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UFC: Leaving Home
By Luke | February 15, 2006
After UFC 57, and the rumoured early sellout of UFC 59 in Anaheim, I started thinking that maybe UFC should start running some shows outside of Las Vegas. With the increasing exposure UFC is provided on SpikeTV, coupled with the recent coverage by a couple mainstream outlets (Sports Illustrated, and TheScore [in Canada] ). I think UFC could be quite successful in a number of different markets.
Traditionally, under Zuffa, UFC has run three main territories, Nevada, Connecticut, and New Jersey. Of those three Nevada has the most established fan base. Connecticut and New Jersey do ok, but not they’re not at the same level as Vegas quite yet.
With UFC running an increased amount of PPVs, and live specials throughout the year, the chances of the Vegas market being oversaturated or burned out on UFC is increasing. Not that its about to happen tomorrow, but in a year or two, its not out of the question. Expanding into California was expected as soon as the CSAC gave their approval. But, now, where to go next? I think a logical choice would be Portland. Portland isn’t nearly as sexy a market as Vegas or California, but it has an established fan base, and more than adequate facility to run out of (The Rose Garden). Hopefully sex appeal isn’t a high priority for Zuffa when they decide where to run, because thats going to limit the markets they can choose from. Staying on the westcoast, I think Arizona could be a strong market as well. Its not far from California, which sends large numbers of fans to the Vegas shows, so even if there aren’t hoards of locals lined up to buy tickets, there would be a decent bump from California.
Next, I think expanding into the heartland, or the midwest wouldn’t be a bad move either. Markets like Chicago or St. Louis wouldn’t overly risky, as long as UFC did the proper promotion for the event (and that might be a big IF). I don’t think UFC needs to expand quickly, but running a tv taping or two in a different market each time would help increase the buzz around UFC, and spread the fan base beyond Nevada and California.
Obviously, UFC has their reasons why they don’t want to change anything right now. And, its understood. It harkens back to the old saying “If its not broke, don’t fix it”. Vegas is a hot market for them right now, and they don’t want to kill a good thing. But, I think its getting about time to breakout of the cocoon, and see the rest of the world. There are many markets that could develop an appetite for UFC very quickly, if they had the chance to attend a few live shows and get a sense of the atmosphere at a live fight. Hopefully UFC eventually gives these people that opportunity, and starts expanding across the country to become a truly national promotion.
Topics: All Topics, Luke Nicholson, MMA, UFC | 5 Comments » | Permalink | Trackback |
Here in Tampa, there’s a decent market, too. Orlando has a AKA location, and there are several local (but small) small shows that run every few months.
Aside from Cali, it’s tough to branch out. Look at Mohecan Sun and Atlantic city: gambling, close hotels and a party atmosphere. The UFC banks on the fact that people will go to a live show if there are other things to do that weekend, and close by, too.
In Vegas, you could stay at the Mandalay or MGM, gamble there, go clubbing there, lay out at the pool, eat 5-star food AND see the UFC – all without leaving the building. The UFC needs this “total package” location to attract people from all over (I know…I went to UFC52 from Tampa!).
I don’t think they need it. I think they just prefer it. The bigger the party that the Fertittas can throw, the better.
Just like in the boxing industry, the use of casino locations will always be the UFC’s preference. Also, there are limitations in terms of only being able to run shows in certain states (MMA is sanctioned in Nevada, NJ, CT, FL, California, etc.).
I too believe Vegas could burn out as a big draw and expansion is a good thing. One thing I question is just how much work Dana wants to put in to developing other states, getting mma approval, creating athletic commissions etc…. only to allow other competitors to cruise in on his coat tails and put on shows. It has taken quite awhile to get California on board but the effort put in by the UFC paid off as they basically got everything they wanted. It takes time to create a successful and repetitive market. California will succeed since so many Vegas fans are from Cali. At the end of the day, I doubt Dana will expand too much until sales decrease and he is forced to. After all, he could run on Reservation land all across the country right now but isn’t.
To tie into my question above of how much work Dana wants to put into expansion, I wonder how long it is before Dana is head hunted for a higher level job–or before he seeks it out. Whether he pads his resume or not, he can show the UFC has made major money strides under his tenure. The lure of more money, more power, more ego satisfaction is a strong one. Its common practice for companies business leaders to hop scotch jobs on their way to millionaire power broker status. Anyone who thinks Dana will retire from the UFC is kidding themselves.