What Does It All Mean?

The world of professional sports, especially in America, is subject to the whim of its fans. Like other forms of leisure, spectator sports are subject to fads. Baseball was considered "America's pastime" for many years, and living in the Metropolitan New York area this is apparent, the city itself having had four professional teams and birthing the sport of baseball itself from Madison Square Park. However, if one were to step outside of the New York area, it seems obvious that America's pastime is now professional football. We've seen the emergence of soccer, lacrosse, rugby, skateboarding, snowboarding, and even surfing gaining unprecedented popularity in the American mainstream. Mixed martial arts is no different in this respect. Where MMA is different, however, is in it's ability to successfully target and market a powerful demographic. We are a generation centered on excitement and experience. We have at our disposal more forms of entertainment than any generation previous and despite the myriad of choices available, we have been caught hook, line, and sinker by this previously despised sport of mixed martial arts. Perhaps it is because we as a generation are jaded and feel we've seen it all before and that we need something new, or perhaps its because we are starstruck by ideas of fame and fortune but current UFC fans identify with fighters on a level that current boxing fans do not. More than anything I think that the UFC has successfully marketed the sport not due to the fact that it is "extreme" but because the largest companies involved, such as TapouT, Zuffa Inc, and Xyience among others, are primarily run by fans and fighters of the sport. That kind of grassroots organization creates a powerful loyalty with and amongst fans because they feel like individuals included in family of mixed martial arts, and not merely ticket prices and box office numbers. The new fad in fortune 500 marketing is the loyalty program, and to make your customer feel involved and appreciated is worth much more than any voucher or coupon ever could be.

UFC Goes Hollywood

Acclaimed playwright and director David Mamet is currently working on a new movie by the title of Redbelt chronicling the life of a Brazilian Jujitsu master who teaches his students for the purpose of survival in the mean streets of Brazil rather than for fame and fortune. However due to circumstances beyond his control he is forced to fight for money and glory. While not directly supporting UFC and MMA prizefighting, Redbelt features many MMA masters, Randy Couture among them. With this release it seems certain that mixed martial arts and the UFC will rocket to the forefront of both big business and professional sports.

Full Rosters Keep UFC In Business

An often overlooked aspect of prize fighting is what to do when a fighter is injured and can't compete. Unlike other sports, there are no second string players to replace headliners in these events. It's extremely important to have a contingency plan and having deep rosters helps ensure that fans get what they want, even if big fighters can't compete. This was the case with UFC's upcoming June card which has been cancelled due to headliner Chuck Liddell's torn hamstring. While similar problems have crippled upstart competitors to the UFC like EliteXC, UFC has been able to still schedule back-to-back big name fights despite losing what is arguably going to be its largest draw. EliteXC however had to cancel two cards with the same fighter for two different injuries, drawing the ire of televising sponsor CBS and certainly impacting EliteXC profit margins.

http://sportsillustrated.cnn.com/2008/writers/josh_gross/05/05/notes.05.05/

UFC Signs Deal With StubHub

Dana White recently signed a deal with StubHub, an eBay owned ticket resaler, as the UFC's sole fan-to-fan ticket seller. Such a deal is a definitive indication of the growing popularity of Mixed Martial Arts as StubHub, working on commission as a marketplace, would only want venues which were sure to sell out as higher ticket prices would turn into a larger return if the site takes a fixed percentage, and a higher volume of transactions would turn into a larger return if the site takes a fixed dollar amount for each ticket sold. In addition to StubHub, White signed a deal with PrimeSports as its primary ticket package partner to offer higher end ticket deals including VIP seating, transportation, lodging, and after parties similar to other mainstream sports, most notably boxing. Although StubHub hasn't disclosed its ticket sales for UFC events they did say that their current 2008 sales have already exceeded the total sales for 2007. Considering the demographic of UFC fans it seems to reason that White would not bother with upscale ticket packaging if he were not trying to entice fans outside the current demographic, despite what he may say at press conferences. The better news is that since the current demographic is M18-34, StubHub should have no problem with computer literacy and fans embracing the internet as a viable means to attaining tickets.

http://sportsbusinessjournal.com/article/58830

UFC Success Boxing To Step Up

Two years after the question of Mixed Martial Arts vs Boxing was first uncorked, it has become apparent that MMA has taken over many of boxing's greatest venues and done it with the style and flair that attracted people to boxing as a form of entertainment in the first place. The UFC in particular as a promoter has forced the professional boxing world to step up its game to compete with the growing popularity of the sport. Although boxing officials and analysts say that MMA hasn't taken any of boxing's fans outside of the young white male demographic, many agree that current MMA venues are much more exciting than their boxing counterparts due to the fast paced action and little down time between bouts. Royce Feour, a reporter for ESPN says "...Since then I've attended two UFC cards in Las Vegas as a spectator and enjoyed the action. There is always something happening at a UFC card: The UFC makes great use of its video on giant screens to show interviews and highlights between fights. Gone are the sometimes lengthy "dead" times between fights where nothing is happening like in boxing." According to Marc Ratner, former head of the Nevada Gaming Commission, ""There is plenty of room for both sports," Ratner said. "To me, it's like soccer and rugby. They are different sports. But you can love them both equally." However, only time will tell if Mr. Ratner is correct.

http://sports.espn.go.com/sports/boxing/columns/story?id=3204784

UFC Gets A Facelift

The UFC is now run by Dana White and financiers Frank and Lorenzo Fertitta. Although outdated news, the marketing scheme the trio came up with to rejuvenate the franchise is remarkable in its simplicity and has now become accepted practice for many businesses who need to promote to the masses. In order to renovate the name of the UFC and separate it from its previous incarnation, not only did Zuffa Inc. institute rules and regulations, helping to get the sport accepted by various athletic and gaming commissions, but the three buyers also wrote, and produced a TV show out of their own pockets which has become pop-culture phenomenon. The television show The Ultimate Fighter cashed in on the reality TV craze and offered viewers a look into the daily lives of would be professional fighters, from training to sparring to R&R, a concept that HBO has now adopted with its acclaimed 24/7 series for boxing title bouts. In an astounding display of marketing prowess, Spike TV managed to beat out all other programs in its time slot again and again. The Ultimate Fighter also provided advertisement for major Pay-Per-View UFC events as the winner of the competition would receive a UFC contract and would fight in televised UFC events. "According to Nielsen Media Reserach data, the UFC bout delivered 4.2 million total viewers in the 8:00 p.m. to 10:00 p.m. time slot, and drew 1.6 million men 18-34, compared the 1.07 million members of the demo that tuned in to Fox to watch the Detroit Tigers maul the host Oakland As. Spike's showing in the M18-34 demo outperformed evening on television Tuesday night, including broadcast and cable." The fight also delivered 2.4 million men 18-49.

http://www.allbusiness.com/services/business-services-miscellaneous-business/4787161-1.html

Dana White Can Do No Wrong

Dana White is living proof that America is the land of opportunity. A lower middle class kid being shipped all over the country during his childhood, White dropped out of school after two years to become a bellhop and eventually an aerobics trainer then over night took control of what has become one of the largest sports phenomena to ever hit the globe. His unprecedented control over the sport has allowed him to manipulate the UFC in such a way that it is now being accepted by magazines like Sports Illustrated and touted as the "next big thing" as this SI cover from 2007 shows. Since the reader demographic of SI undoubtedly crosses outside of the M18-34 demo of MMA such an article in such a prestigious and popular sports magazine can only increase the size of UFC's audience. This cover came shortly after the biggest (current) name in the UFC, Chuck Liddell, appeared on the cover of ESPN the magazine and Randy Couture, the biggest name in MMA appeared on the cover shortly thereafter. What, a few years prior, would probably have dismissed the sport altogether now not only acknowledges it, but concedes to the possibility that it may be the next big thing.

http://mmajunkie.com/news/2360/sports-illustrated-cover-features-the-ufc.mma

Chuck Liddell vs. Floyd Mayweather

Is UFC contributing to the demise of boxing? Most say that answer is a resounding "No". However, it is apparent that boxing has seen better days. The modern greats of the sport such as Mike Tyson, Evander Holyfield, and George Foreman have all faded into retirement. Considering the uproar from fans at the institution of 12 round bouts from the previous 15 round format one would think that many boxing fans would be searching for a bloodier, guts and glory form of fighting. However, it seems that despite what one would intuitively think, MMA promoters like UFC are not gunning for boxing fans and those who were loyal to the sport of boxing are remaining so. However, as of 2006, there have now been more sanctioned UFC fights in the state of Nevada than boxing bouts, so maybe Zuffa Inc. doesn't need to persuade fans that boxing is passe in order to increase the size of their demographic. There is a strong correlation between the age demographic and the relative popularity of each sport however, with the age of boxing fans being much older than that of MMA fans. As boxing fans die off, it is logical to assume that younger fight fans will be drawn to the more current UFC trend creating diminishing returns for boxing that could end up killing the sport. As the Baltimore Sun reported, The heavyweight title bout between Oleg Maskaev and Hasim Rahman (2006) got just 60,000 pay-per-view buys. The Ultimate Fighting Championship show two weeks later, headlined by Chuck Liddell vs. Renato Sobral, generated more than 500,000 buys. Although the demographic for UFC is completely separate from boxing (mostly white male for the former with much more minority representation for the latter) it will be interesting to see if UFC does bury boxing, especially considering how much revenue is generated from merchandising and if the economic disparity of the demographics will come into play at all.

http://msn.foxsports.com/other/story/5372598/In-time,-UFC-may-TKO-boxing's-audience
http://www.baltimoresun.com/sports/custom/mma/bal-sp.maese082606,0,4251886.column

Mixed Martial Arts Haute Couture

What better way to advertise your would be empire than to paint it in bold letters across the chests, breasts, and butts of countless young fans? This is exactly what MMA sponsor TapouT has done. TapouT is not merely a marketing ploy--though they excel in the field--to cash in on UFC revenue. The company was started by three friends known only as Punkass, Sky Skrape, and Mask. These unlikely owner/operators have rocketed a one-time attempt at selling T-Shirts out of the trunk of a car at local UFC fights into a company now turning over $7 million in profits annually. Punkass, Sky Skrape, and Mask have gained cult celebrity status with their wild antics and unmistakable image and their combination of fight oriented athletic equipment and traditional merchandise has helped their label grow exponentially on both fronts. Like many "extreme sports" brands which manufacture clothing lines in addition equipment, TapouT has a fiercely loyal following among not only fans, but MMA athletes as well and has now signed a contract with UFC as the primary sponsor of The Ultimate Fighter 7. This move will include advertising in the Ultimate Fighter training ring and clothing worn by contestants as well as gloves and heavy bags bearing the TapouT logo. Moves such as these make CEO Charles Lewis confidant that TapouT will be a billion dollar company within the next two years.

http://www.tapout.com/index.cfm?fa=News.detail&gid=1828

Bud Light Official Sponsor of UFC

In another example of the once worthless UFC's rise to fame, President Dana White signed a three year agreement with Anheiser Busch to make Bud Light the sole beer sponsor of the UFC. As reported by www.mmajunkie.com: In addition to becoming the exclusive beer sponsor for the UFC, the brand will be showcased with the UFC's sister organization, World Extreme Cagefighting, as well as future seasons of "The Ultimate Fighter" reality series on Spike TV. The WEC deal begins June 1. "The UFC has developed a huge following in recent years and is wildly popular with the 21-34 year old fans we want to reach," stated Tony Ponturo, vice president of global media and sports marketing for Anheuser-Busch, Inc. "The number of people attending live events, buying the pay-per-views and talking about UFC around the water cooler continues to grow. It's just a great place for us to be" Financial terms of the deal were not released. Bud Light signage will appear prominently in UFC events, including on the cage's mat and on vertical posts/bumpers. Signage will also be displayed during UFC weigh-ins and press conferences. "Seriously, this is a historic moment for the UFC," UFC president Dana White said. Bud Light will be the presenting sponsor of UFC pay-per-views twice per year. It'll also become the official beer sponsor of UFC Fight Night events on Spike TV. This move by a blue chip company will undoubtedly bolster company coffers at Zuffa Inc. and add a sizable amount of capital to the ever-growing UFC marketing campaign. While financial terms were not released it has been reported that the deal amounts to seven figures.

http://www.theglobeandmail.com/servlet/story/RTGAM.20080228.wsptufcAD28/BNStory/robNews/
http://mmajunkie.com/news/3841/bud-light-partners-with-ufc-for-three-year-sponsorship.mma

History Of The UFC

The UFC venue of mixed martial arts competition was not created in the same capacity that it exists in today. MMA exploded onto the scene in 1993 as a venue for acclaimed Brazilian jujitsu fighter Rorian Gracie to expand the US market of what was already a fast growing adaptation of traditional Japanese jujitsu technique. Gracie jujitsu, more commonly referred to as Brazilian jujitsu, is a form of Japanese jujitsu which Gracie's father Carlos adapted to emphasize leverage and submissions and de-emphasize power and striking in order to make it better suited to his slight frame and physical weakness. To this end, Gracie's father was famously successful and became a national hero to the country of Brazil, much the way Bruce Lee gained status in his own country for his adaptation and improvement of traditional techniques. Gracie felt it was important to carry on his father's tradition and dreamed to export the little-known technique to the US. Accordingly, he set up shop in Los Angeles and began instructing in his garage. Notoriety followed shortly as he defeated his students' former senseis time and again with his formidable ability to choke, bar, and grapple which rendered traditional, stand up techniques nearly useless. The UFC itself came about as an idea between Gracie and former owner Art Davie to create an official tournament reminiscent of Gracie's LA garage in which fighters of various styles would compete in a no-holds-barred contest to determine the greatest fighter in the world. There were no rules other than biting, fish-hooking (pulling a fighter around by the side of the mouth) and throat strikes. The matches were un-timed and had no weight class which led at one point to White Tiger Kempo fighter being pitted against a 6'8" sumo wrestler weighing 668 lbs.
The brutal nature of the sport drew the ire of politicians and other public figures and eventually led to the demise of the sport, being called "human cock fighting" by Senator (and Presidential candidate) John McCain and the sport was quickly outlawed in almost every state. The UFC's reputation as a bunch of street fighters and back alley brawlers is something the now highly streamlined and polished organization still can't shake to this day.

http://www.extremeprosports.com/full_contact_fighting/history_of_ufc.html

From Blood Sport To Big Time

The organization known as the Ultimate Fighting Championship, or UFC for short, has weathered an arduous and uncertain relationship with the American media, the general public, politicians, it's own fighters, and even its entrepreneurial financiers throughout its short life. Despite the many set backs and obstacles, the UFC has emerged as one of the fastest growing markets in modern sports franchise history garnering the respect and admiration of not only fight fans, but corporate executives and athletes, professional and amateur alike. Like most success stories, what seems to the public at large to be a fairytale, overnight success story was fraught with challenges, hardships, and near bankruptcy. Looking at any sport from a business perspective, especially on the front of marketing, exposes one to the grit and grime which lies hidden to the average viewer. Hidden from view by the strobe lights, pyrotechnics, and flashy marquees we'll examine the set backs and the successes of one of the fastest growing phenomena the entertainment industry has ever seen curbed only by human limitation and a coalition of politicians, executives, and promoters still hell-bent on destroying the adolescent sport for its apparent brutality and the competition it presents to other, more well established organizations.