History & Revival of Mixed Martial Arts (MMA) in Today’s Sporting World

CRUNCHING THE MMA NUMBERS

Flickr by superwebdeveloper

The reason for all the media attention given to MMA lately has been largely due to the legalization of MMA events in many Canadian provinces and US states. One of the greatest impacts of sanctioning MMA events has been the economic benefits that the hosting city gets to reap. To illustrate, it’s easiest to use UFC events as they are the largest and have the most widely available statistics.

UFC 129 weighing in at $40 million
The UFC itself has jumped from a $2 million valuation a decade ago to some $1.5 billion today with pay-per-view revenues increasing from $170,000 to $200 million. Obviously, in terms of the bottom-line, the UFC is doing something right. For the local economies that host UFC events, reports have rung in with benefits in the millions of dollars.

One of the largest UFC events was UFC 111, which was held in New Jersey and generated $4 million in live-gate revenues (ticket sales of 17,000). Compare this with the recent UFC 129 event in Toronto that saw 55,000 ticket sales, all of which sold out within minutes.

UFC 129 has been the most successful event in UFC history. This provided $11 million in live-gate sales, which gave Ontario $1.5 million in revenue from ticket sale taxes alone. This is huge for a one-day event. Don’t forget, Ontario’s Athletic Commission also received five per cent of gross ticket sales (some $550,000) from UFC 129.

UFC President Dana White predicted an economic impact of $40 million for Toronto from UFC 129. This stems not only from ticket sales, but from local tourism benefits, such as hotels and other lodgings that out-of-towners need to catch the fight, food and beverages, entertainment, and so forth. While there have been many skeptics, the figures do support the studies done in 2001 that proved the huge potential economic impact a UFC event would have if held in New York (one of the states that still bans MMA events).

Also, the UFC Fan Expo, which was a huge success, occurred on the same weekend in Toronto as UFC 129. It helped draw even more fans to the city, increasing the economic benefits of what became a weekend-long event.

Local Ontario MMA training centres and gyms, such as North York’s Grant Brothers and Brampton’s Doggpound, reported increased membership and interest even in the time leading up to UFC 129.

MMA knocks out the financial crisis
Since MMA has been a relatively new sport, becoming mainstream only in the last five to ten years, it was interesting to see that the local MMA training centres have been doing well regardless of the financial crisis that hit so many other businesses. Both Toronto’s Grant Brothers and Doggpound reported no declines during the economic recession and instead reported increases in memberships, which they attribute to MMA being part of their members’ lifestyle and interest. In fact, during this time, Doggpound saw such an increase in members that it needed to actually hire more trainers and instructors to meets its demands.

And, although there have been more centres popping up because of MMA’s increasing popularity, Grant Brothers’ Neil Forester and Doggpound`s Master Mignon both say competition hasn’t been a problem for either of their gyms. They point to the fact that it’s all about the training that can be provided and the quality of the centres.

MMA, HERE TO STAY

Indeed, MMA has become a staple item in the diet of many Canadians who are huge fans of MMA events. These growing die hards make sure to go out and catch the fights at a local restaurant or bar, or stay-in and order it on pay-per-view with friends.

In fact, MMA is one of the only sports that is seeing a rapidly increasing fan base, whereas other major sporting leagues like the NFL, MLB and NBA have been seeing stable or even declining fan bases in recent years. It is estimated that Canada’s MMA fan base is some 6 million people (18%), and Canadian interest in the sport actually exceeds that of the US.

Overall it looks like Mixed Martial Arts has made its revival and is here to stay, so we might as well learn a thing or two and either step into the octagon ourselves or pull up a seat and catch a fight.

ARB Team
Arbitrage Magazine
Business News with BITE.

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