Breaking News: UFC Sold to WME-IMG Group for $4 Billion

Even in the world of mixed martial arts, you can never say never.

The New York Times is reporting that William-Morris Endeavor, or WME-IMG, has purchased UFC for $4 billon. The sale is expected to be officially announced on Monday morning.

Below are some excerpts from the article that outline the terms of the sale:

The league, which promotes mixed martial arts, is expected to announce as soon as Monday that it has sold itself to a group led by the talent giant WME-IMG for about $4 billion, according to people with direct knowledge of the matter. Backing the deal are the private equity heavyweights Silver Lake, Kohlberg Kravis Roberts, and the investment firm of the billionaire Michael S. Dell.

It will be a windfall for U.F.C.’s primary owners, the longtime casino entrepreneurs Frank and Lorenzo Fertitta, though they will stay on as minority investors.

The brothers bought U.F.C. in 2000 for just $2 million at a low point for the league, after the promoter spent years and millions of dollars battling to win approval from state athletic commissions.

But the Fertittas took the brand to a new level, with more advertising, more effective social media marketing and better distribution through partnerships like the one with Fox. Licensing money for video games, clothes and more began to roll in. U.F.C.’s revenue was about $600 million last year.

Respectability came along with rules meant to curb the excesses of early fights and getting approval from each state’s athletic commission. The last came this year, when New York lifted its ban on the sport.

And cross-promotional television programming like “The Ultimate Fighter” reality show elevated U.F.C.’s presence in pop culture, turning athletes like Chuck Liddell and Randy Couture into mainstream stars. Combatants began appearing on ESPN and in the pages of Sports Illustrated.

Though WME-IMG represents Ms. [Ronda] Rousey and other combatants in their endorsements and movie deals, the agency will not get involved in the actual pay negotiations with athletes, according to the people with direct knowledge of the matter.

Backing the agency are Silver Lake, which led the merger of WME and IMG nearly three years ago and which has long pushed portfolio companies to become bigger through acquisitions, and K.K.R., which has often worked with Silver Lake on major investments like the takeovers of GoDaddy and the chip maker Avago.

Both firms will own minority stakes in U.F.C.

Multiple tweets from various sports reporters have been starting to surface as well:

Largest sale in history of sports. #UFC sold for 4 billion to WME-IMG and MSD capital. Fertittas and White small % pic.twitter.com/b7Fj0ZXs4x

— Chris Maathuis (@sports8) July 11, 2016

BREAKING: UFC expected to announce as soon as tomorrow that it has sold itself for about $4B to group led by WME-IMG – NYTimes

— CNBC Now (@CNBCnow) July 11, 2016

You can find the entire article at this link.

Editor’s Note:

I don’t think that this will effect what UFC does very much at all. I have to assume that their programming will be the same; the money will simply be going in a new direction. It’s still a big deal though; I guess you can never say never in this business.

Follow @Dericho06