March 10, 2008

Ready for Prime Time?: EliteXC on CBS

ProElite has what UFC President Dana White so desperately wanted and has publicly stated is the next important step for the MMA industry: network television. But the old adage goes, be careful what you wish for because you just might get it. Has ProElite, and with it the entire MMA industry, bitten off more than it can chew? Is MMA in general and EliteXC in particular ready for prime time?

The answer to that question will shape the future of the industry. EliteXC on CBS will either prove to be a ratings hit and other promotions will see their opportunities expanded or MMA will be branded a mainstream failure, a niche audience with no place on major network television. That’s why as much as White despises his competition even he has to hope his rival does at least good enough numbers to keep the door open for the UFC.

“The CBS deal didn’t work for us,” White said recently. “At the end of the day, listen, when you are talking about a show like ProElite or any of these other shows, they will give up their right (expletive) to get on television. They will give away everything to be on TV.”

This statement, along with statements by Top Rank’s Bob Arum, seem to confirm what MMAPayout.com has reported before, that the ProElite-CBS deal more closely resembles a quote-unquote “time buy” than either side is anxious to admit. There is no shame in that fact, while the UFC as the questioned industry leader is in position to hold out for creative control and a fairer financial deal, ProElite, as the challenger who had been largely treading water at best, had nothing to lose and everything to gain by making a deal with CBS by any means necessary.

The UFC on the other hand has already established itself as the only viable company in the sport and the unquestioned giant of the industry. In the eyes of the mainstream media and corporate world, the UFC is MMA. With its position secure, the UFC has little incentive to risk its reputation and position on a deal that doesn’t give it whatever it believes it needs to be successful on network television.

However, by ceding leadership of the industry to ProElite on major network television, White has now effectively put Doug DeLuca and Gary Shaw in charge of securing a favorable outcome for the entire industry, the UFC included. EliteXC’s numbers on CBS will hang around the neck of every promoter in the industry during negotiations with television partners for years to come. If successful, a major new revenue stream in the form of lucrative rights fees may be opened up to the industry as a whole. If ProElite fails, MMA risks losing its mystique as the fastest growing sport in the country and all the financial opportunities and exposure that goes with it.

Such an important task would almost certainly be better left to White and the UFC. Granted there are criticisms to be made of White, but the fact remains that he is the only promoter who has proven he can make this product work. As much as others in the industry may dislike him and his company’s aggressive trade practices, it the UFC’s growth, under White’s distinctive leadership, that has opened the door for everyone else in the industry. As White is all too fond of saying, MMA is not hot, the UFC is.

There seems to be a fairly strong sentiment within the industry that EliteXC is facing an uphill battle to draw the kind of numbers that would equal success on a major broadcast network. The UFC's biggest overall rating is a 3.1 (average of 4.7 million viewers) for UFC 75. That event featured Quinton Jackson v. Dan Henderson in the most watched fight in the history of MMA with 5.9 million viewers.

To put those numbers in perspective, CBS through February of this year is reportedly averaging almost 11 million prime time viewers.

In searching for benchmarks for MMA on network TV, a frequent comparison is made to World Wrestling Entertainment. From 1985 through 1992 WWE's Saturday Night Main Event was a major draw on network TV, averaging a 9.3 rating during that span. The recent reincarnation has been a flop, averaging a 2.55.

What changed? A major factor, outside of increased competition from cable television, seems to be the product’s increased exposure. With four hours of original first run programming each week, some would say that today’s WWE is overexposed despite the fact that on average the programs draw 4.2-5.7 million viewers per week. During the company’s glory run on NBC and FOX major weekly television shows were not part of the equation, making network television specials must see TV.

Overexposure has been a hot topic of debate in MMA this year, particularly with the UFC’s ever expanding pay-per-view schedule. However, without the presence of a glut of original weekly programming, or the temperance of a $44.95 price tag, it is hard to believe MMA will suffer the same fate as the WWE recently has on network television.

One of the biggest overlooked factors in the ultimate success of the entire venture is how much promotional money CBS will put behind the events? Will the network fully embrace the sport with a major integrated rollout or simply shove EliteXC into the television wasteland of Saturday night to sink or swim on its own?

Early indications from inside the network and CBS’s financial investment in the company suggest that if EliteXC fails it won’t be for lack of network support. However, the structure of the deal reveals a strong, but fluid relationship between the two companies. CBS is invested in ProElite, but not truly committed. Look at your breakfast plate for the difference. The chicken is invested, but the pig is committed.