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Analysts Say G4 Purchase Could Cost UFC Between $360-$600 Million


(“…and how much for you to convince Olivia Munn to come back?”)

According to a report by Bloomberg, several analysts are pegging the prospective UFC-G4 deal between $360 and $600 million US, depending on how much of the company Zuffa wants to buy.

Both David Joyce of Miller Tabak & Co and David Bank, an analyst with RBC Capital Markets peg the value of the deal as high as $600 million if the UFC purchases the network outright. Insiders say that the promotion is looking to purchase at least a 60% controlling interest in the struggling network, which would cost them an equal percentage of the purchase cost.

How the value is determined for a channel is a formula that multiplies the amount of homes the network reaches by a value-per-home figure depending on ratings. Joyce said that figure likely sits between $5 and $10 for the Comcast-owned station that reaches an estimated 60 million homes. More popular channels like Spike TV, whose agreement with the UFC ends late this year, could fetch as much as $20 per household. There are rumors that the UFC are asking Spike for $325 million for them to re-sign with the network they helped put on the map, but it’s unlikely they’ll cough up such a large sum, so they have set the wheels in motion to bring Bellator over from their sister station, MTV2 to fill the void.

NBC Universal spokeswoman Amelia Stewart and UFC PR rep Caren Bell both refused to comment on the prospective deal.

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parchy mcthirst- June 10, 2011 at 11:49 am
@Cup:
Munn is awful? Best joke of the day right there
RwilsonR- June 10, 2011 at 12:49 am
"There are rumors that the UFC are asking Spike for $325 million for them to re-sign with the network they helped put on the map..." - - Uhh....... I think you're forgetting "The Joe Schmo Show".
The_Dead_Cow- June 9, 2011 at 10:04 pm
When you guys do another caption contest, that pic should definitely be considered. Here, I'll start.

"This is how much it takes to advertise on my chest, mutherfucker!!"
The_Dead_Cow- June 9, 2011 at 9:53 pm
If G4 becomes a regular cable channel..cool. If it's not, fuck that. I don't wanna argue with my gf for hours to switch 10 bitch flick channels for 9 channels of who knows what and 1 channel of crazy yellow people, video games, and face punching. All this just to see an oddball prelim that might not show up on the ppv. What the hell did I do to deserve this?
brunior- June 9, 2011 at 8:58 pm
Many people forget that Spike didn't have much (any?) good original programming before the UFC came along. This deal could really help G4 expand into more markets, and with the TUF, UFC Prelims, Countdown + G4's original programming like X-Play and Attack of the Show (miles better than GametrailersTV), it could really be a huge swing for both networks and make G4 a destination channel in the first time in forever. NBCUniversal already proved that they're willing to support the sport based on what they did with Versus. I'm all for this deal!
newdeal- June 9, 2011 at 8:09 pm
Yet the ufc is supposedly not growing...
the silver hawaiian- June 9, 2011 at 7:21 pm
Joedirt

There is a market. A free one.

Who else is paying entry-level, dark-card fighters more than the UFC? In a sustainable fashion, that is. And IF that someone exists, these "underpaid" UFC fighters are welcome to go.

The UFC is in the catbird seat right now. Heck, fight 4 times a year at $6,000 (not including any win bonuses, FOTN/SOTN/KOOTN bonuses, sponsorship), you're at $24k a year. Not BACON by any means, but also keep in mind, these fighters are free to fight for the UFC, fight elsewhere, or not fight at all.

..And if the response is "Well b-b-b-but a $6k fighter doesn't have the name to have any meaningful sponsors!" .. The answer is, .. Exactly.
TrouserSnout- June 9, 2011 at 6:42 pm
Cup Cheick Says:

Thu, 06/09/11 - 06:12

Layla please. Munn is awful.
-----------------------------------------------

You mad bro ?
Cup Cheick- June 9, 2011 at 6:12 pm
Layla please. Munn is awful.
Joedirt- June 9, 2011 at 6:09 pm
But they can't afford to pay fighters more than 6grand a fight.
Reverend_Clint- June 9, 2011 at 5:51 pm
fuck that... Munn and Layla Kayleigh
WalterBarrio- June 9, 2011 at 5:40 pm
Candace Bailey & Olivia Munn as guest ring girls!
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