Backing the deal with WME-IMG -- the product of a merger between William Morris Endeavor (WME) and International Management Group (IMG) -- are the private equity heavyweights Silver Lake, Kohlberg Kravis Roberts, and the investment firm of the billionaire Michael S. Dell, the New York Times reported.
There have been rumors of a UFC sale since spring, but the company had denied being available for sale. In fact, UFC president Dana White had said, "We're not for sale," though he conceded, "But let me tell you what. If somebody shows up with $4 billion, we can talk." Just one week ago, White -- along with UFC CEO Lorenzo Fertitta, one of two brothers who formed Zuffa, Inc. which had purchased UFC in 2000 for $2 million -- told the Los Angeles Times, "We own the UFC. We did not sell the UFC." (The deal was signed this past weekend.)
White will remain as UFC president and retain a stake in ownership. Long-time UFC owners Lorenzo and Frank Fertitta will remain as minority investors.
What does this sale mean to fans who purchase tickets to attend UFC events in person and watch at home thanks to pay-per-view? As WrestlingInc.com asked, "Should fans be concerned?"
"Exact opposite. Sport is going to the next level."
Lorenzo Fertitta, who is stepping down as CEO, said in a statement:
"We're confident that the new ownership team of WME-IMG, with whom we've built a strong relationship over the last several years, is committed to accelerating UFC's global growth. Most importantly, our new owners share the same vision and passion for this organization and its athletes."
The UFC sale makes sense to purchaser WME-IMG, as the organization represents a number of top MMA talent such as Ronda Rousey in negotiations for endorsements and movie deals, and the UFC itself. Just last year, WME-IMG purchased the Professional Bull Riders league. That purchase along with today's $4 billion deal for UFC helps propel WME-IMG to become a platform for digital media content, controlling various elements ranging from marketing to talent management to television and digital distribution.
UFC has come a long way since the first Ultimate Fighting Championship event in November 1993 in Denver. When the Fertitta brothers purchased the organization in 2000, UFC was dealing with major challenges, including major financial losses, and significant organized opposition from a number of politicians, including Sen. John McCain, a former Navy wrestler who called it "human cockfighting," and former New York governor George Pataki, who had professional MMA banned from his state (a prohibition overturned just this year).
In recent years, UFC has extended its reach around the world, and has become not only a financial titan -- with expanding coverage in mainstream and sports media -- but something of a star-making phenomenon, with a number of its athletes making names for themselves in commercial endorsements, TV shows, and movies. What's more, UFC has helped provide new competitive opportunities for former amateur wrestlers from Randy Couture to Daniel Cormier.
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