UFC Buys Strikeforce
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After more reading, some MOAR thoughts...
There is no doubt Dana's interview with Ariel was mostly PR besides breaking the news. The stuff about contracts and needing them to expire is fishy. Plus, by many accounts, expect what's going to happen over the next two years to be similar to WEC.
First, the contracts. Zuffa owns them. Just like Zuffa owned the WEC contracts which a majority of the former WEC guys are continuing to fight on. They didn't need for them to expire to bring them over and book them in the UFC. The detail about needing contracts to expire is only if they truly intend to run both UFC and Strikeforce as separate entities.
Showtime is the big wheel in this deal because there's no reason to believe they are a lot like Versus (minus the rift between their execs and Dana). Zuffa purchased WEC in large part to keep other promotions off of Versus and were able to originally showcase guys who werent prepared for the UFC (Jake Rosholt, Brian Stann, Donald Cerrone, etc.) and it featured lighter weights that weren't in UFC.
As long as Showtime doesn't pull a power play and axe their contract, Zuffa is in a position where may not be able to prevent other brands from being showcased (and it will be increasingly interesting to see if Showtime tries to irk Dana by airing all kinds of MMA besides M-1). So it's the waiting game. By all accounts, 2 years remain on the deal.
As we saw with WEC, the UFC eventually ended up absorbing everyone they wanted. With Strikeforce, will they cherry pick guys who can provide fresh fights? Think Nick Diaz, Gilbert Melendez, Josh Thomson, Tim Kennedy, Robbie Lawler, etc. The only issue is they probably don't want to go full boar in turning SF into a minor leagues type of brand by bringing over a lot of the top talent. So that means, keep it as is with the exception of guys whose contracts expire and can negotiate a new deal (Dan Henderson is one).
More or less, as long as Zuffa has a contractual commitment to provide live MMA content to Showtime, I would not expect them to raid the big talent. They may pluck a guy here or there when necessary to fill a spot (Dana refuted this idea to Ariel), but for the most part, they will keep Strikeforce as is.
If nothing major changes, over time, I'd expect to see the exodus of guys to UFC pending whether or not they don't go on an Arlovski-sized losing streak (guys like Diaz, Melendez, Big Foot, Kharitonov, Woodley, Jacare, Mo, Mousasi, Feijao, Thomson, Kawajiri, Aoki, etc.). In 16 months or so, I wouldn't be surprised if Strikeforce ends up as a talent development type of place with guys who may not be ready for the UFC.
And whenever the deal with Showtime is up, the Strikeforce brand will be as dead as ECW is today.
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The only reason Dana talked about himself and Coker negotkating against each other for free agents, was to try and deflect the obvious backlash from fighters who see the writing on the wall in terms of leverage.
These are all Zuffa fighters now, the will do as they see fit with every single one of them. Even if that isn't the intention today.Comment
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"Sometimes I just want to be with my family and watch movie and eat some popcorn. But when I step on the mat I know there is no other place I'd rather be." - Marcelo GarciaComment
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Exactly, it's something people who study both have been saying for years, larry knows.
It's blatantly obvious how he follows the exact same business model, from gobbling up opposition, to refsing to concede production to third parties, to pushing the brand ahead of the sport and actually claiming the brand is the sport, to holding lifelong grudges against people who go against him (but always doing a 180 when it's best for business), and his egomaniacal, almost psychotic passion and drive to completely dominate the market.
Even the way he flippantly refers to other MMA, "those other shows", is the same way Vince blows off other wrestling. Who knows what they really think, but they both think its important to give the perception that they dont care or concern themselves with anybody else. Dana says he "barely ever watched their shows" when talking about SF, everyone knows he's full of shit, but he says it anyway, it perpetuates the perception he is larger than it all.
He either very intentionally models himself after Vince, or is one of the illegitimate sons Vince has around the northeast swing of the old WWWF from when he was banging out everything that moved when he was a college dropout managing dad's territory swings.
But, being an egomaniac and trying to dominate the market can link back to many promoters and CEO's. Vince certainly isn't the only or first person to approach his business that way.
What the UFC does admit to copying from the WWE is their PPV model, in that their entire business revolves around growing their PPV's. Whether it's merchandising, sponsorships, etc it all should link back and grow their PPV numbers. That's the model they've taken from the WWE.Comment
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Dana's latest Vince move is the aggressive international expansion. Vince saw the lay of the land a few years ago, and realised his freshest unexploited markets were abroad. Now UFC is doing this as well.
For two guys who don't hesistate to talk all sorts of crazy shit and thrive on making enemies, they never ever talk about each other and always change the topic or blow off comparisons. Like neither one wants any part of the other. I think Dana admires Vince, and Vince is smart enough to recognize he is being pummled on PPV largely due to much of his old audience moving on to MMA. Neither wants to poke the other.Comment
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Dana's latest Vince move is the aggressive international expansion. Vince saw the lay of the land a few years ago, and realised his freshest unexploited markets were abroad. Now UFC is doing this as well.
For two guys who don't hesistate to talk all sorts of crazy shit and thrive on making enemies, they never ever talk about each other and always change the topic or blow off comparisons. Like neither one wants any part of the other. I think Dana admires Vince, and Vince is smart enough to recognize he is being pummled on PPV largely due to much of his old audience moving on to MMA. Neither wants to poke the other.
That's not a Vince move. That's a move every major company has made in modern times. U guys give Vince too much credit.Comment
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WWE for years and I think to this day will refute any statement that UFC is their competitor.
Doing so would admit they have been getting their ass kicked on PPV since 2006.
It's comical when they are respectful of what the UFC has done, but don't see any relation to their business. Especially when they do investor conferences.
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PPV is just now expanding overseas, north america was ahead of the curve, but as other parts of the world adapt to it that is where wwe has grown. WWE domestic ppv drops every year, in large part due to ufc. Dana sees this and also knows domestically his run of the mill shows are flat (and even dropping), you have to hook those fresh markets where both ppv and UFC is a novelty.
The problem, is WWE gets hot in certain countries, but fads out quickly because the product gets stale. Italy for example. UFC has done a much better job of hooking people long term.Comment
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press release from Zuffa and the first comments from Scott Coker about the deal
Forza, LLC, a subsidiary of Zuffa, LLC, which owns the Ultimate Fighting Championship® brand, announced today that it has purchased the assets of Explosion Entertainment, LLC dba Strikeforce®. Under the terms of the deal, all Strikeforce fighter contracts will be honored, as will its broadcast agreement with Showtime® Networks, Inc. Strikeforce will continue to operate as a separate business and current Strikeforce CEO Scott Coker has signed a long-term employment agreement with the company.
"We have worked hard to make mixed martial arts the fastest growing sport in the world," UFC President Dana White said. "We've spent countless hours getting this sport regulated and taking the Octagon® all over the world. Acquiring the Strikeforce assets allows us to continue to develop this sport into a global force."
"We intend to operate Strikeforce as a separate business much like we did with the WEC for many years," Lorenzo Fertitta, Chairman and CEO of Zuffa, said. "We look forward to working with Scott Coker, and the entire Strikeforce and Showtime teams to continue to provide quality content for mixed martial arts fans.
"We've long admired Scott Coker and the Strikeforce business he launched and developed," Fertitta continued. "We feel that together with Scott, we can continue to build both Strikeforce and the UFC."
Currently, Strikeforce holds 16 events annually across the United States. The organization will continue to do so under new ownership and fans can look forward to exciting fights featuring their favorite Strikeforce athletes. While there are currently no plans to bring Strikeforce fighters to the UFC, a new strategy to strengthen Strikeforce's talented roster is being developed.
"This is an important day for the sport of mixed martial arts," Strikeforce CEO Scott Coker said. "We are excited to work with Lorenzo Fertitta, Frank Fertitta, Dana White and everyone at the UFC on the quest to make MMA the biggest sport in the world. Fans can continue to expect quality Strikeforce shows and we look forward to giving our athletes an even broader platform on which to perform."Comment
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Josh Barnett with kind words for Dana and the UFC? cant be...
When Josh Barnett saw news of the impending marriage of the UFC and its closest competitor Saturday morning, the first thing he did was glance at his calendar.
“I had to double-check,” said the Strikeforce heavyweight. “I was like, ‘I know it’s not April 1.’”
And the deal is certainly not a joke. It will pair the world’s top mixed martial arts promotion with the organization that held the last significant collection of top-level MMA fighters not already under their banner, and Barnett is hopeful he will be part of that union.
“Things have changed,” said the former UFC champion, “This is major and great things can come from it and I just want to be a part of that, and the way I can best do that is be the best fighter I can be.”
It just might not be that easy.
There is a massive hurdle standing in the way of a Barnett-UFC reunion and that is the president of the company, Dana White.
Barnett and White have had a contentious relationship -- if you can call it that -- over the past nine years or so since Barnett, in quick succession, became the organization’s youngest heavyweight titlist by defeating Randy Couture in 2002; then reportedly made it clear he wanted to be paid more than anyone was being paid at that time and finally was suspended by the Nevada State Athletic Commission for allegedly testing positive for anabolic steroids in the Couture fight.
For his part, Barnett states that no matter what has been said in the past, he has respect for his former boss. He also hopes his performance in the cage will go a long way in proving he belongs on the sport’s biggest stage.
“I’m not here to make this a personal vendetta or judgment with [Dana], especially in terms of business,” said Barnett. “I know what I’ve got to do and I know what his position is in terms of being the president of the UFC, and that he has excelled at. He’s done a great job.”
And Barnett has a job in front of him that is first and foremost. That is winning the Strikeforce heavyweight grand prix.
“It makes a difference with everything,” explained Barnett in regards to winning the tournament. “There is not a single thing in my life that winning this tournament will not make a difference with.”
One can’t help but think that it may be the only way for Barnett to find his way back into the Octagon, and it may be a long shot at that.
The volleys of vitriol between White and Barnett have been some of the most caustic dialogue ever recorded in the nascent sport’s young life.
Barnett has, in the past, been a vocal critic of White and his company, and the UFC boss -- as we have all become accustomed to -- has fired back early and often. Barnett’s alleged three failed commission administered drug tests have been an easy target for the sharp-witted White.
Those public repartees may be a thing of the past if Barnett is successful in persuading his former archrival to allow him back into the Octagon. It would not be the first time White has extinguished a bitter feud. He and Tito Ortiz squashed a high-profile quarrel that had them set to fight a televised boxing match.
Barnett may or may not have been joking when he talked about getting a shot at White in a professional style wresting match, but it is clear as day that he is serious about getting back into the UFC. Competing against the best fighters in the world is what motivates him, and even a blind man can see that the UFC will soon be the only game in town for a fighter of his caliber to scratch the competitive itch that consumes him.
“If he hates me, he hates me; but if he sees the value in what I bring to the table as a fighter I think that will speak for itself,” he said. “But you know what? I don’t hate Dana and I do business, and I’ll go out there and do the absolute best that I can do and if he happens to be my employer … literally, if Dana White has an office that I have to write into every day, because that’s the person I report to for my business, well that’s what I’ll do.”
This is an amazing sea change from the notoriously recalcitrant Barnett and it doesn’t stop there. Perhaps reflecting on the uncertain nature of MMA, especially so in recent years, he made a point to commend the UFC for providing a stable platform for the sport to grow upon in North America. He even went as far as to state he may have erred in his handling of his divorce from the company.
“There is a part of me that absolutely wishes that things between myself and the UFC had worked out differently,” stated Barnett. “I was 23, 24-years-old at the time and I took advice from where I took it and I tried to do what I thought was the best thing at the time, but this guy that is sitting here talking to you now would tell that kid [that] he was a moron.
“But even still, I got to see and experience a lot of amazing things in my life even because of that. I could sit back and cry about it and really think what a horrible way this turned out, but my life has been really awesome. I’ve done a lot of awesome things and I’ve been a part of amazing moments of time and got to fight in amazing places and see amazing things and fight amazing fighters and I would never trade that in. The thing is, every step you take is forever. I’m going to do what I’ve got to do and I’ll try to do the best I can to avoid mistakes of the past and use those experiences to be better at everything I try to do in life.”
With all that said, Barnett, like so many others who have clashed with White, see quite a bit of themselves in the supremely confident UFC president.
“Dana likes to go out there and crush, kill, pillage, whatever; and let’s face it, that’s kind of my M.O.,” said Barnett in an admiring tone. “As much as I may have ever had difficulty with Dana at the end of the day there is a part of me that absolutely vibes with what he is does.
“Whether he wants to think about it or not, here and now, no bulls**t, Dana White is pretty f--king metal and I am a metal dude … we’ll at least have that sort of respect that can’t be overlooked.”
We’ll see.
Noting his complete lack of control over the process of reconciling with White and the UFC, Barnett was clear in outlining his best chance of gaining any shred of influence in the matter.
“I know the biggest thing that will affect my career, and that’s going out there and winning this tournament. That’s the biggest thing that I can actually make a difference in, that’s something I actually have control overComment
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Meltzer notes from wrestlingobserver.com
Strikeforce fights will be in a Hexagon
Elbows on the ground now legal in Strikeforce
Showtime deal runs through 2014
Showtime controls the announcers on Strikeforce events
Dana considered a good chance the heavyweight tournament finals will be on PPV
The idea of keeping separate champions has changed from Saturday to today. They were not specific on what would happen but they said they will make the fights people want to see as opposed to not doing interpromotional fights. So UFC vs. Strikeforce championship fights will be made when they believe it's the right time.
They talked about doing considerably more overseas shows. As a theoretical, for Australia, instead of one show a year they talked about running 1-2 major shows and 8-10 smaller shows trying to develop local stars and television for those markets.
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- Scott Coker: "This is a historical day for the sport of MMA."
- "Silicon Valley Sports & Entertainment wanted to get back to their core business (hockey). I wanted to stick around in MMA."
- "We have around 140 fighters under contract in Strikeforce."
- "HWGP delay had more to do with finding the right location for the fight. This deal had nothing to do with it."
- "I think fans are eventually going to get to see the fights they want to see."
- "We had booking approval for guys with non-exclusive contracts."
- "Fedor fights for Strikeforce. Fedor fights on Showtime. I can't get into the specifics."
- Dana White: "Right now, we're looking to run Strikeforce on Showtime. Business as usual."
- "I'll never say never to anything, but right now Strikeforce will continue to run on Showtime. Showtime runs the production for Strikeforce. There's things we can do to help out, but they're running production."
- "There's always going to be competition. We're just looking to expand and grow the business. We need more fighters."
- "I wouldn't count anything out with regards to fighters crossing over. As of now, we're keeping things separate, but it's a work in progress."
- "There are a lot of people who aren't big fans of mine, but we can still do business." (Re: Barnett, Daley)
- "All you have to do is have some money and some big balls to get into the MMA business."
- "My thoughts on women MMA is the same. That's Scott's deal, not mine."
- "We're open to the idea of the HWGP final being on PPV."
- "We have the largest MMA video library in the world."
- "A fighter's union is up to the fighters. The problem is that this isn't a team sport. Guys at the top might not want to kick money down to the guys at the bottom."
- White dodges a question about multiple champions in each weight class.
- Lorenzo Fertitta: "It's a positive for the fighters to work for Zuffa. We have vast resources and will honor contracts."
- "There are plenty of promoters around the world for fighters."
- "We haven't had a chance to meet with Showtime yet. Strikeforce still has a contract for 16 fights with Showtime. If Showtime is interest in something beyond that, we're interested."
- "So far, we have not been able to do a deal with a network that makes sense for us."
- "Strikeforce will continue to use the hexagon. Strike WILL ADOPT the Unified Rules. Elbows on the ground will be allowed in Strikeforce."
- "Showtime contracts runs through 2014. Showtime controls production which includes announcers, etc. We'll offer input, but that's all."
- "We put this together in short order, and we don't have all the answers yet."
- "It's important for fighters to remain professional. We're honoring our side of contracts."
- "There's a lot of "unfinished business" over in Strikeforce with regards to matchups."
- "We're not worried about opening ourselves up to anti-trust suits. There are 1000s of other promotions."
- "Scott does not have an equity stake in Zuffa."
- "We started talks in mid-December."Comment
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