Showing posts with label politics. Show all posts
Showing posts with label politics. Show all posts

March 14, 2008

MMA Facts: Full Court Press for UFC in NY

New York is the last great conquest in Zuffa's push to sanction MMA across the United States. According to The New York Times, in November the company hired the Albany-based lobbying firm of Brown, McMahon & Weinraub at $10,000 a month as well as a political consulting firm, the Global Strategy Group, used by now former Governor Spitzer. The company also made a $25,000 donation to the state Democratic Party in mid-January.

This week Zuffa launched MMAFacts.com as part of its lobbying efforts in New York. The site is very well done, although I doubt it got much traction in NY this week given the resignation of Spitzer. Much of the information is old hat to the informed follower of MMA, however, there are some interesting new facts:

  • The company's pay-per-view buys have had annual growth of 47%, 189%, and 352% in 2004, 2005, and 2006 respectively. Gross revenues from pay-per-view events have increased 47%, 232%, and 424% respectively during the same time span.
  • Televised MMA content has grown 390% in terms of hours of monthly programming over the past four years.
  • The average ticket price for an UFC event in 2006 was $273.68 (10 events), up from $81.45 (5 events) in 2001. In 2005 the average was $178.01.
  • UFC 68 produced $11 million in external economic activity for the Columbus, Ohio with approximately 40% of attendees from outside of the state.
  • UFC 67 in Las Vegas drew 72% of its attendees from outside of Nevada.

December 2, 2007

Regulated MMA Endures Its First Death

Sam Vasquez died last Friday as a result of injuries suffered in a sanctioned MMA fight against Vince Libardi on October 20 in Houston, Texas. Vasquez death marks the first death in a regulated MMA contest in the United States. The only previously reported death resulting from an MMA bout occurred in an unregulated bout in the Ukraine in 1998.

While this is obviously first and foremost a human tragedy, it's implications for the MMA industry cannot be ignored. In October, regarding the remote possibility of Zuffa's collapse, I wrote:

The only thing on the horizon that could have such a dramatic effect would likely be an in ring death, but as the number of events continues to rise, and with it the number of less skilled competitors, promoters, referees, etc., the odds of the first death increase as well. If the sport continues to grow and thrive, the sad truth is that someone will die in competition, and the reaction that follows will determine the future of the industry. The good news, or bad news depending on your disposition, is that such an event is largely out of the industry's control. Even with the best precautions, it's almost an inevitable occurrence if the sport is here to stay.
Unfortunately, that inevitability has arrived. Fortunately, for the UFC and industry as a whole, the death involves an unknown fighter on a low-profile show and took place weeks after the fight, far removed from the cage. None the less, it will be interesting to see what, if any, reaction Vasquez's death garners from the mainstream media.

Zuffa smartly positioned itself for this day as Dana White has carefully emphasised that the UFC has not had a death in the octagon (as he did on CNBC last week), with increasingly little mention of MMA as a whole. The company will still almost certainly take some hit from the death, as will the sport in general, but I don't see the story gaining much traction other than as a sobering footnote in major MMA pieces moving forward. However, the timing is particularly terrible for Zuffa as it gears up for a full court press to overturn the current MMA ban in New York.

Perhaps more importantly, the story can easily be worked into what may be an emerging doom and gloom narrative that the UFC, and with it MMA, was simply a fad that ran out of steam in 2007. As Dave Meltzer pointed out in the latest edition of The Wrestling Observer, the mainstream media has never fully accepted the UFC as anything more than a niche sport and now has plenty of ammunition to back up that point of view.

As I emphasised last week, the UFC (and hopefully it goes without saying at this point--MMA with it) has benefited tremendously from positive media coverage promoting MMA as the new "it." But the numbers this year, at least on their face, will no longer support that narrative. Based on the success boxing is enjoying this year, the most likely storyline next year is the rise of boxing and, at the very least, the stagnation of MMA.

It will be interesting to see how the UFC handles the potential shift in the mainstream media's attitude. Will White go on the defensive or take things in stride, confident in the future of the sport? Will the company live to regret its antagonism of the new media? These are only some of the questions that 2008 hold for the industry.

November 20, 2007

Zuffa Plays Politics

The New York Daily News ran a story this week on Republican Presidential candidate Rudy Giuliani's corporate backers. The headline read, "Rudy Giuliani jets to campaign stops using casino kingpin's plane," in reference to Giuliani's use of corporate jets owned by Sheldon Adelson, the owner of the Las Vegas Sands Casinos and third richest man in America. However, the piece also noted several other corporate contributors including, "Zuffa LLC, a company whose creations include 'Ultimate Fighting Championship,' a particularly brutal hybrid of boxing and martial arts that critics have dubbed 'human cockfighting.'"

It is not clear why the company would support Giuliani, however, a couple of potential explanations immediately come to mind. With the UFC expected to make a strong push for sanctioning in New York next year, Giuliani represents a powerful political friend to enlist in persuading the state government to embrace MMA. It is also possible that the Fertitta brothers might have chosen to support Giuliani on the basis of their gambling interests (presumably for the same reasons as Adelson) and simply choose to make the contributions through Zuffa in an attempt remain low key (notice that the article does not make the connection of Zuffa to the Fertittas and Station Casinos).