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Forbes Fab 40: UFC ranks No. 7 on list of ‘World's Most Valuable Sports Brands’

MMA: UFC Fight Night-Overeem vs Struve Mark J. Rebilas-USA TODAY Sports

Ultimate Fighting Championship (UFC), in terms of where it ranks among top brands in the world of sports, is a pretty big deal.

That might explain why the world’s leading mixed martial arts (MMA) promotion was able to sell for a whopping $4 billion last summer to financial conglomerate and media powerhouse WME | IMG (more on that here).

But what is the true value of the UFC brand? That depends on who you ask.

Forbes explains as part of its “Fab 40” feature.

The purchase of a brand can have a big impact its value. The UFC was acquired by WME/IMG this summer for $4 billion. By my count the price allocation of the deal valued the UFC’s brand at $2 billion–more than three times its value a year ago–based on the enterprise value premium paid for the mixed martial arts promotion. The UFC posted the biggest year–over-year increase among business brands. But if the UFC does not become bigger and more profitable–thererby justfifying its $4 billion price tag–its brand could fall sharply in value.

UFC ranks No. 7 on the list of “World’s Most Valuable Sports Brands.”

That said, Federal Reserve Bank supervisors threw shade at Goldman Sachs for “accounting adjustments that more than doubled the mixed martial arts promoter’s cash flow projections” (more on that here).

Forward-looking statements and all that jazz.

UFC is a hot property, anyway you slice it, thanks to the rise of global superstars like Ronda Rousey and Conor McGregor, among others. How much longer the promotion continues to grow remains to be seen.

Either way, some folks won’t be around to find out.

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