twitter google

Forbes Magazine Throws More Props to the UFC

Forbes Magazine Throws More Props to the UFC

Forbes magazine is all about big business and money (duh), and they’ve just included the UFC – which just sold for over four billion bucks and is therefore big business and money (duh) – in a list of most valuable sports brands out there.

The purchase of a brand can have a big impact on its value. The UFC was acquired by WME/IMG this summer for $4 billion. By my count the price allocation of the deal valued the UFC’s brand at $2 billion–more than three times its value a year ago–based on the enterprise value premium paid for the mixed martial arts promotion. The UFC posted the biggest year–over-year increase among business brands. But if the UFC does not become bigger and more profitable–thereby justifying its $4 billion price tag–its brand could fall sharply in value.

There’s a bit of economic mumbo-jumbo that went into how they calculated brand value, so just take it at face value and say “wow” to yourself quietly.

Share This on Facebook

Follow Caged Insider