What do the failures of so many organizations mean for MMA?
It means that promoters and their investors need to be smarter with their money.
And it’s not like there isn’t precedence within the business world for this sort of gross mismanagement either. I’m sure everyone remembers the dot-com bubble of the late 90s that burst in 2001. Investors had dollar signs in their eyes then, just as they do now, because of the gross potential of the internet and technology to be utterly ubiquitous in the everyday lives of people the globe over. Yet, these investors failed to do their due diligence in order to find appropriate business models to take advantage of that potential.
Thus, the same can be said for today’s investors blindly throwing money into fight promotions with poor business models that do not suit the current economic environment of the industry. The investors that jumped on the IFL and pushed it to $18 are a testament to this.
For as much flack as Dana White gets from the MMA community, I can’t think of any other man in the industry that can say “I told you so!” as often as he can. Granted, the NASCAR analogy is a little played out - and I, too, am tired of hearing it - that doesn’t make it any less relevant.
The business-end of things really isn’t that different from any other industry. The most crucial mistakes I see fight promotions make are the same crucial mistakes that misguided billion dollar enterprises make:
1.) They have no vision, no mission, and as a result no direction and no identity.
These promotions need to figure out who they are, what they do, and whom they cater to.
2.) Poor cost management that generally translates into bankruptcy.LINK