At least four bidders -- including WME/IMG, China Media Capital, The Blackstone Group and Dalian Wanda Group -- are believed to have submitted bids for the organization. The winning bid, should things proceed, is expected to be for a valuation of in between $3.5 billion and $4 billion
"As a private company, we don't discuss speculation or rumors related to our business," said David Sholler, vice president of public relations and athlete marketing for the UFC.
Investment bank Goldman Sachs has been representing Zuffa LLC, which bought the UFC in 2001 for only $2 million. Sources with knowledge of the numbers presented to potential investors said that Goldman Sachs had represented UFC's last full year earnings in the $200 million to $250 million range, before interest, taxes, depreciation and amortization. A new television rights deal, which would begin in 2019, could add an additional $250 million in annual revenue to the bottom line, investors were advised.
Lorenzo Fertitta, who with his brother Frank, owned more than 80 percent of the business at last public acknowledgment, told CNN in December that the private company grossed about $600 million in revenue last year. Besides the Fertittas, who are each worth about $1.6 billion, according to Forbes, the company has two other minority investors -- UFC president Dana White and the Abu Dhabi government, which, under its Flash Entertainment arm, bought a 10 percent stake in the business for an undisclosed sum in 2010.
The leader in the bid to buy the biggest mixed martial arts business in the world is said to be Chinese-based conglomerate Dalian Wanda Group, sources said. Its chairman Wang Jianlin is the richest man in China, worth nearly $35 billion, according to Forbes Magazine.
The company has been slowly been getting into sports. Last year, Wanda bought a 20 percent stake in soccer superpower Atletico Madrid for a reported $48 million. In March, amidst the FIFA scandal, the company agreed to sign on as a FIFA partner, the highest level of sponsorship, through 2030.
In January, Dalian Wanda Group became the first Chinese company to become owners of a major Hollywood film studio, when it agreed to buy Legendary Entertainment from Pittsburgh Steelers minority owner Thomas Tull for about $3.5 billion.
Other bidders said to be in the mix are WME/IMG, which owns media properties and represents athletes, including former UFC Rousey, the former bantamweight champion. Blackstone Group is also believed to be a bidder. A senior executive at the private equity firm, David Blitzer, owns a minority stake in the New Jersey Devils, Philadelphia 76ers and British soccer team Crystal Palace.
Another bidder is state-backed investment firm China Media Capital, which, in October, beat out Dalian Wanda and national broadcaster CCTV to win the broadcast rights for the Chinese Super League, the highest level of soccer in the country. In December, CMC, with another Chinese investment group Citic Capital, bought a 13 percent stake of British soccer team Manchester City for a reported $400 million. UFC executive vice president Garry Cook was CEO of Manchester City from 2008 to 2011.
It's not surprising that the leading bid is said to be from China. Chinese companies have made $110.8 billion worth of deals in 2016 compared to $106 billion for all of 2015, according to Dealogic, a financial markets data provider.
"As a private company, we don't discuss speculation or rumors related to our business," said David Sholler, vice president of public relations and athlete marketing for the UFC.
Investment bank Goldman Sachs has been representing Zuffa LLC, which bought the UFC in 2001 for only $2 million. Sources with knowledge of the numbers presented to potential investors said that Goldman Sachs had represented UFC's last full year earnings in the $200 million to $250 million range, before interest, taxes, depreciation and amortization. A new television rights deal, which would begin in 2019, could add an additional $250 million in annual revenue to the bottom line, investors were advised.
Lorenzo Fertitta, who with his brother Frank, owned more than 80 percent of the business at last public acknowledgment, told CNN in December that the private company grossed about $600 million in revenue last year. Besides the Fertittas, who are each worth about $1.6 billion, according to Forbes, the company has two other minority investors -- UFC president Dana White and the Abu Dhabi government, which, under its Flash Entertainment arm, bought a 10 percent stake in the business for an undisclosed sum in 2010.
The leader in the bid to buy the biggest mixed martial arts business in the world is said to be Chinese-based conglomerate Dalian Wanda Group, sources said. Its chairman Wang Jianlin is the richest man in China, worth nearly $35 billion, according to Forbes Magazine.
The company has been slowly been getting into sports. Last year, Wanda bought a 20 percent stake in soccer superpower Atletico Madrid for a reported $48 million. In March, amidst the FIFA scandal, the company agreed to sign on as a FIFA partner, the highest level of sponsorship, through 2030.
In January, Dalian Wanda Group became the first Chinese company to become owners of a major Hollywood film studio, when it agreed to buy Legendary Entertainment from Pittsburgh Steelers minority owner Thomas Tull for about $3.5 billion.
Other bidders said to be in the mix are WME/IMG, which owns media properties and represents athletes, including former UFC Rousey, the former bantamweight champion. Blackstone Group is also believed to be a bidder. A senior executive at the private equity firm, David Blitzer, owns a minority stake in the New Jersey Devils, Philadelphia 76ers and British soccer team Crystal Palace.
Another bidder is state-backed investment firm China Media Capital, which, in October, beat out Dalian Wanda and national broadcaster CCTV to win the broadcast rights for the Chinese Super League, the highest level of soccer in the country. In December, CMC, with another Chinese investment group Citic Capital, bought a 13 percent stake of British soccer team Manchester City for a reported $400 million. UFC executive vice president Garry Cook was CEO of Manchester City from 2008 to 2011.
It's not surprising that the leading bid is said to be from China. Chinese companies have made $110.8 billion worth of deals in 2016 compared to $106 billion for all of 2015, according to Dealogic, a financial markets data provider.
