at
global expansion in recent years, its troubled exclusive uniform and apparel deal with
Reebok, and increasing fighter discontent and the potential for higher labor costs. Our
conclusion: the UFC has not demonstrated strong growth over the past several years,
so it does not deserve an especially high valuation multiple like the one Dalian
Wanda paid for Ironman Triathlon last year. In addition, we believe investors should
ask the company about the future of the troubled Reebok deal and the potential for rising
labor costs.
Global Growth Attempts
The UFC likes to bill itself as “the fastest growing sport in the world.” While it’s true that
MMA has grown significantly as a sport in the U.S. since the 2005 debut of “The Ultimate
Fighter” reality TV show, how much has it grown in recent years, especially outside the
U.S.?
In 2008, Lorenzo Fertitta, resigned his position with his family’s other business, Station
Casinos, to become the CEO of Zuffa LLC to oversee the UFC’s international expansion. 1
Since then, UFC officials have announced expansion plans for: Asia (especially China and
India), Africa, and Russia. Let’s review how the company has done in each of these markets.
Asia
MMA has been rapidly growing in Asia over the past several years. Singapore-based ONE
Championship (formerly ONE FC) has a ten-year broadcast deal with Fox Sports Asia
(formerly ESPN Star Sports) that gives them exposure in 24 Asian countries. 2 They have
also signed notable partnership agreements with Disney, 3 Kawasaki,4 and Facebook.5 In
June 2014, the promotion announced a partnership with AMC Live Group, the premier
event promotion organization in China. This marked the entry into China and ONE plans to
hold ten different events in ten different Chinese cities every year. 6 It has held four events
in mainland China so far.7
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The UFC had announced ambitious plans for Asian expansion. In September 2012, the UFC
hired Mark Fisher, a sports industry veteran and former Senior Vice President and
Managing Director of NBA Asia,8 to oversee its Asian expansion plans. At the time, he told
Sports Business Daily that the promotion was planning a “multiyear strategy” and that he
expected that they would see returns within three to five years.9
The UFC has not held an event in mainland China yet, and no UFC event has been held or
planned in Asia in 2016 as of May 25, 2016. The UFC produced a season of a Chinese
version of “The Ultimate Fighter”, filmed in Macau, a special administrative region of China,
and Singapore, which aired in mainland China, though the company has never announced
what kind of ratings the program had. In August, 2014, Mark Fisher was released as
Managing Director of UFC Asia, and Garry Cook was promoted to be UFC’s Global Officer to
oversee all the company’s events outside of the U.S. 10 Cook said in an interview in January,
2016, that the UFC “recently formed a relationship with a digital provider” in China but did
not give any other details.11
As for India, CEO Lorenzo Fertitta outlined the UFC’s expansion plans in that country in an
interview in 201212 and President Dana White said “We’re going to make a big run at India.
That’s the one we’re really focused on.”13 That same month, the UFC announced a
partnership with Sony Six, a regional sports satellite TV network, to air live UFC events in
India and produce an Indian version of “The Ultimate Fighter”. 14 However, the UFC has yet
to announce actual production and airing dates of “The Ultimate Fighter – India”. Even
though in June 2012, Dana White said that a UFC event in India would happen “very soon”,
no UFC event has been held in that country so far. 15
Africa
Like ONE FC in Asia, there is a popular local MMA promotion called Extreme Fighting
Championship (EFC) operating in South Africa. EFC, which promoted its first event in 2009,
puts on about 10 events each year and will hold its 50th event in June, 2016.16 The
promotion has sold out some of the biggest arenas in Africa and its content is broadcast in
110 countries. In March 2016, EFC announced that Kwese Sports, an African sports livestreaming service, won exclusive rights to screen live EFC events across sub-Saharan
Africa, excluding South Africa where it holds non-exclusive rights.17 In April 2016, the EFC
signed a deal with eTV, South Africa’s only independent free-to-air television station, to
broadcast all main cards on the station with a 2.5 hour delay. 18 The first event aired on eTV
pulled in over 1.5 million unique viewers increasing the network’s usual viewership in the
timeslot by 31%. More fans watched EFC 47 than the Floyd Mayweather- Manny Pacquiao
boxing mega fight in 2015.19
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As for the UFC and Africa, in 2012, Dana White identified South Africa as the UFC’s next
target for global expansion: “So the sport is booming all over the world, and yeah, South
Africa is next. That’s where we’re going.”20 Since 2012, there have been no UFC events in
South Africa or any country on the continent.
Russia
There are already several popular MMA promotions in the Russian market. The most
popular are M-1 Global based in St. Petersburg and there are other smaller promotions
with talented fighters, like the Akhmat series based in Chechnya, Absolute Championship
Berkut.21
The UFC has also been talking about expanding into Russia since at least 2013. But the
promotion has yet to hold an event in that country despite Dana White telling reporters in
January 2013 “I would say this year (we’ll go to Russia).22 In 2014, White admitted to
reporters, “We're not as far along on Russia as I thought we would be. Obviously it's a huge
market for us and we'll see - we'll figure it out.” 23 In January 2015, the UFC announced a
partnership with Russian broadcaster VGTRK that will broadcast all UFC events on a
variety of channels.24 And James Elliott, UFC vice president and general manager of Europe,
Middle East, and Africa, said in an October, 2015 interview that the promotion is looking to
hold events in Russia and Central Europe in 2016. 25 However, it seems that the UFC is still
trying to “figure it out” when it comes to Russia as no UFC events have been scheduled for
the market in 2016 as of May 25, 2016.
Back in December, 2011, Moody’s had this to say about the growth of MMA and the
potential upside of the UFC:
MMA also has some of its strongest followers internationally including Japan, Brazil,
and other Latin American and Western European countries. Therefore, UFC is
expected to find an easier time spreading in Latin America, Europe and Asia, than
other U.S. sports, and Zuffa is well positioned to capitalize on the expansion and
increasing fan market share of the sport internationally, improving the
company's metrics in the long-term [emphasis added].26
In a report earlier this year, Moody’s used some of the same verbiage to describe the global
growth potential of the UFC.
Moody's notes that Zuffa's events have a year round season and are not tied to
specific teams (like other U.S. sports) and as a result the company has unique
flexibility to grow internationally. UFC is expected to find an easier time spreading
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in Latin America, Europe and Asia, than other U.S. sports, and Zuffa is well
positioned to capitalize on the expansion and increasing fan market share of
the sport internationally [emphasis added].27
How long can potential remain potential and potentially valuable when it’s not been
realized after several years? That is the question for those who might want to factor in the
UFC’s potential ability – noted by Moody’s over the years – to capitalize on the global
growth of MMA.
Reebok Sponsorship
In December 2014, the UFC and Reebok announced a six-year partnership that made the
Adidas-owned sports apparel maker the “exclusive outfitter and apparel provider” for the
fight promotion.28 When the deal was announced, UFC Chairman and CEO Lorenzo Fertitta
said, “This is a significant step forward that will help elevate the sport and take it to a place
other sports leagues are.” 29 However, the UFC-Reebok partnership has produced some
embarrassing missteps, and fighters have been vocal in their criticism of with various
aspects of the deal, including the low payments to fighters. Reebok’s head of U.S. marketing
does not even mention the UFC in a May 24, 2016, article on the latest effort in the
company’s “Be More Human” brand campaign, which, featuring NFL star J.J. Watt, is
described as “a way for [Reebok] to step beyond things like Spartan Races and CrossFit”.30
Embarrassing Missteps
In the words of one observer, the UFC-Reebok deal has been a “self-inflicted public
relations nightmare” for the UFC.31 At the unveiling event on June 30, 2015, several
embarrassing errors were found on the new uniforms. The uniform for UFC fighter Gilbert
Melendez was misspelled “Giblert Melendez” and Reebok seemingly didn’t know the
difference between the two Brazilian fighters Lyoto Machida and Marcio “Lyoto” Alexandre
as it produced a uniform reading Marcio “Lyoto” Machida. 32 Similar troubles continued in
December 2015 when Reebok released an “Anderson Aldo” t-shirt,33 apparently conflating
the two popular Brazilian fighters Anderson Silva and Jose Aldo.
However, the problems aren’t limited to Reebok misspelling the names of the UFC athletes.
The company also took an insensitive approach when it came to promoting the UFC’s then
biggest star, Conor McGregor of Ireland. In October 2015, Reebok released a “UFC Ireland”
shirt that says “Show Your Territorial Allegiance” with a map of the country that leaves out
the six counties in the north of Ireland. The shirt received harsh criticism from Irish fans
and Conor McGregor’s fight team. McGregor’s coach, John Kavanagh, said the shirt was an
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“incredibly insensitive stupid divisive idea” and threatened to terminate his gym’s justannounced partnership with Reebok if the company didn’t stop selling it. Later that month,
Reebok apologized and removed the shirt saying it was the result of “a design error.” 34
Fighter Discontent
Several fighters have reacted negatively to the Reebok deal and the low pay and loss of
income associated with it. Before the Reebok deal, fighters were able to negotiate with and
secure their own sponsors, which was a major source of income for UFC fighters since they
make considerably less than other professional athletes. 35 The loss of significant
sponsorship money has caused some fighters to leave the UFC for other promotions.
In February 2016, former UFC lightweight champion Ben Henderson left the UFC for rival
promotion Bellator. He told SB Nation, “I won’t lie, it was a very big deal. The ability to get
sponsors on your own and not have to rely on the amount that Reebok dictates to you was
a huge factor. I'd be straight up lying if I said it wasn't a very big part of my decision to go
to Bellator.”36 UFC heavyweight Matt Mitrione also left for Bellator in 2016 in part because
they allowed him to secure his own sponsors.37 According to Mitrione, “The biggest part [of
leaving the UFC] isn't the money part, it's the freedom to go get your own money. You can
now express the fact that the emperor is not wearing any clothes...It's sponsorships, it's
being able to voice an opinion without fear of getting your back end bonus that may or may
not come anyway.”38
“Being able to voice an opinion without fear” became an issue for outspoken fighters like
Mitrione after the UFC told Jacob “Stitch” Duran, widely considered the best cut man in
MMA, that he would no longer be used as a cut man39 for UFC events in July 2015 after he
criticized the UFC-Reebok partnership. “A torrent of negativity was directed at the UFC and
Reebok’s respective social media accounts” in the aftermath of the firing of Duran, who was
highly popular with UFC fighters.40 The backlash was so intense that Reebok released an
official statement telling fighters and fans that they have “no input on decisions of UFC
employment or fighter compensation.” 41 As veteran MMA journalist Kevin Iole said,
“Firing Duran, though, was a mistake and a gross overreaction. His skills, both in
closing cuts and wrapping hands, are highly valued by fighters. That should have
been, though most likely was not, taken into account.” 42
Labor Costs Rising?
Antitrust Lawsuit
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In December 2014, a group of former UFC fighters filed an antitrust lawsuit in the U.S.
District Court for the Northern District of California against the UFC’s parent company,
Zuffa. The case was transferred to the District of Nevada in June, 2015 43 and it is being
litigated actively. According to Moody’s February, 2016, credit opinion, the putative class
action lawsuit brought by current and former UFC fighters “has the potential to impact its
profitability and operations.” The opinion also notes that that US Federal Trade
Commission (FTC) opened a non-public investigation of the company in May, 2015 that
was eventually closed in November, 2015.44 If the lawsuit is successful, the plaintiffs could
“demand monetary damages, which would be automatically tripled (trebled) under
antitrust law, plus a court injunction that would force changes to the UFC,” according to
Michael McCann, a legal analyst with Sports Illustrated and founding director of the Sports
and Entertainment Law Institute at the University of New Hampshire. 45
Low Fighter Pay Compared to Other Professional Sports
We have analyzed the publicly available information on all UFC events in Las Vegas – the
“fight capital of the world” -- from the start of 2011 through January 3, 2015. In those 30
events, which make up 20.3% of all UFC events during this time period, the average per
fight salary was $60,145. According to the company, UFC fighters fight anywhere from 2-3
times a year46 so the amount the average UFC fighter would have made if he fought three
times in a year was approximately $180,400. How does this compare to NFL, NBA, and
MLB players? Take a look:
Average Yearly Salaries
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
NBA
MLB
NFL
UFC
According to Forbes, The average salary in the NBA was $4.9 million for the 2013-14
season. The average salary in MLB was $3.82 million in 2014. The average salary in the
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NFL was $2 million for the 2013 season.47 The average UFC fighter is estimated to have
made less than $200,000 per year between 2011 and January 3, 2015.
Low pay has led some fighters to consider forming a fighters’ association or union.
Legendary MMA fighter and a member of the UFC Hall of Fame48, Randy Couture, has come
out in favor of unionization, saying in 2015, “If there is a time, it is probably now for the
fighters to unite and get together and form a union or a guild or something along those
lines to insure minimum pay, 401Ks, health insurance, some of those things that unions
and guilds tend to do.”49 Other MMA legends, including Wanderlei Silva and Jon Fitch, have
also been at the forefront of the calls for an association or union. In fact, some of these
fighters have formed an association called the Mixed Martial Arts Fighters Association
(MMAFA) that “aims to maximize the influence and earning capacity of its members in the
sport of mixed martial arts.” The group is actively lobbying politicians to apply the federal
Muhammad Ali Act to mixed martial artists.50 The act, if applied to mixed martial artists,
would “protect the rights and welfare” of fighters “on an interstate basis by preventing
certain exploitive, oppressive, and unethical business practices.”51 ESPN reported on May
19 that a bill to amend the Ali Act to cover MMA was to be introduced in Congress soon. 52
In addition, in July 2015, the Teamsters and UNITE HERE, two of the country’s largest labor
unions, started an initiative to organize MMA fighters, including those who fight for the
UFC.
Conclusion
The recent ESPN story on the potential sale of the UFC reported that the “winning bid,
should things proceed, is expected to be for a valuation between $3.5 billion and $4 billion”
and that the UFC’s last full-year EBITDA were “in the $200 million to $250 million range.” 53
This would suggest that the expected winning bid would value the company at
approximately 15.6x to 17.8x EV/EBITDA (using the mid-point of the EBITDA range, i.e.,
$225 million). Is such a multiple justified?
When Dalian Wanda, which is one of the potential bidders for the UFC according to ESPN,
bought Ironman Triathlon last August at a EV/EBITDA multiple of 18 times, 54 the sports
company was expecting to generate $183 million in revenue in 2015 at a compound annual
growth rate of 21% over four years.55 The UFC has not had that kind of revenue growth
over the past four years. A November, 2012, story on the UFC in Fast Company56 says the
company had “annual revenue approaching $600 million”. Then, the recent ESPN piece on
the potential sale of the company reports the company had “about $600 million in revenue”
in 2015. This means the UFC’s revenue had barely grown from 2012 through 2015.
Does this fit the profile of a fast-growing company that warrants an EV/EBITDA valuation
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multiple in the high teens like Ironman Triathlon? Add in the mix the lack of UFC expansion
into key international markets, its troubled Reebok partnership, and the potential for
higher labor costs, we do not believe there is much reason to value the UFC higher than
$2.23 billion, with $467 million of debt and an equity value of $1.76 billion.
Potential investors in Zuffa LLC should ask why the UFC has seen such little international
growth despite its bold pronouncements, how it plans to fix the “self-inflicted public
relations nightmare” of the Reebok deal, and how the company might handle potential
costs of growing fighter discontent and the on-going anti-trust litigation.
Notes:
1
Alan Snel, “UFC plots aggressive path to expand global empire,” Las Vegas Review-Journal, 8/10/13, at
http://www.reviewjournal.com/sports/mma-ufc/ufc-plots-aggressive-path-expand-global-empire.
2
ONE FC press release, “ONE FC and ESPN StarSports announce 10-year Media Partnership,” 1/30/12, at
http://www.onefc.com/news/27-one-fc-and-espn-starsports-announce-10-year-media-partnership.html.
3
ONE FC press release, “ONE Championship Forms Partnership With Disney Studios,” 2/23/15, at
http://onefc.com/news/430-one-championship-forms-partnership-with-disney-studios.html.
4
ONE FC press release, “ONE FC inks official partnership with Kawasaki,” 8/23/15, at
http://www.onefc.com/news/260-one-fc-inks-official-partnership-with-kawasaki.html.
5
ONE FC press release, “ONE Fighting Championship and Facebook Team Up,” 11/3/14, at
http://www.onefc.com/news/398-one-fighting-championship-and-facebook-team-up.html.
6
ONE FC press release, “One Fighting Championship and AMC Live Group Form Partnership in China,” 6/21/14, at
http://asianjournal.com/entertainment/one-fighting-championship-and-amc-live-group-form-partnership-inchina/.
7
See ONE Championship, Events, http://www.onefc.com/events.html.
8
UFC Press Release, “UFC Announces Operations in Asia,” 8/27/10, at http://www.ufc.com/news/ufc-announcesoperations-in-asia.
9
Bill King, “UFC's global ambitions,” Sports Business Daily, 6/11/12, at
http://www.sportsbusinessdaily.com/Journal/Issues/2012/06/11/In-Depth/UFC-global.aspx.
10
Anton Tabuena, “UFC Management: Garry Cook promoted to Chief Global Officer, Asia Director Mark Fischer let
go,” SB Nation Bloody Elbow, 8/15/14, at http://www.bloodyelbow.com/2014/8/15/6005047/ufc-managementgarry-cook-promoted-to-chief-global-officer-asia.
11
Barry Janoff, “Q&A: How UFC Is Taking Fans, Media, Marketing, Rousey Beyond The Octagon,” NY Sports
Journalism, 1/5/16, at http://nysportsjournalism.squarespace.com/qa-ufc-goes-beyond-theoctagon/?SSScrollPosition=586.
12
Shaun Al-Shatti, “Zuffa CEO Lorenzo Fertitta Sees India as an ‘Opportunity and a Challenge',” SB Nation Bloody
Elbow, 9/16/12, at http://www.mmafighting.com/2012/9/16/3335806/ufc-lorenzo-fertitta-tuf-india-opportunitychallenge-dana-white.
13
Dan Hiergesell, “UFC President Dana White: ‘We’re Going to Make a Big Run in India,” Bleacher Report, 10/8/12,
at http://bleacherreport.com/articles/1362453-dana-white-were-going-to-make-a-big-run-in-india.
14
UFC, “UFC Partners With Six for TUF India,” 9/11/12, at http://www.ufc.com/news/ufc-details-indian-expansion091112-press-release.
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15
Mike Chiappetta, “Dana White: South Africa Next Target In UFC's Global Expansion Plans,” MMA Fighting,
6/12/12, at http://www.mmafighting.com/ufc/2012/6/12/3081270/dana-white-south-africa-next-target-in-ufcsglobal-expansion-plans.
16
Extreme Fighting Championship, “EFC 50 FIGHT CARD”,
http://www.efcworldwide.com/events/efc50/efc_worldwide_fightcard.php.
17
Kwese Sports Press Release, “Kwesé Sports wins Exclusive Rights to screen EFC!,” 3/3/16, at
http://www.kwesesports.com/news/kwese-sports-wins-exclusive-rights-to-screen-efc/.
18
“Back to Action – EFC returns to e.tv,” ENCA, 4/5/16, at https://www.enca.com/sport/back-action-%E2%80%93efc-returns-etv.
19
“EFC 47 draws over 1.5m TV viewers,” Sport24, 4/20/16, at http://www.sport24.co.za/OtherSport/SouthAfrica/efc-47-draws-over-15m-tv-viewers-20160420.
20
Mike Chiappetta, “Dana White: South Africa Next Target In UFC's Global Expansion Plans,” MMA Fighting,
6/2/12, at http://www.mmafighting.com/ufc/2012/6/12/3081270/dana-white-south-africa-next-target-in-ufcsglobal-expansion-plans.
21
Patrick Wyman, “Russia Should Be the Next Big Target for UFC's International Expansion,” Bleacher Report,
2/12/16, at http://bleacherreport.com/articles/2615928-russia-should-be-the-next-big-target-for-ufcsinternational-expansion.
22
Matt Erickson, “Dana White believes UFC's first trip to Russia could happen in 2013,” MMA Junkie, 1/28/13, at
http://mmajunkie.com/2013/01/dana-white-believes-ufcs-first-trip-to-russia-could-happen-in-2013.
23
Trent Reinsmith, “Dana White on UFC heading to Russia: 'We're not as far along on Russia as I thought we would
be',” SB Nation Bloody Elbow, 5/4/14, at http://www.bloodyelbow.com/2014/5/15/5719438/dana-white-on-ufcheading-to-russia-were-not-as-far-along-expansion.
24
UFC press release, “UFC Announce Russian Broadcast Partnership,” 1/20/15, at http://www.ufc.com/news/ufcannounces-russian-broadcast-deal.
25
Marc Raimondi, “New UFC Europe head: Holland, Russia targeted for events in 2016,” SB Nation MMA Fighting,
10/1/15, at http://www.mmafighting.com/2015/10/1/9429851/new-ufc-exec-holland-russia-targeted-for-eventsin-2016.
26
Moody’s Credit Opinion on Zuffa LLC, 12/2/2011.
27
Moody’s Credit Opinion on Zuffa LLC, 2/9/2016.
28
UFC press release, “Reebok, UFC Announce Landmark Apparel Deal,” 12/1/14, at
http://www.ufc.com/news/reebok-ufc-announce-landmark-apparel-deal.
29
Gareth Davies, “UFC’s £45m tie-up with Reebok a big deal as fighters get dressed for financial success,” The
Telegraph, 12/1/14, at http://www.telegraph.co.uk/sport/othersports/ufc/11268220/UFC-signs-70-million-dealwith-Reebok-will-see-500-fighters-wearing-firms.html.
30
Sarah Mahoney, “With J.J. Watt, Reebok strives for conten-driven ecosystem,” Marketing Daily, 5/23/16, at
http://www.mediapost.com/publications/article/276483/with-jj-watt-reebok-strives-for-content-driven.html.
31
Karim Zidan, “The Problem with the UFC Boss”, Sports on Earth, 7/27/15, at
http://www.sportsonearth.com/article/139018852/ufc-dana-white-firing-jacob-duran-twitter-rant.
32
Tim Burke, “UFC's new Reebok fight kits have some humorous errors,” SB Nation Bloody Elbow, 6/30/15, at
http://www.bloodyelbow.com/2015/6/30/8870597/ufc-new-reebok-fight-kits-have-some-humorous-errors.
33
Luke Thomas, “Reebok releases statement on 'Anderson Aldo' t-shirt,” SB Nation MMA Fighting, 12/1/15,
http://www.mmafighting.com/2015/12/1/9831772/reebok-releases-statement-on-anderson-aldo-t-shirt.
34
Bryan Armen Graham, “Reebok blames 'design error' for regrettable UFC Ireland shirt,” The Guardian, 10/21/15,
at https://www.theguardian.com/sport/2015/oct/21/reebok-blames-design-error-for-regrettable-ufc-irelandshirt.
35
Karim Zidan, “The Problem With the UFC Boss,” Sports On Earth, 7/27/15, at
http://www.sportsonearth.com/article/139018852/ufc-dana-white-firing-jacob-duran-twitter-rant.
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36
Tim Burke, “Ben Henderson says sponsorships were 'a very big deal' in Bellator signing,” SB Nation Bloody
Elbow, 2/1/16, at http://www.bloodyelbow.com/2016/2/1/10891638/ben-henderson-says-sponsorships-were-avery-big-deal-in-bellator.
37
Ben Fowlkes, “The disillusionment of Matt Mitrione,” USA Today, 3/21/16, at
http://mmajunkie.com/2016/03/the-disillusionment-of-matt-mitrione.
38
Jed Meshew, “Morning Report: Matt Mitrione hopes to 'cause a change' in the way the UFC does business,” SB
Nation MMA Fighting, 4/18/16, at http://www.mmafighting.com/2016/4/18/11448926/morning-report-mattmitrione-hopes-to-cause-a-change-in-the-way-the.
39
Marc Raimondi, “Dana White: 'Stitch' Duran won't be back with the UFC and we 'were never friends',” SB Nation
MMA Fighting, 7/26/15, at http://www.mmafighting.com/2015/7/26/9040767/dana-white-stitch-duran-wont-beback-with-the-ufc-and-we-were-never.
40
Karim Zidan,“The Problem With the UFC Boss,” Sports On Earth, 7/27/15, at
http://www.sportsonearth.com/article/139018852/ufc-dana-white-firing-jacob-duran-twitter-rant.
41
Shaun Al-Shatti, “Reebok issues statement in wake of 'Stitch' Duran firing,” SB Nation MMA Fighting, 7/22/15, at
http://www.mmafighting.com/2015/7/22/9016879/reebok-issues-statement-in-wake-of-stitch-duran-firing.
42
Kevin Iole, “UFC cut man Stitch Duran deserved to keep his job,” Yahoo Sports, 7/22/15, at
http://sports.yahoo.com/blogs/mma-cagewriter/veteran-ufc-cut-man-stitch-duran-didn-t-deserve-to-lose-his-job061131689.html.
43
Paul Gift, “Judge grants UFC’s motion transfer antitrust case to Nevada,” SB Nation Bloody Elbow, 6/3/15, at
http://www.bloodyelbow.com/2015/6/3/8717945/ufc-class-action-antitrust-lawsuit-motion-transfer-venuenevada-mma-news.
44
Moody’s Credit Opinion, “Zuffa, LLC,” 2/9/16.
45
Michael McCann, “Antitrust lawsuit, if successful, could unravel the UFC,” Sports Illustrated, 12/16/14, at
http://www.si.com/mma/2014/12/16/ufc-antitrust-lawsuit-cung-le.
46
UFC Press Event, 2/17/15; see http://www.ufc.com/media/ufc-press-event-2015.
47
Kurt Badenhausen, “Average MLB Player Salary Nearly Double NFL's, But Still Trails NBA's,” Forbes, 1/23/15, at
http://www.forbes.com/sites/kurtbadenhausen/2015/01/23/average-mlb-salary-nearly-double-nfls-but-trailsnba-players/.
48
UFC Legends: Hall of Fame, http://www.ufc.com/fighter/HallOfFame.
49
Marc Raimondi, “Randy Couture: MMA fighters need a union and 'if there is a time, it is probably now',” SB
Nation MMA Fighting, 3/29/15, at http://www.mmafighting.com/2015/3/29/8168807/randy-couture-mmafighters-need-a-union-and-if-there-is-a-time-it-is.
50
MMAFA, “About MMAFA,” http://mmafa.tv/about-mmafa/.
51
H. Rept. 106-449 - MUHAMMAD ALI BOXING REFORM ACT, https://www.congress.gov/congressionalreport/106th-congress/house-report/449/1.
52
Brett Okamoto, “Ali Act amendment could expand federal law’s coverage to MMA,” ESPN, 5/19/16, at
http://espn.go.com/mma/story/_/id/15589773/bill-aims-expand-muhammad-ali-boxing-reform-act-mma.
53
Darren Rovell, “Sources: UFC owners in advanced talks to sell business,” ESPN, 5/11/16, at
http://espn.go.com/mma/story/_/id/15503004/ufc-owners-advanced-talks-sell-promotion.
54
Reuters reported on 8/6/15 that Ironman had EBITDA of “more than $50 million; see
http://www.reuters.com/article/us-ironman-m-a-dalian-wanda-idUSKCN0QB2M120150806. The final deal valued
the target company at $900 million, including debt, per Reuters’ later, 8/27/15 report, which would make for an
18x EV/EBITDA multiple: http://www.reuters.com/article/world-triathlon-ma-dalian-wandaidUSL4N11223020150827. And this is how the deal was understood; see, for example, here:
http://www.breakingviews.com/chinas-record-waste-deal-is-far-from-rubbish/21234229.article.
55
Chris Witkowsky, “Providence to sell IRONMAN after seven-year hold,” PE Hub, 8/27/15, at
https://www.pehub.com/2015/08/providence-to-sell-ironman-after-seven-year-hold/.
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56
Luke O’Brien, “UFC tries to prove it’s capable of a knockout,” Fast Company, 11/18/12, at
http://www.fastcompany.com/3002947/ufc-tries-prove-its-capable-knockout.
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