As the UFC continues to grow in popularity, a recent report detailing the organization’s earnings reflects its portfolio has benefitted greatly as the company expands its audience and talent pool.
MMA reporter John Nash reported Friday the UFC earned over $1 billion through the first quarter of 2022 (April 1st, 2021 through March 31, 2022), per a credit analysis issued by investor service company Moody’s on May 25. The report also shows the promotion grossed a little over $1 billion in 2021, a double digit growth Moody’s credited to an increase in fan attendance.
The report comes 15 months after Hollywood talent agency Endeavor Group Holdings acquired full control of the UFC in March 2021 after previously holding a 50% stake in the company.
“Attendance revenue typically accounts for a modest portion of revenue (12% of revenue in 2019), but attendance revenue recovered strongly as health restrictions declined due to strong fan interest,” according to Moody’s credit analysis.
Nash’s report also cited comments made by Endeavor CFO Jason Lubin on May 12 concerning fighter payout, a much-debated topic within the company for nearly a decade. After citing the UFC has had a 21% compound annual growth rate (CAGR) since 2005, Lubin noted fighter pay had a 26% CAGR in that same span. According to Nash, the 21% CAGR would come out to an estimated $1.02 billion in 2021, while the 26% CAGR would account for 17.5% of the company’s revenue, or roughly $178.8 million.
“We think the right comparison is to other individual sports such as PGA Tour, F1, NASCAR and ATP,” Lubin said in May. “And if you look at those athletes and what they’re paid, as a relative percentage of revenue for those leagues, it’s right in line where the UFC is with their athlete compensation.”
The immense financial growth sheds a light on a number of ongoing issues within the UFC related to fighters’ contracts and an increase in pay-per-view costs. The company has been locked in a class-action antitrust lawsuit filed by several former fighters against parent company Zuffa in 2014 over claims that the UFC limited fighters’ earnings and unlawfully stifled its competition. Additionally, a number of fighters have been involved in tense contract negotiations with the promotion over the years; current UFC heavyweight champion Francis Ngannou, who last fought in Jan., has been involved in a high-profile dispute with president Dana White for the last year-plus.
In January, the company came under fire after ESPN, which became the UFC’s official broadcast partner in 2019, increased PPV prices for the third time since the massive acquisition. At the time, White told fans the decision was not his, saying, “I don’t love when prices get raised, but it’s not my decision. It’s theirs.” The increase has not greatly impacted the bottom line, however, as last month’s UFC 274 event garnered the promotion’s highest buyrate of 2022 thus far with 400,000 buys domestically.
Most recently, the UFC announced on June 9 it had reached a historic $100 million partnership with prominent blockchain logistics firm VeChain. The deal is set to go into effect June 11 at UFC 275 in the brand’s first event in Singapore,
