UFC's profitability has taken a hit, after Standard and Poor's issued a report that company EBITDA (earnings before interest, taxes, depreciation and amortisation) is now projected down forty percent from last year. The previous forecast had been a thirty percent drop. The estimated EBITDA for 2013 was about $110 million, which would peg this year's total at $66 million. The projection just a few months ago was that EBITDA would be $77 million for 2014. Remember that isn't profit, in the case of UFC, profit would be about two thirds of that figure. The problem UFC had this year was fight cancellations. Whether it was major injuries or failed drug tests, there really wasn't much UFC President Dana White could do. When you lose fights like Weidman Vs Belfort, Velasquez vs Werdum and Jones vs Cormier you're really stuck to replace the draw value. As such, it has been a much weaker year on pay per view. However, this is still one incredibly healthy company. Profit is still in the millions, it is just that things aren't quite as hot as the boom period of a few years back. Major name stars have declined and the company is in some ways transitioning to the future. Ronda Rousey has been the one big success story, and they really need more 'characters' like her. Despite the downturn, UFC enjoys major television deals in the US and Brazil. There's been big costs as they expand into other international territories, but everything is built on a solid foundation. Look out for Dana White and company to bounce back big in 2015. The year will start off with a string of major matches, including Jones Vs Comier and Rousey vs Zingano.
