As it’s been reported recently, the UFC has officially been sold for $4 billion, the most expensive transaction for an organization in sports history.
According to ESPN, the UFC was bought by entertainment and sports talent agency WME/IMG, its owner Silver Lake Partners, Kohlberg Kravis Roberts and MSD Capital, the investment firm of Michael Dell.
“We’ve been honored to have UFC and a number of its athletes as clients and couldn’t be happier to take our relationship to this next level as the organization’s owner and operating partner,” WME co-CEO Ari Emanuel said.
It’s unclear if the agency will continue to represent the clients as it presents an odd situation. Among their clients is UFC superstar Ronda Rousey.
Emanuel, will wield a lot of power over the organization but Dana White will still have a major presence and will remain as President. The Fertittas brothers will have a minority interest and a diminished role including Lorenzo Fertitta who will be stepping down as CEO.
The brothers Lorenzo and Frank Fertitta bought the organization in 2000 for $2 million. The price paid for UFC is roughly seven times earnings, as chairman Lorenzo Fertitta told CNN that the organization grossed about $600 million in revenues in 2015.
Although the deal has been agreed upon, it will reportedly take six weeks to two months for final signatures.
