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Wednesday, June 25, 2008

Why MMA Doesn't Need NY's Legislation

While the MMA world seemingly took a huge hit to its expansion with the announcement that the NY legalization bill had been shelved, the effects might not be quite as destructive as thought. It would certainly be nice to have New York and Madison Square Garden under the auspices of the UFC's booking department, but is it necessary? I believe that the UFC (and MMA in general) does not need the state of New York to be successful. Nor do I believe that the UFC will suffer in spite of not being able to host shows in The Big Apple.

First, the UFC has recently expanded its brand to Ireland, Canada, and England. Future plans put shows in Hawaii, Brazil, Germany, and the Philippines. With the burgeoning global feel of MMA, does the UFC really need or want to stay at home? There are bigger fish to fry and larger markets to be won than the already conquered metropolis of New York.

Next, any MMA aficionado will tell you that the Northeast has never typically done well when hosting MMA events. The UFC hasn't been to Atlantic City in over three years. When they did go, at UFC 53, they pulled down a live gate 1.5 million dollars less than the previous event's take in las Vegas. Why would the UFC demand a market which has so often fallen short. Even if MMA was allowed in New York, it's doubtful that the UFC would stop in more than once a year.

It's also possible that New York has found its niche in the MMA business -- advertising. The largest Times Square billboard has been the upcoming UFC event for quite some time now. The people of New York certainly enjoy their MMA, or at least that's what the advertisement budgets tell us. However, they might not have the cash flow necessary to attend events. The city's median household income is less than the state of New York and less than the U.S. average. New Yorkers should be advertised to in the hopes that they will buy the PPV, not attend the event.

Along with that rationale comes the fact that most of the money made from MMA events comes from PPV buys and advertising, which gets paid no matter where the show is held. Considering our numbers regarding Northeast shows (1 million dollar estimate), the marketing put into a New York City show might nullify the live gate.

If New York doesn't want MMA, then we don't want them. You could have Chuck Liddell and Quinton Jackson fight in a dirty basement and it would do just fine. The location is not nearly as important as the product, and as products go, ours is one of the best.

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