REDDzone wrote:cowboyronnie wrote:And that $4 billion is IN DEBT, increasing by the hundreds and hundreds of thousands every week. And those hundreds of thousands are themselves just more debt if not paid.
A work stoppage for a year, without them being able to pay down the debt, nevermind break even day-today? The interest upon interest of $4B is going to be crushing. A year would be disastrous. They would additionally risk (slightly but tangibly) the whole investment collapsing as Bellator becomes the only game in town or boxing is revitalized.
Instituting incremental increases in fighter pay will save them way more money than allowing that interest to pile-up, lose valuation, risk the company, and be unable to make dollar one for a long period of time. Esp that debt. Oof.
Cammo wishes this weren't the case. Sorry, pal.
Read an article earlier that made me think of this post, I think it really reinforces your point:
https://www.bloomberg.com/news/articles/2016-12-02/goldman-said-to-get-second-fed-slapdown-on-ufc-loan-after-appeal
The loan given to WME for the purchase of the UFC has been classified as a substandard loan due to the the price relative to the cashflow of the UFC. These guys overpaid, they are desperate for revenue, and could absolutely not withstand any type of work stoppage. No way.
PPV is their main revenue generator. The card this weekend has been estimated to have done ~150k buys. The name UFC by itself doesn't move PPVs, and this weekend had some decently well-known names like Cerrone and Pettis to bolster that as well.
If the fighters were willing to defer their real cash-in for a couple years, and allow WME to get out from under from this compounding debt and up to that TV deal, they could reap huge benefit long-term.
They have WME by the balls. 50% of the revenue by 2021. Or, they stop work and let WME collapse, sign with Bellator.
If it's this clear-cut, even the big names might be willing to get aboard a union. Conor might be getting 3-4% of the revenue at this point (no idea the number), he could be making more if they unionize.