UFC cash cow

December 30, 2007

For the uninitiated, UFC stands for Ultimate Fighting Championship, technically the sport is called mixed martial arts or simply MMA. Years ago it was criticized for being what some considered human cock fighting — there were no weight classes, no rounds and no rules. Competitors got in the octagon shaped cage and fought until one fighter either quit or stopped fighting back. The sport was banned in many states.

Since that time, new rules have given the organization a more mainstream appeal. It’s now the fastest growing sport in America, and possibly the world. If you don’t know any MMA fans, you will soon. Once a month, more than 2 million fans pay $39.95 to watch the pay-per-view broadcasts. They also sell out the venue with premium priced tickets. They move from state to state and even recently went to England. They are expected to make their long awaited Canadian debut in 2008.

Spike TV occasionally earns the right to broadcast non pay-per-view intra-month events. They are also home to the UFC’s reality TV show “The Ultimate Fighter” which itself has a fairly significant following. The premise of the show is simple enough, a bunch of guys who want a fast-track to the top of their weight class compete in various events and every week there is an exhibition fight — the loser of which is kicked off the show.

UFC President, Dana White, has also established a culture of cutting costs from the organization, first and foremost with the athletes’ compensation. Although the UFC is drawing boxing level numbers in terms of audience, the athletes only get paid a fraction of what a boxer would earn. This stinginess may help the bottom line, but it has already cost the UFC their heavyweight champion, Randy Couture, who now refuses to defend his title in the UFC after being unable to agree on the terms.

The main competition used to be a Japan based organization called PRIDE — but the UFC recently completed their acquisition of the popular league and brought their best fighters to compete in the octagon. There are many smaller leagues trying to establish themselves these days, but none of them even remotely compare to the popularity, excitement and cash flow generated by the original.