SBJ/February 27-March 5, 2017/People and Pop Culture
Plugged In: Tracey Bleczinski, UFC
Published February 27, 2017, Page 3
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We’re transitioning from a vertically integrated system to a traditional licensing model. Once we complete that process with a partner to do our event retailing, we’ll have the foundation to scale and grow.”
On opportunities for UFC licensed product: Our e-commerce business has grown, but we really are just scratching the service in terms of brick-and-mortar retail distribution. We have around 40 licensees and not much of a footprint in Europe and Asia, so that’s a big blank canvas. … Looking at apparel only, it’s close to 50/50 e-commerce and venue sales. As our only significant apparel partner, Reebok is the lion’s share of that.
How far along are they? Compared to UFC overall, which has really gotten into the pop culture mainstream, our licensed business is in its infancy. We aggregate our licensing rights of our athletes and handle their rights also. Our business runs about 50/50 athletes to property. We’ve built the foundation of the business, now we are ready to start scaling it.
What are the strongest regions for UFC licensed products? Las Vegas — and since we have the most events there, that makes sense. Overseas, we have a nice [consumer products] business growing in Russia; both Reebok and EA do well there, and we have not yet had an event there. We also do well in the U.K., and Brazil is huge for us. We’re looking at growth in all of those regions.
On the biggest challenge of building the UFC’s consumer products business: This is such a long-lead business. The deals we are talking about doing now, some are 18 months to retail, from signing to shipping. Things like digital media have everyone used to things that are instantaneous, but this business has a different pace.