Following up reports last week of Zuffa selling a chunk of the UFC to Sheikh Tahnoon Bin Zayed Al Nahyan, the UFC has publicly released some information on the sale. First, the official statement via UFC.com:
Dana White followed up the announcement with a Q&A on UFC.com to put it all into layman’s terms for the fans. Some highlights:
Why did UFC do this deal?
Dana White: We view this as the perfect strategic partnership to help us grow this business and fast track our expansion into other parts of the world. There are a lot of guys over the last nine years that have tried to buy in, invest, get us to go public, and try to partner up with the UFC. We got in this thing because we love this sport, we love the UFC, and we have this vision to take this thing globally and turn it into the biggest sport in the world. And when I say that, I know people think I’m a lunatic, but it’s true, and it’s gonna happen. So this deal is a perfect strategic partnership. These guys are awesome strategic partners to help us reach that goal even faster.
Who is Flash?
DW: Flash is an independent live events and entertainment organization based in the UAE. Its sole shareholder is the Government of Abu Dhabi. [Ed. note: In other words, Sheikh Tahnoon may not be called out by name, but he's in there somewhere.] We got to know these guys discussing an event in Abu Dhabi. This led to the investment conversation. After conducting in-depth due diligence, they saw the tremendous global potential of the UFC brand. The guys who run this company are young, hip, aggressive visionaries. They are big thinkers.
What is the structure of this deal, what exactly does Flash own?
DW: Flash acquired a 10 percent minority stake through a direct investment in the equity of Zuffa, LLC.
How will this affect the operations of the UFC?
DW: It affects it positively. As for the day to day and how everything runs, it’s business as usual. Strategically, in our global expansion, it’s gonna help us get to certain places a lot faster than we could have done it.
Were there any concerns about bringing another partner into the UFC fold?
DW: I didn’t feel that way at all. I don’t look at this as my baby and nobody else can touch it. The way I look at this thing is that the UFC is a brand, like Microsoft, McDonald’s or any of these other ones. I think that I’m gonna have a certain amount of time here and then my time will be done and I will have done my part. And then somebody else will carry it on after me. I don’t look at this like I’m gonna be here forever. A lot of people say ‘without Dana the UFC couldn’t do this or couldn’t do that.’ I think the UFC is bigger than that and bigger than one person, including me.
Was this deal done because UFC needed money?
DW: UFC has no financial issues and business has never been better. We did this deal because of the huge opportunities it provides for UFC’s global growth.
_______________________________
A few other important points: The sale — which may have gone down as early as October — will dilute all existing owners proportionately. Lorenzo Fertitta and Frank Fertitta Jr.’s ownership percentages went from 45% apiece to 40.5%. Dana White owned 10% of the company before the sale, and owns approximately 9% now — meaning that Flash Entertainment has a bigger stake in the company than he does. However, Flash will not be able to purchase a larger stake nor sell its interest to a third party. According to Zuffa, there are no plans to sell any more stakes in the UFC. Lorenzo Fertitta believes that Flash can accelerate the UFC’s growth in the Middle East, China, and India.
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Comments
Tue, 01/12/10 - 07:47
FIRST! this is just a terrorist plot to blow up a UFC event.... it will happen watch.
Tue, 01/12/10 - 07:57
thats a huge partner that guy has so much money fertiitas and danas whole net worth is like lunch money to this guy. he could start his own org lose a hundred million dollars and it wouldn't faze him.
Tue, 01/12/10 - 08:05
NOTSOB.....you fuckin noob....
Tue, 01/12/10 - 08:19
This takes us one step closer to settling global disputes with bloody cage matches instead of terrorism and war. UFC is making history with every move they make. If only that were the case :P Jokes aside, I'm very optimistic about this deal.
Tue, 01/12/10 - 08:23
@One Two: You might be onto something there. What if Flash was looking into MMA promotion in addition to everything else they were doing? Maybe the UFC just insured that they would be working together instead of competing with someone who could potentially control all the MMA events in the middle east? Hm.
Tue, 01/12/10 - 08:24
@trousesnout fufufufu good word usage* UFC is greedy. how about concertianing on some good CARDS and not Crap they been putting out for the last half of year or so. making us pay for crappy ass crads.
Tue, 01/12/10 - 08:25
.
Tue, 01/12/10 - 08:28
Fack the middle east. the Romans such have genocided there ass when they killed jesus. nothing but headaches over there followed by giving everyone esle headaches in the world with there gay ass antics of blowing up shit.
Tue, 01/12/10 - 08:31
@ NOTSOB Take a good look around you buddy. The whole world is fucked up, it's not just the mid east. The only way out of the shit whole we've dug ourselves into is if we all find common ground. Since we all like beating ths shit out of eachother, the UFC would be the perfect vehicle to bring about world peace (through violence, naturally).
Tue, 01/12/10 - 08:35
Damn, Kimbo's Bread that was beautiful, man. I'd like to give the world a Coke and a smile. And then watch some fighters choke the piss out of one another.
Tue, 01/12/10 - 08:58
According to Wikipedia, the United Arab Emirates banned the movie "You Don't Mess With the Zohan".
Tue, 01/12/10 - 09:13
Smart move. That movie was a turd. Did they ban Spiderman 3 as well?
Tue, 01/12/10 - 09:19
^You are a fucking moron *That was directed @ NOTSOB, not One Two
Tue, 01/12/10 - 09:23
The UAE is awesome, it's run by a megabillionaire that loves grappling. Sounds like my kinda guy.
Tue, 01/12/10 - 10:41
Can't we all just get along.....right after all of you kick the living shit out of me and I sue you and win millions and dedicate my life to traveling all over the world to every single UFC event from now until I die, including the ones Abi Cadabra!
Tue, 01/12/10 - 11:10
"Was this deal done because UFC needed money?" Almost a good question... Replace UFC with Station Casinos.
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