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Are the Feds setting up Goldman Sachs for legal action over the UFC sale?
By Zach Arnold | October 8, 2016
America’s Federal Reserve and Goldman Sachs have long had a revolving-door relationship. That relationship is now getting tested by Janet Yellen and the Obama Administration in regards to banks pitching high-leveraged business propositions.
Bloomberg News reported on Thursday that Federal Reserve supervisors have sent Goldman Sachs a warning letter regarding promises they supposedly made to prospective buyers for the UFC.
- Goldman Sachs allegedly marketed UFC as a business property that could generate nearly $300 million USD in yearly EBITDA. However, the current EBITDA for UFC is reportedly less than half – $142 million EBITDA.
- Reportedly in August, there were buyers interested in buying high-yield UFC debt. $1.8 billion dollars in UFC debt was purchased.
These figures have allegedly alarmed Federal regulators because of the net debt to EBITDA ratio. Using these figures, UFC would have a ratio of 12 — which would be alarming. Bloomberg reports that numerical adjustments lowered UFC’s ratio to 6.
This information comes at a time where word is spreading about new UFC ownership wanting to create multiple television deals with different cable & broadcast networks when the Fox Sports deal expires in 2019. Exclusivity of UFC’s product has kept Fox Sports 1 afloat as a fledgling cable sports channel. Without UFC programming, FS1 struggles to attract programs that draw 6-figure ratings. UFC is the network’s lifeline.
The financial pressure for UFC’s new venture capital owners to maximize profits is high. The financial pressure for Fox Sports to keep FS1 going is meaningful. Big changes could be coming for both parties in two years.
Topics: Media, MMA, UFC, Zach Arnold | 4 Comments » | Permalink | Trackback |
The Fertitta’s already leveraged the UFC in order to pay themselves handsomely. Then they sold it and now the debt levels are completely insane.
All this debt means more expenses and less for the fighters. A real shame. These big companies could care less about the fighters themselves.
On an unrelated note…. I purchase UFC 204 through fight pass. Knew I was too tired to stay up all night to watch it. Went to bed, and woke up at 5am to watch it. The event, which still showed active in my account, was now blacked out in the US.
Even when you clicked on the link to purchase the replay, it said it was blacked out.
Errors like this are for complete amateurs.
To add to the UFC.tv saga….
I got an email back from them saying they refused to refund me the money. Despite the fact that they even admit I should of had 24 hours of access. I provided screenshots of their website showing the problem.
Horrible customer service to say the least.
Streaming PPV’s has been found to be legal. Looks like they are pushing me in that direction.
What really pisses me off is that I am not a scammer. I have purchased over 50 MMA PPV’s in my lifetime. Before today, I have requested exactly one refund for a PPV, and it was for a Pride Bushido event because the signal kept on going in and out really badly. And everybody knows that was a long time ago.
To treat customers like this is pathetic
There response said: “Unfortunately we can not honor any refund request that is made after the live event has ended.”
So if you purchase the PPV… pause it…. take a nap…. and then try to access it within 24 hours…. even if they mess it up…. They will still charge you.
I am dumbfounded on how bad they handle this.
I scored it a draw, rd 1 10-8 rd @ 10-9 for dan, and rds 3,4,5 were close 10-9 rounds for bisping. But i had a feeling a hometown decision was looming, but 49-46 for bisping?!? And no judge gave dan a 10-8 first round… oh well, he may not have won it, but decision Dan didnt lose that one.
It was satisfying to see Vitrtor get some punishment for his cheating.
Good for the frattatas for sticking that pos zionist banker crony scum with a worthless debt magnet.