UFC credit outlook improves following Rousey loss
Holly Holm’s 2nd round KO of Ronda Rousey last Saturday is helping to boost the fortunes of the league’s parent company, according Standard & Poor’s Ratings Services.
Ronda Rousey has been the biggest star in UFC history. Her loss on Saturday was in all likelihood inevitable (every fighter loses), but undoubtedly was unwelcome news to the company. However, Christopher Palmeri from The Bloomberg News reports on some good financial news that followed it.
Holm Helps Lift Credit Outlook for UFC Parent
Holly Holm’s second-round knockout of Ronda Rousey in a UFC match last Saturday is helping to boost the fortunes of the league’s parent company, according Standard & Poor’s Ratings Services.
The credit-rating firm raised its outlook on Zuffa LLC’s $539.5 million in loans to stable from negative and affirmed the company’s corporate debt BB- rating, according to a statement Tuesday. That’s three levels below investment grade.
Marquee fights are bringing in higher pay-per-view and ticket revenue, spurring a profit recovery for Zuffa after a drop last year, S&P analyst Eric Nietsch said in the statement.
Profit this year could surpass 2013 levels, Nietsch said. The business’ increasing popularity and TV contracts should also drive earnings growth next year, he said.
S&P cut its outlook for Zuffa last year after several events were canceled because of injuries.
When the fighters get injured, fights get delayed, headliners can get pushed, Nietsch said. There’s less of that this year.
In what appears to be an attempt at crafting a catchy title, the article seems to have overstated the case. ZUFFA’s credit rating is up because injuries are down, and PPV revenue is up, but it has nothing to do with Holly Holm winning or losing.
