• ISSN: 2155-7950
  • Journal of Business and Economics

Demand for the Ultimate Fighting Championship: An Econometric

Analysis of PPV Buy Rates

Richard A. McGowan1, John F. Mahon2
(1. Boston College, MA 02467, USA; 2.University of Maine, ME 04469-5723, USA)
Abstract: This study provides a framework by which the UFC can analyze the determinants of its PPV buy rates, a form of direct demand for the UFC. Accurately deriving demand is incredibly important in the UFC’s goal to maximize revenue and further grow the sport and equally as important for promoters, TV and cable networks. Given that the endogenous growth of the UFC has slowed greatly, specific event characteristics have emerged as the primary factors that govern the buy rate. Using a combination of empirical regression analysis and industry expertise, the UFC and promoters and others can more accurately estimate the buy rates of upcoming events.
Key words: gaming; sports; econometric analysis
JEL codes: C1, M1

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