Campbell McLaren was one of the co-creators of the UFC and was there during its early climb. Now he's interested in getting it back.
"For 23 years I have believed the UFC was an incredibly valuable sports franchise," he said to Champions.co.
He must have felt strongly as he and fellow investors made a bid to purchase the UFC.
"I looked into potentially buying the UFC too with some very famous investment groups based in the U.S.," McLaren said on Submission Radio.
McLaren, who is now CEO of Combate Americas, the first hispanic MMA promotion, revealed some interesting details on the potential sale of the UFC.
"We had what we thought was a tremendous offer, and it was $2.8 billion," he said. "And that was sort of based on the investment bank arithmetic. The UFC did $200 million in earnings before tax and depreciation ... so that's tremendous. And typically, bankers, private equity firms might look at an earnings like that and the range would be 12 to 14 times that [which] would give you the value of the company. So $2.8 (billion) was on the higher side."
Ok, so I'm not the best when it comes to investments, I only have $35 in my savings account, so I'm going to assume McLaren knows what he's talking about.
"I think Lorenzo looks at this and goes, we haven't even seen the real value of the UFC, so I want a lot of freakin' money.," McLaren said. "I don't want some banker's idea of what it's worth. I'm a visionary. I know this is worth a lot of money. So I do think he has a super-high value on it, but when you get to that point, there's only a few people that really can enter into that sort of purchase. Investors are typically very disciplined. Sometimes very well-to-do individuals get caught up in the glamor of something and will overbid, and that's kind of where I think they are. I don't think the UFC has been sold. I don't think it's gonna be on UFC 200. Now they may have sold off a portion at a very high evaluation, but they can come back to it later on and say, 'this is our evaluation'."
That makes a lot of sense to me!
Imagine how amazing it would be to have McLaren back in the mix, too? He's done wonders with Combate Americas and it hasn't even been two years since it's debut.
We'll have to wait and see what happens as negotiations and potential sale rumors have been few and far between.
(Image by Amy Kaplan)