Outside investors in sports: Zuffa Sells UFC Stake to Abu Dhabi Group

[Jag_Warrior]

Does anyone know if the IRL or IMS has sought outside investors? The reason I ask is because one of the things that the IRL seems to be lacking right now is the ability to invest in maintaining, much less expanding, its base. I understand the UFC is growing, while the IRL really isn't. But there have been some good things happening with regard to sponsors and teams. So if they haven't, do you think they should look to find outside (minority) investors?

Another report I just heard is that UFC is worth something over $1 billion. I wonder what the value of the IRL would be? What would a 10% (for example) stake cost now?


Zuffa announced today that Flash Entertainment, a wholly-owned subsidiary of the Abu Dhabi government, has purchased a ten percent stake in the company.

Initial reports last week that Sheik Tahnoon Bin Zayed Al Nahyan had individually made the purchase were incorrect.

Prior to the deal being signed, the Fertitta brothers owned 90 percent of the company while Dana White held the other 10 percent. The new company structure has not been revealed and likely won't be, but White confirmed that the deal was done in order to streamline the UFC's international expansion.
Zuffa Sells UFC Stake to Abu Dhabi Group (http://www.heavy.com/post/zuffa-sells-ufc-stake-to-abu-dhabi-group-2825)

[Mark in Oshawa]

Does anyone know if the IRL or IMS has sought outside investors? The reason I ask is because one of the things that the IRL seems to be lacking right now is the ability to invest in maintaining, much less expanding, its base. I understand the UFC is growing, while the IRL really isn't. But there have been some good things happening with regard to sponsors and teams. So if they haven't, do you think they should look to find outside (minority) investors?

Another report I just heard is that UFC is worth something over $1 billion. I wonder what the value of the IRL would be? What would a 10% (for example) stake cost now?


Zuffa Sells UFC Stake to Abu Dhabi Group (http://www.heavy.com/post/zuffa-sells-ufc-stake-to-abu-dhabi-group-2825)

They didn't look for investors because Tony was quite willing to shake the piggy bank to make things happen, and didn't want to answer to anyone. It is not a surprise. NOW I hope the new management DOES look for other investors.

[Ironcurtainantihero]

They didn't look for investors because Tony was quite willing to shake the piggy bank to make things happen, and didn't want to answer to anyone. It is not a surprise. NOW I hope the new management DOES look for other investors.

On this, I have to agree to a great extent with you, Mark. It almost-this may be a bad analogy-feels like IndyCar is the mom-and-pop grocery store trying to compete with Walmart (NASCAR). That isn't really possible in this day and age, so changes-as painful as they are-might be the only way to keep the business active and viable. I'm not sure it will happen as my understanding is that Mari Hulman George wants to have the family business for her grandchildren, but if I were in her shoes, I would absolutely be willing to discuss the possibility of selling at least a part of the assets relating to the IndyCar series to an outside investor/investors. Bernie Eccelstone has done so with F1, and that in my eyes hasn't hurt that series any.

[SUBARUTEAM]

getting new investors didn't work for a1gp

[Mark in Oshawa]

getting new investors didn't work for a1gp

a1GP was a dopey business model. It wouldn't make money if you had a printing press and the US Mint. Not having any new investors or partners is fine if you want total control, but then if you are not prepared to spend the money to make the business grow so it can be profitable again, then you might as well shut the door now....

Tony George was a control freak. He wanted to be the boss, and he became the boss. Well he had his control, and he made a good run at it, and he failed. Time to get past this idea that the IMS have all the answers. It is clear they are out of ideas...

[NickFalzone]

a1GP was a dopey business model. It wouldn't make money if you had a printing press and the US Mint. Not having any new investors or partners is fine if you want total control, but then if you are not prepared to spend the money to make the business grow so it can be profitable again, then you might as well shut the door now....

Tony George was a control freak. He wanted to be the boss, and he became the boss. Well he had his control, and he made a good run at it, and he failed. Time to get past this idea that the IMS have all the answers. It is clear they are out of ideas...

Mark I guess that's the popular perception of it, but did Tony really "fail"? Yes, he recently got fired from his position. And yes, he spent a ton of the family's money. On the other hand, his series, did win the war, and for several years now it has rung the bell for a full season. It has signed a title sponsor, has a pretty decent driver base and a solid racing schedule. Are there problems? Sure. But I think calling Tony's reign a "failure" is using the wrong term. From his perspective I doubt it would be considered a failure. The family owns the series, and the series supports the 500, which still is a huge moneymaker. His goal of keeping the 500 as the main event was successful, it still gets solid tv ratings and huge at track attendance.

[garyshell]

Mark I guess that's the popular perception of it, but did Tony really "fail"? Yes, he recently got fired from his position. And yes, he spent a ton of the family's money. On the other hand, his series, did win the war, and for several years now it has rung the bell for a full season. It has signed a title sponsor, has a pretty decent driver base and a solid racing schedule. Are there problems? Sure. But I think calling Tony's reign a "failure" is using the wrong term. From his perspective I doubt it would be considered a failure. The family owns the series, and the series supports the 500, which still is a huge moneymaker. His goal of keeping the 500 as the main event was successful, it still gets solid tv ratings and huge at track attendance.

Huh? Solid TV ratings? Compared to 1995, when all this started? Failure. Huge track attendance? Compared to the MONTH OF MAY in 1995? Failure. He got fired. He pissed away a huge sum of the families money, precipitating his firing. Failure. How else could it possibly be characterized.

Gary

[Mark in Oshawa]

Huh? Solid TV ratings? Compared to 1995, when all this started? Failure. Huge track attendance? Compared to the MONTH OF MAY in 1995? Failure. He got fired. He pissed away a huge sum of the families money, precipitating his firing. Failure. How else could it possibly be characterized.

Gary

Gary, I can hear Starter getting out his box of padlocks because we have all seen this movie before.

Nickel, the point of running a race series and running the IMS is not to keep the purity of Americans running Indy Car, but if was he failed. There are no more Americans left in the IRL now than they were in 95 and at least Michael Andretti was a race winning threat then rather than a team owner in the second tier. If was to put American manufacturers in the IRL, he failed. Honda and Dallara are the only names left in the equipment. If it was to make money he failed. If his point was to preserve the traditions of the 500, well with only 33 cars trying to make the field, he killed the month of may. If his goal was to improve their TV footprint, he failed. If it was to just beat CART's head in, he did win that, but what did he win?

I said it before, Tony didn't succeed in anything meaningful but beating a large fortune into a small one and putting it all under his control, to where his Sisters gave him the heave ho a year later.

As for the money he lost, well that speaks volumes to how much rope his family gave him that they let him lose THAT much money to win control of the sport.

Sorry, I aint buying it....

[Mark in Oshawa]

This sport has needed outside financing for a while. The IZOD deal is a good first step, but ownership of the series with a rich investor who loves the sport would just be ideal. I hope they are smart enough to go out there and look...

[Civic]

The first part of this article kinda goes hand in hand with this thread.

http://auto-racing.speedtv.com/article/pruett-triple-stint-116/

[NickFalzone]

The first part of this article kinda goes hand in hand with this thread.

http://auto-racing.speedtv.com/article/pruett-triple-stint-116/

That's an interesting article and they're right that the IRL would stand to benefit quite a bit by connecting with the UFC crowd. But knowing the IRL, come mid-March, they'll still be trying to get Ellen Degeneres to the Indy 500...

[Jag_Warrior]

Pruett makes a lot of sense with that. Thanks for posting it, Civic.

[Mark in Oshawa]

That's an interesting article and they're right that the IRL would stand to benefit quite a bit by connecting with the UFC crowd. But knowing the IRL, come mid-March, they'll still be trying to get Ellen Degeneres to the Indy 500...

Heck, she is hotter than some of the celebs they have dug up over the last decade or so. THAT said, Ellen isn't who I would be after.

Since UFC is big with VS, and VS wants to move the Indycar market younger, I would hope someone is awake at head office and makes this marketing effort. THere are no more excuses, and this is a good tie in.

I personally am NOT a big UFC fan, but it is hot right now, and the people watching it likely are NOT racing fans but would be open to the idea.

That said, I am not optimistic. No one at IRL head office in the marketing side has really grasped the whole issue and done something that has turned my crank, or the general average joe as well.

[Jag_Warrior]

Off topic, I know... but what is Sarah Fisher's fascination with Ellen Degeneres all about? Is there some sponsor tie-in that I don't know about? :confused:

[Mark in Oshawa]

Off topic, I know... but what is Sarah Fisher's fascination with Ellen Degeneres all about? Is there some sponsor tie-in that I don't know about? :confused:

My Wife Watches Ellen quite a bit, and it hasn't made it above the radar on her show. Maybe Fisher is doing a little guerilla marketing to get Degenereres on her side and some publicity. Ellen is big on "girl"power and all, and I think the rationall, logical side she has would appreciate Sarah's story a lot more than the bikini show that is Danica Patrick.

[anthonyvop]

Being on Elllen would be good......Well it wouldn't be bad.

Katherine Legge was on Ellen after her big shunt........That was "huge" for Champ Car.

[Mark in Oshawa]

Being on Elllen would be good......Well it wouldn't be bad.

Katherine Legge was on Ellen after her big shunt........That was "huge" for Champ Car.

It was. Katherine Legge was a great interview and a real woman too. She didn't really make the impact I thought she should have, and was inconsistent on the track, but she was a pro, and acted as one.

[Jag_Warrior]

It was. Katherine Legge was a great interview and a real woman too. She didn't really make the impact I thought she should have, and was inconsistent on the track, but she was a pro, and acted as one.

I never became a huge Legge fan. But imagine being thrown in the deep end of the pool, a year or so before you were ready. And then once you came up for air, you realized that many of the people who were charged with helping you, didn't want you there... they'd just as soon see you drown. I think, with some support and guidance, she could have been a more than competent racer though. But with a rudderless CCWS (and Kevin K. as her manager), she was in the wrong place at the wrong time... with some bad people. Just my 2 cents.

Instead of begging Ellen Degeneres to be her guest at Indy (Ellen might get the wrong idea, if Sarah isn't
careful ;) ), if I was Fisher, I'd go camp outside Oprah's HQ. All Oprah has to do is tell the women of America to watch the Indy 500, and the ratings would magically hit double digits for the first time in almost two decades.