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By Alvin Benjamin Carter III, MMA Torch Specialist
I would not call it co-promotion, but the Ultimate Fighting Championship has sold 10 percent of their shares to the Abu Dhabi government owned Flash Entertainment. This could be huge for the UFC as they work towards their goal of becoming the dominant global brand in mixed martial arts. It has been reported that Lorenzo and Frank Fertitta have both given up 4.5 percent of their shares and Dana White has given up 1 percent. Lorenzo Fertitta believes the venture will expand the UFC into the Middle East, Southeast Asia, and China. The first fight card that might take place there (still not formally announced) will most likely feature superstar middleweight Anderson Silva defending his belt against Vitor Belfort.
This partnership is an incredibly smart move by the UFC. They are starting to adapt their business model in order to achieve their ambitious 10 year goal. Flash Entertainment has a minority stake in the company so there is no real threat of them changing how the company operates without an OK from the UFC brass. The risk is relatively low and the payoff is currently immeasurably. Like the Fertitta's (but most likely on a larger scale) the Abu Dhabi based company has a lot of access to resources that make this strategic partnership sensible- money, production equipment located in the region, and regional promotion capabilities.
Also, a key point to mention is that the ADCC (Abu Dhabi Combat Club) World Submission Fighting Championships and was created in 1998 by the UAE leader's son, Sheik Tahnoon Bin Zayed Al Nahyan.
Now the work begins for the UFC; they have to be creative and expand at the right pace. And, really, the work continues for Strikeforce and Bellator. The UFC has made a move that pushes them into another realm financially (not that they were having money problems) and strategically. This potentially creates another tier for the other American based promotions. I am not saying the UFC is a superior product, but it has a guillotine on the US market and can afford to focus attention elsewhere. This really makes for an exciting fight for the #2 promotion. Strikeforce definitely has the second spot based on talent alone, but it can take years (unless you are Afflication) to see how well an investment can pan out. Strikeforce also has a huge leg up because of their partnerships with Japanese based Dream and of course CBS. While the ranking of each promotion seems clear cut, the amount of effort Strikeforce and Bellator have to put in to stay afloat will hopefully make for some great fight cards that fans can get excited about.
After making a somewhat surprising move like this, the failing of the UFC's previous co-promotion/partnership negations makes a lot more sense. Strategically, it is better to work with a company that adds more than fighting talent when you already have an abundance of star power. The UFC took it to the next level and "spent" their shares on global access and industry know-how with this deal.
This could potentially showcase fighters in different countries and may open the door for programs similar to The Ultimate Fighter in various regions throughout the Middle East, Southeast Asia, and China. It would be great to see the TUF America winner fight TUF UAE or TUF China winner. Providing expansion happens smoothly, there could even be a TUF World show to facilitate this. This also creates interesting sponsorship opportunities with foreign companies, and I can only begin to imagine how TapouT might benefit from being a sponsor at events in these regions.
I guess this is step 1 in the UFC's 10 year MMA world takeover plan. I am interested in seeing how this pans out and to what degree fans in the US are actually affected by and/or aware of the UFC's strategic expansion.
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Follow Alvin on Twitter: @AwwwSnap
Alvin Benjamin Carter III is an MMATorch Specialist columnist focusing on the business and statistic side of the sport of MMA. He trains in SanDa / Shan Shou (Chinese Kickboxing) and has started training in MMA. He also has a business background in music production, management, and clothing. He has launched two companies which cater to niche markets, giving him experience in examining trends and attitudes that can affect a particular business model, which he applies in his weekly column for MMATorch to the sport of MMA.
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