1 00:00:06,320 --> 00:00:11,119 Speaker 1: Welcome to Strictly Business Varieties, weekly podcast featuring conversations with 2 00:00:11,200 --> 00:00:15,200 Speaker 1: industry leaders about the business of entertainment. Today's guest, with 3 00:00:15,240 --> 00:00:19,279 Speaker 1: Cynthia Littleton in New York is UFC Chief operating Officer 4 00:00:19,480 --> 00:00:23,680 Speaker 1: Lawrence Epstein. The UFC veterans speaks candidly about the growth 5 00:00:23,760 --> 00:00:27,440 Speaker 1: challenges facing the mm A pioneer, the impact of its 6 00:00:27,480 --> 00:00:31,600 Speaker 1: acquisition by Endeavor, its growth in international markets, and the 7 00:00:31,680 --> 00:00:35,639 Speaker 1: brand building benefits of the league's new partnership with ESPN. 8 00:00:38,800 --> 00:00:41,960 Speaker 1: Can you talk about the process of putting yourself up 9 00:00:41,960 --> 00:00:46,040 Speaker 1: for sale and evaluating the field of players that that 10 00:00:46,200 --> 00:00:49,320 Speaker 1: came knocking and how you how the final deal with 11 00:00:49,400 --> 00:00:52,040 Speaker 1: Endeavor came to be absolutely you know, we bought the 12 00:00:52,080 --> 00:00:54,240 Speaker 1: business in two thousand and one and spent you know, 13 00:00:54,560 --> 00:00:58,120 Speaker 1: fifteen years essentially you know, growing it to what you know, 14 00:00:58,200 --> 00:01:01,760 Speaker 1: became one of the fastest growing sports in the world. Um, 15 00:01:01,800 --> 00:01:05,960 Speaker 1: you know, around we started getting some some inbound inquiries 16 00:01:06,040 --> 00:01:08,760 Speaker 1: from a lot of Chinese companies about the prospect of 17 00:01:08,800 --> 00:01:13,199 Speaker 1: buying UFC, and so by late you know, we sort 18 00:01:13,240 --> 00:01:16,640 Speaker 1: of decided to begin an informal process where we talked 19 00:01:16,680 --> 00:01:20,400 Speaker 1: to a variety of different potential purchasers about about selling 20 00:01:20,440 --> 00:01:22,959 Speaker 1: the company. The main owners of the business, Frank runso Fertida, 21 00:01:23,000 --> 00:01:25,480 Speaker 1: I think, had decided that they, you know, they're interested 22 00:01:25,520 --> 00:01:28,959 Speaker 1: in exiting the business if they got the right price. Um. 23 00:01:29,040 --> 00:01:31,920 Speaker 1: That process went from talking to some Chinese companies, are 24 00:01:31,920 --> 00:01:35,480 Speaker 1: really talking to a variety of of of American based companies. 25 00:01:35,640 --> 00:01:38,000 Speaker 1: You know, every sort of big player in the entertainment space, 26 00:01:38,560 --> 00:01:42,960 Speaker 1: from the Walt Disney Company to Time Warner to uh, 27 00:01:43,080 --> 00:01:45,680 Speaker 1: you know, a variety of other sort of media companies 28 00:01:45,680 --> 00:01:48,760 Speaker 1: are strategic, you know, operating businesses that would you know, 29 00:01:49,800 --> 00:01:53,680 Speaker 1: be I think a good fit for the UFC. Ultimately, Uh, 30 00:01:54,040 --> 00:01:56,040 Speaker 1: it was obviously sold to the Endeavor Group and R. 31 00:01:56,120 --> 00:01:59,200 Speaker 1: Emmanuel we had actually had a long standing relationship with 32 00:01:59,240 --> 00:02:01,520 Speaker 1: our he had been our agent for almost a decade 33 00:02:01,680 --> 00:02:03,920 Speaker 1: helping us with our us TV deal. So it was 34 00:02:03,960 --> 00:02:05,760 Speaker 1: actually a really nice fit. He was able to meet 35 00:02:05,760 --> 00:02:08,040 Speaker 1: the price. And uh, he said, it's been over two 36 00:02:08,080 --> 00:02:11,200 Speaker 1: years now under the Endeavor ownership. When you first when 37 00:02:11,240 --> 00:02:13,520 Speaker 1: you first heard that they were interested though in the acquisition, 38 00:02:13,560 --> 00:02:15,960 Speaker 1: did that surprise you that because that was at the 39 00:02:16,120 --> 00:02:19,959 Speaker 1: early stage of Endeavor building itself out to what it's become. No, 40 00:02:20,080 --> 00:02:22,399 Speaker 1: it really didn't surprise me. I I mean already had expressed, 41 00:02:22,480 --> 00:02:25,200 Speaker 1: you know, a passion for this business, you know, you know, 42 00:02:25,240 --> 00:02:28,960 Speaker 1: for many, many years, and the question always was, you know, financially, 43 00:02:29,000 --> 00:02:30,840 Speaker 1: could they go out and raise the money to get 44 00:02:30,840 --> 00:02:33,200 Speaker 1: this thing done? And it's very clear that they could. 45 00:02:33,200 --> 00:02:36,520 Speaker 1: They made a series of acquisitions including IMG uh you know, 46 00:02:36,680 --> 00:02:40,480 Speaker 1: a couple of years before acquiring UFC, and uh, you know, 47 00:02:40,520 --> 00:02:43,120 Speaker 1: already had a passion for the business. Uh, it was 48 00:02:43,160 --> 00:02:45,799 Speaker 1: a really good strategic fit. So it really wasn't a surprise. 49 00:02:46,400 --> 00:02:48,480 Speaker 1: Uh it was I think, you know, the right deal 50 00:02:48,520 --> 00:02:50,720 Speaker 1: for us at the right time. Did you get did 51 00:02:50,760 --> 00:02:55,239 Speaker 1: you get into serious discussions with anybody else? Absolutely weak, 52 00:02:55,800 --> 00:02:58,919 Speaker 1: we said. We ran a process that probably lasted about 53 00:02:59,000 --> 00:03:01,200 Speaker 1: nine months, and and of course, you know as these 54 00:03:01,280 --> 00:03:04,480 Speaker 1: as the process sort of went along, certain parties would 55 00:03:04,760 --> 00:03:07,640 Speaker 1: fall out for a variety of reasons. But uh, you know, 56 00:03:08,280 --> 00:03:10,760 Speaker 1: we really got down to probably three or four, you know, 57 00:03:10,840 --> 00:03:13,120 Speaker 1: really serious bidders. And you know, at the end of 58 00:03:13,160 --> 00:03:15,560 Speaker 1: the day, when you know the factors that you look at, 59 00:03:15,600 --> 00:03:17,639 Speaker 1: of course, price you look at, but you also look 60 00:03:17,680 --> 00:03:19,880 Speaker 1: at you know, who's going to take the business to 61 00:03:19,880 --> 00:03:22,639 Speaker 1: the next level. Because the Fertidas had spent a lot 62 00:03:22,680 --> 00:03:24,760 Speaker 1: of time, effort, and money building this business, but they 63 00:03:24,800 --> 00:03:26,840 Speaker 1: also really cared about it and they wanted to make 64 00:03:26,840 --> 00:03:29,600 Speaker 1: sure that they didn't just make a financial transaction. They 65 00:03:29,639 --> 00:03:31,440 Speaker 1: wanted to make sure that the business would continue to 66 00:03:31,480 --> 00:03:34,239 Speaker 1: grow and continue to be part of the sports landscape. 67 00:03:34,240 --> 00:03:36,600 Speaker 1: And so, you know, taking a look at some foreign 68 00:03:36,600 --> 00:03:40,200 Speaker 1: buyers versus what ari and and Endeavor had I think 69 00:03:40,240 --> 00:03:42,920 Speaker 1: made it made the decision, you know, sort of easy. Okay, 70 00:03:43,040 --> 00:03:44,960 Speaker 1: you know, let's maybe take a little bit less money, 71 00:03:45,040 --> 00:03:46,680 Speaker 1: but let's put it in the hands of somebody who's 72 00:03:46,680 --> 00:03:48,200 Speaker 1: going to be able to take it to the next level. 73 00:03:49,080 --> 00:03:51,840 Speaker 1: What did you I would imagine that talking to people 74 00:03:51,840 --> 00:03:56,160 Speaker 1: and engaging the interest from outside companies to acquire you 75 00:03:56,200 --> 00:03:59,080 Speaker 1: would tell you a lot about the strength and the 76 00:03:59,160 --> 00:04:01,880 Speaker 1: potential weakness of your of the business. Did you learn 77 00:04:01,920 --> 00:04:04,680 Speaker 1: a lot during the sale process? You know, we definitely 78 00:04:04,760 --> 00:04:07,600 Speaker 1: learned a lot in the sale process about certainly what 79 00:04:07,640 --> 00:04:10,400 Speaker 1: investors were looking for, you know, when they wanted to 80 00:04:10,840 --> 00:04:12,840 Speaker 1: consider acquiring a business like ours, And it made us 81 00:04:12,840 --> 00:04:15,680 Speaker 1: focus on maybe some of the things that were weaknesses 82 00:04:15,720 --> 00:04:17,920 Speaker 1: or perceived weaknesses to make sure we had the proper 83 00:04:17,960 --> 00:04:20,960 Speaker 1: answers and the proper sort of you know, I think 84 00:04:21,600 --> 00:04:24,000 Speaker 1: ways to sort of deal with those. Um you know. 85 00:04:24,040 --> 00:04:26,840 Speaker 1: The other dividend of the sale process was that so 86 00:04:26,880 --> 00:04:29,120 Speaker 1: many of the parties that we were talking to were 87 00:04:29,160 --> 00:04:32,320 Speaker 1: also potential bidders for our rights, the most obvious one 88 00:04:32,440 --> 00:04:35,599 Speaker 1: being you know, ESPN. So Disney Company was at the table. 89 00:04:35,800 --> 00:04:38,200 Speaker 1: They certainly listened to the pitch and you know, though 90 00:04:38,240 --> 00:04:41,080 Speaker 1: they dropped out of the you know, the purchase process, 91 00:04:41,160 --> 00:04:42,480 Speaker 1: you know, it was pretty clear to me that they 92 00:04:42,520 --> 00:04:44,600 Speaker 1: were going to bid on our rights. And you know, 93 00:04:44,720 --> 00:04:47,000 Speaker 1: that obviously came true because we just entered into a 94 00:04:47,000 --> 00:04:50,279 Speaker 1: five year deal with with ESPN, which is gonna start 95 00:04:50,320 --> 00:04:55,960 Speaker 1: January one of nineteen. There was there's been some chatter 96 00:04:56,040 --> 00:04:58,920 Speaker 1: on Wall Street that that that that ESPN deal wasn't 97 00:04:59,040 --> 00:05:01,000 Speaker 1: as big as it was, and the you know, with 98 00:05:01,120 --> 00:05:03,240 Speaker 1: the with the B in front of the you know, 99 00:05:03,360 --> 00:05:06,599 Speaker 1: in front of the billion, that it wasn't it didn't 100 00:05:06,760 --> 00:05:10,760 Speaker 1: meet the expectations of endeavor and of the USC. Is 101 00:05:10,800 --> 00:05:13,359 Speaker 1: that true, not at all? I mean, the deal that 102 00:05:13,400 --> 00:05:16,560 Speaker 1: we did with with ESPN is really a multifaceted deal. 103 00:05:16,640 --> 00:05:19,160 Speaker 1: So the headline, of course is one point five billion 104 00:05:19,200 --> 00:05:22,400 Speaker 1: dollars over a five year period. Three million dollars per 105 00:05:22,480 --> 00:05:25,039 Speaker 1: year that you know, is basically for a package of 106 00:05:25,040 --> 00:05:27,359 Speaker 1: content very similar to what we have with Fox, and 107 00:05:27,400 --> 00:05:30,000 Speaker 1: that's almost a three times increase over the Fox deal. 108 00:05:30,440 --> 00:05:32,320 Speaker 1: But that's that's sort of not the end of the deal. 109 00:05:32,400 --> 00:05:34,279 Speaker 1: I mean, one of the things that we're frankly most 110 00:05:34,320 --> 00:05:37,080 Speaker 1: excited about is that ESPN is going to be a 111 00:05:37,120 --> 00:05:40,080 Speaker 1: non exclusive seller of our pay per view products. So 112 00:05:40,160 --> 00:05:42,320 Speaker 1: now we've got a real partner that's gonna be focused 113 00:05:42,360 --> 00:05:44,640 Speaker 1: on selling pay per view that you know, we think 114 00:05:44,640 --> 00:05:47,640 Speaker 1: can really help us grow our business. In addition to that, 115 00:05:48,080 --> 00:05:50,760 Speaker 1: you know, the credibility of being in partnership with Walt 116 00:05:50,760 --> 00:05:53,560 Speaker 1: Disney Company and ESPN has helped us in so many ways, 117 00:05:53,560 --> 00:05:57,799 Speaker 1: including sponsorship. It's affected, you know, positively our foreign television deals, 118 00:05:58,120 --> 00:06:00,760 Speaker 1: deals outside of of the United States. It's and it's 119 00:06:00,839 --> 00:06:04,840 Speaker 1: just created a lot of credibility for our brand. So yes, 120 00:06:05,000 --> 00:06:06,880 Speaker 1: you know, one point five billion dollars in the headline, 121 00:06:06,880 --> 00:06:08,720 Speaker 1: but there's so many other benefits that we're getting out 122 00:06:08,760 --> 00:06:13,600 Speaker 1: of this deal with ESPN. How um, how much would 123 00:06:13,640 --> 00:06:18,400 Speaker 1: you say that your revenue mix is driven by the 124 00:06:18,520 --> 00:06:22,560 Speaker 1: your pay per view events and now this more mainstream 125 00:06:22,680 --> 00:06:27,000 Speaker 1: sports licensing with a partner like an ESPN. Do you 126 00:06:27,040 --> 00:06:30,000 Speaker 1: know what the percentage breakdown is, Well, the percentage breakdown 127 00:06:30,200 --> 00:06:33,120 Speaker 1: right now is going to change, you know obviously effective 128 00:06:33,200 --> 00:06:36,240 Speaker 1: January one, because we're gonna getting more revenue from from 129 00:06:36,400 --> 00:06:38,680 Speaker 1: ESPN that we were getting from Fox. So the you know, 130 00:06:38,720 --> 00:06:40,920 Speaker 1: sort of the dependence or the percentage of revenue coming 131 00:06:40,920 --> 00:06:44,719 Speaker 1: from pay per view will no doubt decrease. That being said, 132 00:06:44,920 --> 00:06:47,880 Speaker 1: you know, we believe that the relationship with the ESPN 133 00:06:47,960 --> 00:06:50,279 Speaker 1: is going to actually grow our pay per view business because, 134 00:06:50,600 --> 00:06:53,520 Speaker 1: first of all, we're gonna get much more exposure being 135 00:06:53,520 --> 00:06:56,360 Speaker 1: on the ESPN platform than we had with Fox. The 136 00:06:56,680 --> 00:07:00,000 Speaker 1: television you know, ratings essentially are almost three times more 137 00:07:00,120 --> 00:07:02,600 Speaker 1: or on ESPN and ESPN two than they are in 138 00:07:02,680 --> 00:07:06,039 Speaker 1: Fox and Fox Sports one. In addition to that, ESPN 139 00:07:06,040 --> 00:07:08,760 Speaker 1: has got an incredible digital ecosystem, you know, which of 140 00:07:08,760 --> 00:07:11,400 Speaker 1: course has got you know, earned, it's got their media, 141 00:07:11,760 --> 00:07:13,640 Speaker 1: it's got you know so many you know, many things 142 00:07:13,640 --> 00:07:16,360 Speaker 1: that are attracting people to you know, that platform. So 143 00:07:16,520 --> 00:07:20,200 Speaker 1: we're gonna additional exposure via that and um, you know, 144 00:07:20,240 --> 00:07:22,480 Speaker 1: we believe that you know, when there's sort of one 145 00:07:22,560 --> 00:07:24,560 Speaker 1: click away from buying a pay per view in that 146 00:07:24,840 --> 00:07:28,240 Speaker 1: ESPN ecosystem that's going to add incremental buys. So certainly 147 00:07:28,240 --> 00:07:30,600 Speaker 1: from the outset, you know, the percentage of revenue coming 148 00:07:30,600 --> 00:07:32,840 Speaker 1: from pay per view will decrease, but over long term, 149 00:07:32,880 --> 00:07:34,640 Speaker 1: you know, we think we're going to grow that business 150 00:07:34,640 --> 00:07:36,560 Speaker 1: and you know, who knows where it ends up. You know, 151 00:07:36,560 --> 00:07:38,480 Speaker 1: three or four years from now, are you going to 152 00:07:38,560 --> 00:07:42,560 Speaker 1: do more events that that air strictly on ESPN and 153 00:07:42,560 --> 00:07:46,200 Speaker 1: are not offered in a pay per view format. So 154 00:07:46,680 --> 00:07:50,440 Speaker 1: we're gonna do forty two events uh next year, which 155 00:07:50,520 --> 00:07:52,920 Speaker 1: is about a three event increase over what we're gonna 156 00:07:52,920 --> 00:07:57,880 Speaker 1: do in uh forty For those forty two events will 157 00:07:57,920 --> 00:08:02,160 Speaker 1: appear in some portion on one of the ESPN platforms 158 00:08:02,240 --> 00:08:05,239 Speaker 1: or either ESPN the broad reach you know, flagship network, 159 00:08:05,600 --> 00:08:09,600 Speaker 1: or the new ESPN Plus O T T platform. Twenty 160 00:08:09,760 --> 00:08:12,960 Speaker 1: nights will be exclusive to ESPN Plus. The entire fight 161 00:08:13,000 --> 00:08:16,080 Speaker 1: will be on the ESPN Plus platform, twenty two nights 162 00:08:16,080 --> 00:08:19,280 Speaker 1: will there'll be some portion of the programming which will 163 00:08:19,320 --> 00:08:22,880 Speaker 1: be on on the ESPN Flagship Flagship network. And then 164 00:08:22,920 --> 00:08:24,880 Speaker 1: we're still going to have twelve pay per view events. 165 00:08:24,920 --> 00:08:28,400 Speaker 1: Those will be exclusively shown on pay per view, So, uh, 166 00:08:28,440 --> 00:08:31,400 Speaker 1: you know, uh that that's exactly the number we've had 167 00:08:31,520 --> 00:08:33,920 Speaker 1: this year and for the last several years. Do you 168 00:08:33,960 --> 00:08:37,560 Speaker 1: feel like in this world of where people are becoming 169 00:08:37,600 --> 00:08:41,200 Speaker 1: so accustomed to streaming, you know, the instant gratification button 170 00:08:41,559 --> 00:08:44,200 Speaker 1: is you know, the instant gratification is so important to 171 00:08:44,240 --> 00:08:46,800 Speaker 1: consumers now for video, do you feel like is the 172 00:08:46,840 --> 00:08:50,280 Speaker 1: pay per view model maybe becoming outmoded in this in 173 00:08:50,360 --> 00:08:52,360 Speaker 1: this environment. No, not at all. I mean, in fact, 174 00:08:52,400 --> 00:08:53,920 Speaker 1: I think the pay per view business is more relevant 175 00:08:53,960 --> 00:08:55,280 Speaker 1: now than it ever has been. If you would ask 176 00:08:55,320 --> 00:08:57,000 Speaker 1: that question five years ago, I said, well, you know 177 00:08:57,000 --> 00:08:59,560 Speaker 1: what pay per view is a tough business, is churn 178 00:08:59,640 --> 00:09:02,080 Speaker 1: business us. You know, you've got to sign them up, 179 00:09:02,120 --> 00:09:04,560 Speaker 1: every sign up, every single time. And we did, you know, 180 00:09:04,640 --> 00:09:08,600 Speaker 1: a huge event October six, and of course everybody laughed 181 00:09:08,640 --> 00:09:10,880 Speaker 1: after the event was over. That being said, in this 182 00:09:10,960 --> 00:09:14,120 Speaker 1: world of cord cutters and cord shavers and cordin ever's 183 00:09:14,559 --> 00:09:17,000 Speaker 1: having an Ala cart, you know sort of I can 184 00:09:17,040 --> 00:09:19,560 Speaker 1: buy it, you know, whenever I want to. Is UH 185 00:09:20,040 --> 00:09:22,480 Speaker 1: is a distribution platform that makes a lot of sense. 186 00:09:22,520 --> 00:09:25,080 Speaker 1: I mean, you know, our philosophy for the last five 187 00:09:25,160 --> 00:09:27,920 Speaker 1: years is the following. I mean, we didn't know where 188 00:09:27,960 --> 00:09:30,280 Speaker 1: consumers were going with, you know, how they wanted to 189 00:09:30,320 --> 00:09:34,120 Speaker 1: distribute content. So our strategy was build franchises in all 190 00:09:34,200 --> 00:09:36,520 Speaker 1: the important areas, pay per view being one of them, 191 00:09:36,800 --> 00:09:39,480 Speaker 1: O T t v R, Fight Pass platform being another, 192 00:09:39,800 --> 00:09:42,679 Speaker 1: you know, broad reach, you know being Fox Sports and 193 00:09:42,720 --> 00:09:45,160 Speaker 1: Fox Sports one and soon to be ESPN, and then 194 00:09:45,160 --> 00:09:48,000 Speaker 1: sponsored content Youtubees and those sort of you know pieces, 195 00:09:48,080 --> 00:09:51,200 Speaker 1: you know, the twitches and those to those types of platforms. 196 00:09:51,760 --> 00:09:54,720 Speaker 1: Build franchises in those four areas and then give yourself 197 00:09:54,760 --> 00:09:59,480 Speaker 1: anough flexibility to move content among those different franchises as 198 00:09:59,480 --> 00:10:02,480 Speaker 1: their as consumers desire to consume content changes, and I 199 00:10:02,480 --> 00:10:05,040 Speaker 1: think it's it's worked out really well. So we feel 200 00:10:05,120 --> 00:10:08,239 Speaker 1: pay per view is an important part of that ecosystem, 201 00:10:08,440 --> 00:10:10,040 Speaker 1: and it also gives you the ability to peak the 202 00:10:10,040 --> 00:10:11,839 Speaker 1: peaks on these really big events. I mean, we did 203 00:10:11,840 --> 00:10:15,440 Speaker 1: a boxing event last year with with Connor McGregor and 204 00:10:15,480 --> 00:10:17,960 Speaker 1: Floyd Mayweather. I mean it did four point six million 205 00:10:18,040 --> 00:10:20,640 Speaker 1: or so pay per view buys. You know, those type 206 00:10:20,640 --> 00:10:22,520 Speaker 1: of events gave you the with pay per view, give 207 00:10:22,520 --> 00:10:24,120 Speaker 1: it the ability to peak the peak and not leave 208 00:10:24,160 --> 00:10:27,559 Speaker 1: any money on the table. Is pay per view are people? 209 00:10:27,679 --> 00:10:30,040 Speaker 1: Do you find consumers are very price sensitive. If you 210 00:10:30,080 --> 00:10:32,160 Speaker 1: go up or down five or ten bucks, do you 211 00:10:32,160 --> 00:10:35,320 Speaker 1: see a big swing in Not really, I mean it 212 00:10:35,360 --> 00:10:37,079 Speaker 1: depends on the event. I mean it's like anything else 213 00:10:37,120 --> 00:10:39,120 Speaker 1: in life. I mean, if people perceive as quality a 214 00:10:39,320 --> 00:10:42,800 Speaker 1: must have type of event, um, you know, they become 215 00:10:42,840 --> 00:10:45,120 Speaker 1: a little bit price you know, less sensitive to price. 216 00:10:45,440 --> 00:10:47,400 Speaker 1: I mean what we also see is when you increase 217 00:10:47,400 --> 00:10:50,280 Speaker 1: the price, you also increase clustering. So you know, our 218 00:10:50,320 --> 00:10:52,800 Speaker 1: events are very social type events. I mean people are 219 00:10:52,800 --> 00:10:56,000 Speaker 1: getting together somebody, perhaps pizza and other grabs of beers 220 00:10:56,000 --> 00:10:57,720 Speaker 1: and the sodas, and they all come over to the house. 221 00:10:58,280 --> 00:11:01,000 Speaker 1: The more expensive the event goes, we see the clustering increase. 222 00:11:01,040 --> 00:11:03,800 Speaker 1: We also see an increase in our close circuit business, 223 00:11:03,800 --> 00:11:06,600 Speaker 1: which is where we display in bars and restaurants, you know, 224 00:11:06,600 --> 00:11:09,480 Speaker 1: the UFC events. We'll see an uptick in people going 225 00:11:09,520 --> 00:11:12,280 Speaker 1: to bars and restaurants if we increase the price for 226 00:11:12,320 --> 00:11:15,000 Speaker 1: particular events. So I mean, at the end of the day, 227 00:11:15,080 --> 00:11:16,839 Speaker 1: if the event is high quality, people are going to 228 00:11:16,920 --> 00:11:19,120 Speaker 1: figure out a way to see it. They might modify 229 00:11:19,200 --> 00:11:21,000 Speaker 1: their behavior, but they're still going to watch the event. 230 00:11:21,520 --> 00:11:23,680 Speaker 1: And even though all those people at a part at 231 00:11:23,720 --> 00:11:25,920 Speaker 1: a person's house party or at a bar. They're not 232 00:11:26,280 --> 00:11:29,960 Speaker 1: they're not each individually paying. You probably love the social 233 00:11:30,240 --> 00:11:33,640 Speaker 1: aspect of that because it makes a UFC something that 234 00:11:33,679 --> 00:11:36,440 Speaker 1: people look forward to. It's a it's a it's a destination, 235 00:11:36,480 --> 00:11:40,439 Speaker 1: if you will, I would imagine that that's percent correct. 236 00:11:40,440 --> 00:11:42,839 Speaker 1: I mean, we love that community aspect of our events. 237 00:11:42,880 --> 00:11:44,400 Speaker 1: It makes it more fun when you're hanging out with 238 00:11:44,440 --> 00:11:46,520 Speaker 1: a bunch of your friends, and you know, it also 239 00:11:46,600 --> 00:11:49,079 Speaker 1: makes you more likely, you know, to watch it again. 240 00:11:49,120 --> 00:11:51,120 Speaker 1: So maybe tonight we're gonna do the event at my house, 241 00:11:51,160 --> 00:11:53,160 Speaker 1: but a month later we'll go over to your place, 242 00:11:53,640 --> 00:11:56,480 Speaker 1: and uh, you know, it just creates at a more 243 00:11:56,600 --> 00:11:59,280 Speaker 1: fun environment to watch these events or social events, and 244 00:11:59,320 --> 00:12:01,040 Speaker 1: they're supposed to be fun, and if you've got a 245 00:12:01,080 --> 00:12:03,040 Speaker 1: bunch of your friends with you with you, they certainly 246 00:12:03,080 --> 00:12:04,960 Speaker 1: are more fun they would be for sitting by yourself, 247 00:12:05,920 --> 00:12:10,120 Speaker 1: right right. Um. On the streaming side, you know, everybody 248 00:12:10,200 --> 00:12:12,200 Speaker 1: is trying to fit. Everybody that I talked to has 249 00:12:12,240 --> 00:12:15,480 Speaker 1: a slightly different template for how whether it's just scripted 250 00:12:15,559 --> 00:12:19,000 Speaker 1: series or a reality show or a sports event. I'm curious, 251 00:12:19,160 --> 00:12:22,360 Speaker 1: do you have anything in your ESPN deal that basically 252 00:12:22,400 --> 00:12:25,000 Speaker 1: rewards you for success if you hit a certain number 253 00:12:25,000 --> 00:12:28,320 Speaker 1: of streams or their escalators in any in any of 254 00:12:28,360 --> 00:12:31,080 Speaker 1: your deals. I'm curious about the mechanics of these times. Yeah, 255 00:12:31,080 --> 00:12:33,839 Speaker 1: we didn't. We didn't structure any sort of bonuses if 256 00:12:33,880 --> 00:12:37,160 Speaker 1: we help them get a certain number of additional subscribers 257 00:12:37,240 --> 00:12:40,280 Speaker 1: for for ESPN Plus, for example. Um, you know, we 258 00:12:40,360 --> 00:12:43,160 Speaker 1: still will be retaining our own O T T platform, 259 00:12:43,160 --> 00:12:45,800 Speaker 1: which is called fight Pass, And of course we've got 260 00:12:46,160 --> 00:12:48,360 Speaker 1: the reward that will have be a pay per view. 261 00:12:48,400 --> 00:12:50,040 Speaker 1: So the more pay per views we sell, of course, 262 00:12:50,080 --> 00:12:52,640 Speaker 1: you know, that's a variable revenue stream. The more we sell, 263 00:12:52,920 --> 00:12:55,480 Speaker 1: the more we make. But there's nothing in our deal 264 00:12:55,840 --> 00:12:59,240 Speaker 1: that specifically rewards us for adding additional subscribers. Now that 265 00:12:59,360 --> 00:13:01,880 Speaker 1: being said, we want to renew this deal twenty times 266 00:13:01,880 --> 00:13:04,959 Speaker 1: down the road with ESPN, so we're obviously incentivized to 267 00:13:05,000 --> 00:13:07,600 Speaker 1: do everything we can to make them happy. And as 268 00:13:07,640 --> 00:13:09,760 Speaker 1: you can see, you know, ESPN Plus is clearly a 269 00:13:09,800 --> 00:13:13,800 Speaker 1: priority for them. Yeah, for sure, How do you differentiate 270 00:13:13,880 --> 00:13:16,199 Speaker 1: what you're gonna put on fight Pass versus what might 271 00:13:16,240 --> 00:13:20,000 Speaker 1: be on the in the ESPN ecosystem. You know, it's 272 00:13:20,040 --> 00:13:22,280 Speaker 1: just part of the deal, and it's also part of 273 00:13:22,320 --> 00:13:24,000 Speaker 1: you know, sort of the way our fans are used 274 00:13:24,000 --> 00:13:27,240 Speaker 1: to consuming contents. So virtually every one of our cards 275 00:13:27,240 --> 00:13:30,800 Speaker 1: sort of right now starts on the fight Pass platform, 276 00:13:30,880 --> 00:13:33,120 Speaker 1: the sort of what we call the early prelimbs, and 277 00:13:33,200 --> 00:13:37,480 Speaker 1: then we'll transition typically to Fox and soon to be ESPN, 278 00:13:37,960 --> 00:13:40,560 Speaker 1: and then the main card will either be on you know, 279 00:13:40,840 --> 00:13:43,040 Speaker 1: a broad reach network or on pay per view. So 280 00:13:43,280 --> 00:13:45,520 Speaker 1: I think we've we've conditioned our fans to know that, 281 00:13:45,559 --> 00:13:47,680 Speaker 1: you know, the fights sort of start on on the 282 00:13:47,679 --> 00:13:49,920 Speaker 1: O T T platform and then they progress the different 283 00:13:50,120 --> 00:13:52,880 Speaker 1: different platforms for the rest of it. In addition to that, 284 00:13:52,960 --> 00:13:55,280 Speaker 1: you know, we've got a bunch of other content that 285 00:13:55,360 --> 00:13:59,200 Speaker 1: we've got on the fight Pass platform, so you know, 286 00:13:59,280 --> 00:14:03,160 Speaker 1: magazine os features on our athletes, our entire library, and 287 00:14:03,160 --> 00:14:06,680 Speaker 1: then we've licensed probably twenty five or thirty other types 288 00:14:06,720 --> 00:14:09,520 Speaker 1: of martial arts promotions there, so some of its mixed 289 00:14:09,520 --> 00:14:11,960 Speaker 1: martial arts, some of its boxing, some of its kickboxing, 290 00:14:12,320 --> 00:14:14,840 Speaker 1: some of the jiu jitsu. So I mean, we're trying 291 00:14:14,880 --> 00:14:17,480 Speaker 1: to create, you know, a point of differentiation for the 292 00:14:17,480 --> 00:14:19,680 Speaker 1: fight Pass platform, which is sort of the go to 293 00:14:19,840 --> 00:14:23,080 Speaker 1: place for all types of martial arts competition. In addition 294 00:14:23,120 --> 00:14:26,200 Speaker 1: to a robust offering of UFC. One of the things 295 00:14:26,280 --> 00:14:28,440 Speaker 1: that of course made UFC is so attractive and so 296 00:14:28,560 --> 00:14:31,840 Speaker 1: valuable is that it has become a magnet for so 297 00:14:31,880 --> 00:14:35,720 Speaker 1: many young men, you know, teenage boys, young men. Is 298 00:14:35,800 --> 00:14:38,560 Speaker 1: that is there a misperception that this is a really 299 00:14:38,800 --> 00:14:42,320 Speaker 1: this is a guy's guy sport. Do you have a 300 00:14:42,360 --> 00:14:45,480 Speaker 1: more broad a broader audience than than people like me 301 00:14:45,520 --> 00:14:48,520 Speaker 1: would perceive. Well, you know, you're absolutely right that sort 302 00:14:48,520 --> 00:14:50,680 Speaker 1: of the core audiences that eighteen to thirty four year 303 00:14:50,680 --> 00:14:52,680 Speaker 1: old male that's certainly, you know, the biggest part of 304 00:14:52,680 --> 00:14:55,080 Speaker 1: our audience. But you might be surprised to know that 305 00:14:55,120 --> 00:14:56,880 Speaker 1: thirty percent of our fans here in the United States 306 00:14:56,880 --> 00:14:59,080 Speaker 1: are women. UM and part of that is because of 307 00:14:59,120 --> 00:15:01,880 Speaker 1: the fact that we have of female athletes within the 308 00:15:02,000 --> 00:15:05,560 Speaker 1: organization um SO and that's a growing part of our business. 309 00:15:05,920 --> 00:15:08,920 Speaker 1: In addition to that sort of gender breakdown, we're one 310 00:15:09,040 --> 00:15:12,880 Speaker 1: we're really the most diverse audience when in the world 311 00:15:12,920 --> 00:15:16,000 Speaker 1: of sports right now, other than the NBA, which over 312 00:15:16,240 --> 00:15:20,280 Speaker 1: indexes US when it comes to African Americans, UM we're 313 00:15:20,400 --> 00:15:23,320 Speaker 1: number two. UM in every other sport we have the 314 00:15:23,360 --> 00:15:25,760 Speaker 1: most compared to every other sport, we have the most 315 00:15:25,800 --> 00:15:29,080 Speaker 1: diverse fan base, so and it's growing faster than frankly, 316 00:15:29,120 --> 00:15:31,720 Speaker 1: the rest of our business. So where there's African Americans, 317 00:15:31,760 --> 00:15:34,680 Speaker 1: Hispanic and women, that part of our business is growing 318 00:15:34,760 --> 00:15:37,600 Speaker 1: quicker than than the rest of our business. So we'recoming 319 00:15:37,640 --> 00:15:40,200 Speaker 1: more diverse every day. Have you seen benefits to being 320 00:15:40,240 --> 00:15:42,920 Speaker 1: part of the Endeavor family? Obviously a big part of 321 00:15:42,920 --> 00:15:45,200 Speaker 1: that company is is w M ME a company that 322 00:15:45,440 --> 00:15:48,800 Speaker 1: builds stars and is you know, one of the world's 323 00:15:48,840 --> 00:15:52,360 Speaker 1: largest talent agencies. Has that been a benefit? Huge benefits? 324 00:15:52,360 --> 00:15:55,320 Speaker 1: So just in the process of building stars, I mean, 325 00:15:55,320 --> 00:15:57,360 Speaker 1: they're so good at doing it. And it's not just 326 00:15:57,400 --> 00:16:00,800 Speaker 1: about building stars, it's building them quicker than we we've 327 00:16:00,840 --> 00:16:02,280 Speaker 1: done in the past. And I think they've done a 328 00:16:02,280 --> 00:16:04,680 Speaker 1: great job in helping us sort of build the star 329 00:16:04,760 --> 00:16:07,360 Speaker 1: power and enhance the star power of our existing athletes. 330 00:16:07,840 --> 00:16:09,600 Speaker 1: The second thing that's been great is that we've got 331 00:16:10,440 --> 00:16:12,840 Speaker 1: a bunch of celebrity investors that are actually invested in 332 00:16:12,880 --> 00:16:15,400 Speaker 1: the UFC, and so you know, they're out there, you know, 333 00:16:15,480 --> 00:16:17,960 Speaker 1: promoting the product because they've got a self interest in 334 00:16:18,000 --> 00:16:20,120 Speaker 1: it now. And then even those that don't have a 335 00:16:20,160 --> 00:16:22,320 Speaker 1: self interest in it, I mean, for example, Drake, he's 336 00:16:22,400 --> 00:16:25,440 Speaker 1: a he's a w M E client. I don't believe 337 00:16:25,440 --> 00:16:28,400 Speaker 1: he's an investor, but he's out there, you know, helping 338 00:16:28,480 --> 00:16:31,680 Speaker 1: us promote UFC, using his social media platforms to help us. 339 00:16:32,000 --> 00:16:35,320 Speaker 1: He actually, you know, uh, recently streamed a fight at 340 00:16:35,320 --> 00:16:38,360 Speaker 1: one of his concerts in Las Vegas. So he's been 341 00:16:38,400 --> 00:16:40,960 Speaker 1: you know, just incredibly helpful to us, you know, growing 342 00:16:40,960 --> 00:16:43,600 Speaker 1: and expanding the brand. And those are just a couple 343 00:16:43,640 --> 00:16:46,040 Speaker 1: of the anecdotes about how, you know, the w M 344 00:16:46,040 --> 00:16:48,840 Speaker 1: E and Endeavor organization has really helped us build stars 345 00:16:48,840 --> 00:16:51,200 Speaker 1: and enhance you know, the UFC brand. Can you give 346 00:16:51,280 --> 00:16:56,040 Speaker 1: us an example of a of a crossover opportunity or 347 00:16:56,080 --> 00:16:59,200 Speaker 1: a you know, a placement or a guest star shot 348 00:16:59,240 --> 00:17:01,560 Speaker 1: for one of your fight Is that really helped boost 349 00:17:01,880 --> 00:17:05,200 Speaker 1: that person's profile outside you know, outside of the world 350 00:17:05,240 --> 00:17:08,159 Speaker 1: of UFC, in in TV or film or I mean 351 00:17:08,160 --> 00:17:11,639 Speaker 1: there's so many, uh, there's so many you know, uh, 352 00:17:11,720 --> 00:17:14,159 Speaker 1: whether it's movies or television shows or things that have 353 00:17:14,200 --> 00:17:17,439 Speaker 1: integrated UFC into I mean. The thing is, actually, before 354 00:17:18,040 --> 00:17:20,520 Speaker 1: UM Endeavor bought the company, you know, one of the 355 00:17:20,520 --> 00:17:23,960 Speaker 1: biggest promotional things that we had done to expand you know, 356 00:17:24,000 --> 00:17:26,320 Speaker 1: sort of the fan base of UFC was you know, 357 00:17:26,359 --> 00:17:29,320 Speaker 1: we got one of our fighters on Entourage and that 358 00:17:29,400 --> 00:17:31,960 Speaker 1: was all done by Ari got chuckolated l on the show. 359 00:17:32,080 --> 00:17:34,520 Speaker 1: And even to this day, people come even tho it 360 00:17:34,600 --> 00:17:37,400 Speaker 1: was like a decade or so ago, people will say, 361 00:17:37,440 --> 00:17:39,480 Speaker 1: you know, yeah, I remember when chuckolate Dell was on Entourage. 362 00:17:39,520 --> 00:17:42,119 Speaker 1: That was a great episode and that really, you know, 363 00:17:42,160 --> 00:17:45,280 Speaker 1: that really helped us grow the brand. You know, whether 364 00:17:45,280 --> 00:17:48,040 Speaker 1: it's talk show hosts, whether it's you know, getting on 365 00:17:48,119 --> 00:17:50,600 Speaker 1: you know, the late night shows or getting on you 366 00:17:50,640 --> 00:17:53,960 Speaker 1: know sort of morning you know television was Good Morning America. 367 00:17:54,400 --> 00:17:57,760 Speaker 1: You know. Conan O'Brien, for example, has been just great 368 00:17:57,800 --> 00:18:00,880 Speaker 1: in bringing our athletes you know, on his He did 369 00:18:01,040 --> 00:18:03,679 Speaker 1: you know, really a funny segment with Connor McGregor in 370 00:18:03,680 --> 00:18:06,159 Speaker 1: the lead up to the October sixth event. And you know, 371 00:18:06,200 --> 00:18:09,399 Speaker 1: Conan is is an investor, but that opportunity, you know, 372 00:18:09,520 --> 00:18:11,680 Speaker 1: just wouldn't have been there to get you know, regular 373 00:18:11,720 --> 00:18:14,800 Speaker 1: coverage of our athletes on his show. Um without the 374 00:18:14,920 --> 00:18:22,760 Speaker 1: endeavor relationship, there's no there's nothing better than a you know, 375 00:18:23,000 --> 00:18:26,800 Speaker 1: enthusiastic talk show host or somebody talking about your your 376 00:18:26,800 --> 00:18:28,840 Speaker 1: product to move the needle, whether it's you know, whether 377 00:18:28,920 --> 00:18:33,840 Speaker 1: it's shoes or packaged goods or for sure it's great. 378 00:18:33,840 --> 00:18:35,959 Speaker 1: And then you know Conan just does He's so funny, 379 00:18:36,040 --> 00:18:38,000 Speaker 1: you know, he's so into the sport, you know, and 380 00:18:38,040 --> 00:18:40,000 Speaker 1: he really likes Connor and they have this great sort 381 00:18:40,040 --> 00:18:42,800 Speaker 1: of back and forth relationship. And you know, then that 382 00:18:42,920 --> 00:18:45,000 Speaker 1: stuff after it airs, you know, clips of it go 383 00:18:45,160 --> 00:18:47,560 Speaker 1: viral and you know people are of course, you know, 384 00:18:47,880 --> 00:18:51,280 Speaker 1: using their social media platforms to to you know, in 385 00:18:51,280 --> 00:18:54,240 Speaker 1: further enhanced the distribution and all that stuff sort of 386 00:18:54,280 --> 00:18:56,840 Speaker 1: leading up to the event, you know, just enhances you know, 387 00:18:56,880 --> 00:18:59,160 Speaker 1: the interest in the event and ultimately gets more people 388 00:18:59,280 --> 00:19:02,639 Speaker 1: buy pay per views. Is there? Um? You know, I 389 00:19:02,640 --> 00:19:05,600 Speaker 1: think you have the you have the high class problem 390 00:19:05,680 --> 00:19:08,960 Speaker 1: of of being so successful that there's that there are 391 00:19:09,000 --> 00:19:12,399 Speaker 1: some start up ventures and and some burgeoning leagues that 392 00:19:12,440 --> 00:19:16,159 Speaker 1: are that are you know, could grow into competitors significant 393 00:19:16,160 --> 00:19:19,960 Speaker 1: competitors to UFC. Are you on the one hand, the 394 00:19:20,000 --> 00:19:22,000 Speaker 1: expansion of the market is you know, it is probably 395 00:19:22,000 --> 00:19:23,960 Speaker 1: a good thing for the M M A world, But 396 00:19:24,000 --> 00:19:27,680 Speaker 1: are you concerned about you know, the rise of new competitors. 397 00:19:28,000 --> 00:19:29,760 Speaker 1: You know, we've got some real competitors out there. I mean, 398 00:19:29,840 --> 00:19:32,360 Speaker 1: you know, uh, in the US Belletour, which is owned 399 00:19:32,359 --> 00:19:35,760 Speaker 1: by Viacom. Outside the US, this is a global business. 400 00:19:35,840 --> 00:19:38,679 Speaker 1: You know. One FC is built a very nice business 401 00:19:38,680 --> 00:19:40,359 Speaker 1: in Asia. You know, we don't see it as a 402 00:19:40,400 --> 00:19:42,400 Speaker 1: zero sum game. You know, we're only doing forty two 403 00:19:42,400 --> 00:19:45,399 Speaker 1: events per year. Um. We we feel that, you know, 404 00:19:45,440 --> 00:19:47,719 Speaker 1: if somebody watches bellot or or one FC or one 405 00:19:47,720 --> 00:19:50,240 Speaker 1: of the dozens of promotions around the world and they 406 00:19:50,280 --> 00:19:53,159 Speaker 1: like what they see, you know, they're probably gonna, you know, 407 00:19:53,200 --> 00:19:55,760 Speaker 1: take a shot at enjoying some of our contents. Is 408 00:19:55,800 --> 00:19:58,440 Speaker 1: where the market leaders, so um said, we don't see 409 00:19:58,440 --> 00:20:00,119 Speaker 1: it as a zero sum game. You know, the we 410 00:20:00,400 --> 00:20:02,720 Speaker 1: have a fair amount of competition for athletes at times. 411 00:20:03,040 --> 00:20:04,280 Speaker 1: You know, at the end of the day, we're sort 412 00:20:04,320 --> 00:20:06,680 Speaker 1: of rooting for those guys to be successful because if 413 00:20:06,720 --> 00:20:09,639 Speaker 1: people like the product and uh, you know, they enjoy it, 414 00:20:09,640 --> 00:20:11,720 Speaker 1: they're probably gonna come check out UFC at some point. 415 00:20:12,119 --> 00:20:13,879 Speaker 1: But what would you say, I mean, I would imagine 416 00:20:13,880 --> 00:20:15,840 Speaker 1: that with your growth and the growth of the market, 417 00:20:15,920 --> 00:20:19,400 Speaker 1: that the that the athletes salaries have probably come up 418 00:20:19,400 --> 00:20:21,520 Speaker 1: significantly in the last couple of years as they see 419 00:20:21,520 --> 00:20:23,959 Speaker 1: all those big numbers, no doubt about it. I mean, 420 00:20:24,000 --> 00:20:28,000 Speaker 1: Connor McGregor. Uh last year made over a hundred million dollars. 421 00:20:28,040 --> 00:20:29,840 Speaker 1: He was the third highest paid athlete, you know, behind 422 00:20:29,880 --> 00:20:32,720 Speaker 1: I think Ronaldo and maybe a Lionel Messy. You know, 423 00:20:32,840 --> 00:20:36,280 Speaker 1: so that's pretty astounding stat right it is. It is 424 00:20:36,359 --> 00:20:39,640 Speaker 1: so there's no doubt that fighter comp has has increased. 425 00:20:39,680 --> 00:20:40,840 Speaker 1: But you know, at the end of the day, the 426 00:20:40,840 --> 00:20:43,120 Speaker 1: overall business grown too. So you know, we don't see 427 00:20:43,160 --> 00:20:44,600 Speaker 1: that as a bad thing. We see that as a 428 00:20:44,640 --> 00:20:46,840 Speaker 1: good thing. You know. We want athletes to be able 429 00:20:46,840 --> 00:20:49,160 Speaker 1: to make not only a good living, but a great living, 430 00:20:49,200 --> 00:20:51,479 Speaker 1: because that means more athletes will come into the sports 431 00:20:51,480 --> 00:20:54,480 Speaker 1: seeing it as an economic opportunity. So, you know, once again, 432 00:20:54,520 --> 00:20:56,560 Speaker 1: that's a that's a good problem to have fighter fighter 433 00:20:56,600 --> 00:20:59,840 Speaker 1: comp going up as you expand in perst in to 434 00:21:00,000 --> 00:21:04,359 Speaker 1: box and now into ESPN, very mainstream traditional TV UM. 435 00:21:04,400 --> 00:21:07,520 Speaker 1: You know, UFC is made its name. It is a 436 00:21:07,600 --> 00:21:10,040 Speaker 1: very physical, it can be a very violent sport. Is 437 00:21:10,080 --> 00:21:13,320 Speaker 1: that is there pressure at all to tamp down on 438 00:21:13,359 --> 00:21:16,679 Speaker 1: some of what has made the UFC very appealing. No, 439 00:21:16,760 --> 00:21:19,320 Speaker 1: I don't think there's any any pressure to sort of change, 440 00:21:19,600 --> 00:21:21,679 Speaker 1: you know, anything about the sport other than to be 441 00:21:21,760 --> 00:21:23,960 Speaker 1: proactive and make sure you're doing everything to make the 442 00:21:23,960 --> 00:21:26,960 Speaker 1: sport as safe as possible and to provide information to 443 00:21:27,000 --> 00:21:29,560 Speaker 1: athletes so they can make informed decisions. I think if 444 00:21:29,720 --> 00:21:32,280 Speaker 1: if mistakes have been made by other sports organizations, it's 445 00:21:32,320 --> 00:21:34,359 Speaker 1: been it's been the latter it's like, you know, not 446 00:21:34,480 --> 00:21:37,399 Speaker 1: giving athletes information so they can make informed decisions. And 447 00:21:37,440 --> 00:21:39,720 Speaker 1: I think, you know, we've been very proactive in doing 448 00:21:39,760 --> 00:21:42,439 Speaker 1: that and making sure that we're studying our athletes as 449 00:21:42,520 --> 00:21:44,639 Speaker 1: much as we can. You know, we've been funding a 450 00:21:44,680 --> 00:21:47,639 Speaker 1: study with the Cleveland Clinic, which has a location in 451 00:21:47,720 --> 00:21:50,000 Speaker 1: Las Vegas, where we're studying the brains of our athletes 452 00:21:50,040 --> 00:21:52,440 Speaker 1: and those of boxers. And the goal of the study 453 00:21:52,480 --> 00:21:54,800 Speaker 1: is twofold. I mean, number one, trying to figure out 454 00:21:54,840 --> 00:21:58,320 Speaker 1: are certain people, based upon their physiology, just predisposed towards 455 00:21:58,320 --> 00:22:01,840 Speaker 1: brain injury? And number two, are there early indications before 456 00:22:01,920 --> 00:22:05,080 Speaker 1: somebody starts manifesting a cognitive deficit that we can see 457 00:22:05,280 --> 00:22:06,880 Speaker 1: and if we see those things, you know, get them 458 00:22:06,880 --> 00:22:09,560 Speaker 1: out of the sport. Um. You know, there's about six 459 00:22:09,640 --> 00:22:13,920 Speaker 1: hundred athletes in the study, about six UFC and about boxers, 460 00:22:14,440 --> 00:22:16,640 Speaker 1: and UM, you know, there's been a three or four 461 00:22:17,600 --> 00:22:20,560 Speaker 1: peer reviewed medical studies already published on this data. So 462 00:22:21,080 --> 00:22:23,240 Speaker 1: the good news is we're getting closer to where we 463 00:22:23,280 --> 00:22:26,920 Speaker 1: are right now with the eye for combat sports athletes, 464 00:22:27,000 --> 00:22:29,800 Speaker 1: So as a condition of getting you know, a license 465 00:22:30,080 --> 00:22:32,080 Speaker 1: to be a boxer, mmy athlete, you've got to get 466 00:22:32,119 --> 00:22:35,000 Speaker 1: an exam. If you've got a detached retina, you can't fight, 467 00:22:35,040 --> 00:22:37,240 Speaker 1: you can't get a license anywhere. We want to get 468 00:22:37,280 --> 00:22:39,000 Speaker 1: to the same point with the brain where we'll have 469 00:22:39,080 --> 00:22:41,639 Speaker 1: some sort of a test, will follow athletes over a 470 00:22:41,640 --> 00:22:43,720 Speaker 1: period of time. If there are changes in their in 471 00:22:43,760 --> 00:22:46,879 Speaker 1: their brain, for example, they're done. They're not able to 472 00:22:46,880 --> 00:22:48,480 Speaker 1: fight anymore. So we can get people out of the 473 00:22:48,480 --> 00:22:50,959 Speaker 1: sport before they actually do you know, get injured. So 474 00:22:51,119 --> 00:22:52,600 Speaker 1: we're all full the next three to five years, we're 475 00:22:52,600 --> 00:22:54,200 Speaker 1: gonna have those type of tests and it may be 476 00:22:54,760 --> 00:22:57,399 Speaker 1: you know, taking taking requiring athletes to get m r 477 00:22:57,440 --> 00:22:59,639 Speaker 1: E s of their brain and then make that a 478 00:22:59,640 --> 00:23:02,679 Speaker 1: condition of licensure on an annual basis. And if changes 479 00:23:02,720 --> 00:23:05,040 Speaker 1: are seen, once again, just like the eye, you're out 480 00:23:05,040 --> 00:23:06,320 Speaker 1: of the you're out of the business. You have to 481 00:23:06,359 --> 00:23:08,520 Speaker 1: do something else with your life. So that's the stuff 482 00:23:08,560 --> 00:23:11,520 Speaker 1: that that we're doing to make sure the landscape is 483 00:23:11,520 --> 00:23:14,120 Speaker 1: as safe as it possibly can be. International is a 484 00:23:14,240 --> 00:23:17,200 Speaker 1: very big growth opportunity for you. Are there are there 485 00:23:17,240 --> 00:23:20,920 Speaker 1: markets that you're in that are becoming big growth drivers 486 00:23:20,960 --> 00:23:23,040 Speaker 1: for you? And are there markets that you you aren't 487 00:23:23,080 --> 00:23:26,320 Speaker 1: in but you want to be in? The answer, you 488 00:23:26,320 --> 00:23:29,000 Speaker 1: know the second question. First is, you know, we're in 489 00:23:29,080 --> 00:23:31,119 Speaker 1: virtually every market right now. We're on TV. I think 490 00:23:31,160 --> 00:23:34,000 Speaker 1: in a hundred and sixty countries and territories. We're reaching 491 00:23:34,000 --> 00:23:36,320 Speaker 1: about one point one to one point two billion homes 492 00:23:36,359 --> 00:23:39,040 Speaker 1: with every single one of our UFC events. So there's 493 00:23:39,040 --> 00:23:40,760 Speaker 1: not a lot of places on the planet right now 494 00:23:40,800 --> 00:23:43,520 Speaker 1: where you can't view you know, UFC content, you know, 495 00:23:43,560 --> 00:23:45,879 Speaker 1: if you've got an Internet connection certainly, or if you 496 00:23:45,880 --> 00:23:49,360 Speaker 1: have you know, a basic you know sort of television package. Um. 497 00:23:49,400 --> 00:23:51,560 Speaker 1: That being said, there are certain markets that we see 498 00:23:51,600 --> 00:23:54,840 Speaker 1: a tremendous amount of upside in. You know, first is 499 00:23:54,840 --> 00:23:56,679 Speaker 1: the US. I mean, we've certainly made a lot of 500 00:23:56,680 --> 00:23:59,280 Speaker 1: progress here, but we feel like the CSPN deal is 501 00:23:59,320 --> 00:24:01,960 Speaker 1: going to take us the next level. Our second biggest 502 00:24:01,960 --> 00:24:05,119 Speaker 1: market currently globally is Brazil. It's one of the foundations 503 00:24:05,119 --> 00:24:08,159 Speaker 1: of the sports I mentioned to you know, Gracie jiu 504 00:24:08,240 --> 00:24:10,680 Speaker 1: jitsu and Brazilian jiu jitsu is a you know, key 505 00:24:10,880 --> 00:24:12,520 Speaker 1: skill that you've got a master in order to be 506 00:24:12,560 --> 00:24:14,840 Speaker 1: successful in our sport. So we've got a lot of 507 00:24:14,840 --> 00:24:18,480 Speaker 1: fans and a lot of athletes from Brazil. But um, 508 00:24:18,520 --> 00:24:20,280 Speaker 1: you know, the list of countries where there's a lot 509 00:24:20,320 --> 00:24:22,520 Speaker 1: of potential is is very long. I mean one of 510 00:24:22,520 --> 00:24:24,399 Speaker 1: the areas of the world we're spending a lot of 511 00:24:24,400 --> 00:24:26,560 Speaker 1: time on now is China. It's gone from a top 512 00:24:26,600 --> 00:24:29,760 Speaker 1: twenty market frankly revenue wise to a top five market 513 00:24:29,760 --> 00:24:32,560 Speaker 1: revenue wise, and it's obviously a huge country but also 514 00:24:32,640 --> 00:24:34,960 Speaker 1: a martial arts tradition in China. So I think you're 515 00:24:34,960 --> 00:24:38,119 Speaker 1: gonna see a lot you know of effort goes towards 516 00:24:38,200 --> 00:24:40,879 Speaker 1: growing that market, you know, over the next several years. 517 00:24:41,200 --> 00:24:43,800 Speaker 1: We had our first event in mainland China last year 518 00:24:43,800 --> 00:24:47,000 Speaker 1: in Shanghai, huge success, sold out the Mercedes Benz Arena 519 00:24:47,280 --> 00:24:50,080 Speaker 1: in Shanghai, and and that's a big deal in China. 520 00:24:50,080 --> 00:24:52,320 Speaker 1: I mean, there's not like a huge culture of buying 521 00:24:52,359 --> 00:24:55,080 Speaker 1: tickets there. But other than the NBA and US, you know, 522 00:24:55,200 --> 00:24:58,040 Speaker 1: not many sports have sold out. Um, so we're really 523 00:24:58,040 --> 00:25:00,560 Speaker 1: proud of that, and it really showed, you know, there's 524 00:25:00,560 --> 00:25:02,879 Speaker 1: a great fan base there. I mean I went to 525 00:25:02,960 --> 00:25:06,520 Speaker 1: that event. Fans were there early, Um, they knew all 526 00:25:06,560 --> 00:25:09,560 Speaker 1: about the sport. We had eight Chinese athletes on that card, 527 00:25:09,640 --> 00:25:12,640 Speaker 1: and so you know, we've got about twelve to fifteen 528 00:25:12,720 --> 00:25:15,120 Speaker 1: Chinese athletes now and that number is going to grow. 529 00:25:15,520 --> 00:25:16,840 Speaker 1: We'd like to get to you know, where we are 530 00:25:16,840 --> 00:25:19,639 Speaker 1: at Brazil seventy or eighty you know, Chinese athletes on 531 00:25:19,680 --> 00:25:22,080 Speaker 1: the UFC you know roster, and so I think you'll 532 00:25:22,080 --> 00:25:24,119 Speaker 1: see a lot of investment and a lot of interesting 533 00:25:24,160 --> 00:25:26,760 Speaker 1: things happening with UFC and China going forward, looking ahead 534 00:25:26,760 --> 00:25:30,600 Speaker 1: to twenty nineteen, What what are the events are the 535 00:25:30,680 --> 00:25:33,480 Speaker 1: initiatives that we should keep an eye on for UFC 536 00:25:33,720 --> 00:25:36,040 Speaker 1: next year. Well, first and foremost of course, is launched 537 00:25:36,080 --> 00:25:38,480 Speaker 1: the ESPN deal. Um, you know that's our January first, 538 00:25:38,520 --> 00:25:41,680 Speaker 1: we're doing our first event uh in at the actually 539 00:25:41,680 --> 00:25:44,879 Speaker 1: at the Parkway Center here in New York on I 540 00:25:44,920 --> 00:25:48,480 Speaker 1: believe the nineteenth of January. So that's gonna be you know, 541 00:25:48,520 --> 00:25:51,000 Speaker 1: sort of a seminal you know event for us, the 542 00:25:51,040 --> 00:25:55,320 Speaker 1: first the first UFC under the ESPN relationship. Uh. You'll 543 00:25:55,320 --> 00:25:59,560 Speaker 1: continue to see significant international expansion China and other markets 544 00:25:59,600 --> 00:26:03,760 Speaker 1: being a high priority. UM and UM. You know, in 545 00:26:03,840 --> 00:26:06,720 Speaker 1: addition to that, I think you'll continue to see us 546 00:26:06,800 --> 00:26:10,959 Speaker 1: distributing content anywhere and everywhere that content is distributed. We're 547 00:26:10,960 --> 00:26:12,760 Speaker 1: going to continue to be sort of on the leading 548 00:26:12,840 --> 00:26:16,560 Speaker 1: edge of content distribution. UM. In addition that, UH, there 549 00:26:16,520 --> 00:26:19,120 Speaker 1: will be some new sponsors that will be coming in 550 00:26:19,200 --> 00:26:22,119 Speaker 1: as a as UFC sponsors, both in the UFC and 551 00:26:22,160 --> 00:26:24,520 Speaker 1: both in the United States and around the world. So 552 00:26:24,840 --> 00:26:27,040 Speaker 1: a lot of exciting things coming up in twenty nineteen 553 00:26:27,080 --> 00:26:29,560 Speaker 1: for us. Great well, listen, Thank you so much for 554 00:26:29,600 --> 00:26:31,359 Speaker 1: taking the time and talking us through all of this. 555 00:26:31,560 --> 00:26:36,960 Speaker 1: It's an fascinating business. Thanks for having me, Thanks for listening. 556 00:26:37,119 --> 00:26:39,919 Speaker 1: Be sure to check in next week for another episode 557 00:26:40,040 --> 00:26:41,240 Speaker 1: of Strictly Business.