WEBVTT - In the Ring With UFC’s Lawrence Epstein 0:00:06.320 --> 0:00:11.119 Welcome to Strictly Business Varieties, weekly podcast featuring conversations with 0:00:11.200 --> 0:00:15.200 industry leaders about the business of entertainment. Today's guest, with 0:00:15.240 --> 0:00:19.279 Cynthia Littleton in New York is UFC Chief operating Officer 0:00:19.480 --> 0:00:23.680 Lawrence Epstein. The UFC veterans speaks candidly about the growth 0:00:23.760 --> 0:00:27.440 challenges facing the mm A pioneer, the impact of its 0:00:27.480 --> 0:00:31.600 acquisition by Endeavor, its growth in international markets, and the 0:00:31.680 --> 0:00:35.639 brand building benefits of the league's new partnership with ESPN. 0:00:38.800 --> 0:00:41.960 Can you talk about the process of putting yourself up 0:00:41.960 --> 0:00:46.040 for sale and evaluating the field of players that that 0:00:46.200 --> 0:00:49.320 came knocking and how you how the final deal with 0:00:49.400 --> 0:00:52.040 Endeavor came to be absolutely you know, we bought the 0:00:52.080 --> 0:00:54.240 business in two thousand and one and spent you know, 0:00:54.560 --> 0:00:58.120 fifteen years essentially you know, growing it to what you know, 0:00:58.200 --> 0:01:01.760 became one of the fastest growing sports in the world. Um, 0:01:01.800 --> 0:01:05.960 you know, around we started getting some some inbound inquiries 0:01:06.040 --> 0:01:08.760 from a lot of Chinese companies about the prospect of 0:01:08.800 --> 0:01:13.199 buying UFC, and so by late you know, we sort 0:01:13.240 --> 0:01:16.640 of decided to begin an informal process where we talked 0:01:16.680 --> 0:01:20.400 to a variety of different potential purchasers about about selling 0:01:20.440 --> 0:01:22.959 the company. The main owners of the business, Frank runso Fertida, 0:01:23.000 --> 0:01:25.480 I think, had decided that they, you know, they're interested 0:01:25.520 --> 0:01:28.959 in exiting the business if they got the right price. Um. 0:01:29.040 --> 0:01:31.920 That process went from talking to some Chinese companies, are 0:01:31.920 --> 0:01:35.480 really talking to a variety of of of American based companies. 0:01:35.640 --> 0:01:38.000 You know, every sort of big player in the entertainment space, 0:01:38.560 --> 0:01:42.960 from the Walt Disney Company to Time Warner to uh, 0:01:43.080 --> 0:01:45.680 you know, a variety of other sort of media companies 0:01:45.680 --> 0:01:48.760 are strategic, you know, operating businesses that would you know, 0:01:49.800 --> 0:01:53.680 be I think a good fit for the UFC. Ultimately, Uh, 0:01:54.040 --> 0:01:56.040 it was obviously sold to the Endeavor Group and R. 0:01:56.120 --> 0:01:59.200 Emmanuel we had actually had a long standing relationship with 0:01:59.240 --> 0:02:01.520 our he had been our agent for almost a decade 0:02:01.680 --> 0:02:03.920 helping us with our us TV deal. So it was 0:02:03.960 --> 0:02:05.760 actually a really nice fit. He was able to meet 0:02:05.760 --> 0:02:08.040 the price. And uh, he said, it's been over two 0:02:08.080 --> 0:02:11.200 years now under the Endeavor ownership. When you first when 0:02:11.240 --> 0:02:13.520 you first heard that they were interested though in the acquisition, 0:02:13.560 --> 0:02:15.960 did that surprise you that because that was at the 0:02:16.120 --> 0:02:19.959 early stage of Endeavor building itself out to what it's become. No, 0:02:20.080 --> 0:02:22.399 it really didn't surprise me. I I mean already had expressed, 0:02:22.480 --> 0:02:25.200 you know, a passion for this business, you know, you know, 0:02:25.240 --> 0:02:28.960 for many, many years, and the question always was, you know, financially, 0:02:29.000 --> 0:02:30.840 could they go out and raise the money to get 0:02:30.840 --> 0:02:33.200 this thing done? And it's very clear that they could. 0:02:33.200 --> 0:02:36.520 They made a series of acquisitions including IMG uh you know, 0:02:36.680 --> 0:02:40.480 a couple of years before acquiring UFC, and uh, you know, 0:02:40.520 --> 0:02:43.120 already had a passion for the business. Uh, it was 0:02:43.160 --> 0:02:45.799 a really good strategic fit. So it really wasn't a surprise. 0:02:46.400 --> 0:02:48.480 Uh it was I think, you know, the right deal 0:02:48.520 --> 0:02:50.720 for us at the right time. Did you get did 0:02:50.760 --> 0:02:55.239 you get into serious discussions with anybody else? Absolutely weak, 0:02:55.800 --> 0:02:58.919 we said. We ran a process that probably lasted about 0:02:59.000 --> 0:03:01.200 nine months, and and of course, you know as these 0:03:01.280 --> 0:03:04.480 as the process sort of went along, certain parties would 0:03:04.760 --> 0:03:07.640 fall out for a variety of reasons. But uh, you know, 0:03:08.280 --> 0:03:10.760 we really got down to probably three or four, you know, 0:03:10.840 --> 0:03:13.120 really serious bidders. And you know, at the end of 0:03:13.160 --> 0:03:15.560 the day, when you know the factors that you look at, 0:03:15.600 --> 0:03:17.639 of course, price you look at, but you also look 0:03:17.680 --> 0:03:19.880 at you know, who's going to take the business to 0:03:19.880 --> 0:03:22.639 the next level. Because the Fertidas had spent a lot 0:03:22.680 --> 0:03:24.760 of time, effort, and money building this business, but they 0:03:24.800 --> 0:03:26.840 also really cared about it and they wanted to make 0:03:26.840 --> 0:03:29.600 sure that they didn't just make a financial transaction. They 0:03:29.639 --> 0:03:31.440 wanted to make sure that the business would continue to 0:03:31.480 --> 0:03:34.239 grow and continue to be part of the sports landscape. 0:03:34.240 --> 0:03:36.600 And so, you know, taking a look at some foreign 0:03:36.600 --> 0:03:40.200 buyers versus what ari and and Endeavor had I think 0:03:40.240 --> 0:03:42.920 made it made the decision, you know, sort of easy. Okay, 0:03:43.040 --> 0:03:44.960 you know, let's maybe take a little bit less money, 0:03:45.040 --> 0:03:46.680 but let's put it in the hands of somebody who's 0:03:46.680 --> 0:03:48.200 going to be able to take it to the next level. 0:03:49.080 --> 0:03:51.840 What did you I would imagine that talking to people 0:03:51.840 --> 0:03:56.160 and engaging the interest from outside companies to acquire you 0:03:56.200 --> 0:03:59.080 would tell you a lot about the strength and the 0:03:59.160 --> 0:04:01.880 potential weakness of your of the business. Did you learn 0:04:01.920 --> 0:04:04.680 a lot during the sale process? You know, we definitely 0:04:04.760 --> 0:04:07.600 learned a lot in the sale process about certainly what 0:04:07.640 --> 0:04:10.400 investors were looking for, you know, when they wanted to 0:04:10.840 --> 0:04:12.840 consider acquiring a business like ours, And it made us 0:04:12.840 --> 0:04:15.680 focus on maybe some of the things that were weaknesses 0:04:15.720 --> 0:04:17.920 or perceived weaknesses to make sure we had the proper 0:04:17.960 --> 0:04:20.960 answers and the proper sort of you know, I think 0:04:21.600 --> 0:04:24.000 ways to sort of deal with those. Um you know. 0:04:24.040 --> 0:04:26.840 The other dividend of the sale process was that so 0:04:26.880 --> 0:04:29.120 many of the parties that we were talking to were 0:04:29.160 --> 0:04:32.320 also potential bidders for our rights, the most obvious one 0:04:32.440 --> 0:04:35.599 being you know, ESPN. So Disney Company was at the table. 0:04:35.800 --> 0:04:38.200 They certainly listened to the pitch and you know, though 0:04:38.240 --> 0:04:41.080 they dropped out of the you know, the purchase process, 0:04:41.160 --> 0:04:42.480 you know, it was pretty clear to me that they 0:04:42.520 --> 0:04:44.600 were going to bid on our rights. And you know, 0:04:44.720 --> 0:04:47.000 that obviously came true because we just entered into a 0:04:47.000 --> 0:04:50.279 five year deal with with ESPN, which is gonna start 0:04:50.320 --> 0:04:55.960 January one of nineteen. There was there's been some chatter 0:04:56.040 --> 0:04:58.920 on Wall Street that that that that ESPN deal wasn't 0:04:59.040 --> 0:05:01.000 as big as it was, and the you know, with 0:05:01.120 --> 0:05:03.240 the with the B in front of the you know, 0:05:03.360 --> 0:05:06.599 in front of the billion, that it wasn't it didn't 0:05:06.760 --> 0:05:10.760 meet the expectations of endeavor and of the USC. Is 0:05:10.800 --> 0:05:13.359 that true, not at all? I mean, the deal that 0:05:13.400 --> 0:05:16.560 we did with with ESPN is really a multifaceted deal. 0:05:16.640 --> 0:05:19.160 So the headline, of course is one point five billion 0:05:19.200 --> 0:05:22.400 dollars over a five year period. Three million dollars per 0:05:22.480 --> 0:05:25.039 year that you know, is basically for a package of 0:05:25.040 --> 0:05:27.359 content very similar to what we have with Fox, and 0:05:27.400 --> 0:05:30.000 that's almost a three times increase over the Fox deal. 0:05:30.440 --> 0:05:32.320 But that's that's sort of not the end of the deal. 0:05:32.400 --> 0:05:34.279 I mean, one of the things that we're frankly most 0:05:34.320 --> 0:05:37.080 excited about is that ESPN is going to be a 0:05:37.120 --> 0:05:40.080 non exclusive seller of our pay per view products. So 0:05:40.160 --> 0:05:42.320 now we've got a real partner that's gonna be focused 0:05:42.360 --> 0:05:44.640 on selling pay per view that you know, we think 0:05:44.640 --> 0:05:47.640 can really help us grow our business. In addition to that, 0:05:48.080 --> 0:05:50.760 you know, the credibility of being in partnership with Walt 0:05:50.760 --> 0:05:53.560 Disney Company and ESPN has helped us in so many ways, 0:05:53.560 --> 0:05:57.799 including sponsorship. It's affected, you know, positively our foreign television deals, 0:05:58.120 --> 0:06:00.760 deals outside of of the United States. It's and it's 0:06:00.839 --> 0:06:04.840 just created a lot of credibility for our brand. So yes, 0:06:05.000 --> 0:06:06.880 you know, one point five billion dollars in the headline, 0:06:06.880 --> 0:06:08.720 but there's so many other benefits that we're getting out 0:06:08.760 --> 0:06:13.600 of this deal with ESPN. How um, how much would 0:06:13.640 --> 0:06:18.400 you say that your revenue mix is driven by the 0:06:18.520 --> 0:06:22.560 your pay per view events and now this more mainstream 0:06:22.680 --> 0:06:27.000 sports licensing with a partner like an ESPN. Do you 0:06:27.040 --> 0:06:30.000 know what the percentage breakdown is, Well, the percentage breakdown 0:06:30.200 --> 0:06:33.120 right now is going to change, you know obviously effective 0:06:33.200 --> 0:06:36.240 January one, because we're gonna getting more revenue from from 0:06:36.400 --> 0:06:38.680 ESPN that we were getting from Fox. So the you know, 0:06:38.720 --> 0:06:40.920 sort of the dependence or the percentage of revenue coming 0:06:40.920 --> 0:06:44.719 from pay per view will no doubt decrease. That being said, 0:06:44.920 --> 0:06:47.880 you know, we believe that the relationship with the ESPN 0:06:47.960 --> 0:06:50.279 is going to actually grow our pay per view business because, 0:06:50.600 --> 0:06:53.520 first of all, we're gonna get much more exposure being 0:06:53.520 --> 0:06:56.360 on the ESPN platform than we had with Fox. The 0:06:56.680 --> 0:07:00.000 television you know, ratings essentially are almost three times more 0:07:00.120 --> 0:07:02.600 or on ESPN and ESPN two than they are in 0:07:02.680 --> 0:07:06.039 Fox and Fox Sports one. In addition to that, ESPN 0:07:06.040 --> 0:07:08.760 has got an incredible digital ecosystem, you know, which of 0:07:08.760 --> 0:07:11.400 course has got you know, earned, it's got their media, 0:07:11.760 --> 0:07:13.640 it's got you know so many you know, many things 0:07:13.640 --> 0:07:16.360 that are attracting people to you know, that platform. So 0:07:16.520 --> 0:07:20.200 we're gonna additional exposure via that and um, you know, 0:07:20.240 --> 0:07:22.480 we believe that you know, when there's sort of one 0:07:22.560 --> 0:07:24.560 click away from buying a pay per view in that 0:07:24.840 --> 0:07:28.240 ESPN ecosystem that's going to add incremental buys. So certainly 0:07:28.240 --> 0:07:30.600 from the outset, you know, the percentage of revenue coming 0:07:30.600 --> 0:07:32.840 from pay per view will decrease, but over long term, 0:07:32.880 --> 0:07:34.640 you know, we think we're going to grow that business 0:07:34.640 --> 0:07:36.560 and you know, who knows where it ends up. You know, 0:07:36.560 --> 0:07:38.480 three or four years from now, are you going to 0:07:38.560 --> 0:07:42.560 do more events that that air strictly on ESPN and 0:07:42.560 --> 0:07:46.200 are not offered in a pay per view format. So 0:07:46.680 --> 0:07:50.440 we're gonna do forty two events uh next year, which 0:07:50.520 --> 0:07:52.920 is about a three event increase over what we're gonna 0:07:52.920 --> 0:07:57.880 do in uh forty For those forty two events will 0:07:57.920 --> 0:08:02.160 appear in some portion on one of the ESPN platforms 0:08:02.240 --> 0:08:05.239 or either ESPN the broad reach you know, flagship network, 0:08:05.600 --> 0:08:09.600 or the new ESPN Plus O T T platform. Twenty 0:08:09.760 --> 0:08:12.960 nights will be exclusive to ESPN Plus. The entire fight 0:08:13.000 --> 0:08:16.080 will be on the ESPN Plus platform, twenty two nights 0:08:16.080 --> 0:08:19.280 will there'll be some portion of the programming which will 0:08:19.320 --> 0:08:22.880 be on on the ESPN Flagship Flagship network. And then 0:08:22.920 --> 0:08:24.880 we're still going to have twelve pay per view events. 0:08:24.920 --> 0:08:28.400 Those will be exclusively shown on pay per view, So, uh, 0:08:28.440 --> 0:08:31.400 you know, uh that that's exactly the number we've had 0:08:31.520 --> 0:08:33.920 this year and for the last several years. Do you 0:08:33.960 --> 0:08:37.560 feel like in this world of where people are becoming 0:08:37.600 --> 0:08:41.200 so accustomed to streaming, you know, the instant gratification button 0:08:41.559 --> 0:08:44.200 is you know, the instant gratification is so important to 0:08:44.240 --> 0:08:46.800 consumers now for video, do you feel like is the 0:08:46.840 --> 0:08:50.280 pay per view model maybe becoming outmoded in this in 0:08:50.360 --> 0:08:52.360 this environment. No, not at all. I mean, in fact, 0:08:52.400 --> 0:08:53.920 I think the pay per view business is more relevant 0:08:53.960 --> 0:08:55.280 now than it ever has been. If you would ask 0:08:55.320 --> 0:08:57.000 that question five years ago, I said, well, you know 0:08:57.000 --> 0:08:59.560 what pay per view is a tough business, is churn 0:08:59.640 --> 0:09:02.080 business us. You know, you've got to sign them up, 0:09:02.120 --> 0:09:04.560 every sign up, every single time. And we did, you know, 0:09:04.640 --> 0:09:08.600 a huge event October six, and of course everybody laughed 0:09:08.640 --> 0:09:10.880 after the event was over. That being said, in this 0:09:10.960 --> 0:09:14.120 world of cord cutters and cord shavers and cordin ever's 0:09:14.559 --> 0:09:17.000 having an Ala cart, you know sort of I can 0:09:17.040 --> 0:09:19.560 buy it, you know, whenever I want to. Is UH 0:09:20.040 --> 0:09:22.480 is a distribution platform that makes a lot of sense. 0:09:22.520 --> 0:09:25.080 I mean, you know, our philosophy for the last five 0:09:25.160 --> 0:09:27.920 years is the following. I mean, we didn't know where 0:09:27.960 --> 0:09:30.280 consumers were going with, you know, how they wanted to 0:09:30.320 --> 0:09:34.120 distribute content. So our strategy was build franchises in all 0:09:34.200 --> 0:09:36.520 the important areas, pay per view being one of them, 0:09:36.800 --> 0:09:39.480 O T t v R, Fight Pass platform being another, 0:09:39.800 --> 0:09:42.679 you know, broad reach, you know being Fox Sports and 0:09:42.720 --> 0:09:45.160 Fox Sports one and soon to be ESPN, and then 0:09:45.160 --> 0:09:48.000 sponsored content Youtubees and those sort of you know pieces, 0:09:48.080 --> 0:09:51.200 you know, the twitches and those to those types of platforms. 0:09:51.760 --> 0:09:54.720 Build franchises in those four areas and then give yourself 0:09:54.760 --> 0:09:59.480 anough flexibility to move content among those different franchises as 0:09:59.480 --> 0:10:02.480 their as consumers desire to consume content changes, and I 0:10:02.480 --> 0:10:05.040 think it's it's worked out really well. So we feel 0:10:05.120 --> 0:10:08.239 pay per view is an important part of that ecosystem, 0:10:08.440 --> 0:10:10.040 and it also gives you the ability to peak the 0:10:10.040 --> 0:10:11.839 peaks on these really big events. I mean, we did 0:10:11.840 --> 0:10:15.440 a boxing event last year with with Connor McGregor and 0:10:15.480 --> 0:10:17.960 Floyd Mayweather. I mean it did four point six million 0:10:18.040 --> 0:10:20.640 or so pay per view buys. You know, those type 0:10:20.640 --> 0:10:22.520 of events gave you the with pay per view, give 0:10:22.520 --> 0:10:24.120 it the ability to peak the peak and not leave 0:10:24.160 --> 0:10:27.559 any money on the table. Is pay per view are people? 0:10:27.679 --> 0:10:30.040 Do you find consumers are very price sensitive. If you 0:10:30.080 --> 0:10:32.160 go up or down five or ten bucks, do you 0:10:32.160 --> 0:10:35.320 see a big swing in Not really, I mean it 0:10:35.360 --> 0:10:37.079 depends on the event. I mean it's like anything else 0:10:37.120 --> 0:10:39.120 in life. I mean, if people perceive as quality a 0:10:39.320 --> 0:10:42.800 must have type of event, um, you know, they become 0:10:42.840 --> 0:10:45.120 a little bit price you know, less sensitive to price. 0:10:45.440 --> 0:10:47.400 I mean what we also see is when you increase 0:10:47.400 --> 0:10:50.280 the price, you also increase clustering. So you know, our 0:10:50.320 --> 0:10:52.800 events are very social type events. I mean people are 0:10:52.800 --> 0:10:56.000 getting together somebody, perhaps pizza and other grabs of beers 0:10:56.000 --> 0:10:57.720 and the sodas, and they all come over to the house. 0:10:58.280 --> 0:11:01.000 The more expensive the event goes, we see the clustering increase. 0:11:01.040 --> 0:11:03.800 We also see an increase in our close circuit business, 0:11:03.800 --> 0:11:06.600 which is where we display in bars and restaurants, you know, 0:11:06.600 --> 0:11:09.480 the UFC events. We'll see an uptick in people going 0:11:09.520 --> 0:11:12.280 to bars and restaurants if we increase the price for 0:11:12.320 --> 0:11:15.000 particular events. So I mean, at the end of the day, 0:11:15.080 --> 0:11:16.839 if the event is high quality, people are going to 0:11:16.920 --> 0:11:19.120 figure out a way to see it. They might modify 0:11:19.200 --> 0:11:21.000 their behavior, but they're still going to watch the event. 0:11:21.520 --> 0:11:23.680 And even though all those people at a part at 0:11:23.720 --> 0:11:25.920 a person's house party or at a bar. They're not 0:11:26.280 --> 0:11:29.960 they're not each individually paying. You probably love the social 0:11:30.240 --> 0:11:33.640 aspect of that because it makes a UFC something that 0:11:33.679 --> 0:11:36.440 people look forward to. It's a it's a it's a destination, 0:11:36.480 --> 0:11:40.439 if you will, I would imagine that that's percent correct. 0:11:40.440 --> 0:11:42.839 I mean, we love that community aspect of our events. 0:11:42.880 --> 0:11:44.400 It makes it more fun when you're hanging out with 0:11:44.440 --> 0:11:46.520 a bunch of your friends, and you know, it also 0:11:46.600 --> 0:11:49.079 makes you more likely, you know, to watch it again. 0:11:49.120 --> 0:11:51.120 So maybe tonight we're gonna do the event at my house, 0:11:51.160 --> 0:11:53.160 but a month later we'll go over to your place, 0:11:53.640 --> 0:11:56.480 and uh, you know, it just creates at a more 0:11:56.600 --> 0:11:59.280 fun environment to watch these events or social events, and 0:11:59.320 --> 0:12:01.040 they're supposed to be fun, and if you've got a 0:12:01.080 --> 0:12:03.040 bunch of your friends with you with you, they certainly 0:12:03.080 --> 0:12:04.960 are more fun they would be for sitting by yourself, 0:12:05.920 --> 0:12:10.120 right right. Um. On the streaming side, you know, everybody 0:12:10.200 --> 0:12:12.200 is trying to fit. Everybody that I talked to has 0:12:12.240 --> 0:12:15.480 a slightly different template for how whether it's just scripted 0:12:15.559 --> 0:12:19.000 series or a reality show or a sports event. I'm curious, 0:12:19.160 --> 0:12:22.360 do you have anything in your ESPN deal that basically 0:12:22.400 --> 0:12:25.000 rewards you for success if you hit a certain number 0:12:25.000 --> 0:12:28.320 of streams or their escalators in any in any of 0:12:28.360 --> 0:12:31.080 your deals. I'm curious about the mechanics of these times. Yeah, 0:12:31.080 --> 0:12:33.839 we didn't. We didn't structure any sort of bonuses if 0:12:33.880 --> 0:12:37.160 we help them get a certain number of additional subscribers 0:12:37.240 --> 0:12:40.280 for for ESPN Plus, for example. Um, you know, we 0:12:40.360 --> 0:12:43.160 still will be retaining our own O T T platform, 0:12:43.160 --> 0:12:45.800 which is called fight Pass, And of course we've got 0:12:46.160 --> 0:12:48.360 the reward that will have be a pay per view. 0:12:48.400 --> 0:12:50.040 So the more pay per views we sell, of course, 0:12:50.080 --> 0:12:52.640 you know, that's a variable revenue stream. The more we sell, 0:12:52.920 --> 0:12:55.480 the more we make. But there's nothing in our deal 0:12:55.840 --> 0:12:59.240 that specifically rewards us for adding additional subscribers. Now that 0:12:59.360 --> 0:13:01.880 being said, we want to renew this deal twenty times 0:13:01.880 --> 0:13:04.959 down the road with ESPN, so we're obviously incentivized to 0:13:05.000 --> 0:13:07.600 do everything we can to make them happy. And as 0:13:07.640 --> 0:13:09.760 you can see, you know, ESPN Plus is clearly a 0:13:09.800 --> 0:13:13.800 priority for them. Yeah, for sure, How do you differentiate 0:13:13.880 --> 0:13:16.199 what you're gonna put on fight Pass versus what might 0:13:16.240 --> 0:13:20.000 be on the in the ESPN ecosystem. You know, it's 0:13:20.040 --> 0:13:22.280 just part of the deal, and it's also part of 0:13:22.320 --> 0:13:24.000 you know, sort of the way our fans are used 0:13:24.000 --> 0:13:27.240 to consuming contents. So virtually every one of our cards 0:13:27.240 --> 0:13:30.800 sort of right now starts on the fight Pass platform, 0:13:30.880 --> 0:13:33.120 the sort of what we call the early prelimbs, and 0:13:33.200 --> 0:13:37.480 then we'll transition typically to Fox and soon to be ESPN, 0:13:37.960 --> 0:13:40.560 and then the main card will either be on you know, 0:13:40.840 --> 0:13:43.040 a broad reach network or on pay per view. So 0:13:43.280 --> 0:13:45.520 I think we've we've conditioned our fans to know that, 0:13:45.559 --> 0:13:47.680 you know, the fights sort of start on on the 0:13:47.679 --> 0:13:49.920 O T T platform and then they progress the different 0:13:50.120 --> 0:13:52.880 different platforms for the rest of it. In addition to that, 0:13:52.960 --> 0:13:55.280 you know, we've got a bunch of other content that 0:13:55.360 --> 0:13:59.200 we've got on the fight Pass platform, so you know, 0:13:59.280 --> 0:14:03.160 magazine os features on our athletes, our entire library, and 0:14:03.160 --> 0:14:06.680 then we've licensed probably twenty five or thirty other types 0:14:06.720 --> 0:14:09.520 of martial arts promotions there, so some of its mixed 0:14:09.520 --> 0:14:11.960 martial arts, some of its boxing, some of its kickboxing, 0:14:12.320 --> 0:14:14.840 some of the jiu jitsu. So I mean, we're trying 0:14:14.880 --> 0:14:17.480 to create, you know, a point of differentiation for the 0:14:17.480 --> 0:14:19.680 fight Pass platform, which is sort of the go to 0:14:19.840 --> 0:14:23.080 place for all types of martial arts competition. In addition 0:14:23.120 --> 0:14:26.200 to a robust offering of UFC. One of the things 0:14:26.280 --> 0:14:28.440 that of course made UFC is so attractive and so 0:14:28.560 --> 0:14:31.840 valuable is that it has become a magnet for so 0:14:31.880 --> 0:14:35.720 many young men, you know, teenage boys, young men. Is 0:14:35.800 --> 0:14:38.560 that is there a misperception that this is a really 0:14:38.800 --> 0:14:42.320 this is a guy's guy sport. Do you have a 0:14:42.360 --> 0:14:45.480 more broad a broader audience than than people like me 0:14:45.520 --> 0:14:48.520 would perceive. Well, you know, you're absolutely right that sort 0:14:48.520 --> 0:14:50.680 of the core audiences that eighteen to thirty four year 0:14:50.680 --> 0:14:52.680 old male that's certainly, you know, the biggest part of 0:14:52.680 --> 0:14:55.080 our audience. But you might be surprised to know that 0:14:55.120 --> 0:14:56.880 thirty percent of our fans here in the United States 0:14:56.880 --> 0:14:59.080 are women. UM and part of that is because of 0:14:59.120 --> 0:15:01.880 the fact that we have of female athletes within the 0:15:02.000 --> 0:15:05.560 organization um SO and that's a growing part of our business. 0:15:05.920 --> 0:15:08.920 In addition to that sort of gender breakdown, we're one 0:15:09.040 --> 0:15:12.880 we're really the most diverse audience when in the world 0:15:12.920 --> 0:15:16.000 of sports right now, other than the NBA, which over 0:15:16.240 --> 0:15:20.280 indexes US when it comes to African Americans, UM we're 0:15:20.400 --> 0:15:23.320 number two. UM in every other sport we have the 0:15:23.360 --> 0:15:25.760 most compared to every other sport, we have the most 0:15:25.800 --> 0:15:29.080 diverse fan base, so and it's growing faster than frankly, 0:15:29.120 --> 0:15:31.720 the rest of our business. So where there's African Americans, 0:15:31.760 --> 0:15:34.680 Hispanic and women, that part of our business is growing 0:15:34.760 --> 0:15:37.600 quicker than than the rest of our business. So we'recoming 0:15:37.640 --> 0:15:40.200 more diverse every day. Have you seen benefits to being 0:15:40.240 --> 0:15:42.920 part of the Endeavor family? Obviously a big part of 0:15:42.920 --> 0:15:45.200 that company is is w M ME a company that 0:15:45.440 --> 0:15:48.800 builds stars and is you know, one of the world's 0:15:48.840 --> 0:15:52.360 largest talent agencies. Has that been a benefit? Huge benefits? 0:15:52.360 --> 0:15:55.320 So just in the process of building stars, I mean, 0:15:55.320 --> 0:15:57.360 they're so good at doing it. And it's not just 0:15:57.400 --> 0:16:00.800 about building stars, it's building them quicker than we we've 0:16:00.840 --> 0:16:02.280 done in the past. And I think they've done a 0:16:02.280 --> 0:16:04.680 great job in helping us sort of build the star 0:16:04.760 --> 0:16:07.360 power and enhance the star power of our existing athletes. 0:16:07.840 --> 0:16:09.600 The second thing that's been great is that we've got 0:16:10.440 --> 0:16:12.840 a bunch of celebrity investors that are actually invested in 0:16:12.880 --> 0:16:15.400 the UFC, and so you know, they're out there, you know, 0:16:15.480 --> 0:16:17.960 promoting the product because they've got a self interest in 0:16:18.000 --> 0:16:20.120 it now. And then even those that don't have a 0:16:20.160 --> 0:16:22.320 self interest in it, I mean, for example, Drake, he's 0:16:22.400 --> 0:16:25.440 a he's a w M E client. I don't believe 0:16:25.440 --> 0:16:28.400 he's an investor, but he's out there, you know, helping 0:16:28.480 --> 0:16:31.680 us promote UFC, using his social media platforms to help us. 0:16:32.000 --> 0:16:35.320 He actually, you know, uh, recently streamed a fight at 0:16:35.320 --> 0:16:38.360 one of his concerts in Las Vegas. So he's been 0:16:38.400 --> 0:16:40.960 you know, just incredibly helpful to us, you know, growing 0:16:40.960 --> 0:16:43.600 and expanding the brand. And those are just a couple 0:16:43.640 --> 0:16:46.040 of the anecdotes about how, you know, the w M 0:16:46.040 --> 0:16:48.840 E and Endeavor organization has really helped us build stars 0:16:48.840 --> 0:16:51.200 and enhance you know, the UFC brand. Can you give 0:16:51.280 --> 0:16:56.040 us an example of a of a crossover opportunity or 0:16:56.080 --> 0:16:59.200 a you know, a placement or a guest star shot 0:16:59.240 --> 0:17:01.560 for one of your fight Is that really helped boost 0:17:01.880 --> 0:17:05.200 that person's profile outside you know, outside of the world 0:17:05.240 --> 0:17:08.159 of UFC, in in TV or film or I mean 0:17:08.160 --> 0:17:11.639 there's so many, uh, there's so many you know, uh, 0:17:11.720 --> 0:17:14.159 whether it's movies or television shows or things that have 0:17:14.200 --> 0:17:17.439 integrated UFC into I mean. The thing is, actually, before 0:17:18.040 --> 0:17:20.520 UM Endeavor bought the company, you know, one of the 0:17:20.520 --> 0:17:23.960 biggest promotional things that we had done to expand you know, 0:17:24.000 --> 0:17:26.320 sort of the fan base of UFC was you know, 0:17:26.359 --> 0:17:29.320 we got one of our fighters on Entourage and that 0:17:29.400 --> 0:17:31.960 was all done by Ari got chuckolated l on the show. 0:17:32.080 --> 0:17:34.520 And even to this day, people come even tho it 0:17:34.600 --> 0:17:37.400 was like a decade or so ago, people will say, 0:17:37.440 --> 0:17:39.480 you know, yeah, I remember when chuckolate Dell was on Entourage. 0:17:39.520 --> 0:17:42.119 That was a great episode and that really, you know, 0:17:42.160 --> 0:17:45.280 that really helped us grow the brand. You know, whether 0:17:45.280 --> 0:17:48.040 it's talk show hosts, whether it's you know, getting on 0:17:48.119 --> 0:17:50.600 you know, the late night shows or getting on you 0:17:50.640 --> 0:17:53.960 know sort of morning you know television was Good Morning America. 0:17:54.400 --> 0:17:57.760 You know. Conan O'Brien, for example, has been just great 0:17:57.800 --> 0:18:00.880 in bringing our athletes you know, on his He did 0:18:01.040 --> 0:18:03.679 you know, really a funny segment with Connor McGregor in 0:18:03.680 --> 0:18:06.159 the lead up to the October sixth event. And you know, 0:18:06.200 --> 0:18:09.399 Conan is is an investor, but that opportunity, you know, 0:18:09.520 --> 0:18:11.680 just wouldn't have been there to get you know, regular 0:18:11.720 --> 0:18:14.800 coverage of our athletes on his show. Um without the 0:18:14.920 --> 0:18:22.760 endeavor relationship, there's no there's nothing better than a you know, 0:18:23.000 --> 0:18:26.800 enthusiastic talk show host or somebody talking about your your 0:18:26.800 --> 0:18:28.840 product to move the needle, whether it's you know, whether 0:18:28.920 --> 0:18:33.840 it's shoes or packaged goods or for sure it's great. 0:18:33.840 --> 0:18:35.959 And then you know Conan just does He's so funny, 0:18:36.040 --> 0:18:38.000 you know, he's so into the sport, you know, and 0:18:38.040 --> 0:18:40.000 he really likes Connor and they have this great sort 0:18:40.040 --> 0:18:42.800 of back and forth relationship. And you know, then that 0:18:42.920 --> 0:18:45.000 stuff after it airs, you know, clips of it go 0:18:45.160 --> 0:18:47.560 viral and you know people are of course, you know, 0:18:47.880 --> 0:18:51.280 using their social media platforms to to you know, in 0:18:51.280 --> 0:18:54.240 further enhanced the distribution and all that stuff sort of 0:18:54.280 --> 0:18:56.840 leading up to the event, you know, just enhances you know, 0:18:56.880 --> 0:18:59.160 the interest in the event and ultimately gets more people 0:18:59.280 --> 0:19:02.639 buy pay per views. Is there? Um? You know, I 0:19:02.640 --> 0:19:05.600 think you have the you have the high class problem 0:19:05.680 --> 0:19:08.960 of of being so successful that there's that there are 0:19:09.000 --> 0:19:12.399 some start up ventures and and some burgeoning leagues that 0:19:12.440 --> 0:19:16.159 are that are you know, could grow into competitors significant 0:19:16.160 --> 0:19:19.960 competitors to UFC. Are you on the one hand, the 0:19:20.000 --> 0:19:22.000 expansion of the market is you know, it is probably 0:19:22.000 --> 0:19:23.960 a good thing for the M M A world, But 0:19:24.000 --> 0:19:27.680 are you concerned about you know, the rise of new competitors. 0:19:28.000 --> 0:19:29.760 You know, we've got some real competitors out there. I mean, 0:19:29.840 --> 0:19:32.360 you know, uh, in the US Belletour, which is owned 0:19:32.359 --> 0:19:35.760 by Viacom. Outside the US, this is a global business. 0:19:35.840 --> 0:19:38.679 You know. One FC is built a very nice business 0:19:38.680 --> 0:19:40.359