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Thread: UFC gets Bigger !!

  1. #16
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    Sales analysis

    Working professionally as a martial artist for most of my life now, I'm acutely aware of the business side of martial arts. But UFC, that's out of my league.


    July 11, 2016
    Phil Terrigno
    DOES THE UFC'S SALE HAVE A SPORTS BUSINESS PARALLEL?
    During the summer of 2015, a Chinese conglomerate purchased the Ironman triathlon series from Providence Equity Partners LLC for roughly $650 million.

    The Ironman races, which grew under Providence and saw further expansion after the deal, developed from a strong brand into an owner and operator of competitive races around the world.

    That deal is the most recent parallel in the sports business landscape to the sale of the UFC, which was finalized for a reported $4 billion Monday after being hotly discussed in recent months.

    ESPN reported that the deal is the most expensive transaction for an organization in sports history.

    "Leagues typically formed around teams," Robert Boland, Executive-in-Residence of Ohio University's Department of Sports Administration, said. "It's only in the very modern context where an entire kind of administrative unit or governing unit in sports has been deemed to be a piece of property that could be transacted."

    The UFC, which functions as part sports league for mixed martial arts and part promotions and events company for its own fights, notified its fighters of the sale via email Monday.

    The email, which did not disclose a dollar amount, explained that talent giant WMG-IMG bought the UFC along with Silver Lake Partners, KKR, MSD Capital, L.P. and MSD Partners, L.P. as strategic investors."

    "Ironman is certainly the best known circuit of triathlons," Boland said. "But it's not the only. It has the best intellectual property. The UFC has the best intellectual property (among fight organizers). It has very reputable distribution, it has some stars."

    The significant difference between the UFC's sale and the Ironman deal is the amount of money involved.

    By comparison, the Los Angeles Clippers—one of 30 NBA franchises—sold for $2 billion in 2014 to ex-Microsoft CEO Steve Ballmer.

    "I can't think of anything this big changing hands like that (in sports)," Director of Marist College's Center for Sports Communication Keith Strudler said. "It's almost like you'd see in the corporate world where an investment group comes over and buys out the entire organization. If nothing else, it certainly reinforces the idea that these things are truly businesses."

    A similar deal nearly took place in early 2005 when Bain Capital and a sports consultancy group made a pitch to buy the struggling league.

    At that time, the NHL was in the midst of a season-long lockout before a $3.5 billion offer was made to purchase all 30 teams.

    "By buying out all 30 teams and combining them into a modified single entity, they argued, they could streamline operations, boost TV revenue, and negotiate down player salaries from a position of absolute strength," a 2012 Bloomberg article detailing the attempted purchase said.


    Photo by Mike Stobe/Zuffa LLC

    On a smaller scale in 1999, former NBA star Isiah Thomas purchased the Continental Basketball Association for $10 million.

    In early 2016, Activision Blizzard acquired the assets of Major League Gaming, an E-Sports organizer, for roughly $46 million.

    "It's hard to sell a league like that when you have a bunch of different team owners," Strudler said. "It's rare that you see the entire organization own everything, athletes on down."

    In an interview with The Los Angeles Times last week, UFC President Dana White and owner Lorenzo Fertitta spoke about the rumored sale.

    "What's happening—this is standard," Fertitta told the L.A. Times. "Any company, this size and magnitude, you don't talk about things you're working on in strategical terms. So, there's nothing to report."

    During that July 5 interview, White relayed an anecdote from a recent trip to Bangor, Maine, to the L.A. Times, saying "'[P]eople are yelling at me, 'Congratulations.' I'm looking at my family, saying, 'Most of the free world thinks me and the Fertittas don't own the UFC anymore.' It's unbelievable. We own the UFC. We did not sell the UFC. We own it."

    Among the groups rumored in recent months to be involved in a potential sale was China's Dalian Wanda group—which also purchased the Ironman series—signaling a possible desire to expand the sport's presence in China.

    "You can't go 24 hours without seeing a Chinese company investing in some sports property," Joe Favorito, a professor in Columbia University's graduate sports management program, said. "Everyday something happens. Whether it's a soccer team in Italy, or an E-Sports company. You're going to continue to see it and you're probably going to see it at some point in the United States depending on how the tax laws work out."

    A constant through the media reports chronicling the then-potential sale was that White would remain the face of the UFC and involved in daily operations.

    White told the Dan Patrick Show in May that "the day we decide to sell, I probably don't want to do this anymore," but Monday's email to UFC fighters said that White will continue in his role and will retain a minority ownership interest.

    "If you google the UFC, the first name that comes up is Dana White," Favorito said. "He's been the face of the organization since the Fertittas came in, probably a little bit before. I think they've done a great job of building the storylines of some of the athletes over time. Randy Couture comes and goes. Even to some extent Ronda Rousey will come and go. George St. Pierre comes and goes. The one consistent face of the UFC over the years has been Dana White."

    The UFC was purchased by Frank and Lorenzo Fertitta, operating as Zuffa LLC, for $2 million in 2001. The UFC's email to its fighters said that upon the closing of the deal, Lorenzo Fertitta will be stepping down as chairman and CEO. But, it also said that Frank and Lorenzo will retain a minority ownership interest.

    "We haven't had the catastrophic moment for UFC," Strudler said. "Where someone dies on national TV and everyone's watching. We haven't had the deep investigation of why this person gets promoted. From the ownership perspective, it's a great time to cash out. They've built something from nothing. There is potentially more downside than upside."

    @philterrigno
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  2. #17
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    Celebrity investors

    Tom Brady, Williams sisters among 23 celebrity investors in UFC
    Friday September 30th, 2016

    Nearly two dozen celebrities, including New England Patriots quarterback Tom Brady, along with tennis stars Serena and Venus Williams and Maria Sharapova are some of the new investors in the Ultimate Fighting Championship, WME-IMG announced.

    WME-IMG is the majority owner of the UFC since buying the property for $4 billion in July.

    Other celebrity investors include actors Ben Affleck, Mark Wahlberg, and Carolina Panthers quarterback Cam Newton.

    None of the celebrity investments were disclosed in the announcement, but some of the investors are clients of WME-IMG.

    Ari Emanuel, co-chief executive of WME-IMG, says the UFC is no longer a niche sport.

    "They would always ask for tickets,” Emanuel said to the Wall Street Journal. “I think it’s a mainstream sport now."

    According to the Journal, the talent agency wants to add more programming on the UFC’s digital subscription service, and wants to see more UFC fighters appear in other forms of entertainment, such as movies.

    The next UFC pay-per-view is UFC 204, which will take place Oct. 8 in Manchester, England.

    - Scooby Axson
    “I think it’s a mainstream sport now." I beg to differ. It'll be a mainstream sport when it is regularly covered in the newspaper sports sections like Football, Baseball, Golf, Tennis, et.al.
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  3. #18
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    Quote Originally Posted by GeneChing View Post
    “I think it’s a mainstream sport now." I beg to differ. It'll be a mainstream sport when it is regularly covered in the newspaper sports sections like Football, Baseball, Golf, Tennis, et.al.
    Agree 100%.

    Most of the time, MMA is barely covered in my local newspaper's sports section unless Ronda Rousey fights. Even then, it's usually on the third page. MMA promotions and fans love to tout it as the fastest-growing sport in the world. Maybe, maybe not. It's certainly the fastest-growing thing in the MA world. But it will NEVER come close to equaling the popularity of football, baseball, basketball ... even golf, tennis, etc., as in-demand among American sports buffs. It's certainly supplanting (or already has supplanted) boxing, for the most part. But boxing's popularity had already been steadily slipping for decades, anyway. MMA is still seen as somewhat of a novelty in the sports world.
    Last edited by Jimbo; 09-30-2016 at 10:03 AM.

  4. #19
    MMA may not be mainstream, but it is extremely marketable. It is more of a youth subculture thing like surfing, skateboarding and such. There is an overlap with hipsters.

  5. #20
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    Is the newspaper itself even "mainstream" anymore? That's a rather strange standard. Basketball and Tennis are the only 2 from this list that are worthy on the world stage. I mention this, because that is where MMA is likely to grow, which I think is evident in the amount of events they have been holding outside the US (and while this itself has become more common lately, its not new; there's always been the Brazilian presence and "subsports" like wrestling, BJJ and Judo have widespread following in the middle east, etc. and UFC has long sought to capitalize on this).

    Globally, soccer and basketball both have over 200 national programs. There's really nothing else that comes close to those two. American football is barely a blip on the radar. Baseball tracks better, and that is trounced by cricket (although that too is a skewed argument due to its localized popularity in India).

  6. #21
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    Quote Originally Posted by Cataphract View Post
    MMA may not be mainstream, but it is extremely marketable. It is more of a youth subculture thing like surfing, skateboarding and such. There is an overlap with hipsters.
    This doesn't even make sense. MMA's appeal, in part, is that it is a professional outlet for a number of sports that until now had none. Unless you were competitive for an Olympic run, you had zero options if you were involved with wrestling or judo. Hipsters don't tend to gravitate towards sweaty gym rooms.

  7. #22
    Quote Originally Posted by SoCo KungFu View Post
    This doesn't even make sense. MMA's appeal, in part, is that it is a professional outlet for a number of sports that until now had none. Unless you were competitive for an Olympic run, you had zero options if you were involved with wrestling or judo. Hipsters don't tend to gravitate towards sweaty gym rooms.
    I wrote there is an overlap, not that they are identical. I'm sure MMA and CrossFit had a big influence on what twenty somethings consider stylish today. It may be different in the States, but most MMAists I've actually met in person are young professionals, students, junior bankers. Of course I don't know any professional MMA fighters.

  8. #23
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    interesting...

    Where will this go, I wonder?

    OCT 15, 2016 @ 10:19 PM
    The Little Black Book of Billionaire Secrets
    Report: UFC Will Lose More Big Names As WME-IMG Looks To 'Bring In Their Own People'
    Matt Connolly, CONTRIBUTOR
    I cover the business of sports with an MMA focus.

    Opinions expressed by Forbes Contributors are their own.


    Will Dana White be the last man standing from the UFC’s Zuffa era? (Jeff Zelevansky/Getty Images)

    When the UFC was sold for $4 billion back in July, the most prominent organizational shift was Chairman and CEO Lorenzo Fertitta resigning his post. In the last two months, two more well-known UFC executives — long-tenured matchmaker Joe Silva and leading PR man Dave Sholler — also announced that they would part ways with their longtime employer.

    Whether or not WME-IMG requested the removal of Silva and Sholler is unclear, but it would be naïve to suggest that the new ownership group did not play some role in the duo’s departure. And according to MMA Fighting’s Dave Meltzer, this is just the beginning.

    “Joe Silva and Dave Sholler are the big names to go so far, but they won’t be the last,” Meltzer said on Oct. 13’s episode of Wrestling Observer Radio (subscription required). “WME-IMG want to bring in their own people. I’ve been told that by January it will be a very, very different company.”

    It’s worth noting that Sean Shelby, Silva’s matchmaking sidekick since the WEC merger in 2010, was recently promoted into his mentor’s role. And taking Shelby’s job was former Legacy FC boss Mick Maynard, who also has no known ties to WME-IMG.

    Even so, these whispers reportedly have UFC employees concerned over job security — and justifiably so given that communication on potential new ownership has been a little misleading in the past.

    “A lot of people behind the scenes are worried about their future or looking elsewhere,” Meltzer said.
    Gene Ching
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  9. #24
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    UFC Performance Institute

    OCT 5, 2017 @ 10:55 AM
    Inside The New $14 Million UFC Performance Institute Revolutionizing MMA Training

    Kristi Dosh , CONTRIBUTOR
    I cover the biz of college sports, facilities, licensing and travel.
    Opinions expressed by Forbes Contributors are their own.


    Kristi Dosh
    Inside the lobby of the UFC Performance Institute

    This year the UFC took a major step toward unifying its operations with the opening of its new 15-acre, 184,000-square foot campus in Las Vegas. The crown jewel of the campus is the UFC Performance Institute, a $14 million, 30,000-square foot facility that serves as the world's first Mixed Martial Arts multi-disciplinary research, innovation and performance center.

    Already, the UFC estimates 30% of its current athletes have visited the facility, including Conor McGregor who used it as a training base leading up to his boxing match with Floyd Mayweather. The doors are open to all UFC athletes at no cost to the athlete.

    The facility is on par -- or better -- than any facility I've toured in intercollegiate athletics. There's no barber shop or miniature golf, but there are nap pods and plenty of other bells and whistles.


    Kristi Dosh
    Nap pods in the athlete lounge at the UFC Performance Institute.

    The nap pods help athletes relax with soothing music and allow for a 23-minute nap, waking them with vibrations and sounds that become increasingly louder. The remainder of the athlete lounge is furnished with comfy places to sit and watch television or play a video game.

    The rest of the facility is all business, staffed with experts in strength and conditioning, nutrition and physical therapy. Every nook and cranny is filled with something meant to enhance the athlete experience and provide world-class performance optimization.

    My tour began at the "Performance Inspired Fueling Station," where athletes can grab items like protein shakes, yogurt, fruit and supplements from UFC partner Performance Inspired. Free of charge, of course, like everything else in the facility.


    Kristi Dosh
    The "Performance Inspired Fueling Station" inside the UFC Performance Institute

    The focus on nutrition and healthy weight cutting is evident in this new project. Clint Wattenberg was hired as the Director of Nutrition, a former wrestling student athlete and coach at Cornell who last served as the Coordinator of Sports Nutrition for the Big Red. In addition to the education and hands-on assistance provided at the facility itself, the UFC also offers remote consultations with its athletes on nutrition and weight cutting.

    Next stop on my tour was a therapy room with two impressive pieces of technology: a NovoTHOR whole-body laser light therapy pod and a Cryosense chamber that can deliver both cryotherapy and heat therapy in a single unit.


    UFC Performance Institute Kristi Dosh
    The NovoTHOR whole-body laser light therapy pod

    The adjacent room houses a Hydroworx pool complete with underwater treadmill and both hot and cold plunge tubs. The Hydroworx pool is monitored by a video camera that can project an athlete's movement underwater on the TV screen ahead on the wall. There are also sauna and steam rooms available for use.


    UFC Performance Institute Kristi Dosh
    Hydroworx pool and hot and cold plunges

    The emphasis on healthy weight cutting is evident throughout the facility and the conversations I had with my tour guides, vice president of operations James Kimball, vice president of performance Duncan French and Hall of Fame Forrest Griffin, who serves as the vice president of athlete development.

    I was introduced to the DEXA machine, a $100,000 piece of technology that's essentially a next-level x-ray machine that picks up lean and fat tissue in addition to bone. Combined with a metabolic cart that helps determine an athlete's caloric expenditure, staff can advise an athlete on the most safe and effective ways to cut weight and the time needed to do so.


    Kristi Dosh
    The DEXA machine

    The performance center has a dedicated physical therapist and offers a variety of options including dry needling, cupping and Pilates. UFC athletes who want to come rehab at the facility are able to do so with no expense other than travel and lodging, and the UFC has negotiated discounted lodging and shuttle services to ease that burden.

    "They need to have some skin in the game," says Griffin. "All you have to do is get here and put yourself up for the night."

    Griffin came to life when we entered the physical therapy space and the adjacent strength and conditioning portion of the facility. That's because he was an integral part of the development of the performance center, able to give feedback from the athlete's point of view.

    "I had a physical therapist, a strength coach, you name it. But I didn't have anyone managing that load," Griffin said. "In the evenings my strength coach wouldn't necessarily appreciate that I'd already had a hard workout."

    In contrast, the lean staff here means there are no barriers in communication. He believes this will allow all of the athletes -- particularly those rehabbing an injury -- to reduce the wear and tear on their bodies.


    UFC Performance Institute Kristi Dosh
    Impact wall and indoor track

    Inside the strength and conditioning space is the usual assortment of treadmills, power cages, dumbbells, medicine balls and more. A few things stand out, however. There are bilateral force plates in front of each power cage and video cameras set up at each station, recording every repetition.

    "Nothing goes unmeasured here," said French.


    UFC Performance Institute Kristi Dosh
    Strength and conditioning space within the UFC Performance Institute

    And on the opposite side of the room is a hypoxic chamber, used extensively by Conor McGregor in his preparations for the Mayweather fight. The chamber is able to simulate elevation up to 22,000 feet, which reduces oxygen levels to 50%. This allows athletes to train for an event in any locale.

    On the other side of the garage doors at the far end of the strength and conditioning space is an expansive outdoor space that includes an outdoor track and community space, including areas to grill and lounge.


    UFC Performance Institute Kristi Dosh
    Boxing ring and bags on the second floor of the UFC Performance Institute

    The second floor of the facility houses a full-size Octagon, full-size boxing ring, bag and mat training area, a tiered-seating media center with capacity for 65 people and a 100-person multi-purpose meeting space.

    "We aren't just a physical training center, we provide educational summits and messaging around media training, life skills, social media and more," said Kimball.


    UFC Performance Institute Kristi Dosh
    The practice octagon inside the UFC Performance Institute

    A tour through the facility reveals no expense was spared. Impressive when you consider all that's included at no cost to the athletes themselves.

    "This is not meant to be a revenue generator. It never will be," said Kimball. "It's operating in the red and was designed to do so."

    French adds that the facility is far more than strength and conditioning or physical therapy, there's a focus on research and on developing new standards for optimum athletic performance.

    "We want to position ourselves as a global leader in human performance right alongside the NFL and the English Premier League."

    The UFC would like to see the performance center become a hub where athletes from a variety of disciplines can cross-train. With the NHL staking its claim in Las Vegas this fall, and the possibility of an NFL team following suit in the near future, it might not take long for the UFC to realize that goal.

    Kristi A. Dosh, Esq. is a sports business analyst, publicist, recovering attorney and author of "Saturday Millionaires: How Winning Football Builds Winning Colleges." Twitter: @SportsBizMiss
    Very impressive.
    Gene Ching
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  10. #25
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    This is a dated article but it's been heavily promoted on social media lately

    Aug 20, 2018, 11:53am
    ONE Championship And The UFC Represent Global Duopoly In Martial Arts
    Brian Mazique
    Contributor
    Games

    The Ultimate Fighting Championship is unquestionably the king of mixed martial arts in the western world, but ONE Championship is perhaps even more dominant in the east.


    Chatri Sityodtong and Dana White CREDIT: PHOTO BY BRANDON MAGNUS/ZUFFA LLC/ZUFFA LLC VIA GETTY IMAGES AND ONE CHAMPIONSHIP

    With their meteoric rise to prominence over the past seven years, ONE has seemingly pressed all the right buttons in establishing itself as a viable rival to its Western counterpart. In Asia, ONE is the largest martial arts organization. One of the promotion's missions has been to unite the continent's 4 billion people on the shoulders of the many country's connections to the various disciplines.

    “In the same way that Starbucks offers many flavors of coffee and tea, we offer all martial arts,” said ONE Championship CEO Chatri Sityodtong.

    “We have earned that reputation over the last couple of years, and so instead of mixed martial arts, as a fight fan and as a martial arts lover, you now get to see all forms of martial arts for the very first time in history. So you will see matches of, you know, Muay Thai versus Tae Kwon Do, or Tae Kwon Do versus Kung Fu, and the list goes on and on.”

    According to Sityodtong, who was born in Thailand but is part Thai and Japanese, this makes ONE Championship the world’s largest martial arts organization.


    YANGON, MYANMAR - JUNE 30: Aung La N Sang celebrates his historic title win, claiming the ONE Middleweight World Championship during ONE Championship Light Of A Nation at the Thuwunna Indoor Stadium on June 30, 2017 in Yangon, Myanmar. (Photo by Dux Carvajal/ONE Championship/Getty Images)

    While the UFC has taken a more in-your-face approach in its rise to prominence, with president and face of the organization Dana White serving as the perfect microcosm for the American mixed martial arts community, Sityodtong has taken a different route.

    “Every region in the world had a sport that represented it," said Sityodtong. "In Asia, there was nothing. I thought to myself, there had to be a way to highlight each of the martial arts that originated from the variety of Asian cultures, and ONE Championship was it. The term MMA has a negative connotation in Asia, in the sense that it’s all about bloodsport, profanity, people who throw stuff at press conferences. That works in America, but not in Asia."

    Sityodtong has gone on record multiple times, including a direct one-on-one conversation with me, saying that he would not sign Conor McGregor if he were a free agent. Sityodtong feels strongly that McGregor's persona is a poor fit for the culture and identity he has crafted for ONE.


    YANGON, MYANMAR - NOVEMBER 03: Aung La N Sang prepares to face Alain Ngalani in an Open Weight Super Bout during ONE Championship: Hero's Dream at the Thuwunna Indoor Stadium on November 03, 2017 in Yangon, Myanmar. (Photo by Dux Carvajal/ONE Championship/Getty Images)

    “MMA is kind of an Americanized version of what martial arts is. Real, true, authentic martial arts has to do more with values and how it impacts the human soul. It’s about the way of the warrior, about integrity, humility, honor, respect, courage, discipline, and compassion. It’s about the true values of martial arts which is extremely significant here in Asia.”

    The ONE Championship way appears to be a personal preference for Sityodtong, but it is also a calculated approach that originated from paying close attention to what resonates with Asian people. The proof is in the numbers, reach, regional reviews and the immeasurable responses from crowds at their events on hand to cheer on the fighters who have been given the platform to become icons in their countries.


    SINGAPORE - MAY 26: Angela Lee celebrates her submission win against Istela Nunes at ONE Championship: Dynasty of Heroes at the Singapore Indoor Stadium on May 26, 2017, in Singapore (Photo by Dux Carvajal/ONE Championship/Getty Images)

    Angela Lee of Singapore, Aung La N Sang of Myanmar and Eduard Folayang of the Philippines are to their countries what McGregor is to Ireland, and even bigger than Daniel Cormier, TJ Dillashaw and Rose Namajunas in the United States.

    “We’re absolutely packing stadiums. We are filling thousand-seater arenas with passionate martial arts fans. We have the support of local governments, most importantly, the support of our fans. We have the most fantastic sponsors and partners on board that believe in what we’re doing, that believe in our vision,” Sityodtong concluded.

    ONE Championship has been able to launch and reignite careers by focusing on the personal stories of the fighters. Spotlighting their backgrounds, personal and professional struggles and their overall journey. Recently, ESPN ran a piece on former NBA MVP Derrick Rose's immense popularity in China.


    GUANGZHOU, CHINA - AUGUST 21: (CHINA OUT) Derrick Rose, Chicago Bulls point guard, takes a selfie with fans on August 21, 2015, in Guangzhou, Guangdong Province of China. (Photo by VCG/VCG via Getty Images)

    While Rose was born and raised in Chicago and has never competed in Asia professionally, the people of China are drawn to his perseverance and desire to play, despite suffering the multitude of injuries that have slowed what looked to be a Hall-of-Fame career. In the United States, his country of origin, he has largely been reduced to the subject of memes and unfortunate gifs.

    It is this contrast in the view of professional athletes that Sityodtong and ONE Championship have honed in on. They worked used these values to rebuild the careers of fighters like Aung La and heavyweight champion Brandon Vera.

    With business flourishing, ONE Championship has ramped up its lineup of live events. The promotion is scheduled to produce 24 live shows in 2018 and 36 in 2019. The UFC is scheduled to deliver 47 live events in 2018, but some may argue that less is more when it comes to combat sports events.

    The fewer shows, the more each one feels like an event. Though that's purely a matter of fan or media preference.

    ONE may not be emulating its global competition, but it is definitely aware of its presence. By establishing new divisions of its property like the ONE Super Series (kickboxing) and Rich Franklin's ONE Warrior Series, it has produced layers that can compete, or perhaps surpass Glory Kickboxing, Bellator Kickboxing and the UFC's Ultimate Fighter and Tuesday Night Contender Series.

    ONE signed Giorgio Petrosyan and Yodcherry Sityodtong to bolster its kickboxing venture while ONE Warrior is designed to focus on the rising martial arts talent in Asia. It is in its second season and airs on affiliate networks and the ONE Championship official YouTube channel.

    Franklin is a former UFC middleweight champion turned ONE Championship ambassador and Vice President who hosts the show along with Jonathan Fong. The duo travels across Asia searching for talent and experiencing local cultures.

    The athletes compete in professional bouts with the chance of earning a contract that can exceed $100,000 US currency. It's like a mixture of traditional reality television, White's Lookin for a Fight, Tuesday Night Contender, Ultimate Fighter and the American singing competition, The Voice. Franklin does a lot of teaching and coaching of the prospects, which is part of his background. In the role, he's more than a talent scout. It's almost partly like a mentorship and it's a pretty unique presentation overall.

    The UFC holds a firm grip on the attention of Western MMA fans, and the organization is prospering, but ONE is holding down its region of the globe equally. Fans can only wonder and/or hope that one day we might actually see a cross-promoted event between the two organization's top champions.

    That's a fantasy, but fans of both brands can dream.
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