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Thursday, Nov 20, 2014

Report: ZUFFA Profits Could Drop by 40% According to S&P

St. Pierre (photo via UFC / ZUFFA)

By FCF Staff

For sometime now, observers have wondered how the UFC’s hectic schedule and the loss of major stars may be affecting its bottom line, and according to a credit agency, the answer’s not very well.

According to multiple reports, the Standard and Poor ratings service has projected that the UFC’s parent company, ZUFFA LLC, could see profits decline by 40%. As a result, the agency is lowering the company’s credit rating.

The projection is 10% higher than what S&P forecast in October. In a recent report, the agency said that  ZUFFA’s earnings decline is (quote via MMA Junkie.com):

“primarily due to a change to a marquee fight card in the fourth quarter of 2014, a result of another fighter injury causing anticipated pay-per-view buys and event ticket prices to decline further, as well as higher remarketing expenses for the event, and additional costs related to the company’s international expansion.”

In addition to the UFC’s ongoing push into various nations, the promotion has gone through 2014 without major stars like Anderson Silva, Georges St-Pierre, Vitor Belfort, Nick Diaz and Cain Velasquez competing.

Velasquez was scheduled to fight at UFC 180 on November 15th, however, he was forced to withdraw due to a knee injury.

 

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posted by FCF Staff @ 11:05 am
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