UFC: Las Vegas’ No. 1 business success story

This week I lunched with the folks at UFC. This unusual business, owned and operated by Las Vegans, may be the most successful new business in Nevada. Even with the economy going to hell in a handbasket, the guys at Ultimate Fighting Championship seem to have caught lightning in a bottle. While casinos, real estate and retail are on bended knees right now in Nevada, the business of mixed martial arts is jumping through the roof.

They tell me that their events are selling out in Las Vegas and around the world. They post pay-per-view numbers that would make Bob Arum blush and have managed to leverage the franchise into merchandising from video games to exercise equipment. While I'm no expert at the valuation of businesses, it would not surprise me find out that the value of  the UFC franchise is in the billions. Not bad for a sport that not long ago suffered a huge PR problem and was actually in danger of being outlawed by Congress.

Give the Fertitta brothers (Lorenzo and Frank III) and Dana White (all pictured), all Bishop Gorman High School grads, big credit. True believers all, they bought the UFC franchise at a low point and have made strides in making it into a new sport. Imagine that. The birth of a new sport in Las Vegas. And what's even more impressive from a business/investment standpoint is they still have a big upside if they can find a way to mainstream the sport.

I think they have an excellent shot at doing just that. And if that happens, the UFC will be the biggest Las Vegas business success story so far in this young century.