UrWealthwizard's Blog

The UFC is of borderline relevance in Japan. This isn’t to disparage the UFC, which has done a great job growing MMA in North America and parts of Europe. It’s an effort to put Dana White’s claims of Zuffa’s inevitable worldwide dominance into perspective. Without traction in the #2 fightsport market in the world, UFC’s hopes for ‘world domination’ are doomed to failure.

Here are the three essential qualities for doing business in Japan, along with an analysis of what they mean to Zuffa’s efforts to build the UFC brand there:

Group Orientation/Collaboration: Japanese businessmen are notorious for sublimating their individual talents and personalities to the greater good of the group. For US businesses seeking to enter the market, a certain degree of partnership with existing Japanese firms is almost mandatory. The UFC worked with Germany s largest concert promoter (MLK) to enter that market with a fair degree of success. Even if the UFC didn’t want to go promote with one of the major players in Japanese fight sports, they’d be well advised to seek some sort of a partnership similar to their German initiative to help smooth their way.

Hierarchy: Japanese business and, for that matter, Japanese culture, is almost ridiculously hierarchical. The societal reverence for age, experience and accomplishment in Japan is well known, and that’s often a difficult concept for American companies and businessmen to grasp. One approach for the UFC would be for White to take a back seat in their efforts to promote in Japan in favor of Lorenzo Fertitta–who has much more conventional business experience from his time in the casino industry–and perhaps Marc Ratner, widely respected for his time at the Nevada Athletic Commission.

Respect: Respect in business dealings is essential in Japan. In a typical Japanese business deal, the first few meetings aren’t intended for any substantive decision making to take place. Instead, they’re used for evaluation of your professionalism or, as the Japanese like to put it, to determine your suitability for conducting business with. To succeed in Japan, the UFC must realize that they’re not considered a major fight promotion in that country. They must understand that they’ve got to win over a skeptical public, but before that they have to win over a skeptical Japanese business community. They might be able to run their company like Tony Soprano ran the garbage collection business in the US, but that approach applied to Japan will leave them exactly where they are now–on the outside looking in at the huge, fight crazy economy.

Dana White’s fanciful stories about corrupt promoters and Yakzua gangsters out of Quentin Tarantino movies might amuse his sycophants in the MMA media, but countless US companies including fight promotions have done business successfully and profitably in Japan. The UFC might be able to convince the clueless US media that they’re making progress in Japan due to a deal on a low profile TV network or, more recently a big ad campaign on a Japanese social networking site, but they’re currently spinning their wheels and going nowhere. Properly promoting stars like Yoshihiro Akiyama will help, but the only way that Zuffa will be able to become a factor in the worlds #2 MMA market is to do what every other company has done to be successful there–learn how to understand the Japanese approach to doing business, and play by their rules.

Ross Everett is a widely published widely published freelance sports writer and respected authority on football betting. His writing has appeared on a variety of sports sites including sportsbooks and sportsbook directory sites. He lives in Las Vegas, Nevada with three Jack Russell Terriers and a kangaroo. He is currently working on an autobiography of former energy secretary Donald Hodell.