A recent article in the Sports Business Journal emphasizes how the UFC continues to build on its success while many would-be competitors are struggling to survive. Notable excerpt:
Zuffa LLC, the UFC’s parent company, says it is turning a profit on $300 million in annual revenue. Pay-per-view accounts for more than half of that number, followed by television money generated from a deal with Spike TV, and event operations.
Gate receipts for PPV events are averaging $3.25 million this year, up nearly half a million from 2007. PPV buys were up approximately 8 percent in 2007, and another year-over-year increase is expected in 2008.
The UFC has steadily grown in the last few years by living off money generated by television and live events and using that cash to acquire competitors such as PRIDE and World Extreme Cagefighting. PRIDE was shuttered and absorbed into the UFC; WEC features lighter-weight fighters.