Ultimate Fighting is the fastest growing spectator sport in America. While the company behind the phenomenon is private, the sport's huge popularity sets up a slew of trading opportunities that Jeff Macke uncovered.
Jeff visited the ‘UFC 78: Validation’ championship over the weekend to see the growth first hand.
The UFC generated $220 million in pay-per-view sales in 2006, up from $40 million a year earlier. It all is expected to pass $1 billion in video on demand revenue, up from just $149 in 2003. Those numbers indicate real growth, Jeff found. UFC’s popularity is likely to translate to profit for cable companies, satellite stocks, equipment retailers and even energy drink makers, according to Jeff. The sport is also taking share from World Wrestling Entertainment (WWE), which needs to find a way to counter the trend or risk being in serious trouble.
The bottom line? The growth in this young sport is exciting to see. Investors can’t buy UFC, but they can buy companies and brands that tie into it.