Make no mistake about it: The Ultimate Fighting Championship (UFC) is the premier mixed martial arts promotion company on the face of the earth. Perhaps you consider them monopolistic. Maybe even bullies. In your opinion, Dana White is probably an aggressive promoter/businessman/asshole. You may have a point, but the fact remains that the UFC means business and this organization is not to be taken lightly in their business model or their growth strategies. To bet against them will make you the loser.

Having signed a new seven year broadcasting contract with FOX, the UFC is in a prime position to introduce mixed martial arts to a broader audience. No longer can the old psychographics be used to claim that the sport is only watched by testosterone-fueled, barbaric males between the ages of 18-34. The new social research provided on mixed martial arts indicate that college educated, middle class men and women between 18-44 are the new variables in the profile of the sport. Let’s not forget that this isn’t the first time FOX has danced with the UFC. Several years ago, Fox Sports Net aired a live UFC event which generated fantastic ratings. BUT, FOX wasn’t ready to dive in the pool head first. In other words, they didn’t want to commit to a deal. After witnessing the success of the UFC and the dedication of its following, FOX has cannon balled into the pool. This broadcasting deal pushes the UFC across many platforms, not to mention the fact that they have full control over the production of the live events aired on FOX. To put it lightly, this is a highly significant hurdle cleared by not only the UFC, but mixed martial arts fans as well.

The only downside that I have observed over the past year was the departure of Michael Pine, the former VP of Sponsorships for the promotion. He did a magnificent job creating a relationship with two major sponsors during his tenure: Harley Davidson and Anheuser Busch. Not to mention, he was instrumental in bringing in Burger King, Miller Lite and caught the eye of the United States Marines. A mighty work he did perform. Pine left the organization to take a job with the international triathlon company, Iron Man. As expected with the growth and popularity of the UFC and the sport of mixed martial arts, the blue chip sponsors are lined up at the door. It is only a matter of time before we see that Swoosh or those three vertical italicized stripes in the center of the cage mat. Trust me, they are coming.

I am sure you have asked yourself, what does 2012 hold for the UFC? I am sure the thought provoking pundits will say that a new promotion will come along and challenge The UFC or the hype surrounding the Fox deal will fizzle out. Here are my predictions (while it will take others 12 months to get it right):

• Retail growth higher than anyone’s forecast;
• The ultimate fan experience at live events; and
• A broad and positive impact on society, in particular those who think the participants of the sport and its fans are meat heads.

In closing, we are all witnesses to the unlimited possibilities of the UFC. No longer should we question ourselves with what it stands for, or better yet, what we want it to stand for. There will always be differences of opinion on how the UFC conducts business and how will they deliver their product to the novice fan, as well as the diehard fan. One thing we all can agree on is this simple truth: the UFC has a track record of intensive growth and it is not slowing. The focused strategy of the promotional management team has proven to all of us that they are pretty good at what they do. Market development, product development, and offering a new experience to new fans are part of a strategy that is already in place. Growth is on the horizon. The anticipated risks have been calculated and any obstacle will be overcome. The only question that remains is this: How long will you remain in doubt?

The UFC, A Growing Juggernaut from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

In 2008, Forbes magazine valued the UFC/Zuffa LLC at 1 billion dollars. Since then, according to an interview UFC President Dana White did with the Indianapolis Star, that figure has nearly tripled with White estimating that the company is now worth around the 2.5 billion dollar range. This is an impressive growth margin for a company that has generally stuck to the same game plan over the last few years. If these numbers are indeed correct, it speaks volumes about the growth the sport has incurred in a short amount of time. The main difference I see in the UFC from 2008 is how boldly they have expanded. Selling a 10% share in the company to Flash Entertainment of Abu Dhabi to be able to properly position themselves in the Middle East and Asia must have been a wise investment, even though it is hard to gauge from here in the states.

Expansion to countries such as Germany, Australia, and Canada has been overwhelmingly positive upon first glance, and has no doubt been a success financially. The UFC is almost like a rock and roll band going on tour and winning over fans. Every new market it hits seems to be conquered by the hype and the trickle-down effect; it is undeniable.

It would be nice to see hard numbers to back up White’s claims, but even if he is exaggerating by a half billion, to have your company double in growth in 2 years is impressive. White agrees:

“The company is worth about $2.5 billion… I’ve been saying this since day one, and people really thought I was a lunatic, that this could be the biggest sport in the world. What I am surprised about is how fast this has happened. We haven’t even scratched the surface for how big this thing is going to be. I don’t consider us mainstream yet. Mainstream, to me, is if you walked out into the main street of any major city in America and asked them what “American Idol” is. Everyone can tell you what “American Idol” is. Not everyone can tell you what UFC is…Any time we go to a new market, it’s so much fun. When those [fans] leave, they will go infect another 10 to 15 people with what they saw there that night. That’s how this whole buzz keeps rolling. I call it spreading the virus.”

It should also be noted that White admitted that the company was 44 million dollars in debt at one point, which goes to show the business savvy behind the obvious muscle the UFC usually flexes in their dealings. When I see a company turning losses of that magnitude into substantial gains, it shows me that mistakes were made and then corrected and learned from.

It remains to be seen how high the ceiling is for the UFC. Will they ever reach the mainstream like White hopes for? I am inclined to think so, but that could be the fan in me hoping everyone else joins the party. Realistically, it is much easier to market the singing hopefuls of American Idol to the country than two guys fighting each other, but if the UFC can sustain their growth, they will be knocking on the door in no time.

Please post any questions or comments you may have and don’t forget to follow me on twitter @zachlipari.

The UFC Boasts Big Earnings from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

It looks like UFC president, Dana White has a new reason to be smiling. Not only have the last few UFC events been extremely successful and entertaining, accompanied by a sold out and much hyped UFC fan expo in Boston this past weekend, but he was just invited to be the guest speaker this year at Oxford University’s annual debate club event. The 187-year-old Oxford Union Society has asked White to speak on October 13th, which coincides with UFC 120: Bisping vs Akiyama on Spike TV live from London.

The society has been known for its ties to the upper tiers of politics, and past speakers include Sir Winston Churchill, Robert Kennedy and Yasser Arafat. Other past speakers at the club are former U.S. presidents Jimmy Carter, Richard Nixon and Ronald Reagan, as well as Malcolm X, Stephen Hawking and Albert Einstein.

White said he’s expecting to respond to tough questions with straight answers.

“Anyone who knows anything about me knows I always speak my mind and am very passionate about what I do, and the Oxford Union was founded on exactly those principles,” White said in a statement released by UFC. “I’m looking forward to meeting the students, and I know they have a reputation for asking tough questions and expecting straight answers from their guests. That’s exactly what they’ll get from me.”

“As president of UFC, Dana has created a billion dollar global sports company in less than a decade and we look forward to hearing his take on the rise of the UFC and giving us greater insight into this phenomenon,” said Ash Sangha, the group’s vice president, according to the statement from the UFC through the AP. White also will visit the Oxford Union Library and meet with Oxford Entrepreneurs, another campus student society, during his visit.

This is an honor for White, who has obviously set himself apart from his major league competitors with his candor and business acumen. Reading the article on ESPN brought a smile to my face, since this time honored organization has recognized the hard work and good nature of the UFC and gets it. What do I mean by ‘gets it?’  They are not put off by the swearing or the violent nature of the sport, but understand that what they are seeing is a brutally honest take on running a professional sports organization that is rising faster than any other; as well as a fun, intelligent person to have a debate with.

(Credit: ESPN.COM, UFC.COM)

Please post any questions or comments you may have, and don’t forget to follow me on Twitter @ZachLipari

UFC President to Join U.S. Presidents from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

MMA’s biggest agent (and SAB interviewee), Ken Pavia along with the up-start Bellator fighting promotion have been sued by UFC parent company, Zuffa LLC. The suit alleges that Pavia passed along trade secrets and confidential Zuffa documents to upstart MMA promotion Bellator. Zuffa believes that Bellator used these documents to help run their business. Bellator is named as a co-defendant in the suit, as well as other unnamed individuals and corporations that Zuffa alleges participated in breach of contract.

Yahoo Sports Writes:

According to the suit, filed Wednesday in Clark County District Court, Pavia delivered confidential contracts, including fighter agreements, to Bellator after being asked to do so in a July 4 email to him from Bellator founder Bjorn Rebney…

An email which Zuffa’s lawsuit alleges is from Rebney to Pavia on July 4 was attached as an exhibit to the 16-page suit. In it, Rebney writes, ” … You’ve been great about sending us ‘All’ of the seminal docs from the UFC, so that we can re-do them and implement them for Bellator.”

Later, the email Zuffa alleges to have been written by Rebney continues, “Please list each in terms of what it is for and how the UFC uses them/implements them. … Then I’m going to have our team Monday re-type them and we will sufficiently alter them such that they will appear to be ours and not theirs.”

The response that is purported to have come from Pavia is brief and says, in its entirety, “Still I (sic) vegas. May take 24 hours to organize as some forms go to the guys in my office.”…

According to the suit, “The improper disclosure of Zuffa’s operations documents and confidential information by Pavia, MMA Agents, and the Doe and Roe Defendants constitutes a distinct act of dominion wrongfully exerted over Zuffa’s personal property.”

It further states, “The improper use by Bellator of Zuffa’s operational documents and confidential information in order to conduct its competing business operations constitutes a distinct act of dominion wrongfully exerted over Zuffa’s personal property.”

Zuffa seeks actual and punitive damages and a permanent injunction barring Bellator or Pavia from using Zuffa’s assets, including its intellectual property.

One can’t help but wonder why someone would go against the UFC in any way. If there is one characteristic of the way the UFC does business, it is that they have a ton of pride and much like their fighters, would enjoy nothing more than to beat their adversaries into submission. I would also venture to say that agents dealing with the UFC in the future will probably be subject to stricter rules and scrutiny as a result of this alleged oversight by Mr. Pavia. Hopefully this doesn’t close the doors of Bellator, since I happen to think they are a great minor league fight promotion with a lot of potential.

Please post any questions or comments you may have below and don’t forget to follow me on Twitter @ZachLipari

MMA Agent Ken Pavia Sued by UFC from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

This past Saturday, World Extreme Cagefighting (WEC) staged their first pay-per-view event, live from Sacramento, California. The event was a huge success given the fact that the last few weeks had seen disappointing main events put on by the UFC, and all out chaos by Strikeforce on national television. The event sold for $44.95, which some people thought was a steep price given the cache of the organization and the fact that their fighters are nowhere near the UFC, so why should consumers pay UFC prices? What viewers got was a night full of exciting fights and remarkable performances that showcased fighters who are hungry to make a name for themselves. 150-200k pay-per-view purchases have been reported since the event aired, which I would think has to be considered a success in addition to a solid foundation to build off of. This event was different from past WEC events; however, and it also may have signaled a sign of things to come for the organization.

WEC was purchased by UFC parent company, Zuffa LLC in December of 2006. After the merger, the WEC quickly dissolved their heavier weight classes to focus on lighter weight classes. To the MMA fan, the WEC is a smaller version of the UFC with divisions such as Bantamweight, Flyweight, and Featherweight – with only lightweight as a cross-over division with the UFC. Speculation of a full merger with the UFC to absorb all of the weight classes has persisted since the purchase, but until this past weekend, it seemed unfounded.

This WEC event was widely marketed by the UFC and featured a slew of UFC staples to its broadcast to further tie the companies together. Missing was WEC signage and promotions, giving way to vague terminology such as “the organization” when referring to the WEC. UFC commentators, fighters, ring announcers, and prelims aired on Spike TV, the home of the UFC (Verus carries WEC events). All signs point to an eventual merger of the organizations, which I believe would give the UFC more flexibility in putting on more events, but I also think it makes it more difficult from a fight booking standpoint to accommodate all divisions and fighters as frequently as the UFC is used to.

There is a ton of talent in the WEC. As demonstrated Saturday, with the level of excitement in every fight, the lighter weight classes provide high energy bouts with seemingly no slowing down – exactly what the fans pay to see. UFC President, Dana White acted as the sole promoter of the event, and it is my belief that they have set themselves up quite nicely in building a name and reputation for the WEC before it is eventually folded into the UFC. If the merger of the WEC into the UFC were to happen, it would provide a greater opportunity for fighters as well as fighter managers and agents to have a better chance of getting a piece of the UFC pie with an increased talent pool. As of now, there is no timetable for something like this to happen, but I would look for a move to be made sooner rather than later, especially if the WEC continues to perform the way it has.

Click here to watch a video of Dana White discussing the WEC.

Please post any questions or comments you may have and don’t forget to follow me on Twitter @ZachLipari

WEC = UFC? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The first MMA blog I did for Sports Agent Blog dealt with the fallout from a disappointing main event and how it affects the sports as a whole. The UFC is the 800 pound gorilla of MMA and when something happens on the biggest stage in the sport, people react. Imagine a Superbowl where one team shows up seemingly only to taunt the other team and not do what is necessary to win. People would be outraged, and rightfully so, have they no sense of humility or respect? Such was the case this past weekend with the main event at UFC 112: Invincible, from Abu Dhabi in the United Arab Emirates.

I have documented how important global expansion is for the UFC and how Flash Entertainment of the United Arab Emirates purchased a 10% stake in the company to be able to bring it to their side of the world and introduce it to a new audience. Expectations were higher than ever with an arena being built specifically for the UFC to be able to properly showcase the sport. The night featured two title defenses and a slew of other good fights to try to put on the best show possible. The first main event pitted Lightweight Champion, BJ Penn against number one contender, Frankie Edgar. The fight went the distance to a decision that awarded Edgar the belt, with one judge scoring the fight 50-45, or every round for Edgar, which was clearly not what happened. Controversy aside, the fight was kind of boring from the standpoint that we’re used to seeing more out of Penn, which had people clamoring for an exciting main event; Demian Maia against Middleweight Champion, Anderson Silva.

I was skeptical of this fight before the event started. I’ve seen Silva shrug of Jujitsu specialists in the past, not taking them seriously, and that leads to five rounds of wanting more. This time was a little different. Silva wasn’t as aloof as in the Thales Leites fight, but instead, he was downright disrespectful, taunting his opponent with curses and showboating that would make Chad Ochocinco embarrassed. When Silva did engage, he was brilliant, but it seemed that he became bored and instead of finishing the fight to get it over with, he threw on his cruise control in the 3rd round and never looked back. Imploring Maia to fight with him, then seemingly running away when he tried, made people angry fast.

Silva won a decision even though he didn’t act like a champion, and the night with so much promise that was to lead the UFC into the Middle East, ended in a chorus of boos – hardly the way UFC President Dana White and the rest of the MMA world had expected. This fight marked the first time White walked out on a main event and handed the championship belt to the fighter’s manager instead of presenting the fighter with it himself. In the post-fight press conference, White dove right into the subject stating, “I don’t think I’ve ever been more embarrassed in the ten years of being in this business.” He then went on a rant that was ultimately more exciting than the fight, which I personally think is a good quality of a league official instead of taking a hard PR stand to actually talk to the viewing public and press as he is a fan as well is refreshing, and leads me to believe something will get done to insure that the fans don’t get screwed again.

I personally think Anderson Silva should vacate or be stripped of his Middleweight belt and be left to fight in either the Light-Heavyweight or Heavyweight division, since he is clearly bored with the Middleweight competition to the point where the fights aren’t competitive. Silva is widely considered the best fighter in the sport, and for the UFC this is a huge problem in advancing their product. Lebron James isn’t going to look across the floor at the Knicks and think that he is so much better that he resorts to trick shots and showboating. He respects his sport and is going to put up a 50 point triple-double and remind everyone how good he is. I respect that the UFC won’t stand for this, but it makes one wonder how much damage has been done to the trust of the viewing public that feel cheated by the events of UFC 112. I know personally, since I had the event double as the house warming party for my apartment, that people were annoyed and upset by the end of it – something that was embarrassing for me so I can only imagine how bad Dana White wanted to just run and hide after that fight, and I commend him for making the statements afterwards. Hopefully something will get done from a fight booking standpoint, because although every fight can’t be a classic, the main event should at least be competitive.

Anderson vs Fedor anybody?

View the video of Dana White’s post fight press conference here.

Please post any questions or comments you may have and follow me on Twitter @ZachLipari

UFC 112: The Aftermath from Abu Dhabi from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

I arrived at the venue at 8pm, in time for the 2nd fight of the preliminary undercard. To my surprise, the venue was essentially packed at this point, which was great to see since in Vegas, the undercard fights always look deserted. I was told to expect a raucous crowd, but couldn’t have been more surprised when I was walking to my seats in eerie quiet as they were watching the intricacies of the fight with the occasional ooh and ahh. This type of viewership lasted all night, with the exception of a few people that should have just went to a boxing fight, because they couldn’t bare to watch the fight go to the ground, ever. I became a little fed up with these people for the constant booing, especially when the fighters were working and advancing their positions.

The undercard fights left a little to be desired and everyone in the crowd was now looking to the main events to inject some life into the building. The first main event was Shane Carwin against former Heavyweight Champion, Frank Mir, for the interim heavyweight championship. Since Brock Lesnar had been sidelined for so long with his intestinal issues, these men were competing to determine who would face Brock when he returns in July. At this point, the building got electric. The fans saw Brock take his seat ringside and anticipation built for what was about to happen. The fight was quick but it was exciting. Carwin defeated Mir after only about 3 minutes with heavy strikes that not even Lesnar could withstand. The crowd was going nuts and then we witnessed the next main event, Welterweight Champion, Georges St. Pierre against fast rising star, Dan Hardy.

The entrances for the fighters were almost as exciting as the fights themselves as, aside from the occasional video package hyping the fight, there wasn’t much else to engage you. Everyone was on their feet for the main event. St. Pierre essentially man-handled Hardy throughout the fight, but Hardy displayed the kind of toughness and resolve that will win fans over and gain him respect. The fight went the distance, all five rounds, and St. Pierre retained his belt. I found this fight to be extremely exciting, but other fans that had been in their seats for 6 hours were looking for a bit more fireworks, and once again, booed. All I have to say to them is I am glad they’re not around me when I watch on TV, because man are they annoying.

All in all, the experience was great. I did feel that the UFC could make more of a show of the night, but I still haven’t come up with the solid ideas necessary on how to improve their live product. I would describe going to the fight in person like going to a concert with a lot of opening bands you haven’t heard of but you finally get your pay off in the headlining act. Or for you sports guys, it’s like going to a backwards pre-season NFL game with the starters coming in for the 4th quarter. I would recommend this experience if you ever have the chance, but the price wasn’t cheap and I could see how someone who was more of a casual fan could have been disappointed. I hope this event helps get MMA legalized in New York. The night was sold out and I didn’t notice anything negative or out of the ordinary happen with the crowd at any point, so I don’t really see what’s holding them back, especially in such a big market. I will keep an ear to the situation and update you guys accordingly.

Please post any questions or comments and follow me on twitter @Zachlipari.

What it is Like at a UFC Event – UFC 111 from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Toney was an accomplished boxer in his day. Holding belts in three separate weight classes, he was perhaps most famous for his 1994 super fight against Roy Jones Jr. Now Toney wants to mix it up for the UFC at the ripe age of 41, and one has to ask, why? I understand why James Toney would want to do this; the man is a fighter and the UFC is big business, but why is the UFC getting in bed with a fighter who has no MMA training and doesn’t really care to train MMA (even though he hired Juanito Ibarra, which wont make any difference) and that will bring a great deal of attention to the sport of MMA? Sounds like the UFC just took a step back to me. Don’t get me wrong, I love watching two guys stand up and fight each other, but the big picture here is that you want to legitimize the sport, not create a circus side show.

Adding to the craziness is that UFC legend and former champion, Randy Couture, has come out to say he would like to be Toney’s first test. Hopefully that doesn’t happen. The potential for viewers would be extremely high, but there has to be some deeper reasoning there and hopefully Dana White has the conscience to never make that fight happen. The potential for a good fight lies with another striker, but if James Toney was ever to win inside the octagon, I would have to believe that there would be no weight class to hold his ego.

Maybe I’m taking this too seriously. In the end, I just like to watch good fights, but I have an appreciation for smart business decisions and I don’t think that this is one of them. Dana White came out against Herschel Walker fighting MMA and that man was as dedicated to training and respectful of the sport as you can get. As always, it will be interesting to see how this plays out. Right now, however, it looks like the heavyweight division just got louder.

Please continue to post any questions or comments you may have and don’t forget to follow me on Twitter @zachlipari.

James Toney Signs a UFC Contract from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

“It would be a huge benefit to us if mixed martial arts became an Olympic sport,” White said. “It would create instant awareness around the world, and it would be huge.

“I would support it 100 per cent. I personally am not out there trying to get mixed martial arts as an Olympic sport … but if it popped and they said, ‘Yes, we’re thinking about it,’ I would go guns ablazing and try to make it happen.”

I think it would be great to see MMA as an Olympic event. It would legitimize the sport while showing that the IOC cares about staying current and fresh. My concerns are that on such a big stage, people will certainly condemn the sport for being too violent, unless there are rule changes, which I would almost guarantee there would be if something like this was to happen. If MMA was to become a Olympic sport, but modified to IOC rules, I don’t see Dana White being as supportive then. What I would like to see in the meantime is some of the higher level fighters competing at their strongest discipline for their country. How cool would it be to see George St. Pierre suit up for Canada against the American, Jon Fitch in a pure wrestling match? Something like that would be great to watch and could still serve to legitimize the sport, since it would be obvious to people who think that UFC fighters are just brawlers, that these men are unbelievably skilled, trained athletes.

Please continue to post any questions or comments you may have and don’t forget to follow me on Twitter @zachlipari.

MMA a Future Olympic Sport? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

If I was an NFL agent and represented a player who was maybe on a practice squad or in danger of being cut, would I suggest MMA to him as a career alternative? I would have to say no. If the player was genuinely interested in pursuing MMA, I would help him make the most educated decisions possible and support his decision, but as a fan of MMA, I don’t think that being good at football predispositions you to being good at fighting.

Another concern I have about former athletes throwing their hat into the Octagon is that, for the more famous ones, it could end up becoming a side show, something I believe would be bad for the sports credibility. After Herschel Walker’s success on Saturday, Jose Canseco has come out to essentially challenge him to a fight. Obviously looking for some publicity and a potential pay-day, Canseco represents everything that is wrong with athletes wanting to participate in MMA. I have great respect for what Herschel Walker has accomplished, especially at his age. Training with the American Kickboxing Academy and putting in the hard work necessary to go out and earn a win is admirable, and if others can come to the sport, be humble and take the time to learn, then I will support them as well.

Please continue to post any questions or comments you may have and follow me on Twitter @zachlipari

Does the NFL Have a Place in MMA? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules