Fight Capital Newsletter #24

This week, I am looking into the controversies around profitability in combat sports and featuring two amazing podcasts with combat sports athlete Sijara Eubanks and Muay Thai corporate wellness entrepreneur Jed Brecher .

As I continue on this journey with combat sports business content, I constantly seek to evolve my content. Stay tuned for next week for a new form of content I'll be putting out.

Also, if you're enjoying my content and podcast, follow me on YouTube , Spotify , Substack , and X to see new different types of content and takes across combat sports business.

Thank you everyone for your support and kind words! It's well received and appreciated.

Sincere Regards,

Ryan Vevon Rapaport

Being Profitable in Combat Sports

There has been a recent debate sparked on what is entertainment vs a profitable combat sports event.

The profitability of combat sports promotions is intertwined with many factors, including star power, high-stakes matches, media rights deals, and the ability to adapt to consumer demand.

The ongoing discourse on entertainment and profitability in combat sports brings to light the delicate balance promotions must maintain to ensure financial success while delivering captivating spectacles.

The King of the Cage

The Ultimate Fighting Championship (UFC) is a prime example of a successful combat sports promotion, showcasing a robust business model that has evolved. A couple of interesting details:

• As of the first half of 2023, the UFC generated a revenue of $610 million.
• A significant chunk of this revenue comes from Pay-Per-View (PPV) sales; in 2021, the UFC sold around 8.4-8.5 million PPVs.
• Besides this, the promotion has trimmed its fighter costs, paying $146 million out of $1.14 billion in 2022, down from $178 million in 2021.

This strategy, albeit controversial, has contributed to the UFC's net worth, estimated at over $5 billion in 2023.

A comparative lens on the financial blueprints of premier entities like the UFC, smaller promotions, and the burgeoning sphere of super fights reveals a diverse array of strategies each employs to navigate the economic currents of combat sports.

Small Promotions

On the other hand, smaller promotions have their unique strategies to maintain profitability. They often rely on local markets, developing homegrown talent, and maximizing revenue from ticket sales, PPV buys, sponsorship deals, and merchandise sales.

Small promotions often operate within a more constrained budget, making their financial maneuvering crucial for survival and growth. Their nimbleness allows them to quickly adapt to market trends and consumer preferences, often experimenting with innovative strategies to boost their bottom line.

For instance, the partnership between Bellator MMA and Showtime had for a time not only provided a reliable platform for showcasing its events but also a significant boost in visibility, attracting more sponsors and broadening its fan base.

But that alliance has just ended and this illustrates how these type of strategic partnerships can propel but also sink smaller promotions.

Embracing technology for ticketing and live streaming, optimizing venue costs, leveraging digital marketing, streamlining event production, and cultivating solid local partnerships are key strategies employed by these smaller promotions to reduce costs and enhance profitability.

Super Fights

The advent of super fights and celebrity boxing is progressively blurring the lines between genuine sporting competition and entertainment, reshaping the landscape of combat sports promotions.

"Super fights," characterized by high-stake matchups often involving high-profile personalities, have become a lucrative facet of the combat sports business model.

These events capitalize on the star power of the participants to drive significant revenue through PPV buys, ticket sales, and sponsorship deals. Here are some notable examples:

1. Logan Paul vs. Floyd Mayweather: This exhibition match, dubbed "Bragging Rights," took place on June 6, 2021. It reportedly sold over one million PPV buys. Mayweather likened the match to a "legal bank robbery," claiming he stood to make $100 million, while Logan Paul estimated his earnings in the $20 million range.
2. Floyd Mayweather vs. Conor McGregor: Known as "The Money Fight," this boxing match generated over $600 million in revenue. It amassed a whopping 4.3 million PPV buys, ranking it the second biggest PPV of all time, and garnered over $500 million in total revenue . McGregor reportedly earned around $85 million, whereas Mayweather raked in an astonishing $275 million from the fight.

Ngannou vs. Fury

The recent superfight between Francis Ngannou and Tyson Fury opened a window into the financial potential of cross-promotional events. However, many questions have been raised on whether it was a profitable event in Riyadh.

The event generated substantial interest, with Tyson Fury expected to make close to $50 million and Francis Ngannou around $10 to $12 million based on PPV buys (Though there is some debate around that). The total income from PPV buys and gateway for this event was reported to be worth more than $100 million.

However, the profitability of this superfight sparked a heated argument between Chael Sonnen and Ariel Helwani. Sonnen disputed Helwani's reporting that Ngannou would likely bank between $10-20 million for the boxing match, arguing the event was unsuccessful on PPV.

The Future

The adoption of streaming services could significantly influence the foreseeable trajectory of combat sports profitability, the rising prominence of female athletes, and the globalization of combat sports promotions.

Ethical and regulatory considerations, particularly around equitable fighter compensation, present substantial implications for the financial viability of combat sports promotions, necessitating an examination of existing pay structures.

The interplay between entertainment value and financial success continues to stir discussions and shape the industry's trajectory. And the profitability of combat sports promotions is a nuanced and multifaceted issue.

While premier promotions like the UFC have established a robust revenue model, smaller promotions and super fights like Ngannou vs. Fury demonstrate the financial potential within the combat sports arena, albeit with differing strategies and outcomes.

THIS WEEK'S PODCASTS

Sijara "SarJ" Eubanks - From the Cage to the Close

Sijara Eubanks , a formidable force in the UFC, rose to prominence through The Ultimate Fighter reality TV saga. With a striking presence in the Octagon, "SarJ" has brought skills that are a masterful fusion of precise technique and unyielding resolve. Our conversation today delves into the relentless hustle that fueled her through battles and the enduring legacy she’s weaving post-UFC as she continues to galvanize athletes and enterprises alike.

We discussed:

• Her Genesis of Grit: What propelled Sarj from Western MA into the high-octane realm of professional combat sports.
• Evolution of a Fighter: Transitioning from the BJJ and MMA arenas into the professional sphere and how has this odyssey honed her business acumen,
• Ultimate Lessons: An insider glimpse into her journey on The Ultimate Fighter, and how it reshaped her perspective on UFC and MMA as a whole.
• Mentorship in the Mat: Training under combat sports' crème de la crème, SarJ recalls a moment when lessons from the mat transcended into her marketing and branding endeavors.
• Weight Cutting: Sarj shares her insights on weight-cutting in MMA - a boon or bane for the sport?
• Rivalry & Kinship: A nostalgic account of how camaraderie or competition in combat sports shaped her business moves and opportunities.
• Network Nurturing: How is Sarj harnessing her combat sports connections for her ventures post-ring.
• Championing Sarj's Cause: How can our audience rally behind her ventures and upcoming projects?

Connect with her on LinkedIn

Follow her journey on Instagram @sarjncharge

Jed Brecher - Charting a New Corporate Wellness Path with Muay Thai Practice

Jed Brecher is a Muay Thai enthusiast, wellness innovator, and the brainchild behind Muay Thai Wellness , a pioneering venture melding martial arts with mental wellness to rejuvenate modern workspaces. This unique endeavor is a harmonious blend of familial wisdom, martial arts fervor, and a keen understanding of mental equilibrium, aimed at reshaping corporate wellness norms. Jed's inspiring journey is marked by the seamless integration of physical vigor and mental wellness, underlined by a profound appreciation for balanced living. His initiative is carving a niche in revitalizing workplace environments, making Muay Thai not just a martial art, but a wellness revolution.

We explored:

• The Fusion of Mind and Muscle: Delving into how a rich familial background steered his unique approach to Muay Thai and birthed the innovative concept of Muay Thai Wellness.
• Discovering Balance: Uncovering the pivotal moment when Muay Thai transcended beyond a physical venture to a balanced life pursuit for Jed.
• Corporate Epiphany: Shining light on the "aha" moment that inspired the inception of Muay Thai Wellness within the corporate realm.
• Brotherly Bond: Unraveling the intriguing dynamic between Jed and his brother Zac Brecher , and how their shared martial arts enthusiasm fuels the venture forward.
• Workplace Wellness Revolution: Exploring the transformative impact of Muay Thai Wellness sessions on companies, infusing vitality and camaraderie in professional settings.
• Punching Out Presenteeism: Delving into compelling success stories showcasing how Muay Thai Wellness has invigorated work environments.
• Generation Z and Corporate Culture: Discussing how Muay Thai Wellness aligns with Gen Z's values to foster a dynamic, creative, and enjoyable work atmosphere.
• Kickstarting Wellness: Unveiling how Muay Thai Wellness tailors its offerings to meet the unique needs and expectations of companies venturing into this wellness domain.

Connect with Jed on LinkedIn

Learn more about Muay Thai Wellness

Follow @muaythaiwellness on Instagram

HOW AM I DOING?

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