MMA Universe

Xyience will hold the center of the Octagon in the UFC’s third network appearance May 5th.  The official energy drink of the UFC will also appear on the ring bumpers during the event..

Via Xyience press release details the importance of the visibility:

To gain perspective on what this means in terms of reach for XYIENCE Xenergy, the November 12, 2011 UFC debut on the network, UFC on FOX Velasquez vs. Dos Santos was ranked No. 1 among men aged 18–34. It also delivered more viewers of a younger age (35), and a higher concentration of males, than other live sports on broadcast television. The XYIENCE Xenergy logo could be found on the perimeter of the mat during that broadcast.

In support of the announcement, Xyience is staging local appearances by Matt Serra on May 4th and 5th.  Details can be found here.

Payout Perspective:

A good boost for the visibility of the Xyience brand for the event.  Similar to the November 12th event, UFC on Fox 3 will have to compete with a big boxing PPV the same night as Floyd Mayweather fights Miguel Cotto.  It’s likely that the two events will not directly cross paths that night as the Mayweather fight will likely occur later on in the evening after UFC’s event on Fox.

It’s interesting that we are seeing more brands having an opportunity to take the center of the Octagon for events.  As an example, Affliction was the center for UFC on Fuel 2.  We will see who will be next.

Xyience will hold the center of the Octagon in the UFC’s third network appearance May 5th.  The official energy drink of the UFC will also appear on the ring bumpers during the event..

Via Xyience press release details the importance of the visibility:

To gain perspective on what this means in terms of reach for XYIENCE Xenergy, the November 12, 2011 UFC debut on the network, UFC on FOX Velasquez vs. Dos Santos was ranked No. 1 among men aged 18–34. It also delivered more viewers of a younger age (35), and a higher concentration of males, than other live sports on broadcast television. The XYIENCE Xenergy logo could be found on the perimeter of the mat during that broadcast.

In support of the announcement, Xyience is staging local appearances by Matt Serra on May 4th and 5th.  Details can be found here.

Payout Perspective:

A good boost for the visibility of the Xyience brand for the event.  Similar to the November 12th event, UFC on Fox 3 will have to compete with a big boxing PPV the same night as Floyd Mayweather fights Miguel Cotto.  It’s likely that the two events will not directly cross paths that night as the Mayweather fight will likely occur later on in the evening after UFC’s event on Fox.

It’s interesting that we are seeing more brands having an opportunity to take the center of the Octagon for events.  As an example, Affliction was the center for UFC on Fuel 2.  We will see who will be next.

Interesting news came out last week when it was announced that Jon Jones would be wearing UFC branded gear for his fight this Saturday night.  The UFC tells the USA Today that there will be more fighters wearing UFC gear in the octagon.

Jones’s former sponsor, Form Athletics, went under, leaving Jones available to any sponsor.  While there was speculation that Nike may be a sponsor (and still may in the future), Jones will sport UFC-branded gear which is already for sale on the UFC.com web site.

via FighterXFashion

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Lorenzo Fertitta spoke to  USA Today (via MMA Junkie):

To give you a little bit of background, I was going through the process of renegotiating with Jon and his management team on his fight contract. One of the things they brought up was that Jon was at a point where he didn’t necessarily want to sign contracts with some of these smaller, what I’ll call, T-shirt companies that you historically see in UFC, whether it be Tapout or MMA Elite or any of these other guys.

His aspirations (were) that he wanted to be signed by a Nike or an Adidas or an Under Armour, somebody like that. The reality is, those opportunities don’t present themselves to Jon right now, and that’s why I suggested, “Hey look, we’ve got this performance line of gear. Let us send it to you. You can test it. You can try it out. If you like it, then you can wear it in your next couple of fights.”

Fertitta added that the deal with Jones is non-exclusive so he’d be able to sign with another company if the opportunity presented itself.

Payout Perspective:

This is an interesting development for the UFC as no fighter this high profile has worn UFC profile gear.  In recent memory, Gilbert Yvel (in his last UFC fight before being let go) and Tiequan Zhang wore UFC apparel in their fights.  The article indicates Urijah Faber, Clay Guida and Phil Davis among others that have worn UFC gear but not necessarily during fights.

From another perspective, what becomes of the UFC sponsorship fee?  It would seem that the UFC sponsored clothing deals would negate any gains from the fees.  Is the UFC inching out sponsors to own the clothing business? Or, will a Nike or Under Armour partner with the UFC to become an official sponsor?  Thus, we may see something like the NFL or NBA with an official clothing sponsor.  Or, does this seem like a move to the WWE merchandise model–will we see no other fighter sponsors aside from the UFC?  It could mean that all sponsorship opportunities would be filtered through the UFC.

As for the Jones deal, was it smart for him to take the deal with the UFC rather than with another apparel company/sponsor?  It’s likely that Jones may have left money on the table to perhaps appease the UFC.  While his aspirations are Nike or Adidas, it wasn’t in the cards this time around.  But, he may have made more money with a “one-off” deal with other sponsors.

As an aside, the media gets another “uneducated” shout out as the UFC tries to clarify for us that despite only one of the two fighters is represented by the UFC in the main event, it does not show favoritism to the UFC sponsored fighter.  This is in response to those claiming that the UFC is favoring Jones in the fight due to this new deal.

MMA Junkie reports that UFC on Fuel TV 2 drew an average of 197,000 viewers this past Saturday.  The numbers are down from the 218,000 viewers received from the initial live Fuel show.

Despite the drop in ratings, one must point out that UFC on Fuel 1 took place in primetime stateside and featured Diego Sanchez versus Jake Ellenberger.  On the other hand, due to the time difference, UFC on Fuel TV 2 took place Saturday afternoon which could have detracted from viewership.  Additionally, Gustafsson-Silva is not the most appealing or name recognized main event out there.

Payout Perspective:

Although we saw a drop, FUEL reports that the show had the largest viewership in FUEL TV history for the target demo of males 18-49.  Also, the main event saw a peak of 298,000 viewers. Overall, I believe that the UFC is trying to put a positive spin on the ratings.  The timeslot and the fact that many still do not receive FUEL were likely reasons from the decrease from UFC on Fuel 1 to Fuel 2.

The UFC issued a press release Tuesday announcing it had served a demand for retraction from MMA web site Cage Potato.  In Nevada, the demand is a prelude to a defamation lawsuit.

The UFC’s issue concerns a post on the web site on April 14th.   The post is in regards to Jon Jones wearing UFC branded gear in his upcoming fight April 21st. The offending issue appears to be the picture and caption used by the web site.  The picture, taken from the White-Jones Bud Light commercial which ran last year, included a caption which stated White was betting on Jones this Saturday.  The web site oftentimes takes a satirical tone with its stories and captions. Of course, the caption was a joke.  However, the demand for retraction was no laughing matter.

Via UFC press release:

As detailed in the formal demand for a retraction prepared by UFC® attorney, Donald J. Campbell of the Las Vegas law firm, Campbell & Williams:

“The claim that Mr. White would financially wager on the outcome of a UFC® event is outrageous in the extreme. Indeed, in the verified complaint we are presently preparing for Mr. White’s signature upon his return from Abu Dhabi, Mr. White expressly states under oath that at no time in the history of his association with the UFC® has he ever financially wagered on the outcome of a UFC® event.”

Mr. Campbell further explained that under Nevada law a demand for retraction is the first required step in the filing of a lawsuit seeking punitive damages against a party that has maliciously published defamatory statements about another.

Cage Potato complied with the demand and issued its retraction on the site.  Cage Potato’s managing editor Ben Goldstein spoke to USA Today about the issue:

“This is just so silly that I want to print this retraction and get this behind us,” Goldstein said. “I have no (problem) saying on our website, ‘Look, it’s just a joke. We didn’t mean it to be intended this way.’ I’m just not interested in turning this into some sort of beef with UFC. It’s really not that important to me.”

Via social media, it appears that Dana White is still not cool with the situation despite the retraction.

Payout Perspective:

It’s an interesting strategy by the UFC as to how it is dealing with this. We probably know it has to do everything with the joke being about gambling on the sport.  The UFC is likely sensitive to the perception that the UFC is fixed – especially since its top draw for the past couple years, Brock Lesnar, was a former pro wrestler…and has returned to sports entertainment.  While most MMA fans will likely think this is ridiculous, there is a huge population out there that are beginning to watch the sport because it is now on Fox.

Another point in the gambling angle is the fact that the Fertittas own casinos and they do not want any inference that they bet on the sport.

The UFC brand is another reason.  It wants to protect the brand and ensure that there is no inference of gambling.  While it could have made a request for the web site to take the offending piece down without much news, it decided to make the formal request and press release.  Thus, it served notice on others on how it would handle people that defamed the UFC.

As for the legal strategy, the Fight Lawyer points out a lawsuit may open up Dana White’s reputation in discovery.  This could potentially stir up issues for White and the UFC not related to the lawsuit, yet still discoverable .

TUF Live Episode 6 garnered a 1 million viewer average as reported by MMA Junkie.  The number is slightly better than episode 5’s 947,000 viewer average – an all-time low for the TUF series.

TUF Live Episode 1: 1.28 million viewers
TUF Live Episode 2: 1.1 million viewers
TUF Live Episode 3: 1.2 million viewers
TUF Live Episode 4:  947,000 viewers

Payout Perspective:

Slightly better than the all-time low for the series.  As we’ve discussed throughout reporting these figures, there are many factors to attribute the lower ratings. But, we may need to just recalibrate our expectations of the series.

Cageside Seats reports on an interesting part of the job for the UFC fighter that is somewhat glossed over: the post-fight interview.  Dave Metzler suggested on his radio show that the UFC assists certain wrestlers with talking points for their interviews.

The discussion of the post-fight interview comes from Saturday’s UFC on Fuel TV 2 in which many of the fighters interviewed deferred on the question: “who they want to fight next?”  Many stated in one way or another “whomever the UFC wants me to fight.”  Rather than demand or offend anyone, the fighters went with the easy, non-controversial way out of the question.

Dave Metzler suggested that the UFC gives tips to those fighters it can trust to keep the training a secret.  Thus, when the fighter uses the training in an interview, it would seem organic, articulate and compelling.

Cageside Seats made the parallel that the UFC is similar to the WWE if it does coach fighters into promoting themselves or an upcoming fight or “fued.”

Payout Perspective:

When I read this my mind went to my favorite NBA interview session: Rasheed Wallace’s infamous “both team’s played hard” post game interview.  A classic.  Wallace’s post-game response to any question posed by a reporter was: “Both teams played hard.”  It was hilarious considering it mocked the whole professional player-reporter interview process.

The fact that the UFC may or may not provide media training to certain fighters to generate compelling hype for future and/or upcoming fights is nothing earth shattering.  Its media training.  Certainly, it should provide that to all of its fighters but I don’t believe coaching an interview is nothing out of the ordinary.  In defense of the fighters yesterday, most of them are fringe fighters.  A loss or two and they may be out of the UFC.  Thus, it makes sense that even when winning they’d want to be gracious and not offend anyone or call out a fighter.  It’s not exciting, but at least they would not be labeled cocky.

From another perspective, the poor mic skills of some of the fighters may mean that the interviewer will have to do a little more to “put over” the fighter.  No one is a miracle worker, so even Joe Rogan on his best night can’t help some guys.  But, at least its better than watching a fighter pull out a list of sponsors it has to thank and advertise their after party.

UFC on Fuel TV 2  this afternoon (for those in the states) drew 15,428 fans and a record gate of $2.23 million.  According to MMA Junkie, it ranked among the top five all-time UFC European shows of all time.

The event took place at the Ericsson Globe Arena in Stockholm, Sweden.  It set attendance and gate records for the venue.  There is no local athletic commission in Sweden so there will not be any official figures aside from the figures provided by the UFC.

In addition to the attendance and gate, Dana White announced the fight night bonuses.  Each received $50,000.

Fight of the Night:  Damacio Page vs. John Maguire Brad Pickett (sorry for the mistake)
Submission of the Night:  Brad Pickett for a perfect armbar reversal from a kimura attempt.
KO of the Night: Siyar Bahadurzada

Usually the FOTN does not end in a submission but the UFC decided to give it to Page and Maguire.  As an aside, does anyone else remember Page from TapouT’s reality show on Versus in 2007.  Page was actually featured in the very first show.  

Payout Perspective:

The attendance and gate figures reflect the global popularity of the UFC brand and its likely that we will see venture into new areas in Europe and Asia.  It will also think about returning to Sweden based on the crowd.  It would also help if Alexander Gustafsson becomes a contender in the light heavyweight division.

UFC lightweight contender Jim Miller has signed a multi-fight deal with TapouT and will sport the brand in the main event of his fight May 5th on UFC on Fox 3 according to his representatives.  In addition, TapouT will donate a percentage of limited edition t-shirts to the Daniel James Miller Foundation – a charity set up by Miller to support his nephew.

Via press release:

TapouT’s 2012 ‘#MYFIGHTMATTERS’ campaign has been trending recently with supporters Tweeting why their unique struggles are important. In the case of Jim Miller, this notion hits particularly close to home. “My 2 year old nephew, Daniel, suffers from recessive polycystic kidney disease (PKD). I fight everyday to raise money and be there for Daniel so that he has the care and support that he needs. That’s why my fight matters.”

For his May battle against Nate Diaz, TapouT is creating a limited edition ‘MY FIGHT MATTERS’ shirt and will donate a percentage of the proceeds to the Daniel James Miller Foundation. The shirt will be sold exclusively on TapouT.com.

In the video clip below, Miller discusses the foundation set up for his nephew:

Payout Perspective:

You may recall Miller recently signed a deal with Bass Pro Shops.  The TapouT sponsorship is another good deal for both fighter and sponsor.  Not only is it another sponsorship for Miller, it also is tailored to bring awareness to a cause close to Miller.  For TapouT, it is able to tie in its current #MyFightMatters campaign while assisting a charitable cause.

The UFC announced Thursday that it is supporting the creation of the International Mixed Martial Arts Federation.  The agency will seek to provide MMA with unified rules, regulations and safety procedures with the eventual goal of having MMA as an Olympic sport.

Via UFC press release:

UFC Chairman and CEO Lorenzo Fertitta, who has helped lead the global growth of the UFC, feels that the timing is perfect. “In order to maintain the successful growth of our sport, it is important to invest in resources that will develop and cultivate it at an amateur level. Having an umbrella organization that will oversee and help build the sport on a global level will not only provide advanced and ever-improving safety standards but will also create a unified global model to help introduce the sport to new markets. It is our hope that it will also take us one step closer to witnessing the inclusion of the sport of MMA on the Olympic programme.”

Payout Perspective:

The UFC’s blessing for the IMMAF is a positive for the organization to move forward with its efforts to provide uniformity to the sport of MMA.  We will see whether other organizations and countries will follow suit in providing it with its support. IMMAF head August Wallén indicated to Sherdog that the process for MMA to be an Olympic sport would take a long time.  The process would include making sure that national federations governing the sport could come together so that international competitions could take place. This process may take time considering the political hurdles and differences that organizations may have with the sport.  Nonetheless, it’s a first step and with the UFC’s backing, it should help with having some national federations fall in line.

State Impact reports on the current status of MMA in Oklahoma.  You may recall that Zuffa threatened litigation due to the state’s 4% tax on PPV purchasers within the state.

ESPN’s Josh Gross reported early last week that Oklahoma was back in business and accepting MMA promoter applications.

A little background on the subject via State Impact:

The Oklahoma State Athletic Commission doesn’t receive any state funding, and its entire budget depends of fees and licenses for combat sports events. The commission licenses professional fighters and promoters, enforces health and safety rules and oversees fighting exhibitions and competitions.

The State Impact article reports that in 2011 64% of its revenue is generated from the PPV fees. 23% of its revenue were from live fights within the state. Chart via the Oklahoma State Athletic Commission.

The Oklahoma Attorney General is reviewing the constitutionality of the law.  As a result, Zuffa is holding off on filing a lawsuit until the AG makes its decision.  Thus, this appears the reason why the commission continues to operate.

As of right now, SB 1533 – known as the “Oklahoma State Athletic Commission Act” – would provide the commission with $200,000 in hopes of quelling a potential lawsuit from the UFC.  The money would make up for the amount it would receive from the PPV payouts.  The bill passed the House of Representatives Appropriation and Budget Committee.

An interesting sidenote as most of the PPV generated in the state is from pro wrestling PPVs and not the UFC.  Yet, there has not been public lobbying from the WWE (or TNA) about the tax.

Payout Perspective:

SB 1533 passed preliminary committee with no opposition so if passed, it appears that the resolution may suppress a Zuffa lawsuit.  Yet, it will be interesting to see the outcome of the AG’s decision on the constitutionality of the PPV tax.  We will see if Zuffa presses the AG for a decision regardless of SB 1533 as a means to quash any further state taxation on PPVs.

It was not a good Friday for TUF Live last Friday as the series scored its lowest ratings ever with 947,000 viewers.  Its the first time the series has dipped below a million average.

It was not a good night for the rest of the UFC programming either as the first episode of UFC Primetime: Jones vs. Evans began after TUF Live. It only garnered 462,000 viewers.  As a comparison, Spike TV’s reruns of UFC content received an average of 408,000 viewers.

TUF Live Episode 1: 1.28 million viewers
TUF Live Episode 2: 1.1 million viewers
TUF Live Episode 3: 1.2 million viewers
TUF Live Episode 4:  947,000 viewers

(h/t:  MMA Junkie)

Payout Perspective:

Dismal ratings all around for the UFC.  Do we attribute the poor ratings on the network change, the change to Friday nights, the content changes or all of the above.  Certainly, some viewers may DVR TUF Live and UFC Primetime although the show overruns make recording the west coast reruns impossible unless you record the whole night on FX.  As we reported last week, the UFC is still where it wants to be on FX based on the demos and overall performance of the network.  But, just like a young team that shows promise, there will be lots of growing pains.

It was not a good Friday for TUF Live last Friday as the series scored its lowest ratings ever with 947,000 viewers.  Its the first time the series has dipped below a million average.

It was not a good night for the rest of the UFC programming either as the first episode of UFC Primetime: Jones vs. Evans began after TUF Live. It only garnered 462,000 viewers.  As a comparison, Spike TV’s reruns of UFC content received an average of 408,000 viewers.

TUF Live Episode 1: 1.28 million viewers
TUF Live Episode 2: 1.1 million viewers
TUF Live Episode 3: 1.2 million viewers
TUF Live Episode 4:  947,000 viewers

(h/t:  MMA Junkie)

Payout Perspective:

Dismal ratings all around for the UFC.  Do we attribute the poor ratings on the network change, the change to Friday nights, the content changes or all of the above.  Certainly, some viewers may DVR TUF Live and UFC Primetime although the show overruns make recording the west coast reruns impossible unless you record the whole night on FX.  As we reported last week, the UFC is still where it wants to be on FX based on the demos and overall performance of the network.  But, just like a young team that shows promise, there will be lots of growing pains.

Toyo Tires announced yesterday that it would return as the official Tire sponsor of the UFC. Its logo will be present during 6 UFC PPVs this year as well as other events on FX and Fuel.

Via press release:

As the Official Tire of the UFC, Toyo Tires will also have an increased presence on UFC.com this year and plans to again incorporate UFC and MMA fighters into its marketing efforts.  SEMA Show attendees will recall Octagon-inspired display, photo opportunities and fighter appearances at the 2011 event.  The company also promotes the affiliation and activities through its consumer website and social media sites.

Showtime

Payout Perspective:

After a brief absence from the sport, Toyo Tires is back with the UFC and it looks like it will expand its role as a sponsor.  The company sponsors popular fighters such as Anthony Pettis, Mark Munoz and Miesha Tate.  In addition, most of the sponsorships include out of the ring appearances which fosters the fighters as a brand ambassador rather than someone just sticking a logo on the back of their trunks on fight night.  The sponsorship allows the company to key in on its demo and many fans are fully aware of the Toyo Tire logo in the Octagon.

The UFC and Multi Screen Media announced a four year deal to broadcast UFC programming in India.  Multi Screen Media is a subsidiary of Sony Pictures Television and its new sports channel, SIX, will air UFC events, taped special and fights from the UFC library.

Via UFC press release:

“When we went to India over a year ago I felt the market held enormous potential for the UFC,” said Lorenzo Fertitta, Chairman of UFC. “India has a long history of martial arts and traditional wrestling like Kushti. Indian athletes have also demonstrated worldclass levels in combat sports as evidenced by the country’s 2008 Olympic medalists in wrestling and boxing.”

“I’ve been saying for a few years that India would be next and it was just a matter of finding the right partner in the market. MSM has been a pioneer in India, broadcasting  new sports franchises like the IPL.  We’ve got big plans for India and MSM couldn’t be a better partner” said Dana White, President of the UFC.

Payout Perspective:

This should be a good partnership for the UFC as it builds its product overseas.  Recently, a Sports Business Journal full page ad indicated that international version of The Ultimate Fighter Live would have a stop in India (as well as Australia).  A recent MMA startup league, Super Fight League, ran its first card this year and it looks like the sport is growing interest.  Having UFC shows on a dedicated channel should help build into the MMA fan base in India.

Last year, UFC and FOX announced a huge 7 year TV deal worth as much as $90-$100 million per year, which would move UFC programming from Spike TV to FOX, FX, FSN’s, and Fuel TV.  Now that Q1 of 2012 has passed, we look back and analyze what type of impact UFC programming had on the FOX properties and how the new platforms have impacted the UFC.

NETWORK: FOX (112M households) Q1 Ratings:

UFC on FOX:

UFC on FOX 1: Velasquez vs Dos Santos: 5.7M, 3.1 household rating  (1 Hour Block, 1 Fight) UFC on FOX 2: Evans vs Davis: 4.7M, 2.6 household rating (2.5 Hour Block, 3 Fights)

Q1 Average: 5.2M … Trend: Down

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NETWORK: FX (99M households) Q1 RATINGS:

TUF LIVE:

TUF Live Episode 1 – 1.3M TUF Live Episode 2 – 1.1M TUF Live Episode 3 – 1.2M TUF Live Episode 4 – 1.054M

Q1 Average: 1.16M Viewers, Trend: Down

TUF Season Average Rating (last 5 seasons) on Spike TV:

TUF 14 Season on Spike TV (2011) Averaged 1.5M viewers TUF 13 Season on Spike TV (2011) Averaged 1.3M viewers TUF 12 Season on Spike TV (2010) Averaged 1.74M viewers TUF 11 Season on Spike TV (2010) Averaged 1.65M viewers TUF 10 Season on Spike TV (2009) Averaged 3M viewers

TUF Season Average (last 5 seasons) on Spike TV: 1.84M Viewers

Spike TV Comparable Trend: Down

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UFC on FX:

UFC on FX 1: 1.3M UFC on FX 2: 1.4M

Q1 Average: 1.35M Viewers, Trend: Up, Flat

UFN Average Rating (last 5 events) on Spike TV:

UFN 25 on Spike TV (2011) Averaged 1.8M viewers UFN 24 on Spike TV (2011) Averaged 2.2M viewers UFN 23 on Spike TV (2011) Averaged 1.85M viewers UFN 22 on Spike TV (2010) Averaged 1.2M viewers UFN 21 on Spike TV (2010) Averaged 1.6M viewers

UFN Average (last 5 events) on Spike TV: 1.73M Viewers

Spike TV Comparable Trend: Down

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UFC Primetime:

“UFC Primetime: Diaz vs. Condit” (Episode 1): 657,000 viewers “UFC Primetime: Diaz vs. Condit” (Episode 2): 520,000 viewers “UFC Primetime: Diaz vs. Condit” (Episode 3): 442,000 viewers

Q1 Average: 540,000 Viewers, Trend: Down

UFC Primetime Debut Episode Ratings (last 5 events) on Spike TV:

UFC Primetime: GSP vs Shields on Spike TV (2011): 610K viewers UFC Primetime: Lesnar vs Velasquez on Spike TV (2010): 974K viewers UFC Primetime: Rampage vs Evans on Spike TV (2011): 1.2M viewers UFC Primetime: GSP vs Hardy on Spike TV (2010): 1M viewers UFC Primetime: GSP vs Penn II on Spike TV (2009): 880K viewers

UFC Primetime Debut Episodes (last 5) Average on Spike TV: 933K Viewers

Spike TV Comparable Trend: Down, Flat

UFC on FX Prelims:

UFC 142 Prelims: 880K UFC 143 Prelims: 1.4M UFC 144 Prelims: 1.5M

 Q1 Average: 1.26M, Trend: Up

UFC Prelims Average Rating (last 5 events) on Spike TV:

UFC 141 Season on Spike TV (2011) Averaged 1.8M viewers UFC 139 Season on Spike TV (2011) Averaged 1.2M viewers UFC 137 Season on Spike TV (2011) Averaged 1.1M viewers UFC 136 Season on Spike TV (2011) Averaged 1M viewers UFC 135 Season on Spike TV (2011) Averaged 1.6M viewers

Previous 5 UFC Prelims Average on Spike TV: 1.34M Viewers

Spike TV Comparable Trend: Flat

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FX & SpikeTV: 2012 (Q1) Primetime Vs. 2011 (Q1) Primetime :

FX
- Men 18-49=  -20%
- Men 18-34=  -21%

Trend: Down

Spike
- Men 18-49 = +4%
- Men 18-34= +7%

Trend: Up

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NETWORK: FUEL TV (36M Households) Q1 RATINGS:

UFC on FUEL:

- UFC on Fuel TV 1: 217,000

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UFC on Fuel Prelims:

UFC on FX1 Fuel Prelims: 148,000 UFC on FOX 2 Prelims: 144,000 UFC on FX 2 Fuel Prelims: 113,000

Q1 Average: 135,000, Trend: Down

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UFC Tonight:

UFC Tonight Episode 1: 39,000 UFC Tonight Episode 2: 20,000 UFC Tonight Episode 3: 61,000 …

Q1 Average: 63,000, Trend: Up

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Overall Q1 Ratings Analysis (Fuel TV PR):

- Fuel TV is television’s fastest-growing cable network this year, according to figures released by Nielsen Media Research. In both the Total Day and Prime Time, the network recorded the largest percentage increases of total viewers among all rated, ad-supported cable networks in the first quarter of 2012.

- Fuel TV continued its unprecedented ratings increases in March, following the growth trend that began in January when Ultimate Fighting Championship® programming began to dominate key day-parts. February was the network’s most-watched month ever, featuring its first live UFC fight, which delivered the channel its most-watched program, most-watched Prime Time and most-watched week.

- Fuel TV aired 233 hours of UFC programming in February and added another 213 hours in March. FUEL TV telecast 646 hours of UFC programming in the first three months of 2012.

- Q1 2012 was FUEL TV’s most-watched in network history, finishing up +100% in Total Viewers and up +125% in M18-49 vs. Q1 2011

- Q1 Prime Time viewership increased +200% in Total Viewers and +260% among M18-49 vs. the same quarter last year

- Q1 Late Night increased +222% on Total Viewers and +275% among M18-49 compared to Q1 in 2011.

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Payout Perspective:

Making a conclusion as to whether the UFC and FOX TV deal is a success or failure based on only the Q1 ratings would obviously be premature, but it also doesn’t mean we can’t start to look at the performance of UFC content on the FOX platforms.

The obvious observations here after Q1 has to be how much UFC has helped out Fuel TV, not only in terms of ratings, but also increasing their reach from 30M to 36M since the TV announcement was made back in 2011.  However, Fuel TV at the end of the day only reaches 1/3 of the households that Spike TV reached while still being one of the lowest rated networks in cable TV, so unless Fuel’s reach picks up – doesn’t look like that will be the case until the end of the year at the earliest – the UFC will consistently be placing the majority of their content on a channel that only reaches a fraction of what Spike TV gets.

FOX is doing a great job at exposing the UFC product to the masses, but the last event was actually a big drop-off from the first event as every fight went to a decision and almost tripled the length of UFC on FOX 1. Not to mention that four shows a year is just not enough frequency for the casuals.  Getting mainstream sponsors for the FOX events has also not been as easy as was expected when the deal was made last year.  The ratings drop of the second show caused for the UFC to create “fun and exciting” match-ups for UFC on FOX 3 rather than book big names in hope that casuals will tune in and stick around for “fan-friendly” and exciting booked fights.

FX and the newly revamped “TUF Live” were a big part of the TV deal with TUF being the key platform the UFC uses to create future stars and PPV draws.  So far, the show has been a disappointment (in terms of ratings) with all-time rating lows for the series.  Dana White and the UFC brass predicted that they could very well reach 3 million viewers for TUF on FX  if they were getting around 1.5 million on Spike TV without any promotion.  Well, that prediction hasn’t panned out yet, even with heavy promotion leading up the the debut on FX.  More shocking is that after UFC moved to FX, FX network’s M18-34 and M18-49 demos have decreased compared to Q1 2011 while Spike’s have gone up.  FX dedicating Friday nights as “UFC Nights”, a day which is notorious for bad ratings and when the M18-34 demographic is not at home in front of their TV sets, has also not panned out for the UFC yet.  Moving the content to mid-week could be a solution, but FX is happy enough with the Friday night ratings since it’s an improvement from what they get with non-UFC content, so it looks like the UFC will have to ride this out for the time being.

There is something to be said about the simplicity of being a UFC fan and being able to find all the content you needed on one network.  Now, with multiple platforms designated with different UFC content, fans are having a difficult time migrating from Spike TV (who will continue to air UFC content through 2012) to multiple FOX platforms. FOX only shows UFC events 4 times a year, FX only on Fridays and sometimes on Saturday, while Fuel TV has designated days where they show no UFC content at all despite airing over 200+ hours of UFC programming a month . The complexity for the typical MMA TV viewer has definitely increased since the deal, but regardless of the vast TV programming now available, MMA fans can always count on tuning in on Saturday nights – usually once a month – to catch a big PPV event.  That is a consistent and simple message the UFC has promoted for years and one that still works. It gets hundreds-of-thousands of UFC fans pumped up for a UFC weekend. Sometimes, simplicity can be bliss.

Heavy MMA reports that Alistair Overeem has tested positive for increased levels of testosterone.  The test was taken after a press conference to hype Overeem’s title shot against JDS Memorial Day weekend.

Several fighters were tested March 27th with Overeem being the only positive test.  The test puts Overeem’s fight May 26th against Junior dos Santos all but off as he’d have to appear before the Nevada State Athletic Commission to obtain a license.  The positive drug test has angered Dana White and we will now see what Overeem and the UFC do to fix this situation.

Payout Perspective:

The pre-fight drug tests were a surprise to the fighters and the positive result really jeopardizes the main event. Suffice it to say, it will be interesting to see what Overeem will do.  Will he appear before the commission to offer some reasoning behind the test?  He also has the option of taking a second test.  If the second test comes back negative, then he’d have a better chance of receiving a license although it would not explain the first test.  From another side, it would be interesting to see what the UFC will do.  White was not happy about Overeem testing positive and it hurts what was to be a huge PPV.  The positive test may also force White’s hand with what to do with Overeem. He was in recent legal trouble and now testing positive on a drug test may put Overeem’s time with Zuffa on thin ice.  Also, what should the UFC do, if anything, to stress to its fighters about testing positive for drug tests.

UFC on Fox released a new commercial this week featuring Anderson SIlva. In the commercial, a dubbed Silva voice explains how he’s a regular guy despite doing superhuman things.

Payout Perspective:

The commercial is part of the “ordinary guys” strategy that Fox is using to promote the UFC. The commercial is similar to the Frankie Edgar one where he tames a tiger at the zoo via rear naked choke and the Jon Jones commercial where he’s at the park with his kids.  Its a sign of the Fox influence on the UFC product.  Not only does it humanize these guys as normal people despite their extraordinary abilities in the octagon, it shows a humorous and approachable side of the fighters.  The new strategy should help new viewers to MMA approach the sport and tune in.

MMA Weekly reports that the UFC will make it to China in 2012. Dana White indicated that the UFC is closing a deal with the Venetian Macau to hold the event.

The UFC opened offices in Asia in August 2010 and the UFC would like to make inroads into China.  It had placed hopes with UFC fighter Zhang Tiequan in hoping that his success would equate to a following in China.  Despite Zhang’s defeats in the Octagon he has picked up many fans of the sport.  The support for Zhang can be exemplified by the fact that he picked up 100,000 followers to his Weibo (equivalent to Twitter) account after his UFC debut in Australia in 2011.  The UFC hopes that there would be a sufficient level of MMA fighters from the country that it could feature on a card in China.  The company sees that a market will develop faster if there is local talent to display. It used this strategy in 2002 with the UFC’s first trip to the United Kingdom.

The expansion of the product into Asia is a logical move despite hurdles it must overcome.  Lorenzo Fertitta noted two reasons expansion makes sense.

Via Yahoo! Sports:

“We’ve talked a lot about our international expansion and China is one of the focal points for the company,” Fertitta said. “We know it’s going to be a long-term play there. It’s got a tremendous amount of potential, primarily for two reasons. One, obviously, is because of the size of the market. It’s a huge market. And two, there is a long-standing martial arts background that the country has from a cultural standpoint.

Payout Perspective:

The Asian market especially China is fertile ground for the UFC due to the amount of people that are in the country.  The NBA recognized this and capitalized on it with Yao Ming and is getting a second run at the market with Taiwanese American Jeremy Lin’s popularity. The UFC hired former NBA exec Marc Fischer to run its Asian operations.

MMA Payout has written about the challenges in China from both the short term and long term perspective.  Although the articles are from late 2010, we can see that it has executed much of what we’ve written about. Its worth a reread.

MMA Weekly reports that Facebook streams of UFC fights have received as many as 140,000 viewers on its web page.  This information comes from Dana White after the UFC 146 press conference this week.

In speaking with the press, White offered up a number of viewers to its Facebook streams which have aired prior to prelims on television.  “I think the most we’ve ever had watching on Facebook was something like 140,000 people. That’s a good number,” White added, “If you look at some of the numbers that some of these other organizations have pulled whether it’s on HDNet, MTV2, or whatever it might be, to pull 140,000 is a good number.”

White indicated that the Facebook streaming comes at a cost to the company.

Via MMA Weekly:

It does come at a cost, however. White didn’t put any numbers to dollar signs, but he did say that cost was a factor when they recently opted not to stream just a single fight on Facebook when there wasn’t space for it on television.

White told reporters that he didn’t know how many people that watch on Facebook actually buy the PPVs stating that there’s no way to accurately track it.

Payout Perspective:

The Facebook stream viewership has been one of the bigger secrets held by the UFC and its sponsors as no one has put a number to them.  It appears that White is pleased with the use but also looks to the fact that the costs may override the marketing benefits.  In the past, there have been sponsors for Facebook which may offset some of the UFC’s costs to stream.  But, one must think of the content its placing on Facebook.  Most of the fights are the opening bouts as the more interesting prelim fights are now televised.  With the Fox deal and the availability of Fuel and FX, Facebook may become less of a need.

Obviously, taking live fights off of Facebook somewhat flies in the face of the UFC’s championing of social media.  But, if the UFC steers away from live streaming of its fights on its Facebook page, I’m sure there’s other ways it can drive its fans to its Facebook page.