“I’ve never been a fan of the UFC going public,” White told 8 News Las Vegas in 2019. “Can you picture me running a public company? No, I can’t either. Let’s take some bets on how long I’ll last in a public company. What’s the over-under on that one?”
Well, luckily for Dana White, he has often been known as a reckless gambler and a poor judgment when wagering his money. Just look at the outrageous claims he made on the Ben Askren vs. Jake Paul boxing contest. “I’ll bet a million dollars that Ben Askren will win,” White said. And this week, another prediction from the UFC President went up in tatters as the New York stock exchange introduced their newest company. Not that he will be complaining, the with the most valuable incorrect prediction he’s made to date.
It was evident that Dana White never intended for the UFC to become a public company. Still, with the new ownership of the Endeavor Holdings Group, the UFC has now become a part of a publicly traded company on the New York Stock Exchange (NYSE).
The Hollywood powerhouse company Endeavor acquired the Ultimate Fighting Championship in 2016. They became majority owners of the UFC’s parent company Zuffa from the Fertitta brothers, known as WME-IMG. Endeavor owned 50.1% to take a majority share in the company and made promises of buying them outright “in the near future”. There was a plan for Endeavor to go public in 2019, but low investor demand required them to back off. It would take at least $1.75 billion to buy out the remainder of the UFC before the IPO (Initial Public Offering).
The year is 2021, and to no surprise, the IPO that began proceedings a month following Endeavor filed S-1 with the Securities and Exchange Commission has been finalized. The sole intent was to being public trading, and if you’ve followed the success of companies like the UFC during the global pandemic, there is no shock factor to involve.
Endeavor revealed the UFC, Professional Bull Riders
On the morning of April 28th, 2021, the Endeavor execs Ari Emanuel and Patrick Whitesell, with Dana White in tow, made their appearance in “The Big Apple” to ring the legendary opening bell at the New York Stock Exchange. The sports, media and entertainment tycoon went public at $24 per share.
The UFC was a key player in keeping Endeavor from bankruptcy during the COVID-19 pandemic, establishing the powerhouse of mixed martial arts as a desirable part of their company worth owning 100%. Whilst media and entertainment companies were forced to close during the pandemic, the UFC overcame adversity and continued with a regularly scheduled program.
“As challenging a year as 2020 was, it underscored the strength, creativity, and resilience of our people who mobilized time and time again in the face of overwhelming odds. We made difficult decisions but worked as a team to find creative solutions and best position the business for the future,” Emmanuel said in the S-1 filing.
“As the global pandemic unfolded, we devolved the protocols necessary to help our businesses safely restart operations, providing a model for other professional sports, events, and programs. UFC and PBR were two of the first sports organizations to responsibly return last spring, and we followed in the summer by hosting the WNBA’S season at IMG Academy. In the fall, we brought New York Fashion Week to life, becoming one of the first major events to resume in New York City.”
Endeavor’s current value is in the region of six billion dollars; they are set to launch with 21.3 million shares of Class A common stock, with a valuation of $511 million. In addition, $1.8 billion is predicted to be raised from corporate investors.
Have you brought any UFC stock yet? Much like sports wagering, the stock market can provide great value, and if you believe the UFC has a bright future in sports entertainment, it could be the perfect time to invest.