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Either the UFC $4B valuation is way too high, or Disney stole the Star Wars franchise from Lucas films. The disparity in revenue on a historical or annualized b

by rrggrr 10y ago

Either the UFC $4B valuation is way too high, or Disney stole the Star Wars franchise from Lucas films. The disparity in revenue on a historical or annualized basis is huge. http://fortune.com/2015/12/24/star-wars-value-worth http://fortune.com/2015/12/24/star-wars-value-worth

slg 10y ago
Sports assets costs huge amounts of money and their value will only continue to increase as sports becomes the only real televised media that requires live viewing. In team sports, the top teams are generally valued in the $2-3 billion dollar range. This deal basically equates all of UFC to the cost of two middle of the road NFL teams or two of the more valuable NBA/MLB teams.
- wesd 10y ago
  The only difference between UFC and other leagues is that UFC only has 100 million per year guaranteed income from TV rights. Most of of their revenue (600 million last year) is based on gate and pay per views which can fluctuate based headlines and injuries etc.
showerst 10y ago
I've heard that Lucas sold to Disney over others who offered way more because he though they could best steward the franchise going forward.
- leoc 10y ago
  Since Disney bought Pixar and John Lasseter took on a stack of top Disney roles, I assume that Lucas felt this was the closet he could get to handing Star Wars on to his old Lucasfilm colleagues.
timdierks 10y ago
The linked article treats revenue as value, which is obvious BS. The value of Lucas to Disney is much higher than the $4B price tag either Lucas or UFC yielded, but a lot of that stems from Disney's amazing ability to execute on it. UFC seems more capable of standing alone as a business.
mmanfrin 10y ago
Star Wars is very valuable, but I think you overestimate -- $4bil does not factor in the cost of making new movies, which is in the hundreds of millions. Consider another way: had Disney not bought Star Wars, do you believe they could have built a franchise or franchises of a similar money-printing status for that $4bil? Pirates of the Caribbean have earned close to $4bil: http://www.boxofficemojo.com/franchises/chart/?id=piratesofthecaribbean.htm http://www.boxofficemojo.com/franchises/chart/?id=piratesoft... UFC is a running institution that other parties work to endure and build. Gyms find and train fighters (UFC does not need to participate in this). Those Gyms hype fighters and build fanbases that feed back in as a tributary to UFC. 8x rev for a quickly growing sport franchise that essentially 'owns' fighting outside of Boxing is not terribly high a valuation.

by rrggrr 10y ago

slg 10y ago

Sports assets costs huge amounts of money and their value will only continue to increase as sports becomes the only real televised media that requires live viewing. In team sports, the top teams are generally valued in the $2-3 billion dollar range. This deal basically equates all of UFC to the cost of two middle of the road NFL teams or two of the more valuable NBA/MLB teams.

wesd 10y ago
The only difference between UFC and other leagues is that UFC only has 100 million per year guaranteed income from TV rights. Most of of their revenue (600 million last year) is based on gate and pay per views which can fluctuate based headlines and injuries etc.

showerst 10y ago

I've heard that Lucas sold to Disney over others who offered way more because he though they could best steward the franchise going forward.

leoc 10y ago
Since Disney bought Pixar and John Lasseter took on a stack of top Disney roles, I assume that Lucas felt this was the closet he could get to handing Star Wars on to his old Lucasfilm colleagues.

timdierks 10y ago

The linked article treats revenue as value, which is obvious BS. The value of Lucas to Disney is much higher than the $4B price tag either Lucas or UFC yielded, but a lot of that stems from Disney's amazing ability to execute on it. UFC seems more capable of standing alone as a business.

mmanfrin 10y ago

Star Wars is very valuable, but I think you overestimate -- $4bil does not factor in the cost of making new movies, which is in the hundreds of millions. Consider another way: had Disney not bought Star Wars, do you believe they could have built a franchise or franchises of a similar money-printing status for that $4bil? Pirates of the Caribbean have earned close to $4bil: http://www.boxofficemojo.com/franchises/chart/?id=piratesofthecaribbean.htm http://www.boxofficemojo.com/franchises/chart/?id=piratesoft... UFC is a running institution that other parties work to endure and build. Gyms find and train fighters (UFC does not need to participate in this). Those Gyms hype fighters and build fanbases that feed back in as a tributary to UFC. 8x rev for a quickly growing sport franchise that essentially 'owns' fighting outside of Boxing is not terribly high a valuation.