“The big-box gym– 24-Hour Fitness, LAFitness, there are dozens of
them – are like what broadcast TV was years ago, trying to be all
things to all people. But that businessmodel got old,” Jacobs said.
“People becamemore sophisticated, they want more stimulation and
they can afford more. Therefore, you’ve got cable channels,
specialties. It’s the same thing with the gym business, you have
specialties – it started with Billy Blanks’ Tae-Bo and now it’s
CrossFit.We call them ‘flavors of themonth.’ Our workouts aremore
stimulating. It’s notmartial arts. It’s not flavor of themonth.
“It’s beenhere forever and itwill be here.”
While UFC’s first sanctioned competition actually occurred more
than 20 years ago, its impact has been far more tangible over the last
several years – thanks to increased visibility on cable and network
television, boosted buy rates for pay-per-view events and popularity
with teenagers and young adults.
“In terms of fan base and passion and hype, it’s all MMA now. Not
boxing. Once Mike Tyson left the arena, you can say that was it. The
day themusic died,” Jacobs said.
The gym’s origins stretch back to the UFC’s internal decision to pursue status as a public
company.
Its leadership – which lists Harley-Davidson and World Wrestling Entertainment as corporate
role models – surveyed Wall Street interest and was told that, in addition to clearing up some
financial issues and lawsuits, brand extension was a vital step to take before such a move was
May 2014
| BusinessWorld | 125
