Entering its 15th year as the marquee organization of mixed martial arts (MMA) sports events, the Ultimate Fighting Championship (UFC) has seen a dramatic surge in popularity in recent years. Emerging from 2006 as the top grossing pay-per-view (PPV) promotion generating over $200 million in revenue, beating even the WWE (World Wrestling Entertainment) and boxing, UFC programs have a global reach of all countries via satellite.
The UFC features tournaments based on a hybrid sport which brings together top athletes from various martial arts disciplines such as jiu-jitsu, boxing, karate, Thai boxing to wrestling, in a bid to become the champion fighter.
However, with its iconic champion Randy Couture reiterating his decision to retire from the sport on CNBC’s documentary “Ultimate Fighting: From Bloodsport To Big Time”, questions have again been raised on the UFC’s ability to maintain its popularity. With other promotions waiting in its wings, will the UFC survive growing competition to remain on top?
This would not be the first time the UFC has had to face such challenges. Championing a sport once maligned as “human cockfighting”, the UFC was roundly banned in many states during the late 1990s. Yet, fast forward to 2007 and MMA has found widespread mainstream acceptance. The UFC also enjoyed another bumper year with the acquisition of competitors World Extreme Cagefighting (WEC), Pride and World Fighting Alliance (WFA). The clamor for the sport to be included as part of the Olympics, has also added to its credibility.
Zuffa, LLC, the parent company of the UFC, has built a proven track record of promoting MMA events. Through widespread advertising and securing corporate sponsorships, Zuffa improved the UFC’s visibility, mainly via pay-per-view. PPV buy rates shot through the roof in 2006 and led to phenomenal growth of the company. Many were expecting more this year.
The recent Moody credit downgrade had been attributed to PPV numbers trending down. Observers have reacted negatively and accused Zuffa of greed as the quantity of the UFC PPV shows have increased with a marked decrease in quality. Whether this has led to lower overall revenues is anybody’s guess. President Dana White has steadfastly refused to divulge any official figures.
Many have also questioned the buyout of rival organization Pride earlier this year. The UFC has not produced any shows of significance since the buyout. Zuffa has also not made any strong inroads to the Japanese and overall Asian markets, on which the Pride brand was developed. Has it been a case of money flushed down the drain?
It is still too early to gauge the success of Zuffa’s buyout of Pride. They could still be trying to secure a TV deal in Japan, or it might simply have been a business decision. The acquisition effectively meant the company owns all rights to the potentially lucrative Pride brand, and eliminates one of their top competitors in the MMA field, at least for the time being.
The UFC also stands to benefit with the crossing over of the best Pride fighters to their stable of stars. This will contribute to an increase in fan base as supporters of these fighters turn their sights on the UFC. Japanese fans could also migrate to the UFC, although a void has also resulted with which previous Pride rivals like K-1 could be ready to fill.
Another less acknowledged fact is that the UFC has always worked to be in line with regulations, ever since it received sanctioning in 2001 from the Nevada Athletic Commission. Not only does it help to improve the organization’s legitimacy, it is smart business acumen to play by the rules to ensure longevity. This exact conformity revived the organization and the sport as a whole, returning them to TV screens and the public’s subconscious.
Many other competing organizations might look to increase the violence in their products as the UFC continues to form stricter rules. The more blood and gore you have, the more fans might be drawn to it. But given the choice of being in business after the next 10 years or to be banned, it should be a pretty clear decision. Witness the backlash felt by the International Fight League (IFL) when the premiere of IFL Battleground in early 2007 was roundly derided for its perceived glorification of violence. The key is to provide a continuing spectacle within the boundaries allowed, and the UFC has perfected that to a fine art.
The UFC occupies the prime seat in terms of popularity and reach, with its Spike TV deal. Its competitors such as the IFL and M-1 Global might currently be the preferred options with the most popular MMA fighter Fedor Emelianenko. This comes amidst negative publicity of the UFC disrespecting its fighters. Still, how often in sports have we seen that an individual does not make a team? Other fighters lurk in the shadows to take over, and the UFC offers the best global stage to display their talents.
The UFC might be facing a mini crisis with their top draw Randy Couture, but the path to success is often paved with temporary failures. M-1 Global, in particular, is waiting to pounce as they attempt to build partnerships with other organizations. But what other competitors have in budding enthusiasm and eye for quick profit, the UFC more than makes up for with their experience, early niche foothold, sound business fundamentals and financial resources.
The UFC will continue to rule the roost for some time yet, as recent results have shown. What might be uncertain is how long this will continue. You can never rule out other possibilities. The UFC has strong fan interest, while backed by savvy marketing and shrewd creativity. If they clean up their act with regards to fighters’ accusations of poor treatment and financial payouts, it would be unwise to discount the UFC from growing strength to strength.
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