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.