what is the business model of strikeforce?

they have decided to not go the PPV way...

how much money can they get from CBS? any links to some journalist work about that (I know I am dreaming but we never know)?

-Make chedda off of live gates, TV fees, sponsorships and merchandising

-Ignore the Henny Pennys in the MMA media and the armchair promoters on the forums who spend all their time trying to poke holes in their strategy despite having little to no knowledge of how an MMA promotion is run

smoogy - 
-Ignore the Henny Pennys in the MMA media and the armchair promoters on the forums who spend all their time trying to poke holes in their strategy despite having little to no knowledge of how an MMA promotion is run



I don't know if you are adressing me about the armchair promoters....but actually I am a big fan of Striforce, hope they succeed and was just asking my own understanding

I would be interested to see how much money they get paid by CBS to broadcast their show....that's how it works, right? CBS sells the advertisements, not Strikeforce right?

Strikeforce could have sponsors pay to put ads in their ring, to put logos on fighter's shirts I imagine. They'd also get to keep the gate.

Depending on what M-1 and Fedor are charging, will it be worth it? I think they could almost get as big of a show without Fedor and M-1's big price tag.

They're smart, PPV is a dumb idea. Big risk, smaller audience for brand building and requires more expensive enticing cards. They're signing big name guys that for some reason the UFC doesn't want to smaller contracts. Then they're outbidding the UFC on a small number of top 10 guys who's fights are relevant to the rankings.

Basically don't go bankrupt, get ratings with a mix of low paid flashy names and a truly relevant fight or two on each card and ride the CBS deal long-term to build up the Strikeforce brand. The only issue to me is signing guys like Herschel Walker which risks alienating the fan base.

lets just say this isnt cokers first rodeo

Dana says stuff like this only works in Russia or with the butcher down the street

obsessis - I would be interested to see how much money they get paid by CBS to broadcast their show....that's how it works, right? CBS sells the advertisements, not Strikeforce right?

 

IIRC, Strikeforce signed a three-year contract with CBS/Showtime where they could supposedly earn up to $25MM in liecensing fees for 48 events (16 per year).  That's an average of around $500,000 per show, but chances are their licensing fee is quite a bit higher for a big CBS card than it is for the typical Showtime Challengers card. 



Edit: just found the link  - http://www.mmaweekly.com/blog/2009/03/strikeforce-deal-with-showtime-and-cbs.asp 

Justinmacd - They'll need to develop a lot of talent. Signing Woodley to a 6 fight deal was a good step.



Fedor will probably get 1 million + for this fight. Mousasi will probably get 70-100K. Shields and Mayhem won't be that cheap.



The best thing they can do is put on 1 big fight and fill the undercard with cheap, young, rising stars. They won't able to afford 2-3 BIG fights per card.
Just curious to how you know what Strikeforce can and cannot afford?

  

jujubre - they have decided to not go the PPV way...


Coker told lorretta hunt in a vid piece for Sherdog that they plan to do a couple of PPV's in '10, as they are warranted, they aren't going to go in doing two a month or even once a month just for the sake of doing them....

i hope they do at least one every 2 months.

Their business model is anti-UFC. They are making moves not based on profit potential, but moves designed to try to steal market share from the UFC. I am sure that their plan is that once they get enough of that market share, that then they will start to chase profit. It's slightly smarter than what others have done in the past, but much dirtier. And of course, it will fail just like all the others have.

In order to be successful. All they need to do is separate themselves from the UFC model. That's what they aren't understanding. Whenever these new orgs try to compete with a UFC based model, they always come off looking second best and fail. It's because the UFC has been around since the early ninties. The fans are used to them. That's what these wannabe orgs don't understand. People hate change, it's human nature. NO amount of advertising and marketing will ever be able to change that. So...They need to come up with a new product.

EvilMaster - Their business model is anti-UFC. They are making moves not based on profit potential, but moves designed to try to steal market share from the UFC. I am sure that their plan is that once they get enough of that market share, that then they will start to chase profit. It's slightly smarter than what others have done in the past, but much dirtier. And of course, it will fail just like all the others have.



In order to be successful. All they need to do is separate themselves from the UFC model. That's what they aren't understanding. Whenever these new orgs try to compete with a UFC based model, they always come off looking second best and fail. It's because the UFC has been around since the early ninties. The fans are used to them. That's what these wannabe orgs don't understand. People hate change, it's human nature. NO amount of advertising and marketing will ever be able to change that. So...They need to come up with a new product.


 LOL @ this.  How do you know what Strikeforces business model is?  FYI, Strikeforce isn't NEW and Coker has been promoting longer than Dana has..

Don't argue with me TOWE. Just accept it.

lol @ 'but much dirtier'

EvilMaster - Don't argue with me TOWE. Just accept it.


 All Im saying is, where do you guys come up with this stuff? Im not trying to be a dick, I just dont know how people can talk about the promotions business model when they dont even know what said model is...

TOWE - 
EvilMaster - Don't argue with me TOWE. Just accept it.

 All Im saying is, where do you guys come up with this stuff? Im not trying to be a dick, I just dont know how people can talk about the promotions business model when they dont even know what said model is...


Dana usually gives them the heads up and some talking points in his weekly UFC shill newsletter

From observation TOWE.

Dana couldn't afford me. My mind is not for sale. I walk alone and carry a big fucken stick.

EvilMaster - Their business model is anti-UFC. They are making moves not based on profit potential, but moves designed to try to steal market share from the UFC. I am sure that their plan is that once they get enough of that market share, that then they will start to chase profit. It's slightly smarter than what others have done in the past, but much dirtier. And of course, it will fail just like all the others have.



In order to be successful. All they need to do is separate themselves from the UFC model. That's what they aren't understanding. Whenever these new orgs try to compete with a UFC based model, they always come off looking second best and fail. It's because the UFC has been around since the early ninties. The fans are used to them. That's what these wannabe orgs don't understand. People hate change, it's human nature. NO amount of advertising and marketing will ever be able to change that. So...They need to come up with a new product.


 Normally I agree with you.  On this, your are a moran.  The driving money and business mind behind the office on Lawrence ( insiders will get that ) is http://www.svse.net/



They havent made many mistakes....