Zuffa’s Former WEC Staff Takes Over Strikeforce

Posted in Featured, opinion and analysis, Strikeforce, TV, WEC, Zuffa on May 18th, 2011 by Jose Mendoza

All it took was two events after the Strikeforce purchase was announced for Zuffa to take over the Strikeforce promotion and replace the staff, quickly disproving the “business as usual” motto tied to the acquisition two months ago.

According to MMAPayout sources, May 9th, 2011 was the last day Strikeforce was an MMA  promotion under Silicon Valley Sports & Entertainment, their previous owners who sold the budding promotion to Zuffa, LLC.  A few days after 5/9, Scott Coker and Peter Dropick met with the old Strikeforce staff individually to inform them that their services would no longer be required to avoid operational overlap and inefficiencies. A couple of staff members were offered positions to join Zuffa, but accepting the job would required a move to Las Vegas, which was not seen as a desirable move for those that were already established in Northern California. Those few opted to stay in the Bay Area instead.  Those that were willing to relocate and accept an offer from Zuffa were not offered a position.

As MMAPayout reported last month, Strikeforce employees were aware that after the April 9 event, staff changes were going to be made by early May and Zuffa would complete the process around early July, when most Strikeforce staff is expected to have worked their last days under the promotion.  Rich Chou was let go a few weeks ago and was replaced by former WEC matchmaker Sean Shelby.  Former WEC VP Peter Dropick will now do most of the heavy lifting for Strikeforce, as he was assigned to help run the promotion shortly after it was purchased.

It is still unclear what Scott Coker’s role will be going forward, but he will still be the figurehead of the promotion as long as they are up and running. It’s said that part of Scott Coker’s contract, besides a guaranteed job with Zuffa, included a clause that states he does not need to relocate to Las Vegas and could continue to work from his San Jose office, though that could not be confirmed upon publishing this article.  Former WEC PR director Dave Sholler has been traveling with the Strikeforce staff helping promote their events since the purchase was announced, and will continue to spearhead the PR efforts for upcoming events.  He flies to Dallas this week to meet up with Scott Coker, Herschel Walker, and Josh Barnett for a press tour in order to promote the second leg of the Heavyweight Grand Prix event in June.

Payout Perspective:

In post mergers and acquisitions, these type of layoffs are expected and it’s no difference in this case.  In fact, considering the situation regarding the Strikeforce TV deal with Showtime – which will be up around February/March of 2012 – it makes perfect sense.  During that time, Showtime will have the option of extending the TV deal, which would keep Strikeforce alive for the span of that deal.  Without an extension, many in the MMA industry believe the promotion could be folded as early as second quarter of 2012.  Negotiations between Zuffa and Showtime should heat up in the upcoming months leading up to the expiration date of the current TV contract.

Behind the scenes, Strikeforce is continuing to sign young prospects (Yuri Villefort, Maximo Blanco) and popular veterans (Keith Jardine, Jeff Monson) to fill up their cards, since they have a heavy schedule planned with Showtime for the remainder of the year.  During recent contract negotiations, fighters have stated that they only spoke to Zuffa personnel (no one from Strikeforce) and that everything ran a bit smoother behind the scenes since the takeover.  Fighter manager Monte Cox told Sherdog.com that Zuffa wasted no time in making changes:

“We didn’t get per diem [money]. We didn’t get mileage [money]. They just didn’t pay those things for the undercard…. Now there’s per diem. Now there’s travel. Now there’s three nights for a hotel. Instantly that all changed. For those guys, it’s a homerun.”

Along with increasing incentives for undercard fighters, Zuffa has done away with amateur fighters in the prelim slots, which will in fact help many in the Strikeforce roster who complained that they weren’t getting enough fights.  The extra room will allow to book more fighters already under contract, though Showtime will continue their policy not to air the prelims.  As a result, the UFC was looking to package those fights into another outlet for the fans, and although Facebook is a likely destination, nothing has been officially announced or confirmed yet.

No matter what type of outcome the Showtime TV negotiations produce, it appears that Zuffa  has their personnel ready to either keep the promotion running or start the merge process, a move similar to what the WEC experienced just a year ago.  Luckily for the former WEC staff, they are on the other side of the merger talks this time around.

MusclePharm to be Featured During Strikeforce: Diaz vs. Daley on Showtime

Posted in Featured, press release, Strikeforce, WEC, Zuffa on April 9th, 2011 by Jose Mendoza

MusclePharm announced earlier today that they will be prominently featured during the Strikeforce: Diaz vs Daley event airing on Showtime Saturday night.

From the press release:

MusclePharm Corporation, a Nevada corporation (“MusclePharm” or the “Company”) MSLP, an expanding U.S. healthy lifestyle company, is pleased to announce that it will be prominently featured during Saturday’s Strikeforce: Diaz vs. Daley fight card, which takes place at Valley View Casino Center in San Diego, California and will be broadcast live on Showtime cable network.

MusclePharm will have significant mat placement in the cage for the event, which will be available live to Showtime’s 16.5 million subscribers.

This will be Strikeforce’s first major event since it was purchased by Zuffa, LLC (“Zuffa”), which is the parent company of the Ultimate Fighting Championship (UFC).  Zuffa acquired Strikeforce on March 12. In the main event, Nick Diaz defends his welterweight title against challenger Paul “Semtex” Daley.

Thanks to his entertaining style and brash personality, Diaz has been involved in several of Strikeforce’s most viewed telecasts on Showtime, which we believe will allow for greater exposure for MusclePharm during the broadcast.

The co-main event features current lightweight champion Gilbert “El Nino” Melendez fighting Tatsuya “Crusher” Kawajiri.

Payout Perspective:

In the press release, MusclePharm claims that it will have significant mat placement in the cage for the event, which will be available live to Showtime’s 16.5 million subscribers.  They also go on to point out that Nick Diaz has been involved in several of Strikeforce’s most viewed telecasts on Showtime, which will allow for greater exposure for MusclePharm during the broadcast.

MusclePharm has also been tied to some interesting headlines lately, most notably, a report that surfaced last year claiming that Musclepharm, the WEC’s official supplement company at the time, owed the WEC $375,000 in sponsorship fees. The company’s debt was sold to a third party company, and shortly after that settlement, MusclePharm announced they had raised 1.4 million to continue to fund the company. MMAPayout covered the events earlier this year:

It was announced last month that nutritional supplement company, MusclePharm, owed Zuffa approximately $375,000 in over-due sponsorship fees accrued over the course of a year-long agreement between the two companies starting in January. This outstanding debt was subsequently sold by Zuffa to a collection agency in the Fall.

Many were surprised to see the brand return to the Octagon in January. The WEC deal had expired and Zuffa didn’t appear to have any outstanding obligations to the company. Why would it do business with a company that had already failed to pay its debts? The answer is ostensibly because MusclePharm was able to raise new capital in December to fund new marketing efforts and recommit to sponsoring UFC fighters (including the payment of the UFC “sponsor tax”).

MusclePharm signed a one year deal with the WEC back on January of 2010 and had accumulated debt throughout the partnership with the WEC.

World Extreme Cagefighting® announced today that MusclePharm will serve as the organization’s Official Sports Nutrition Company for 2010. Considered a leader in the sports nutrition industry, MusclePharm is committed to providing the best nutritional products to athletes and general consumers. MusclePharm’s commitment to athletes, in particular mixed martial artists, made the partnership attractive to WEC officials.

“We are pleased to have MusclePharm as our official sports nutrition company for 2010,” WEC Vice President Peter Dropick said. “They are dedicated to providing the best nutritional products to athletes of all levels. Because of that, they are a great fit for WEC.”

Since the time the WEC/UFC merger took place late last year, the fate of MusclePharm was in limbo considering the debt collected working with the WEC along with the UFC’s exclusive sponsors and partners, though it seems they are in good graces with the UFC once again.

Good4U drinks was in a similar situation when the UFC banned them for being  a competitor to one of their existing sponsors.  Good4U was able to land on HDNet, followed by Showtime as a main sponsor just a few weeks ago for M-1′s debut on the network.  Showtime is quickly becoming a great alternative for MMA sponsors who are looking for a platform to grow their brand, as many sponsors are not allowed in the UFC.

MusclePharm Raises $1.4 Million

Posted in financial, sponsorships, Tapout, WEC, Zuffa on January 8th, 2011 by Kelsey Philpott

In December, nutritional supplement company, MusclePharm, raised $1.4 million through convertible promissory notes and a registration agreement with accredited investors.

“We are very pleased with the successful completion of the agreement with the investor and believe this capital will support our capital requirements for growth,” commented Brad Pyatt, MusclePharm’s Chief Executive Officer. “We appreciate our investor’s confidence in MusclePharm as we continue to execute our long-term growth strategy.”

 

This capital raise, combined with the previously released fulfillment agreement with IVitals, further enhances the Company’s overall financial strength for future long-term profitable growth. Management will continue to focus on the development, sales & marketing of MusclePharm’s growing portfolio of nutritional supplement products.

Payout Perspective:

It was announced last month that nutritional supplement company, MusclePharm, owed Zuffa approximately $375,000 in over-due sponsorship fees accrued over the course of a year-long agreement between the two companies starting in January. This outstanding debt was subsequently sold by Zuffa to a collection agency in the Fall.

Many were surprised to see the brand return to the Octagon in January. The WEC deal had expired and Zuffa didn’t appear to have any outstanding obligations to the company. Why would it do business with a company that had already failed to pay its debts? The answer is ostensibly because MusclePharm was able to raise new capital in December to fund new marketing efforts and recommit to sponsoring UFC fighters (including the payment of the UFC “sponsor tax”).

MusclPharm’s new apparel partnership with Tapout is encouraging. It’s a textbook case of two brands working together to better leverage the sponsorship of a property and increase value. This is something that’s going to hit across multiple sponsorship objectives such as awareness, interest, intent to purchase, favorable attitudes towards the brand, and increased sales.

However, I remain skeptical that the company can turn things around.  The company sponsors a lot of fighters and that’s a good thing, but if it blows through its working capital again, then it’s likely to leave a lot of people in the lurch. Here’s a glimpse of its liquidity and capital resources as of November 15th’s Q10 (emphasis mine):

Liquidity and Capital Resources

 

Our primary source of operating cash has been through the sale of equity and through the issuance of convertible secured promissory notes and other short term debt as discussed below.

 

At September 30, 2010, the Company had cash of $10,657 and a working capital deficit of $2,578,866, compared to overdrawn bank accounts of $17,841 and a working capital deficit of $1,223,074 at December 31, 2009. The working capital deficit increase of $1,355,792 is primarily attributed to the operating losses incurred for the nine months ended September 30, 2010.

 

Cash used in operating activities was $2.4 million for the nine months ended September 30, 2010, as compared to cash used in operating activities of $0.4 million for the nine months ended September 30, 2009. The increase in cash used in operating activities for the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009 was primarily the result of the net operating loss net of non-cash expenses, for the current nine month period.

 

Cash used in investing activities was $30,395 for the nine months ended September 30, 2010, as compared to cash used in investing activities of $5,510 for the nine months ended September 30, 2009. The increase in cash used in investing activities represents purchases of various fixed assets. We also maintain a website http://www.musclepharm.com), designed for customers and investors. Future investments in equipment and other fixed assets, as well as further development of our Internet presence will largely depend on available capital resources.

Note: I pointed out last week that Tapout has been much less consistent on the activation front in the last six months (due, in part, to what I believe to be the ABG acquisition and likely marketing strategy reformulation). However, the partnership is something I also believe needs to be recognized; more sponsoring brands need to co-promote, because its an innovative way of pooling resources, leveraging a sponsorship, and creating value that might not always be present with stand alone activation strategies. Kudos.

Edgar-Maynard rematch cuts in front of Pettis title shot

Posted in opinion and analysis, UFC, WEC on January 3rd, 2011 by Jason Cruz

The trilogy beat out Showtime. After an outstanding match between Frankie Edgar and Gray Maynard ending in a draw at UFC 125, the UFC booked an immediate rematch between the two. The move contradicts the initial plans for the Edgar-Maynard winner face WEC lightweight champ, Anthony Pettis.

The move to switch course came after UFC Vice President Craig Borsari confirmed at the UFC 125 post-fight press conference that Pettis would get the next shot at the champ, Frankie Edgar.

Via MMA Junkie:

Borsari said UFC president Dana White, who did not attend the evening’s post-event press conference, informed him of the impending booking. Obviously, Maynard was dejected by the news. Maynard, who heard of the news as it was revealed to the media, immediately dropped his head and later admitted the revelation that he would not get a second crack at the belt was indeed painful.

Later that night, the UFC changed its plans. Instead of the promised title shot for Pettis, it decided that a third fight between Edgar and Maynard take place.

“We changed the plans. After Craig made the announcement, I had a lot of people talking to me, and the reality is, Gray Maynard deserves that fight. We had planned on doing Anthony Pettis next, but Gray went in there and fought his ass off and deserves another chance,” White added, “In the UFC, we do the right thing, and the right thing is to put on this rematch.” (via MMA Junkie, h/t Yahoo Sports)

Payout Perspective:

For all the planning the UFC could have done, it didn’t think that the Edgar-Maynard fight would end in a draw. Such a great fight needed a winner, and it didn’t, and Dana White and the UFC powers decided that it would be best to have a third fight before the promised fight for Anthony Pettis. Maybe White’s absence at the post-fight press conference was due to him deciding the next move for Edgar, Maynard and Pettis

This is a difficult decision and you could see arguments on both sides of the fence as to whether an immediate rematch was the correct choice. For Pettis. it stalls career momentum. Last month he was a media darling and his career was ascending. This month, he is old news. His Showtime kick will be shelved until his title shot…if he gets it. He was in attendance at the PPV and one has to wonder if the UFC planned for him to enter the Octagon to do a promo with the winner of the match. Since, it was a draw, any planned promo had to be scrapped. It’s unclear what’s next for Pettis. He joins Jon Fitch as a fighter promised a title shot only to have it pulled from him (With Chael Sonnen back, Yushin Okami will likely have this happen to him later this year).

Good news for Maynard. He gets another shot at Edgar. After the first round, the fight went back and forth and it was too close to call. It would be a shame for Maynard to put out such a great performance only to receive a draw. A third fight should get some interest and a good PPV number for fight number 3. 

There are many questions that come out of this change:

What happens if Maynard wins the third fight, or wins by just split decision? Does Edgar get a rematch since he was the champion?

When Pettis gets the shot, will the UFC bill the fight as unifying the UFC-WEC title? How long will Pettis have to wait for the shot? Will he be given a fight in the interim? Does the slight of Pettis say anything about the integration of the WEC into the UFC?

Edgar-Maynard rematch cuts in front of Pettis title shot

Posted in opinion and analysis, UFC, WEC on January 3rd, 2011 by Jason Cruz

The trilogy beat out Showtime. After an outstanding match between Frankie Edgar and Gray Maynard ending in a draw at UFC 125, the UFC booked an immediate rematch between the two. The move contradicts the initial plans for the Edgar-Maynard winner face WEC lightweight champ, Anthony Pettis.

The move to switch course came after UFC Vice President Craig Borsari confirmed at the UFC 125 post-fight press conference that Pettis would get the next shot at the champ, Frankie Edgar.

Via MMA Junkie:

Borsari said UFC president Dana White, who did not attend the evening’s post-event press conference, informed him of the impending booking. Obviously, Maynard was dejected by the news. Maynard, who heard of the news as it was revealed to the media, immediately dropped his head and later admitted the revelation that he would not get a second crack at the belt was indeed painful.

Later that night, the UFC changed its plans. Instead of the promised title shot for Pettis, it decided that a third fight between Edgar and Maynard take place.

“We changed the plans. After Craig made the announcement, I had a lot of people talking to me, and the reality is, Gray Maynard deserves that fight. We had planned on doing Anthony Pettis next, but Gray went in there and fought his ass off and deserves another chance,” White added, “In the UFC, we do the right thing, and the right thing is to put on this rematch.” (via MMA Junkie, h/t Yahoo Sports)

Payout Perspective:

For all the planning the UFC could have done, it didn’t think that the Edgar-Maynard fight would end in a draw. Such a great fight needed a winner, and it didn’t, and Dana White and the UFC powers decided that it would be best to have a third fight before the promised fight for Anthony Pettis. Maybe White’s absence at the post-fight press conference was due to him deciding the next move for Edgar, Maynard and Pettis

This is a difficult decision and you could see arguments on both sides of the fence as to whether an immediate rematch was the correct choice. For Pettis. it stalls career momentum. Last month he was a media darling and his career was ascending. This month, he is old news. His Showtime kick will be shelved until his title shot…if he gets it. He was in attendance at the PPV and one has to wonder if the UFC planned for him to enter the Octagon to do a promo with the winner of the match. Since, it was a draw, any planned promo had to be scrapped. It’s unclear what’s next for Pettis. He joins Jon Fitch as a fighter promised a title shot only to have it pulled from him (With Chael Sonnen back, Yushin Okami will likely have this happen to him later this year).

Good news for Maynard. He gets another shot at Edgar. After the first round, the fight went back and forth and it was too close to call. It would be a shame for Maynard to put out such a great performance only to receive a draw. A third fight should get some interest and a good PPV number for fight number 3. 

There are many questions that come out of this change:

What happens if Maynard wins the third fight, or wins by just split decision? Does Edgar get a rematch since he was the champion?

When Pettis gets the shot, will the UFC bill the fight as unifying the UFC-WEC title? How long will Pettis have to wait for the shot? Will he be given a fight in the interim? Does the slight of Pettis say anything about the integration of the WEC into the UFC?

WEC 53: Payout Perspective

Posted in Dethrone, Featured, gate, ratings, sponsorships, twitter, UFC, WEC on December 22nd, 2010 by Jason Cruz

Welcome to another edition of Payout Perspective: WEC edition. The final WEC event took place in Glendale, Arizona at the Jobing.com arena. In the main event, hometown favorite Benson “Smooth” Henderson faced Anthony “Showtime” Pettis. Fitting for the WEC, it ended with a flourish with the kick seen everywhere.

Business Storylines

It’s Showtime! Pettis claims UFC lightweight title shot

Anthony Pettis solidified his promotion to the big show by defeating Benson Henderson. Whatever you want to call the kick, everyone has seen it and commented on it. We have looked at its promotional value and the mainstream attention it has drawn.

The kick is the biggest MMA move to occur in the era of social media. Don’t think so? Just look at how many times it was looped on ESPN. It was featured on Top Plays of the Night, commented on Pardon The Interruption and Pettis was interviewed on ESPN’s First Take. It was an Internet sensation.  It even received a posting on Deadspin.  Not to mention, Pettis’ twitter account exploded with 4,000 more followers in a day.

For the WEC, it was an appropriate way to send it off. For Pettis, it is not hyperbole to think that the kick propelled him as an overnight sensation. For Henderson, a dominant reign in the 155 pound division ended on the biggest night for the title. An instant shot at the UFC title and a main event on MMA’s biggest stage was on the line. But, Pettis looked prepared for Henderson and implemented a strategy which wore down Henderson (by literally riding his back for almost one round) one of the best conditioned athletes in the lightweight division.

Pettis will be a marketable 155 pounder if he shows well against Maynard or Edgar.  Fans will like his flash, his fighting style and the anticipation that he will put on a “Showtime” move at a moment’s notice.

Cruz defeats Jorgenson—possible TUF coach versus Faber

Overshadowed by the “Showtime” kick, Dominick Cruz dominated Scott Jorgenson to win the new UFC Bantamweight title. It’s rumored that Cruz and Urijah Faber will oppose each other as TUF coaches in 2011. This would be a great way to introduce the Bantamweight division and the Cruz/Faber rivalry to the UFC viewers.

Zhang loses

Tiequan Zhang lost by unanimous decision to Danny Downes on the undercard.  This is a setback for Zhang, the first fighter from China, as Zuffa is trying to garner more interest from the China market. Zhang’s fight was televised live in China.

Versus Pre and Post Fight Show

Once again, Versus included a Pre-Fight and Post-Fight Show. Prior to the pre-fight show, Versus ran the World MMA Awards. A good lead-in to a night of fights. The Pre-Fight Show served as the ad hoc retrospective for the WEC. The broadcast did a sufficient job of previewing the fights while looking back at the best of WEC.  Still, it would have been nice to have had a dedicated hour to look back at the best fights and fighters. 

Promoting the Fight

Most of the promotion for the fight centered around hometime favorite Henderson, which makes his loss more bittersweet. Henderson made appearances at the Phoenix Coyote hockey game and at a rally in his honor. His gym, MMA Lab, held daily Ben Henderson contests on twitter giving away Henderson memorabilia leading up to the fight.

Bonuses

Fight of the Night – Henderson v. Pettis – $10,000

Submission of the Night – Shane Roller – $10,000

Knockout of the Night – Eddie Wineland – $10,000

These bonuses will be much more in the UFC. As you may recall, UFC 124 fighters made $100K bonuses–ten times what was dished out at the final WEC card. Unlike UFC 124, the main event, Henderson/Pettis, was definitely the fight of the night.

Sponsorship Watch

-Henderson sported t-shirt maker Dethrone Royalty while Pettis was a Form Athletics endorser. After the win, Form Athletics sent out a press release congratulating Pettis and maybe made a little jab at Henderson’s sponsor.

Pettis overcame a nearly 2-to-1 underdog rating, dethroning lightweight title-holder Ben Henderson in the card’s featured fight of the night.

Maybe reading into this, but it would be a funny jab to use dethrone in describing Pettis’ win.  Despite the loss, Dethrone still has a champion stable of Velasquez and Aldo.

-It was interesting to see Henderson’s primary short sponsors as The Gun Store and Iron Bridge tools. The Gun Store as a sponsor seems a little contrary to Henderson, a devout Christian.

-MusclePharm continued as a mat sponsor despite a report that it settled a debt in which it owed the WEC $375K for outstanding sponsorship debt.

-The Kenny Powers/Uriah Faber commercials for KSwiss are hilarious. They are not new, but it shows the marketability of Faber.

Attendance

According to MMA Junkie, 6,348 fans attended the event at the Jobing.com Arena in Glendale, Arizona. It is the seventh largest crowd in WEC history. The top three were WEC events in Sacramento. It was the promotion’s first time in Arizona.

The venue was chosen as a result of a fan vote from the “Hometown Throwdown” promotion sponsored by Amp Energy.

(UPDATE) Ratings

MMA Junkie reports that the event scored a strong 0.62 household rating and an average audience of 615,000 viewers. In addition, the post-fight show on Versus scored a 0.34 household rating with an audience of 352,000.

Conclusion

For the last round of the last fight for an outstanding organization, it would have been nice if Versus kept with the fighters as they came out of their corners. Instead, we saw the two fighters in the center of the ring. It was a small thing, but it’s the details that would help close out the organization.

I was surprised that there was little closure to the end of the WEC. Reed Harris mentioned in more than one interview that he’s been “too busy” to think about the ending of the WEC. Yes, this may be true, but it seems like he is ignoring the history of the situation. Perhaps this was the corporate edict-business as usual. Definitely, Zuffa could have capitalized on the ending of the WEC with a retrospective and a bigger lead-up to the event. It could have released a “Best of” DVD just in time for the Holidays. Although the WEC 53 pre-show provided some memories, it seemed like more could have been done.

But, the story of the night, and what made the night a success was the “Showtime” kick. It was a good sendoff for the WEC.

The Promotional Value of the Pettis Kick

Posted in advertising, marketing, TV, UFC, WEC on December 17th, 2010 by Kelsey Philpott

Anthony Pettis became a worldwide trending topic on Twitter on Thursday, December 16 when in the 5th round of his WEC lightweight championship fight he leapt from the ground, pushed off the cage, and delivered a roundhouse kick to the face of a stunned Ben Henderson and dropped him to the floor.

Naturally, my reaction was “Nice kick. I wonder how much it’s worth?”.

Payout Perspective:

I’ll point out that the promotional value of the Pettis kick depends on the assumptions made. It’s nearly impossible to come up with an accurate number because there are so many factors that influence a UFC PPV event purchase decision. Yet, I always enjoy estimating the value of fights and performances simply as an exercise to further my understanding of how the fight game works. So, let’s have some fun and play with it a little:

UFC

The promotional value of this kick to the UFC will be determined by a number of things: increased interest in the UFC, its PPVs, its live events, it’s television events, and its merchandise. However, for simplicity’s sake let’s just look at the number of people influenced by Pettis to watch his next fight. In this case the short term is far easier to estimate than the long term (just know that the more success Pettis comes to have, the more this kick will continue to add value to the UFC in the future).

I’ll start with asking a simple question: how many people were watching the fight last night? We’ll know in a few days, but the peak viewership was likely in the 500,000 to 750,000 range. Now let’s make two assumptions:

1. Nearly everyone that saw last night’s event has been motivated to watch Pettis his next fight.
2. The UFC will get 1 PPV buy from every 10 of those fans (this is consistent with the notion of 10 fans per viewing party)

This gives us 50,000 to 75,000 PPV buys as the result of Pettis’ performance (the kick being the last thing that most fans remember is very influential here). The calculations then are as follows:

- 50,000 x $49.99/2 =  $1.25 million
- 75,000 x $49.99/2 =  $1.9 million

*Note: under the terms of the UFC’s agreement with PPV companies, it receives approximately half of that $49.99 (although I understand that the UFC is starting to earn a more favorable term here).

Now, it’s here that we need to adjust our estimate based on the likelihood that those watching the WEC show are the types that buy UFC cards every time out. In other words, how do we know those 500,000-750,000 fans watching WEC (most likely semi to hardcore fans) aren’t the types that buy every PPV anyway? It’s a valid consideration. So, let’s assume that 50% of those watching the WEC card would have been on the fence as to whether to buy Pettis’ next fight. The new estimated value of the kick is then probably closer to $625,000-$950,000.

MMAPayout.com’s Jason Cruz rightly points out that the UFC will use this kick in a host of future promotional videos, Spike TV Countdown Shows, ESPN SportsCenter, and other PR efforts in order to convince casual fans that missed the fight that Pettis is a dynamic and exciting fighter worthy of challenging for the belt. It’s plausible, depending on how much they push Pettis’ kick and dynamic abilities that this could translate into as few as 25,000 PPV buys or as many as 50,000 more. This adds an $625,000 to $1.9 million to the value pie.

Thus, we arrive at an estimated short term promotional value of the kick at between $1.25 million and $2.85 million.

Pettis

The value to Pettis is harder to determine. Immediately he received a $10, 000 bonus for fight of the night. I’d also venture to guess he’ll be given a sizable discretionary bonus from Zuffa (anywhere between $10,000 and $50,000). However, in moving to the UFC, we have to be careful to separate the extra value Pettis will receive as the result of that kick from what he would have received just because of the move itself.

The easiest way to estimate this is perhaps to just take a percentage of the UFC’s value. The UFC typically pays out ~20% of its gross revenue to the fighters and this translates to anywhere between $250,000 to $570,000 over the medium term. I say medium term because there’s going to be a lag between what the UFC earns due to Pettis and what Pettis earns due to himself (as the result of contracts that lock him into a certain compensation set for a period of time).

Don’t forget sponsorship value too. Pettis will be a hot commodity for his fight with the winner of Edgar vs. Maynard.

Conclusion

The kick was incredibly impressive. It’s moments like that which make this sport so incredible. It’s also more support for the idea that the key to developing PPV draws is finding those with immense and entertaining fighting ability. All the charisma and good looks in the world cannot match the selling effect of a beautifully timed jumping roundhouse kick off the fence. It all starts and ends with fighting ability. Everything else comes second.

Perhaps the only thing I would have changed is the fact that it happened in the WEC. Imagine the value of that kick if it happens in the UFC (or even for the WEC in an earlier show). I also think this kick (and the card as a whole) is demonstrative of the value the WEC’s divisions will add to the UFC.

Showtime kick shuts down WEC

Posted in WEC on December 17th, 2010 by Jason Cruz

Anthony “Showtime” Pettis dethroned the WEC lightweight champion, Benson Henderson tonight at WEC 53.  Living up to his nickname, Pettis walked the cage to kick Henderson directly in the face in the 5th Round of a tight contest. 

The kick has gained immediate mainstream interest. Jim Romehas commented about it on twitter.  In fact, many on twitter have posted their reaction to Showtime’s move. ESPN will likely run the kick on Sportscenter again and again. It was on ESPN.com’s main page as a “Have You Seen” video. UPDATE:  It was No. 2 in Sportscenter’s plays of the night. J.R. Smith dunk was No. 1. (h/t Josh Gross via twitter)

Payout Perspective:

The highlight reel kick should be used in all UFC promos. There is no blood or bones breaking, just incredible skill. It rivals Rampage Jackson’s slam of Ricardo Arona in Pride as highlight fight endings.  Of course, Pettis’ kick came in the 5th Round of a title fight. For Pettis, this is a great way to introduce himself to the UFC fan base as he moves on to face the Maynard/Edgar winner. The promotion of a Pettis fight just got easier for the UFC. Unfortunately for Henderson, a great WEC career ended in disappointing fashion.

The Kick: Showtime shuts down WEC with highlight move

Posted in WEC on December 17th, 2010 by Jason Cruz

Anthony “Showtime” Pettis dethroned the WEC lightweight champion, Benson Henderson tonight at WEC 53.  Living up to his nickname, Pettis walked the cage to kick Henderson directly in the face in the 5th Round of a tight contest. 

The kick has gained immediate mainstream interest. Jim Romehas commented about it on twitter.  In fact, many on twitter have posted their reaction to Showtime’s move. ESPN will likely run the kick on Sportscenter again and again.

Payout Perspective:

The highlight reel kick should be used in all UFC promos. There is no blood or bones breaking, just incredible skill. It rivals Rampage Jackson’s slam of Ricardo Arona in Pride as highlight fight endings.  Of course, Pettis’ kick came in the 5th Round of a title fight. For Pettis, this is a great way to introduce himself to the UFC fan base as he moves on to face the Maynard/Edgar winner. The promotion of a Pettis fight just got easier for the UFC. Unfortunately for Henderson, a great WEC career ended in disappointing fashion.

Report: MusclePharm to settle outstanding debt from WEC sponsorship

Posted in sponsorships, WEC on December 16th, 2010 by Jason Cruz

In the last days of its existence, a report has surfaced indicating that Musclepharm, the WEC’s official supplement company, owed the WEC $375,000 in sponsorship fees.

The WEC issued two invoices to MusclePharm  for a total of $500,000, and while  MusclePharm was only able to pay for half of the first one, they came up with none of the money for the second invoice.   The WEC sold the debt to a third party (Socius), and MusclePharm was forced to give them 7,800,000 shares of Common Stock, as they were unable to produce the necessaey (sic) capital to pay off the debt.

H/T: Anthony Roberts

An email to Musclepharm requesting comment was not returned.

Payout Perspective:

Since the debt was sold to a third party, the outstanding debt would not have carried over to the UFC after the merger. The report includes the first page of a pleading indicating an “Order Approving Stipulation for Settlement of Claim”. The lawsuit looks to be filed in Los Angeles and Socius is the plaintiff suing defendant MusclePharm. A hearing on the stipulation for the settlement appears to have taken place on December 8th. The Complaint was filed December 6th. I attempted to look up the lawsuit in Pacer but it was not yet in the system. We will continue to follow this story and try to track down the Complaint.

WEC prepares for last event ever

Posted in Public Relations, WEC on December 14th, 2010 by Jason Cruz

Heading into the final week of its existence, the WEC has planned several events to promote its final card to be held at the Jobing.com Arena in Glendale, Arizona. In addition, Versus will once again have pre- and post-fight shows.

Most of the pre-fight promotion has centered around Benson Henderson. Henderson, the WEC Lightweight Champion, is set to fight Anthony “Showtime” Pettis in his adopted hometown of Glendale, Arizona. According to the WEC teleconference last week, a rally will be held in Glendale Tuesday to honor Henderson. The NHL’s Phoenix Coyotes honored Henderson last week with an honorary jersey. Last month, he dropped the puck at a Coyotes game. In addition, open media workouts featuring Henderson, Pettis and the Bantamweight main eventers Scott Jorgenson and Dominick Cruz will take place at Henderson’s gym, the MMA Lab. Capitalizing on the exposure, Henderson’s gym is currently having an online twitter contest in which it is giving away Henderson merchandise.

Payout Perspective:

It is interesting to note that most of the events promoting the fight involve Henderson. Overshadowed by the fact that it is the WEC’s last show, the fans picked Glendale as the site for this event as part of the Hometown Takedown contest. Since Henderson lives and trains in Glendale, it makes sense to have him appear as the face of this card. However, it is somewhat odd that Pettis, Jorgenson or Cruz aren’t involve more in promoting the fight. The Henderson-Pettis fight will be important since the winner gets the next title shot at either Maynard or Edgar in the UFC. 

The Versus pre and post fight show should include lots of looking back at the WEC while looking ahead to the fighters moving on to the UFC.

On another note, I am surprised that the WEC/UFC have not provided a WEC retrospective leading up to the last WEC event. Perhaps this will happen before the end of the year, but I think it would be nice to have a tribute show to the best fights/fighters of the WEC in a “WEC Wreckage”.

WEC Coming to Canada

Posted in booking, MMA Payout, WEC on March 4th, 2010 by MMAPayout

Keith Greinke of TopMMANews is reporting that World Extreme Cagefighting has officially booked June 20th for a show in Calgary, Alberta.

 As reported in January, Zuffa was planning to bring the WEC to Calgary this summer. At the time, WEC Vice-President Peter Dropick said, “It looks like we’re going to Calgary.” Now, Top MMA News has confirmed that the WEC has booked June 20th for their Canadian debut in Calgary in the Stampede Corral.

 

Calgary Combative Sports Commission chairperson Shirley Stunzi confirmed this to Top MMA News saying, “I can advise you now that WEC has officially booked June 20 in Calgary for their event.”

Payout Perspective:

In most Canadian markets – Toronto, Winnipeg, Calgary, Edmonton, Halifax, etc. – mixed martial arts is quickly becoming the second most popular sport behind the country’s national religion of hockey. The WEC in Calgary will be an absolute boom for the promotion. Moreover, it’ll likely open Zuffa’s eyes to the potential of the Great White North for hosting future events; Winnipeg, Edmonton, and Halifax are all ripe markets for WEC or even UFN shows.

However, it’s important to note that promotions often book many different dates and venues just to cover their bases. Until the WEC officially announces this event, nothing is guaranteed.

WEC 47 Coverage @ MMAPayout.com

Posted in MMA Payout, WEC on March 3rd, 2010 by MMAPayout

Streaming coverage of WEC events is available on MMAPayout.com courtesy of Zuffa.

Live Coverage Schedule:

  • WEC 47 Post-Fight Press Conference: Saturday, March 6th @ 9:30PM PT

Archived Coverage Schedule (posted soon after conclusion):

  • WEC 47 Q&A and Weigh-In: Friday, March 5th approximately 3PM PT

*Each event will be available in separate posts on MMAPayout.com

MMAterial Facts (03/02/10)

Posted in MMA Payout, MMAterial Facts, Strikeforce, WEC on March 3rd, 2010 by MMAPayout
  • Strikeforce: Henderson vs. Shields on CBS Official
  • No Fedor, No Problem
  • Dana White: Fighting’s in our DNA
  • Urijah Faber AMP Energy Commercial – Video
  • Lashley, Marshall build through support, teamwork

Strikeforce: Henderson vs. Shields on CBS Official

Mixed martial arts (MMA) legend and two-time United States Olympic wrestling competitor Dan Henderson (25-7) will challenge STRIKEFORCE World Middleweight (185 pounds) Champion Jake Shields (24-4-1) in the main event of a highly anticipated STRIKEFORCE fight card at Bridgestone Arena (formerly known as Sommet Center) in Nashville on Saturday, April 17.

In other featured bouts, STRIKEFORCE World Light Heavyweight (205 pounds) Champion Gegard Mousasi (28-2-1) will defend his crown against undefeated MMA star and two-time NCAA All-American wrestling star “King Mo” (6-0) while STRIKEFORCE World Lightweight (155 pounds) Champion Gilbert “El Nino” Melendez (17-2) will put his title on the line against DREAM Champion and top-ranked Japanese superstar Shinya Aoki (23-4).

An exclusive special pre-sale ticket purchase opportunity for STRIKEFORCE: Henderson vs. Shields will take place for “STRIKEFORCE Insider” e-newsletter subscribers (www.strikeforce.com/signup.asp ) beginning at 10 a:m. CT tomorrow/Wednesday, March 3, and ending at 10 p.m. CT on Thursday, March 4. STRIKEFORCE Insiders will receive a special
e-newsletter Tuesday tonight with the pre-sale code. (MMAPayout Perspective)

***

Herschel Sitting Out April 17 Strikeforce on CBS

Herschel Walker will not fight on April 17 for Strikeforce’s sophomore effort on CBS, the promotion’s matchmaker Rich Chou confirmed with Sherdog.com on Tuesday.

Sirius satellite radio’s “The Fight Show with Mauro Ranallo” was the first outlet to report of Walker’s potential omission from the card, which will air live during its “Saturday Night Fights” slot on the major broadcast network.

Chou said the decision was made jointly on Monday between the promotion and network to allow Walker more time to train for his second career fight. Chou said Walker, who lives in Los Angeles, could return to the San Jose, Calif.-based American Kickboxing Academy within a few weeks to resume his training, but that no return date to the cage has been set for the 47-year-old athlete yet.  (Sherdog)

***

Tickets on sale tomorrow for April 17 Strikeforce-CBS event at Bridgestone Arena

With official announcement of the event expected in the next hour, tickets for the April 17 “Strikeforce: Nashville” event apparently go on sale tomorrow.

According to Ticketmaster.com, the event will be held at Bridgestone Arena (which will be known as the Sommet Center until an official name-changing on Wednesday), and tickets for the show range from $25 to $195 plus fees/taxes.

“Strikeforce: Nashville” features a championship headliner between Strikeforce middleweight title-holder Jake Shields and UFC veteran/recent Strikeforce signee Dan Henderson.  (MMAJunkie)

No Fedor, No Problem

There have been rumors circulating in the last few weeks that Strikeforce and its co-promotional partner M-1 are having some difficulties in arranging the next Fedor fight, which had originally been planned for April on CBS. It’s really unfair to comment on those rumors at this time, but suffice it to say something hasn’t gone according to plan and Strikeforce has been forced to switch things up a little.

I’m not yet convinced that Strikeforce going with the triple title fight on CBS is necessarily a bad thing. In giving the spotlight to the six very talented fighters in Henderson, Shields, Mousasi, Lawal, Melendez, and Aoki, Strikeforce is hoping to put on a great event, build some brand recognition, and promote some of its other talented fighters.

Plus, there’s a risk to having Fedor headline every major event; something like what we saw EliteXC do in betting the farm on Kimbo Slice.  If they’re looking to build their brand only through Fedor, they’re making a terrible mistake.  (MMAPayout Perspective)

Dana White: Fighting’s in our DNA

He believes that when fans come to a live show, it brings a whole new experience to the fans, and that’s something electric that you can’t feel unless you’ve been there in person.

“Anybody that goes (to a live event)… they’re going to go and infect 30 or 40 more people with what they saw. You think you like it on TV, wait till you see it live,” said White recently.

And he doesn’t shy away from comparing the UFC to the biggest sport in the United States. White says that while the NFL has the right plan for the American market, it’s never translated worldwide.

“I think as big as the NFL is in the United States, it’s huge,” he stated. “This last Super Bowl that we just had was the biggest watched television show in history. That’s how big the Super Bowl is, and they’ve been trying to break into all these other markets, but people don’t understand it. They’ve never played it. They didn’t grow up playing it. They don’t know the rules and they’re never going to be invested in the New England Patriots or the New York Giants.”

Reaching down to the primal level is where White believes fighting will always be successful because everyone understands it, and everyone wants to watch.

“Fighting – I don’t care what color you are, or what language you speak, or what country you live it, we’re all human beings and fighting’s in our DNA. We get it and we like it,” he stated.

“Before a guy ever hit a ball with a bat, or a ball went through a hoop, there were two guys on this planet and somebody threw a punch, and anybody who was standing around was watching it. It translates across all different barriers, and this will be the biggest sport in the world, I guarantee it.”  (MMAWeekly)

Urijah Faber AMP Energy Commercial – Video

Fans of the WEC, and more specifically Urijah Faber, might have noticed a new primary sponsor on the former champ when he entered the cage in January to face Raphael Assuncao. Once the poster boy for Pepsi’s No Fear Energy, Faber now sports the company’s flag ship energy brand, AMP, which is presently the official energy drink of World Extreme Cagefighting as well as an official sponsor of the California Kid. But what you didn’t notice was the extra camera crew set up in Faber’s locker room, grabbing backstage footage and then filming his walkout for a “live” commercial for the popular energy brand.

AMP was granted unprecedented access by the WEC and its officials to film what was described as a “one and done” reality advertising campaign.

“We’re chronicling how people AMP up for events. The anticipation for something you are passionate about,” said Ken Strnad, Sr. Marketing Manager of AMP Energy. “With this, it’s Urijah getting ready in the locker room. Then the announcement and walk in. The cameras flashing. It’s capturing the raw emotion that not only Urijah feels, but the crowd feels as well. We’re giving the viewer something they don’t normally get to see.”

Strnad continues, “MMA is an incredible sport that is growing at an incredible clip. We absolutely know that MMA fans are energy drinkers and this is where we want to be.”  (Heavy)

Lashley, Marshall build through support, teamwork

When Bobby Lashley competed in his latest MMA match for Strikeforce at the Bank Atlantic Center in (South Florida) Sunrise, his girlfriend, former WWE Diva Kristal Marshall, sat ringside, taking cell photos of him and cheering him to victory.

They live together in Colorado.

“It’s good to have family around when you fight,” Lashley said, “because it’s always hard and it’s always tough to train and fight and keep going like that. It’s good to have fans, friends, family, everybody there to celebrate it with you.”

Lashley, 33, a former amateur wrestling standout who wrestled professionally for TNA and WWE, spends time running his new American Top Team Altitude location in Denver and also trains at the American Top Team facility in (South Florida) Coconut Creek.

Following Lashley’s win, improving to 5-0 in MMA, Marshall answered some questions.

“I’m so excited for him, and I’m so proud,” Marshall said. “It’s just really hard to watch him fight. I’m still not at a place where I’m OK with it.

“I just hope, and I think it’s going to happen very soon, but I hope that he gets more respect [from the MMA community]. He deserves it. People see him, and they think he’s just a pro wrestler, but nobody really recognizes his decorated background.

“He’s a tremendous athlete and a very, very decorated amateur wrestler. He’s phenomenal, and I’m just really proud of him, and I think that a lot of people are going to take more notice in him and take him more seriously.”  (Miami Herald)

QUOTE OF THE DAY

“If a promotion wants to give him a fight, it’s like if anyone else walking off the street wanted to fight, so I’m not going to say no. I’m going to say come on in, and it’s kind of a challenge for me,” added Gracie.

“Can we teach this guy who has no ability in MMA, and can we get him in three months, not to fight a contender, because I wouldn’t even waste my time, but to fight a guy like Herschel Walker? Who, to his credit, has learned some MMA and everything. That would be the challenge on my part, so I said, ’Yeah, come on in. Let’s try this challenge. Let’s try to make it where you beat this guy,’ and that’s it. That’s my mindset on that.”  (Cesar Gracie on Jose Canseco vs Herschel Walker, MMAWeekly)

IMAGE OF THE DAY

Strikeforce Nashville: Henderson vs Shields Poster

QUICK HITS

  • Josh Barnett Signs with Dream (MMAPayout Perspective)
  • WEC 47 Lineup Finalized (Sherdog)
  • SRC 12 Finalized (Japan-MMA)
  • UFC vet Marcus Davis and manager address inflammatory AIDS comments (MMAJunkie)
  • “The Ultimate Fighter 11″ exclusive photo gallery of all 28 cast members (MMAJunkie)
  • Overeem Likely to Face Rogers in May (MMAFighting)
  • Lesnar Rooting for Mir to Get Past Carwin (MMAFighting)
  • WANDERLEI SAYS AKIYAMA NEXT, THEN BISPING (MMAWeekly)
  • CESAR GRACIE ON JOSE CANSECO VS HERSHEL WALKER (MMAWeekly)
  • If he wins WEC title, Cruz doesn’t care who’s next (Cage Writer)
  • Javier Vazquez Has Been Preparing for Jens Pulver His Whole Career (Heavy)
  • Three title fights official for “Strikeforce: Henderson vs. Shields” on April 17 (FiveOuncesOfPain)

TV LISTINGS

  • HDNet Fights Presents K-1 Classics (2008 K-1 World Max) at 8 PM ET on HDNet (03/05/10)
  • InsideMMA (Matyushenko, Renzo Gracie) at 9 PM ET on HDNet (03/05/10)
  • HDNet Fights Presents Furious Finishes IV, at 10 PM ET on HDNet (03/05/10)
  • Best of Pride FC at 10 PM ET/PT on Spike (03/05/10)
  • WEC 47: Bowles vs Cruz on at 10 PM ET on Versus (03/06/10)

UPCOMING EVENTS

  • WEC 47: Bowles vs Cruz on at 10 PM ET on Versus (03/06/10)
  • HDNet Fights: Sengoku Raiden Championship 12 at TBD on HDNet (03/12/10)
  • HDNet Fights: XFC X-Night of Champions at 10 PM ET on HDNet (03/19/10)
  • UFC on Versus: Vera vs Jones at 10 PM ET on Versus (3/21/10)
  • HDNet Fights: King of the Cage – Legacy at 10 PM ET on HDNet (03/26/10)
  • Strikeforce Challengers: Johnson vs Mahe at 11 PM ET/PT on Showtime (03/26/10)
  • UFC 111: GSP vs Hardy at 10 PM ET on PPV (03/27/10)
  • UFN 21 : Florian vs Gomi at 10 PM ET on Spike (03/31/10)
  • The Ultimate Fighter 11 Debut after UFN 21 on Spike (03/31/10)

MMAterial Facts (02/25/10)

Posted in MMA Payout, MMAterial Facts, ProElite, Strikeforce, WEC on February 26th, 2010 by MMAPayout
  • Strikeforce Confirms April 4/17 Event in Nashville
  • Strikeforce Airs in Canada and UK, Also Adds Interactive Verizon FiOS Functionality
  • HGH testing could be adopted
  • WEC  Enters “pivotal” stretch; DirecTV still unresolved
  • Stratus Media and ProElite Appoint New Chief Operating Officer William Kelly to Rejoin ProElite

Strikeforce Confirms April 4/17 Event in Nashville

Mixed martial arts fans have been anxiously awaiting word about what’s next for Strikeforce, which has been rumored to have another big card on CBS coming up in April. Strikeforce CEO Scott Coker confirmed Thursday that Strikeforce will have a card in Nashville on April 17 but said fans will have to wait just a little bit longer for any details.

“We’ve been putting most of our efforts into the fight tomorrow night,” Coker said of the Strikeforce Challengers card on Friday in San Jose. “But we’ll have some announcements next week, for sure. … We will be having a fight in Nashville on April 17, but the rest of the information we’ll be announcing next week.

In addition to the fighters mentioned above, Coker mentioned Brett Rogers, who fought Fedor in November, and Shinya Aoki, the Japanese Dream lightweight champion who could battle Strikeforce lightweight champ Gilbert Melendez, as fighters he’s excited about getting into the Strikeforce cage soon.

“For Brett, I think the fights that make sense for him are Antonio Silva or Alistair Overeem — those are the two guys I’d like to see him fight right now,” Coker said. “I think you’ll see Aoki relatively soon. We’re working hard to try to make that happen.”

Coker also said he expects Strikeforce to have a pay-per-view card before 2010 is out. (MMAFighting)

Strikeforce Airs in Canada and UK, Also Adds Interactive Verizon FiOS Functionality

On the eve of its sixth Challengers event on Showtime, Strikeforce has announced a pair of media deals that continue to expand its global reach and multimedia offerings.

Canadian Sarah Kaufman face Japan’s Takayo Hashi in a main event battle for the first Strikeforce women’s welterweight (135-pound) championship. The fight will now be available in Kaufman’s home country on Super Channel, Canada’s only national pay television network.

Another interesting addition to Strikeforce’s multimedia offerings is being part of the new Showtime Sports Interactive offering. Part of Verizon’s FiOS TV, Showtime Sports Interactive will offer Strikeforce Challengers 6 at 11 p.m. ET on Friday night, which includes voting and polling functionality and fighter profiles. All FiOS TV customers with a high-definition set-top box who subscribe to Showtime will have access to the interactive experience. (MMAWeekly)

***

Strikeforce Challengers VI Airs On Bravo In The UK

As part of Bravo TV’s recent deal with Strikeforce, more events than ever from the promotion will be available to air on the UK based station, including this weekend’s Strikeforce Challengers VI card.

The event, which airs live on Showtime on Friday night (26th February) in the U.S, will be shown in the UK two days later on Sunday night at 10pm.  (FightOfTheNight)

***

Showtime Networks and Verizon announced today the launch of the first nationwide, high-definition interactive television application (iTV) using EBIF (Enhanced TV Binary Interchange Format), with the new SHOWTIME Sports Interactive.  Verizon’s FiOS TV customers will have the first look at the network’s interactive experience – including voting and polling functionality and fighter profiles – during the live Strikeforce Challengers mixed martial arts telecast, Friday, Feb. 26 (11 p.m. ET).  All FiOS TV customers with a high-definition set-top box who subscribe to SHOWTIME will have access to the interactive experience.

“SHOWTIME has been leading the industry with digital enhancements and Interactive TV for over a decade.  With the launch of SHOWTIME Sports Interactive, we are excited to be joining Verizon at the forefront, bringing this state-of-the-art feature to SHOWTIME HD,” said Robert Hayes, senior vice president and general manager of digital media at Showtime Networks.  “SHOWTIME continues to innovate and provide value-added features to our subscribers and our sports programming provides the perfect setting for the ‘lean forward’ experience that is now possible with Interactive TV.”  (CNN Money) … (MMAPayout Perspective)

HGH testing could be adopted

The NFL this year told its players union of its interest in testing for HGH.

“Our position is that HGH blood testing has advanced to the point where we are taking steps to incorporate it into our program,” NFL spokesman Greg Aiello said. “Blood work is part of our players’ annual physical. We do have mandatory blood testing already.”

A baseball authority has said Commissioner Bud Selig wants to have players blood tested for HGH, with the baseball expected to adopt a blood-testing program for minor league players this year in its effort to root out use of the substance that has been credited for building strength.

Keith Kizer, executive director of the Nevada State Athletic Commission, said he doesn’t “know where this leads,” after a dispute over blood testing led to the cancellation of next month’s scheduled Manny Pacquiao-Floyd Mayweather Jr. fight in Las Vegas.

“This is a pleasant development and something we’ll take great interest in,” Kizer said. (LA Times)

WEC  Enters “pivotal” stretch; DirecTV still unresolved

With strong ticket sales for March’s “WEC 47: Bowles vs. Cruz” event and a “booming” pre-sale for April’s blockbuster “WEC 48: Aldo vs. Faber” card, Harris believes company records may soon be falling.

And while the promotion, along with the remainder of the Versus channel’s programming, remains on the outs with DirecTV and has met with some criticism for its choice to price WEC 48 as a $44.99 pay-per-view event, Harris says his company will deliver.

“With these next two cards, we’ve got our hands full,” Harris told MMAjunkie.com (www.mmajunkie.com). “Just like [our fighters] focus on their fights, we focus on our cards, and we’re excited. These next two events are pivotal events for us at WEC.”

“Last I heard, [Versus and DirecTV] are talking,” Dropick said. “I haven’t been told it would not happen, but I don’t have anything else besides that. As we’ve said in the past, we’re hopeful it’s going to happen.

“There’s certainly some quite intriguing programming coming up on Versus over the next month-and-a-half here with the WEC on March 6, the UFC on March 21, and the NHL playoffs start in April. We’re hopeful it happens soon.”  (MMAJunkie)

***

WEC Exec: Attendance for Aldo-Faber PPV Could Exceed 15K

It has all the signs of a landmark moment, and World Extreme Cagefighting General Manager Reed Harris has done little to slow the hype machine.

Harris thinks WEC 48 “Aldo vs. Faber” on April 24 could draw more than 15,000 fans to the Arco Arena in Sacramento, Calif. By comparison, the WEC’s most recent event in the Golden State’s capital city claimed an attendance of 10,027 last month.

“We had a record pre-sale,” Harris said during a Thursday teleconference. “Ticket sales are trending very well. I think there could be upwards of 15,000 or so there.”  (Sherdog) … (MMAPayout Perspective)

Stratus Media and ProElite Appoint New Chief Operating Officer William Kelly to Rejoin ProElite

Stratus Media Group, Inc., a live entertainment company, announced today that William Kelly has been appointed to the position of Chief Operating Officer of both Stratus Media Group and ProElite, Inc. Mr. Kelly previously held the position of Chief Operating Officer of ProElite from its inception until October 2008.

“I am very pleased to appoint William as Chief Operating Officer,” stated Paul Feller, President and CEO of Stratus, “Due to Stratus’ plans for rapid growth over the next year, we identified the need to hire a person of exceptional talent and experience as COO to manage the daily operations of both our existing companies and the integration of newly acquired companies and events. In addition to his experience at ProElite and his knowledge of the MMA business, Mr. Kelly’s background is an ideal fit for our requirements and we are happy to have such a valuable addition to our team.”

Mr. Kelly brings over two decades of entertainment and media operations and management experience to Stratus. Prior to ProElite, Mr. Kelly Co-founded Television Korea 24 Inc. (tvk24) in 2003, where he served as Chief Operating Officer. In 2001, Mr. Kelly joined the Extreme Sports Channel as Chief Operating Officer International…  (PRESS RELEASE)

VIDEO OF THE DAY

  • MMA Live 2-25-10: Highlights and analysis of UFC 110, as Cain Velasquez cements his status as a heavyweight contender. Also, Chael Sonnen checks in to discuss Frank Mir’s comments on Brock Lesnar.

IMAGE OF THE DAY

Bellator XIV - Chicago Theatre Poster

QUICK HITS

  • All fighters on weight at “Strikeforce Challengers VI: Kaufman vs. Hashi” weigh-in (MMAJunkie)
  • KAUFMAN PLANS TO BRING MORE GOLD TO CANADA (MMAWeekly)
  • “Countdown to UFC on Versus 1″ airs March 6 after WEC 47 (MMAJunkie)
  • EliteXC champ Noons vs. Amade, Kikuno and Chonan added to DREAM.13 (MMAJunkie)
  • Fedor Emelianenko’s Next Fight Will Be in May (MMAFighting)
  • Amoussou Has Career as Undercover Cop (MMAFighting)
  • EliteXC “will be revived” (Fighters Only Magazine)
  • Analysis: Inside Zuffa’s Legal Win Over Shamrock (Sherdog)
  • KJ NOONS SLATED TO RETURN AT DREAM 13 (MMAWeekly)
  • Who’s the liar? White or Jackson? (Cage Writer)
  • Showtime, FiOS Launch Fancy New Interactive TV Application (Heavy)
  • Shine Fights announces third event “Worlds Collide: Mayorga vs. Thomas”  (FiveOuncesOfPain)
  • Frank Mir’s killer quote (ESPN)

TV LISTINGS

  • HDNet Fights Presents K-1 Classics (Hari vs Bonjasky) at 8 PM ET on HDNet (02/26/10)
  • InsideMMA (Dominick Cruz, Alan Belcher and Karen Darabedyan) at 9 PM ET on HDNet (02/26/10)
  • HDNet Fights Presents The Featherweights, Vol. 2, at 10 PM ET on HDNet (02/26/10)
  • Best of Pride FC at 10 PM ET/PT on Spike (02/26/10)
  • Strikeforce Challengers: Kaufman vs Hashi at 11 PM ET/PT on Showtime (02/26/10)

UPCOMING EVENTS

  • Strikeforce Challengers: Kaufman vs Hashi at 11 PM ET/PT on Showtime (02/26/10)
  • WEC 47: Bowles vs Cruz on at 10 PM ET on Versus (03/06/10)
  • HDNet Fights: Sengoku Raiden Championship 12 at TBD on HDNet (03/12/10)
  • HDNet Fights: XFC X-Night of Champions at 10 PM ET on HDNet (03/19/10)
  • UFC on Versus: Vera vs Jones at 10 PM ET on Versus (3/21/10)
  • HDNet Fights: King of the Cage – Legacy at 10 PM ET on HDNet (03/26/10)
  • Strikeforce Challengers: Johnson vs Mahe at 11 PM ET/PT on Showtime (03/26/10)
  • UFC 111: GSP vs Hardy at 10 PM ET on PPV (03/27/10)
  • UFN 21 : Florian vs Gomi at 10 PM ET on Spike (03/31/10)
  • The Ultimate Fighter 11 Debut after UFN 21 on Spike (03/31/10)

WEC 48: Record Setting Pre-Sale

Posted in gate, MMA Payout, pay-per-view, WEC on February 26th, 2010 by MMAPayout

Brian Knapp of Sherdog.com reports that the WEC had a record pre-sale for its forthcoming WEC 48 event, which is slated to be the organization’s debut PPV effort.

Harris thinks WEC 48 “Aldo vs. Faber” on April 24 could draw more than 15,000 fans to the Arco Arena in Sacramento, Calif. By comparison, the WEC’s most recent event in the Golden State’s capital city claimed an attendance of 10,027 last month.

 

“We had a record pre-sale,” Harris said during a Thursday teleconference. “Ticket sales are trending very well. I think there could be upwards of 15,000 or so there.”

 

WEC 48, which marks the promotion’s historic debut on pay-per-view, will feature a pair of five-round title bouts, including the ballyhooed headliner between featherweight champion Jose Aldo and former titleholder Urijah Faber.

 

Aldo, Sherdog’s 2009 “Fighter of the Year,” has not competed since November, when he blasted through American Top Team’s Mike Thomas Brown and captured 145-pound gold in a second-round technical knockout. Spawned by the Nova Uniao camp in Brazil, the 23-year-old will carry a nine-fight winning streak into his showdown with Faber. Aldo rose to the top of the featherweight division without much resistance, as he finished his first six foes inside the WEC, three of them inside one round.

 

Still the promotion’s most marketable commodity, Faber submitted Brazilian jiu-jitsu black belt Raphael Assuncao with a third-round rear-naked choke in the WEC 46 co-main event a month ago. The charismatic 30-year-old Californian has won 15 of his past 17 fights, losing only to Brown in that span.

 

Though the $44.95 price for the PPV remains a point of contention with some, Harris believes fans “will get their money’s worth” with the WEC 48 card, which includes a rematch between WEC lightweight champion Benson Henderson and Donald Cerrone. Still, it figures to sink or swim on the strength of the main event.

 

“In talking to the guys upstairs, [UFC President] Dana [White] and all them, they all believe this could be one of the best fights of the decade,” Harris said. “We’re very confident about it.”

Payout Perspective:

Sacramento, California may be the fighting home of Urijah Faber, but it’s also quickly becoming the unofficial home of the WEC. The organization has scored consistently high gates and ratings in the market – largely on the back of Faber – and now it’s poised to bring the biggest show in WEC history to the ARCO Arena. Not surprisingly, the fans in Sacramento have yet to disappoint.

Big crowd, big gate – what’s the big deal? Aside from the obvious larger-than-normal gate receipts, the importance of a sellout live crowd from the perspective of the PPV can be equated to credibility. WEC 48 is going to be the organization’s first PPV event, and rightly or wrongly, first impressions often have lasting effects. If everyone in the MMA community – Dana, Reed, the fighters, etc. – are telling MMA fans that this is the biggest fight of the year, then it damn well better have that look and feel.

Fifteen thousand screaming fans will help.

MMAterial Facts (02/04/10)

Posted in Bellator, MMA Payout, MMAterial Facts, Strikeforce, UFC, WEC on February 5th, 2010 by MMAPayout
  • More on the Potential April 24 WEC / Strikeforce Clash
  • Strikeforce ‘Miami’ Attendance Figures Released
  • Bellator Fighting Championships forms alliance with online poker giant UB.net
  • Former NBA All-Star Glen Rice in Business of Fight Promoting
  • Dana White on Strikeforce, Herschel Walker, Kimbo’s next fight and more
  • Kimbo is no Herschel

More on the Potential April 24 WEC / Strikeforce Clash

1. The WEC card is completely dependent on Urijah Faber staying healthy and fighting on the card.  If something happens and Faber is hurt the event will lose close to all of it’s “casual viewer appeal.”

2. At $44.95 50,000 buys is very likely an acceptable success threshold for the WEC:

Judging by the price point of $44.95, 50,000 buys would bring in $2,247,500.  Assuming roughly 60% takeout by cable/satilite companies/other sources there would be a leftover take-in of $899,000.  The total disclosed fighter payout for WEC 46 was $272,000.  Now we can assume somewhere around a 50% increase in the payouts based on the rumored card being much more stacked top-to-bottom than the average WEC event.  That brings the total payout of $408,000.  $899,000 – $408,000 = $491,000.  This doesn’t take in ticket sales, building rental, production costs…etc.  But it would seem they would have to lose close to half a million dollars in these other areas for the event to be a “loss” should they manage to do 50k in PPV buys.

3. April 24 is one of the only dates that makes any degree of sense for the promotion’s return to CBS:

The 10th is UFC 112 which is shaping up to be a mega-card.  If Scott Coker has any input into what dates they can and can’t run on, he would tell them to stay far away from going heads-up with this card.  The 17th is a Super Six boxing card on Showtime.  With Showtime being CBS owned there was no chance that they would put the two combat shows against each other.  The 3rd is the only Saturday left in April and that would create a period of 5 MMA shows in a 4 week period which COULD hurt Strikeforce if fans choose to take a weekend off by skipping the non-UFC event.  (BloodyElbow)

***

I’ve voiced my opinion on this PPV – saying it should happen, but questioning the price point and timing of the event – but I really think the WEC is taking some solid steps towards addressing those concerns and mitigating some of that risk inherent in an initial PPV offering.

The most important step the WEC has made is to label the event as the “UFC Presents: WEC 48 – Faber vs. Aldo” because that’s going to help alleviate some of that brand equity gap that might have caused casual consumers to shy away from an unknown product at $44.95. But it cannot stop at just a label. The UFC and WEC need to build and reinforce the presentation with a host of content and promotional material that further leverages the UFC brand in order to raise the profile of the WEC … [MMA Payout's Perspective]


Strikeforce ‘Miami’ Attendance Figures Released

The debut of Herschel Walker and two championship bouts sold 4,927 tickets for a net gate of $301,424.60 at Strikeforce “Miami,” according to documents obtained by Sherdog.com from the Florida Department of Business and Regulation.

According to the paperwork, 2,083 comped tickets were distributed for the Jan. 30 event held at the BankAtlantic Center in Sunrise, Fla., boosting the overall attendance to 7,010 spectators. The disclosed fighter payroll for the event was $469,600.  (Sherdog)

***

STRIKEFORCE: MIAMI DRAWS 7,010 FOR $300,000

The promotion still pays taxes on the complimentary tickets, which were valued at $238,511.52, but that total does not get subtracted from the ticket revenue. It is solely a valuation to determine the amount of taxes the promotion pays on complimentary tickets.

The Florida State Boxing Commission also reported that Strikeforce received a $700,000 “Broadcast, Television, or Motion Picture” rights fee, as well as $8,003 from “Programs, Souvenirs, and Concession” sales.  (MMAWeekly)

Bellator Fighting Championships forms alliance with online poker giant UB.net

Bellator Fighting Championships, the nationally televised mixed martial arts promotion, has formed an exclusive sponsorship alliance with leading online poker site UB.net designed to leverage the two companies’ synergistic demographics and powerful online presences.

This first-of-its-kind, fully integrated partnership will introduce Bellator to the tens of millions of online poker players worldwide who visit UB.net every month while increasing awareness of the UB.net brand among the millions of MMA fans available through Bellator’s new groundbreaking television alliance with FOX Sports Net, NBC and Telemundo beginning April 8th.

“We’re super excited to tie the new UB logo to Bellator—the hottest MMA success story of 2009—and are proud to partner with them in their sophomore year,” said Paul Leggett, chief operations officer of Tokwiro, the owner/operator of UB.net.

“Last year, we watched from the sidelines as the new kid on the MMA block delivered some of the most explosive moments in televised fighting sports history; this year, we’re elated to jump in the cage as an active player in the Bellator phenomenon, while exposing the UB brand to more than 250 million homes across the U.S.”

Under the terms of the agreement, UB.net will have a prominent presence on all Bellator broadcasts and at Bellator.com as well as a substantial on-site presence at each of the promotion’s events in 2010. Bellator, meanwhile, will have a major presence on the UB.net Web site. UB.net will also sponsor online tournaments that give players the opportunity to win an all-expenses-paid trip to sit cage-side at Bellator events.

“Bellator’s fans have great synergy with UB’s multi-million player group: they’re young, successful and drawn to exciting, fast-paced competition,” said Bellator founder and CEO Bjorn Rebney. “This alliance will be great for both companies and we are thrilled to be partnered with UB.net.”  (Bellator)

Former NBA All-Star Glen Rice in Business of Fight Promoting

“No Herschel Walker for me,” Rice told MMA Fighting recently with a hearty laugh. “Hey, I applaud what he’s doing, but I’m going to stay in the position I’m in right now. I’m going to watch these guys enter the cage, and I’m going to stay on the outside of it.”

The former NBA star’s new role is the owner and head of G-Force Fights, a Miami-based MMA promotion that will run its third card on Thursday.

His company, along with Pro Team TKO, are presenting “Bad Blood 3″ with local American Top Team talents Hector Lombard and Jorge Masvidal headlining the co-main events on the 13-fight card.

After 15 seasons in the NBA, three All-Star games and four years removed from his 2000 NBA championship, Rice retired from competition in 2004. Then Rice took, for the most part, the next two years off to reflect on his accomplishments and give his body a much-needed rest.

But by 2008, Rice, who says he became a big fan of MMA since the early UFC days of Royce Gracie and Ken Shamrock, was ready to turn the interest into opportunities, not just for himself in his post-NBA unemployment stage, but also for others in the area.

“I said, ‘You know what?” Instead of being a big fan, I think I can do something to help these guys and being had I just retired from the NBA,” he said. “It gave me an opportunity to do something as well. So I decided to start my own promotional company and form G-Force Promotions.”  (MMAFighting)

Dana White on Strikeforce, Herschel Walker, Kimbo’s next fight and more

On Brock Lesnar’s impending return to the UFC:

We have to do these next two fights with Nogueira/Velasquez and Carwin/Mir and then we’ll figure out what we’re going to do. We have to do the fight in Australia first, and then the Newark fight. If those guys come out of the fight healthy (Carwin or Mir), then we’ll do that fight.

The earliest Brock will return? If everything goes perfectly, he could fight in July. The end of June or July.

On ESPN’s coverage of mixed martial arts in the United States:

Do you know what ESPN was talking about all day yesterday? They were talking about Herschel Walker and Jose Canseco. Are you kidding me? Every show, they’re talking about Herschel Walker and Jose Canseco. You’ve got Brock Lesnar, Georges St. Pierre, Anderson Silva. All of these guys are incredible athletes who put a ton of time into training for these fights, and all you can talk about is goofy ass Jose Canseco? Are you kidding?

On Herschel Walker’s Strikeforce fight and its impact on the MMA world:

I don’t think it’s bad for MMA if this guy wants to go out and fight. But to give him one ounce of coverage? It’s retarded.

If he wants to have a hobby, that’s fine. But if he fights anybody who is any good whatsoever, he’s going to get beat. He’s one of the greatest athletes ever, but I can’t take him seriously in this sport. It’s impossible.

On Kimbo Slice and his next move in the Octagon:

Kimbo Slice is fighting Matt Mitrione in Montreal. I know that much. That fight is happening in Canada. (Heavy)

***

• UFC heavyweight champion Brock Lesnar, still recovering from a life-threatening intestinal disorder, could be ready to fight in “late June or early July,” if needed. White indicated the winners of the Antonio Rodrigo Nogueira-Cain Velasquez fight at UFC 110 and the Frank Mir-Shane Carwin bout at UFC 111 could meet to determine Lesnar’s next opponent;

• In terms of international expansion, White pointed to China, South Korea and India as the UFC’s next three targets. Now that it has landed the 2016 Summer Olympics, Brazil has also moved onto the promotion’s radar. White credited UFC CEO Lorenzo Fertitta for the progress on the global front. “I couldn’t have done what he did. How fast he’s done the international stuff has been staggering. I had a 10-year plan; it may be a four-year plan now,” White said;  (Sherdog)

Kimbo is no Herschel

Herschel Walker provided us with a glimpse of what future MMA fighters can achieve, especially those who get into the sport with the mindset derived from years of being a professional athlete.

His performance was exactly what it should have been for a guy fighting for the first time, and I believe it was better than another ratings grabber, Kimbo Slice, who in his last fight (his seventh) still showed a lack of understanding for the ground game. I firmly believe that Slice’s potential has yet to be reached, despite his age, but Walker (who is twelve years is senior) showed a more advanced level of MMA skill in his debut in the sport.  (SportsNet)

QUICK HITS

  • Strikeforce makes Jay Hieron vs. Joe Riggs “Miami” bout available online (MMAJunkie)
  • Dan Henderson Signs EA Sports MMA Contract Live at Madden Bowl in Miami (EA Sports MMA)
  • Strikeforce WW Tyron Woodley Latest Fighter Added to EA Sports MMA (EA Sports MMA)
  • Herschel Game for Another Fight in April (Sherdog)
  • Video: UFC 109 Pre-Fight News Conference (Sherdog)
  • Extensive UFC 2010 Preview: New Modes, New Features, No Couture (ThrowThemBows)
  • Analysts: THQ Turnaround Underway, Proving Time Ahead (Gamasutra)
  • Griffin vs. Nogueira likely for UFC 114 in Las Vegas, not UFC 113 in Montreal (MMAJunkie)
  • With Rakoczy up next, Frausto already eyeing showdown with Tate at Strikeforce (MMAJunkie)
  • “Countdown to UFC 110″ preview show debuts Feb. 18 on Spike TV (MMAJunkie)
  • Dana White: UFC 109 co-headliners Marquardt and Sonnen fighting for title shot (MMAJunkie)
  • Liddell-Ortiz 3 Likely for UFC 115 in Vancouver (MMAFighting)
  • Matt Millen Would Love to Try MMA (MMAFighting)
  • Dana White Talks UFC 109, Sonnen’s Comments, WEC Pay-Per-View Decision (MMAFighting)
  • GEORGE DODD NEW HEAD OF CALIFORNIA COMMISSION (MMAWeekly)
  • AARON SIMPSON VS CHRIS LEBEN LIKELY FOR UFC 114 (MMAWeekly)
  • Couture’s methodology key to success (Yahoo! Sports)

IMAGE OF THE DAY

WEC 48 Poster

TV LISTINGS

  • HDNet Fights Presents K-1 Classics (2005 World GP Finals)  at 8 PM ET on HDNet (02/05/10)
  • InsideMMA (Brendan Schaub, Matt Mitrione, & Dermontti Dawson) at 9 PM ET on HDNet (02/05/10)
  • HDNet Fights Presents “Furious Finishes III” at 10 PM ET on HDNet (02/05/10)
  • Best of Pride FC at 10 PM ET/PT on Spike (02/05/10)
  • UFC 109 at 10 PM ET on PPV (02/06/10)

UPCOMING EVENTS

  • UFC 109: Couture vs Coleman at 10 PM ET on PPV (02/06/10)
  • HDNet Fights: King of the Cage – Vengeance at 10 PM ET on HDNet (02/12/10)
  • UFC 110: Nogueira vs Velazquez at 10 PM ET on PPV (02/20/10)
  • Strikeforce Challengers: Prangley vs  Amoussou at 11 PM ET/PT on Showtime (02/26/10)
  • WEC 47: Bowles vs Cruz on at 10 PM ET on Versus (03/06/10)

WEC Taking Right Steps with PPV Debut

Posted in booking, MMA Payout, pay-per-view, Strikeforce, WEC on February 4th, 2010 by MMAPayout

Luke Thomas over at Bloodyelbow has provided a great summary of his conversation with Reed Harris of the WEC in which they discussed everything related to WEC 48. There are undoubtedly many concerns and angles to cover when launching a PPV business model, but it appears as though the folks at Zuffa are well-prepared.

Here are the early details:

 

1. The date was selected in part to nail down the Sacramento venue. With their most financially lucrative star in Urijah Faber headlining for a title in the main event, it only makes sense to ensure the crowd will be as loud, thick and MMA-savvy as possible. Sacramento has historically shown to be hugely favorable territory for the WEC.

 

2. According to Harris, their planning of an April 24th show did not take into account any potential Strikeforce plans to also host a Fedor Emelianenko-headlined fight in April.

 

3.The decision to move forward with a PPV was done by WEC brass in conjunction with UFC President Dana White and Lorenzo Fertitta. The logic, as it was explained to me, was that with two title fights and a card filled with highly-ranked, pound-for-pound greats, the card merited moving in that direction. “With five fights and two titles on the line, they feel upstairs that we are the same caliber and quality as UFC events,” said Harris.

 

4. As for the price point, the decision to place the cost at $44.95 “was made corporately”. Harris insists extensive research was done into PPV watching and purchasing habits. He argues the internal data they received gives them the confidence to move forward with the PPV effort, but did not elaborate beyond that. He also insisted given what the event offered, it was worth the cost of a UFC PPV.

 

5. Here’s a clever twist: the event will be known as “UFC Presents…WEC 48: Aldo vs. Faber”. When asked about the extent to which the UFC would use their marketing and PR muscle to assist the WEC, assurances were made that both organizations would work together to properly promote and cross promote the effort. No specific details were offered as to promotional events, branding, event signage or other items at the time of the call.

Payout Perspective:

I’ve voiced my opinion on this PPV – saying it should happen, but questioning the price point and timing of the event – but I really think the WEC is taking some solid steps towards addressing those concerns and mitigating some of that risk inherent in an initial PPV offering.

The most important step the WEC has made is to label the event as the “UFC Presents: WEC 48 – Faber vs. Aldo” because that’s going to help alleviate some of that brand equity gap that might have caused casual consumers to shy away from an unknown product at $44.95. But it cannot stop at just a label. The UFC and WEC need to build and reinforce the presentation with a host of content and promotional material that further leverages the UFC brand in order to raise the profile of the WEC.

I’d love to see some cross-promotional material done with UFC and WEC fighters, some sort of WEC Primetime show, and even more out of the UFC brass promoting the event. It’s also important for the WEC to ramp up its own PR team: to get these fighters into the media, get its officials like Harris and Dropick into the mainstream media, and pump the idea that Aldo-Faber is a must-see fight for any sports fan.

Time for the MMA community is now

The initial PPV is always tough because distribution isn’t what it should be. Many people balk at the normal UFC price of $44.95, but they’ll usually will go out to the bar or have 10 people over to their home to watch the fight in order to minimize that expense. But that’s a tougher sell for a brand and fight attraction that isn’t widely known. As a result, bar owners are more hesitant to pay the $500-$1500 fee for the PPV because there’s no guarantee they’ll get that money back in the form of good business that night. Likewise, the person that has 10 friends over for a UFC card might only be able to scrounge up 2-3 hardcores for the WEC event.

Thus, Harris is right, this is the time for MMA fans to stand up and show that they want more MMA.  The most powerful marketing tool on the planet is viral (word-of-mouth) marketing, and everyone who is aware of this fight needs to spread the word. That means calling local bars and requesting that they buy and advertise the WEC card like they would any UFC event; or, they tell every single one of their sports fan friends that this fight is a must-see.

The key is to reference things that casual fans will be able to comprehend and easily understand. This fight is like Anderson Silva vs. Georges St-Pierre at 145lbs; they’re literally the best two fighters in the world at 145lbs.; or that this fight is likely to be the best scrap of the year.

Strikeforce on 24th may not be a bad thing

There seems to be some concern that Strikeforce and CBS will place their card on April 24th, but I’m not convinced that’s a bad thing: the greatest opportunities in life are borne of the largest problems.

What better way for MMA to showcase its growth and product depth than with a showdown of the two best promotions outside of the UFC? If done properly, on both sides, a savvy media battle could really generate some buzz for the sport by pitting the two promotions against one another.

It’s Kanye West vs. 50 Cent dropping their albums on the same day all over again. Both sold way more than they ever would have alone because of that competition and the rivalry that made fans stand up and choose a side. In the end, both organizations could be better off with a April 24th showdown.

I understand there’s some trepidation on both sides, because nobody likes to lose, but neither organization is in this for the long haul. The WEC isn’t putting this event together to make a one-time profit. This is the start of a process that will hopefully lead to a new long-term business model, the effects of which will far exceed the revenue of one event.

Something to chew on.

WEC 48: April 24th, $44.99

Posted in MMA Payout, pay-per-view, WEC on February 3rd, 2010 by MMAPayout

MMAJunkie is reporting that WEC 48, which was tentatively scheduled for May, will now take place on April 24th for a PPV price of $44.99. The event will feature a featherweight championship bout between Jose Aldo and Urjiah Faber.

The organization today announced via the AP that WEC 48, which retails for $44.99, takes place Saturday, April 24, at ARCO Arena in Sacramento, Calif.

 

Featured bouts include WEC featherweight champ Jose Aldo vs. Urijah Faber, lightweight champion Benson Henderson vs. Donald Cerrone, and former champ Mike Brown vs. Manny Gamburyan.

Payout Perspective:

The move from May to April is definitely in the WEC’s best interest, but it remains to be seen whether the steep $44.99 price tag will scare off the casual MMA fan, unaware of the WEC, that might have been willing to try out the WEC for a lower price. Moreover, the WEC is forced to absolutely stack this card in order to make it worth $44.99, which leads me to wonder whether this price and strategy are sustainable across multiple events in the future.

MMAterial Facts (02/01/10) : Strikeforce Miami Edition

Posted in Bellator, Dream, HDNet Fights, KOTC, MMA Payout, MMAterial Facts, Pride, Strikeforce, TV, UFC, video games, WEC on February 2nd, 2010 by MMAPayout
  • Strikeforce Miami Post-Fight News and Notes

Strikeforce Miami Post-Fight News and Notes

  • More Info On Problematic EA/Strikeforce Stream: A lot of questions were asked on Saturday as to what happened and who to blame for the bad EA/Strikeforce stream.  According to Sam Strayer via Josh Gross,  the executive producer of  iBN Sports (who was responsible for streaming the Strikeforce Jay Hieron vs Joe Riggs fight on Saturday):  “We had a huge influx of fans… The show went well for most. …Some with lower bandwidth had trouble due to high quality of stream. They are looking into a re-air.” Though many fans were obviously disappointed by the stream quality (or in most cases lack thereof) , there were apparently a few fans who were blessed with enough bandwidth to watch the fight.  Not focusing on only the negative, Strayer commented on the amazing turnout for the stream,   “Great night tonight. iBN Stream had some technical issues out of the venue… what an amazing turnout for the stream. Unbelievable numbers… All the fans can watch it again soon… We will keep you posted!!!” We will keep an eye open on when EA/Strikeforce/iBN will make the fight available again for viewing.
  • Paydays Put Into Perspective: Wes Sims (22-13), who lost to Bobby Lashley (5-0) by TKO in the first round on Saturday night, was estimated to make $30,000  (Josh Gross).  Hershel Walker (1-0), who won his debut against Greg Nagy (1-2), was estimated to make six figures, which he will donate to charity (MMAJunkie).  The way this is shaping, taking into consideration that Lashley, Diaz, Zaromskis, Manhoef, Lawler, and Cyborg will also make some good pay days, the pay scale for this event should be one of the highest in Strikeforce’s short MMA history.
  • Attendance Put Into Perspective: According to Josh Gross over at Sports Illustrated, 8,156 MMA fans packed the BankAtlantic Center on Saturday night.  To put the number in perspective, Elite XC’s CBS event “Heat”, which featured hometown product and current “MMA Viewership King” Kimbo Slice against Seth Petruzelli, drew 9,414 (7,723 paid) fans for a live gate of $826,433.  If Strikeforce Miami can draw similar numbers, which they are currently positioned to do, it will meet the gate and revenue expectations coming into this weekend.
  • Herschel Walker Brought In The Viewers and Media Attention: Some are still questioning whether or not it was a good move by Strikeforce to promote Herschel Walker the way they did and put him on the main card this weekend over the likes of arguably more deserving fighters Joe Riggs and Jay Hieron.  Let me just say that absolutely no one on the card came even close to garnering the amount of attention that Hershel Walker received for this event. Walker got heavy attention over at ESPN (Front Page Top Headlines, Top 10 Plays, ESPN Radio, PTI, MMA Live, etc), news papers and publications across the nation, most notably (Atlanta, Texas, Minnesota, Pennsylvania, Missouri, DC, and Florida), became a trending topic on Twitter, Front page of CNN, and a slew more nation wide.  In what has to be considered good news for Strikeforce, ESPN and ESPN News showed the MMA tab on their “Scores Bar” followed by  “Strikeforce:” and the results from all main card bouts plus Hieron vs Riggs.  The promotion and amount of eyeballs that Herschel Walker drew for this event had to be deemed a huge success for Strikeforce.  Strong ratings are expected for this event, and the booking of Walker by Strikeforce and Showtime was no mistake.  EliteXC had also been interested in using Walker before they folded, and it comes to no surprise that some of the biggest viewership numbers for MMA on Showtime and CBS come from the Southern states.  Another strategic move by all parties was holding this event the day before the Pro Bowl in Florida.  The booking of Walker got a  good number of NFL affiliates, players, and fans to buy tickets for this event and Showtime’s ties to the NFL (”Inside The NFL”) most likely lead to NY Jets Head Coach Rex Ryan’s infamous interview, which is still getting headlines.  Not to mention that EA Sports, who hosts the Madden Bowl on Super Bowl Week, was also on scene to promote the Madden franchise, sponsor fighters, and promote their upcoming EA Sports MMA game.  The scheduling and timing of the event was well crafted and was a good display of synergy between EA, Strikeforce, and Showtime to use the NFL’s fan base as potential draws to the event.  Now, they just need to work on better execution.
  • What’s Next For Strikeforce Miami Participants: Scott Coker has already confirmed  interest in putting together Cyborg vs Erin Toughill (145 Lbs Title), Gilbert Melendez (Strikeforce LW Champ) vs Shinya Aoki (DREAM LW Champ), Nick Diaz vs Mach Sakurai/Jay Hieron (WW Title), and Bobby Lashley vs Brett Rogers in the near future (MMAFighting).  The April CBS show is already in the plans and Fedor Emelianenko, Fabricio Werdum, Jake Shields, Dan Henderson, Gegard Mousasi, King Mo, Brett Rogers, and Bobby Lashley have all been rumored for the event.  Frank Shamrock vs Pat Miletich is also being rumored at the moment for a May Strikeforce event (FiveOuncesOfPain).  There has also been a great deal of talk that Nick Diaz or Robbie Lawler will be jumping ship to the UFC.  I don’t expect that to be happening anytime soon, since both have multiple fights left in their Strikeforce contracts.
  • Strikeforce Announcements:  Scott Coker implied (previously mentioned by Gegard Mousasi’s manager) that DREAM would be hosting LHW and HW GP’s for 2010, which would free up the lighter weight fighters from DREAM for Strikeforce to use.  Coker has already shown interest in getting Aoki, Kawajiri, Sakurai, Hansen, and JZ in Strikeforce.  Another big announcement was the Women’s 135 lbs and 145 lbs tournaments which are rumored to start around June this year.  Both tournaments will take place within 2 events (1 fight on the first event, 2 fights on the second to crown the winner) and will consist of 8 participants. Strikeforce promises to get the best female fighters around the world in order to create true contenders for Cyborg Santos and for the winner of Sarah Kaufman vs Takayo Hashi, which is for the 135 lbs title bout  set to take place in the February 26th Strikeforce Challengers card. (Sherdog)
  • Strikeforce Announces TV Deals: Distributor Shine International has completed a host of deals for its Strikeforce brand internationally, selling more than 70 hours of mixed martial arts programming in Europe, Australia and Latin America. Virgin Media Television-owned Bravo in the UK, Turner in Latin America, FX in Portugal, Ukraine’s Megasport, Seven Network in Australia and Dahlia TV in Italy have all purchased Strikeforce’s library of TV programming (MMAPayout) .  Channel Seven is one of Australia’s biggest networks, and the UK fans were buzzing this weekend after watching the Strikeforce Miami event on Bravo.

QUICK HITS

  • UFC to Offer Spanish PPV Broadcasts (MMAPayout’s Perspective)
  • Strikeforce Miami: Payout Perspective (MMAPayout’s Perspective)
  • Diaz shares spotlight with Walker at Strikeforce: Miami (Sports Illustrated)
  • Diaz bludgeons Zaromskis; Walker wins (ESPN)
  • Despite debut MMA win, NFL great Herschel Walker not a lock for a second fight (MMAJunkie)
  • New York Jets coach Rex Ryan issues apology after “Strikeforce: Miami” bird-flipping (MMAJunkie)
  • Coker Says Aoki, Sakurai, Toughill Will Get Title Shots (MMAFighting)
  • Coker Eyeing Melendez-Aoki, Women’s Tourneys in 2010 (Sherdog)
  • Strikeforce Post-Mortem: Punches in Bunches, Football’s Revenge, and More (Sherdog)
  • Tim Kennedy latest addition to “EA Sports MMA” videogame roster (MMAJunkie)
  • King Of The Cage Is Coming To HDNet on February 12 (HDNet)
  • Despite initial one-sided affair, Strikeforce’s Robbie Lawler said he stuck to game plan (MMAJunkie)
  • Free agent Jay Hieron still not guaranteed title shot with new Strikeforce champ Nick Diaz (MMAJunkie)
  • Bellator adds DREAM vet Joe Warren to season-two featherweight tourney (MMAJunkie)
  • Shine Fights signs Abu Dhabi champ Braulio Estima to multi-fight deal (MMAJunkie)
  • Weekend Rundown: Yamaguchi Captures KOTC Crown (Sherdog)
  • Overeem’s Trainer Likes Chances vs. Fedor (MMAFighting)
  • On Mend, Tyson Griffin Could Be In Vancouver (MMAWeekly)
  • Freestyle Cage Fighting 39 Results (MMARising)

IMAGE OF THE DAY

All Elbows: Robbie Lawler vs Melvin Manhoef

TV LISTINGS

  • HDNet Fights Presents K-1 Classics (2005 World GP Finals)  at 8 PM ET on HDNet (02/05/10)
  • InsideMMA (Brendan Schaub, Matt Mitrione, & Dermontti Dawson) at 9 PM ET on HDNet (02/05/10)
  • HDNet Fights Presents “Furious Finishes III” at 10 PM ET on HDNet (02/05/10)
  • Best of Pride FC at 10 PM ET/PT on Spike (02/05/10)
  • UFC 109 at 10 PM ET on PPV (02/06/10)

UPCOMING EVENTS

  • UFC 109: Couture vs Coleman at 10 PM ET on PPV (02/06/10)
  • HDNet Fights: King of the Cage – Vengeance at 10 PM ET on HDNet (02/12/10)
  • UFC 110: Nogueira vs Velazquez at 10 PM ET on PPV (02/20/10)
  • Strikeforce Challengers: Prangley vs  Amoussou at 11 PM ET/PT on Showtime (02/26/10)
  • WEC 47: Bowles vs Cruz on at 10 PM ET on Versus (03/06/10)

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