The Untold Story of Zuffa's Purchase of the UFC

One of the most dramatic moments of the recent CNBC special, From Bloodsport to Big Time, was the scene in which Bob Meyrowitz claimed that Lorenzo Fertitta, a member of the Nevada State Athletic Commission at the time, blocked regulation of the UFC, essentially forcing Meyrowitz to sell the company to the Fertittas and Dana White. Lawyers for Zuffa immediately contacted CNBC and got the segment pulled from subsequent airings.

In The Wrestling Observer Newsletter, Dave Meltzer recently offered what he believes to be the accurate version of the story, partly based on his first hand knowledge, as well as the story of the early history of Zuffa. The highlights according to Meltzer:

A hearing concerning sanctioning the UFC was scheduled before the NSAC on April 23, 1999. Meyrowitz had been told that NSAC sanctioning was a prerequisite to returning pay-per-view. As the hearing approached, Meyrowitz believed that he had the votes (3-2) for sanctioning, but the night before the hearing he was informed that one of the commissioners had switched his vote. Meyrowitz withdrew his request for sanctioning because he was told that he could only ask for one vote and a negative result would doom the company's future on pay-per-view.

"I don't know which commissioner it was, but the commissioner who had the 11th hour change of mind that caused Meyrowitz to pull out was not Feritta," Meltzer wrote. It is interesting to note that one of the other commissioners during this period was Gina Carano's father, Glenn.

More than one year later the New Jersey State Athletic Commission under Larry Hazzard did sanction the Meyrowitz-owned UFC. At that point Dana White contacted Meyrowitz about purchasing the company with the Fertittas, including Lorenzo who had subsequently left the NSAC, as his backer. Meyrowitz was interested in retaining an interest in the company, however, the Fertittas were only willing to buy outright. Meyrowitz decided to sell for $2 million because he was under the impression that sanctioning from the NSAC was unlikely, which meant no pay-per-view.

Meltzer noted that while in the CNBC piece Meyrowitz claimed no regrets about the way things worked out that in reality he has always thought he was treated unfairly and has been working to return to MMA for several years. Shortly after the special aired Meyrowitz did announce a new MMA project in association with Live Nation, a subsidiary of Clear Channel and the leading promoter of live events in North America.

NSAC sanctioning and pay-per-view didn't turn out to be the immediate saviors as expected. The first Zuffa promoted show on pay-per-view did 75,000 buys behind a strong marketing campaign, however, following that "horrible show," according to Meltzer, subsequent events settled in the 30,000-50,000 buy range until Ortiz-Shamrock I did 150,000. Following that pay-per-view numbers returned to the former range.

To make matters worse, in order to get back on pay-per-view the company signed an unfavorable distribution deal which guaranteed the cable companies a certain amount of money. The early buys weren't even close to what they needed to meet the guarantees and they lost a lot of money as a result.

The other revelation from the CNBC piece was that at one point the Fertittas were ready to get out and had White shop the company. One of the people White approached was Shane McMahon, believing that all the UFC needed was a television partner and the WWE could get it on Spike TV with RAW as a lead in. Ultimately, White got a $7 million offer and the Fertittas declined because they'd lost over $30 million at that point.

The rest as they say is history. White reached his own deal with Spike (only after agreeing to pay all production costs), The Ultimate Fighter was born, and the UFC exploded. However, none of that could have happened if Vince McMahon and the WWE hadn't signed off on the deal, a decision which McMahon may or may not regret today.