Ownership of Zuffa LLC
- Frank and Lorenzo Fertitta: 81%. Approximately 72% is owned by Fertitta Business Entertainment LLC, which is wholly owned by Fertitta family trusts. In addition, a family trust of each of the two brothers owns an additional 4.5% of Zuffa, bringing the total to 81%.
- Dana White: 9%. Family trusts of the UFC President, who is often considered the face of the UFC, own approximately 9% of the company.
- Abu Dhabi: 10%. January Capital, an investment vehicle that is indirectly owned by the Executive Affairs Authority (EAA) of Abu Dhabi, owns 10% of the company. The EAA is a government agency that provides strategic policy advice to the emirate’s government. Martin Edelman , a New York lawyer with an extensive history representing Abu Dhabi interests, sits on the board of Zuffa.
- Zuffa employees: 0.08%. The remainder of the company is owned by Zuffa Pipco 1 LLC, an entity for the company’s “employee Participation Interest Plan” (an employee incentive plan).
(Source: Zuffa LLC’s Certificate of Interested Persons and Entities, filed 2/13/15. Cung Le et al vs. Zuffa LLC, 2:15-cv-01045-RFB-PAL (District of Nevada (Las Vegas).)
Because Zuffa is a private company, it does not publicly disclose its detailed financials. While we do not know all of Zuffa’s assets and liabilities, we know some facts about its balance sheet based on credit rating analysts who provide regular updates on Zuffa’s syndicated bank loan, which is held by various institutional investors.
- Cash on hand: $7.5 million (as of 12/31/2014). This was down from $14 million on 9/30/14.
- Debt: $475 million (as of Oct. 2014, according to S&P (registration required)). Zuffa’s term loan is due 2/25/2020. The company also had available a $60 million credit facility that remained undrawn as of 2/19/2015.
We have found Zuffa debt in the portfolios of mutual fund managers like Eaton Vance, Franklin Templeton, and Columbia (Ameriprise).
Based on Moody’s 2/19/2015 credit opinion on Zuffa LLC, we can arrive at a general picture of the company’s 2014 income statement.
- Revenues: $522 million (over the twelve-month period ending 9/30/2014)
- Expenses: We do not know how much Zuffa spends on production costs, executive compensation, employee salaries and benefits, advertising and marketing or any other expenses, nor do we know what depreciation and amortization expenses it has.
- EBITDA: $99.2 million (over the twelve-month period ending 9/30/2014, based on a reported EBITDA margin of 19.0%) This is the amount of “profits” after all operating expenses (not including depreciation and amortization, interest or taxes) are subtracted from revenues.
- Interest expense: $24.2 million. The company also has to make interest payments to its lenders. Interest expense on the term loan debt: $24.2 million (based on a reported EBITDA/interest ratio of 4.1x, that is, the company’s EBITDA is 4.1 times that of its interest expense over the same time period.
(via Fighters' Agenda)