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Leagues and Governing Bodies

WME-IMG Facing Series Of Challenges On First Anniversary Of UFC Purchase

This week marks one year since WME-IMG purchased the UFC, and judging by optics alone, the first year has been as "challenging as one could imagine," according to Darren Rovell of ESPN.com. A women's division anchored by Ronda Rousey, which "pushed UFC more into the mainstream than it had ever been, has become largely irrelevant outside the hard-core fan base." Of the 13 main UFC cards of the new ownership, at least "nine of those events have had fights canceled or postponed." That "doesn't include a less-than-marketable Stipe Miocic as a heavyweight champ and a paper champ in light heavyweight title holder Daniel Cormier." Conor McGregor has been the UFC's "main cash cow, but he has fought only twice in the Octagon over the past year." The UFC also has been "stalled in its efforts to get new blood into the sport." While McGregor's "long absence from the Octagon is a blow, the UFC is at least financially protected." Its most "profitable event this year" will be the McGregor-Floyd Mayweather Jr. fight. Sources said that the UFC owners could net more than $40M from what McGregor has to "pay the organization as part of his contractual obligation." Despite the "obvious struggles, there aren't many concerns being voiced publicly." As a private company, how the UFC is "doing financially is unknown." However, WME-IMG co-President Mark Shapiro said the UFC "will hit the projections forecasted in our acquisition plan and will likely exceed them." The largest chunk of the UFC's total revenue, by the time '19 rolls around, "will be the new U.S. media rights." While it is too early to understand how those negotiations will go, Shapiro said that "new international television deals struck in the Middle East, Asia and Latin America came at increases" of more than 200% (ESPN.com, 7/10).

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