Chances that WME-IMG defaults on that loan?

Things aren't going so great for WME since the purchase. They've made a lot of short term money but 2017 has already seen cancelled cards, champions wanting time off and more interim belts than you can shake a stick at.

They were already criticized for the deal by several financial pundits for how far they leveraged themselves. And eventually they're going to have to start paying back that loan and the interest (which is reportedly very high). They've already stated their goal for what the next TV contract is. They're aiming for $400 million. The FOX deal was $700 million over many years.

Things aren't looking great for them. So what are the chances they default?

Zero

zero

ok next thread

Don't have a clue. 

They won't default they restructure the debit and sell it or look for investors.

18.976.%
- 46

interest rate reportedly very high?by who?

In.

gokudamus - interest rate reportedly very high?by who?

Your mom!

HunchyRedux - Things aren't going so great for WME since the purchase. They've made a lot of short term money but 2017 has already seen cancelled cards, champions wanting time off and more interim belts than you can shake a stick at.

They were already criticized for the deal by several financial pundits for how far they leveraged themselves. And eventually they're going to have to start paying back that loan and the interest (which is reportedly very high). They've already stated their goal for what the next TV contract is. They're aiming for $400 million. The FOX deal was $700 million over many years.

Things aren't looking great for them. So what are the chances they default?

It's possible, but you got one stat wrong in your post:

http://www.mmafighting.com/2016/11/29/13773374/morning-report-ufc-looking-to-quadruple-its-tv-broadcasting-deal-up

"The UFC's current broadcasting deal with Fox Sports is a seven-year deal for $115 million annually, and by most accounts, FOX is getting a bargain for that price.

Well, soon they won't be. On Monday, the Sports Business Journal put up a piece delving into the plan WME-IMG has for the new TV rights deal, and among other things, it includes a major price bump with the UFC seeking $450 million per annum for ten years.

"Its magic number is $450 million a year, a potentially staggering increase from the $115 million annual average that FOX Sports now pays, according to several media and UFC sources."

Morning Report: UFC looking to quadruple its TV broadcasting deal up to $450 million dollars

Where did you find the interest rate on the loan?  How do you know how far they are leveraged?

Financing for the $4 billion purchase of professional mixed martial arts organization UFC by WME IMG, Silver Lake Partners, KKR, and MSD Capital will include a $1.3 billion, seven-year covenant-lite term loan B and $500 million of unsecured notes, sources said. - See more at: http://marketintelligence.spglobal.com/blog/ufc-lines-up-leveraged-loan-bonds-backing-4b-acquisition-of-co#sthash.mA3yqdgW.dpuf


UFC parent Zuffa in 2014 repriced its then-$475 million TLB due 2020 to L 300, with a 0.75% LIBOR floor. - See more at: http://marketintelligence.spglobal.com/blog/ufc-lines-up-leveraged-loan-bonds-backing-4b-acquisition-of-co#sthash.mA3yqdgW.dpuf

http://marketintelligence.spglobal.com/blog/ufc-lines-up-leveraged-loan-bonds-backing-4b-acquisition-of-co

The Maestro -


Where did you find the interest rate on the loan?  How do you know how far they are leveraged?

OP works for WME-IMG

50/50 imo. If they continue their current course of decision making it's likely closer to 80%

With all the financial experts prowling the UG, how is there anyone left, in the real world, to make smart business decisions?

Me being the Financial Genius that I am, I going say I have no fucking clue.

100%, its a matter of time

The Maestro -


Where did you find the interest rate on the loan?  How do you know how far they are leveraged?

I can't remember the article. I've since tried to find it but I can't. But if I recalling correctly, they spoke to an SEC source who was an aide or something on the deal. Said the interest was incredibly high, much more than normal for this type of acquisition. Now whether that's true or not, who knows. It's why I said "reportedly" high.

And I'm no financial expert nor do I claim to be. Just seems like a lot of bad moves are being made and a lot bets being hedged that aren't turning out so well. I could be way off base, but it's not like I'm saying something no one else is.

My OP was supposed to $400 million per year for the new TV deal. Forgot the per year part.