July 11, 2016
Say what you want about Dana White, but do not bash his business acumen, as UFC, the world’s premier professional mixed martial arts organization, was successfully sold today to WME | IMG.
The UFC transaction is subject to customary closing conditions. Terms of the transaction were not disclosed, but other outlets have reported the deal was for $4 billion. Safe to say the profit was huge, as the prior ownership purchased the sport for $2 million.
“No other sport compares to UFC,” remarked White, UFC’s President who will continue in that role. “Our goal has always been to put on the biggest and the best fights for our fans, and to make this the biggest sport in the world. I’m looking forward to working with WME | IMG to continue to take this sport to the next level.”
Founded in 1993, UFC is one of the largest and fastest growing sports brands in the world, particularly among millennials. The organization produces more than 40 live events annually and is the largest Pay-Per-View event provider in the world, broadcast in over 156 countries and territories, to nearly 1.1 billion television households worldwide, in 29 different languages.
UFC continues to capitalize on digital distribution platforms via its wholly-owned subscription over-the-top service, FIGHT PASS, delivering exclusive live events, thousands of fights on-demand and original content to fans around the globe.
Lorenzo J. Fertitta, Chairman and CEO, UFC, said: “We’re confident that the new ownership team of WME | IMG, with whom we’ve built a strong relationship over the last several years, is committed to accelerating UFC’s global growth. Most importantly, our new owners share the same vision and passion for this organization and its athletes.”
Upon closing, Lorenzo Fertitta will step down from day-to-day operations, but Frank Fertitta III and Lorenzo Fertitta will both retain a passive minority interest in the organization.
WME | IMG will also serve as UFC’s operating partner. The company will focus on accelerating the sport’s popularity and presence around the world. Silver Lake Partners and KKR will join WME | IMG as new strategic investors, along with MSD Capital, L.P. and MSD Partners, L.P. which will provide preferred equity financing.
“We’ve been fortunate over the years to represent UFC and a number of its remarkable athletes,” said WME | IMG Co-CEOs Ariel Emanuel and Patrick Whitesell. “It’s been exciting to watch the organization’s incredible growth over the last decade under the leadership of the Fertitta brothers, Dana White and their dedicated team. We’re now committed to pursuing new opportunities for UFC and its talented athletes to ensure the sport’s continued growth and success on a global scale.”
In addition to its sports marketing and global events portfolio, WME | IMG also represents a diverse roster of artists and content creators across every entertainment vertical, including motion picture, television, music, books, digital and theater. Its sports client roster ranges from professional athletes to sports federations and leagues to more than 200 collegiate institutions. The company also works with top-100 global advertisers to develop meaningful consumer platforms and helps new and iconic brands optimize their licensing potential.
Each year, IMG produces more than 52,000 hours of sports programming and arranges to distribute an additional 32,000 hours on behalf of more than 200 clients including major sports leagues and associations like The All England Lawn Tennis and Croquet Club (Wimbledon), the National Football League, Premier League, Major League Soccer and Euroleague. The company also operates one of the largest sports training institutions in the world, IMG Academy.
By Staff of TheDailySportsHerald.com and news services