One of the biggest names in mixed martial arts (MMA) is targeting the Gulf as advertisers seek to reach the wallets of the region’s elusive male millennials.
They form the main fan base of MMA and also represent a prized and difficult-to-reach audience for advertisers.
New York-based Alliance MMA, which lists its shares on NASDAQ, could target acquisitions in the region as early as the second half of next year, said company president Rob Haydak in an exclusive interview.
“It has been part of the discussions since the original founders put this model together. I feel comfortable to say that is something we are targeting probably in the third or fourth quarter of next year,” he said.
“We would look at acquisitions. We wouldn’t take a U -based company over there — we would look at partnering with people there to have boots on the ground.”
He spoke with Arab News on the eve of the $300 million crossover fight between Floyd Mayweather, a five-division boxing champion, and the two-division UFC champion Conor McGregor.
Mayweather beat McGregor in the Las Vegas super fight, claiming his 50th victory and maintaining his unbeaten record.
Now fight fans from the worlds of boxing and MMA are looking forward to more crossover clashes as promoters such as Alliance MMA look to the enticing demographics of the Gulf for their next stage of growth.
“I think you’re going to see a lot more of these crossover fights,” said Haydak.
MMA is the world’s fastest-growing sport with a worldwide fan base of 300 million, according to data from Repucom, a sports market research company.
Gulf countries represent a potentially major marketing draw for the sport, both because of their youthful demographics and the large existing MMA fan base and a thriving jiu-jitsu scene — from which MMA draws much of its talent.
Dubai, with its vast array of large five star hotels, would be an obvious location to stage big fights believes Haydak.
“We are looking at the potential of those flagship venues. Because of our demographics, these kind of venues really embrace our core audience and it translates well.”
Alliance MMA is an umbrella organization that looks to acquire promotion companies and pool its marketing and event management support.
“Our strategy is to look at regionally-based promotions that are successful in their markets and have the the ability to scale,” said Haydak.
“That is where Alliance MMA comes into play, where we can acquire these companies and offer corporate support to allow them to scale their businesses.”
The company aims to host 125 events per year and showcase more than 1,000 fighters.
It was established two years ago and last year listed on the NASDAQ stock exchange.
Advertisers are increasingly targeting millennials, or those born roughly between the mid 1980s and early 2000s, as their purchasing power increases.
But the less predictable spending patterns of this group is a persistent challenge for brands more used to communicating with baby boomers, or those born between between the mid 1940s to mid-1960s.
“The very sought-after demographic that we appeal to is definitely a target audience that these sponsors are intrigued by,” said Haydak.