Ultimate Cash Machines

Friday, April 18th, 2008

The latest issue of Forbes presents the owners of the UFC as the Ultimate Cash Machines:

With his older brother, Frank Fertitta III, 46, and UFC President Dana White, 39, Lorenzo Fertitta has transformed UFC from a business once labeled by Senator John McCain as “human cockfighting” into a lucrative sports empire that competitors like Mark Cuban are now hoping to horn in on.

It’s the Ultimate Money Machine. That night before the Super Bowl 10,700 fans packed the arena, paying an average of $340 for a ticket to witness nine mixed martial arts fights. Another 500,000 fans paid $45 ($55 for high definition) to watch five of the nine fights at home. The total haul from the event: $25 million.

This year UFC is likely to generate $250 million, capturing perhaps 90% of mixed martial arts revenue. The majority of UFC revenues come from the monthly pay-per-view events. Additional cash is made from ticket sales to live fights and licensing fees from its Spike cable shows The Ultimate Fighter and UFC Fight Night . These shows in turn act as promotional tools to drive fans to pay-per-view events. More scratch comes from sales of DVDs and T shirts, as well as downloads from UFC’s library of past bouts.

The Fertittas field pleas from private equity and media firms to sell UFC. Those offers, they assert, exceed $1 billion. Not a bad return on investment for something they paid a mere $2 million for in 2001. (Indeed, in 2002 FORBES wrote skeptically about the Fertittas’ ability to turn their new purchase into anything worthwhile.) The price, if they could get it, would be rich in comparison with the $1.4 billion market value for publicly traded World Wrestling Entertainment, which has almost double the revenue. Both UFC and WWE racked up similar pay-per-view buys in 2007: UFC got 5.1 million buys for 11 fights while WWE got 5.2 million for 15 fights. Often UFC pay-per-view events draw as many male viewers ages 18 to 49 — some 3 million — as one of last year’s biggest college football games, Michigan versus Ohio State. That number assumes six people are gathered around the TV to watch each pay-per-view purchase. UFC has broadcast events to 170 countries and territories and recently sold out live fights in Manchester, U.K. and Montreal.

The brothers each own 45% of UFC (White owns the rest), which is operated through their holding company Zuffa (Italian for “fight”), LLC. Add in personal assets and their stake in Station Casinos, which they took private with buyout maven Thomas Barrack for $9 billion in cash and assumed debt last year, and each Fertitta has a net worth of $1.3 billion, ranking each 380th on The Forbes 400.

Tim Credeur’s ‘The Ultimate Fighter 7′ Journal

Friday, April 18th, 2008

Jiu-jitsu black-belt Tim Credeur's 'The Ultimate Fighter 7' Journal has some amusing bits about the not-so-technical fight in episode 3:

“JT Money” followed the game plan to a T. He shot early and wrestled and really just out-hustled Dolce in the wrestling department. He had his back for most of the first round trying to finish with his patented one submission in his Submission Artistry repertoire known as the “Bicep” Choke. You must do lots of curl and have great power to get this one so it works well for Jesse obviously. He only went for the technique 60 times in his fight so it had to land eventually. From Dolce’s back, Jesse did some good damage going for the choke and pounding away. In the second round it was more of the same with Jesse getting the takedown and then working for that bicep choke again. Eventually Jesse sunk it in for the victory and submission.

Reinventing The Bushman

Friday, April 18th, 2008

Fred Reed notes that we’re reinventing the bushman:

I imagine taking a bushman from some hitherto undiscovered Pacific isle and setting him down in front of a television in, say, Washington. The fellow would be astounded. He might say, “Whoa, boss! Heap magic! Spirits inside, talk talk. Bad juju.” He would have no idea how the babbling box worked, or of the civilization that produced it — where it came from, why it was as it was, what its literature might be, what its thoughts had been.

What would distinguish him from the graduate of today’s high schools or, latterly, the universities? Only that the bushman would have sense enough to be astonished. I do not see why being complacently ignorant is preferable to being honestly amazed.

Smoove Grappler

Thursday, April 17th, 2008

Genki Sudo is one smoove grappler. Here he is, lightly rolling with a Pancrase fighter — to Prince playing in the background:

One of my personal favorites is the video of Genki at Chris Brennan’s submission tournament a few years back. I’m still kicking myself that I was out of tournament shape that weekend and didn’t bother to go “just to watch”:

The first guy he fights goes for a takedown, and Genki seems to deflect him effortlessly with his ki energy. That guy, Bao Quatch, regularly taught takedowns at Brennan’s school, and he was a grappling machine — if “only” a blue-belt at the time.

Make sure to watch Genki jump over one guy’s guard into a triangle from the top. Unreal.

If you don’t want to watch him pick on poor li’l blue-belts, you can watch him fight against Royler Gracie — in an event that allows knees to the head on the ground:

Suspending Life

Wednesday, April 16th, 2008

In Suspending Life, Peter Ward notes that almost every species on Earth was killed 250 million years ago:

By about 251 million years ago, the planet had lost all of its ice, and with the final glaciers melting away, there was no longer a sufficient heat difference between the tropics and poles to maintain the various ocean currents that had kept the waters both cold and oxygenated. Stagnation ensued as the currents slowed; the ocean bottoms lost their oxygen and sea animals died. With this shift in ocean chemistry and temperature, new microbes that thrive without oxygen bloomed into dominance and rapidly reproduced to ocean-filling numbers. Some of these microbes were relatively benign to the life on Earth that does depend on oxygen, but some produced toxins such as those found now in red tides. A few others produced something even worse — hydrogen sulfide.

The oceans became much like the modern Black Sea, with warm, deep, oxygen-less water masses covering the bottom and oxygenated regions at the surface. Slowly yet inexorably, the warming oceans began to bring oxygen-less bottom waters toward the surface. By the time this process was complete, the microbes producing hydrogen sulfide were able to live at every depth. Vast new suites of other microbes appeared, belonging to the purple and green sulfur bacteria groups that require both hydrogen sulfide in the water around them and sunlight to run their photosynthetic pathways. These microbes took over in the oxygen-free water, rich in poisonous H2S and shallow enough to provide sufficient light for energy.

What I believe happened next still reverberates through life’s history. The H2S-producing microbes eventually grew to such numbers that the toxic byproduct of their metabolism could no longer be contained in seawater solution. Large oily bubbles of hydrogen sulfide came out of the purple-stained sea and entered the atmosphere, where the gas increased in concentration to levels that surely had destructive effects. Where the H2S was concentrated at more than 200 ppm, it was toxic to both plants and animals. But more globally, H2S began to break down the Earth’s protective ozone layer, allowing harmful ultraviolet light to enter.

The fossil record shows us that at this point, the most catastrophic mass extinction in Earth’s history occurred. Claims that this “great dying” was caused by the effects of an asteroid from space, just like what killed the dinosaurs, simply don’t hold up. Almost everywhere we find biomarkers indicating that there existed an oxygen-free, toxic ocean — and that on land, almost all plants and animals quickly died out.

Here’s where it gets odd, because hydrogen sulfide isn’t all bad — at least not for those of us who descended from the animals that survived that cataclysm:

While high levels of H2S kill mammals, Roth’s team has found that very low levels of the toxin can prolong their lives. H2S reduces oxygen levels in the body, and though too much causes death by oxygen starvation, a bit less slows a creature’s metabolism. This alone is an amazing finding. But Roth has gone further, inducing suspended animation in mammals. By exposing lab mice to small doses of H2S, Roth and his team can put them into the deepest of sleeps — with very slow, or even no heartbeats — for several hours. In that time, the mice can be cooled to temperatures that would have killed them prior to the H2S exposure.

Roth has already begun testing his work on other mammals. If he is correct, hydrogen sulfide may provide a way of saving lives so revolutionary that it will change trauma medicine forever. He is redefining what we thought we knew about death and dying. Death may not be as final as we think.

When we humans are cut or injured, our bodies naturally produce small quantities of hydrogen sulfide. In essence, the body may be trying to put itself into suspended animation to survive the injury, an instinct held over millions of years in our genes. Yet whenever one of us is dying, say from a heart attack, our first instinct is to give that person oxygen. The problem with this “life-saving” first response may be that the oxygenated red blood cells rush to the damaged cells and act like gasoline on a fire. Oxygen is one of the most chemically active substances on Earth, and though we need it to survive, it can ravage our bodies. The oxygen increases the reactions causing the heart attack in the first place; it tears up more cells and overwhelms the virtual suspended animation that the body-produced hydrogen sulfide created. Then it kills you.

Perhaps our first instinct in instances of a heart attack should be to cool the body and let hydrogen sulfide do its natural work. To save life, in other words, you may first have to effectively suspend it with hydrogen sulfide. This tactic may just be what got us so far in the first place.

Why There Aren’t More Googles

Wednesday, April 16th, 2008

Paul Graham explains why there aren’t more Googles — money guys undervalue the most innovative startups:

The reason there aren’t more Googles is not that investors encourage innovative startups to sell out, but that they won’t even fund them. I’ve learned a lot about VCs during the 3 years we’ve been doing Y Combinator, because we often have to work quite closely with them. The most surprising thing I’ve learned is how conservative they are. VC firms present an image of boldly encouraging innovation. Only a handful actually do, and even they are more conservative in reality than you’d guess from reading their sites.

I used to think of VCs as piratical: bold but unscrupulous. On closer acquaintance they turn out to be more like bureaucrats. They’re more upstanding than I used to think (the good ones, at least), but less bold. Maybe the VC industry has changed. Maybe they used to be bolder. But I suspect it’s the startup world that has changed, not them. The low cost of starting a startup means the average good bet is a riskier one, but most existing VC firms still operate as if they were investing in hardware startups in 1985.

Howard Aiken said “Don’t worry about people stealing your ideas. If your ideas are any good, you’ll have to ram them down people’s throats.” I have a similar feeling when I’m trying to convince VCs to invest in startups Y Combinator has funded. They’re terrified of really novel ideas, unless the founders are good enough salesmen to compensate.

And yet it’s the bold ideas that generate the biggest returns. Any really good new idea will seem bad to most people; otherwise someone would already be doing it. And yet most VCs are driven by consensus, not just within their firms, but within the VC community. The biggest factor determining how a VC will feel about your startup is how other VCs feel about it. I doubt they realize it, but this algorithm guarantees they’ll miss all the very best ideas. The more people who have to like a new idea, the more outliers you lose.

Whoever the next Google is, they’re probably being told right now by VCs to come back when they have more “traction.”

How did we get here?

Wednesday, April 16th, 2008

How did we get here?, Fred Reed asks — meaning surrounded by mindless entertainment:

Probably Henry Ford bears responsibility. He paid workers on his assembly lines a good wage. This was as culturally deplorable as it was economically admirable. Before, the unwashed had lacked the money to impose their tastes, or lack of them, on the society. The moneyed classes of the time may have been reprehensible or contemptible in various ways, but they minded their manners — if only because it set them apart from the lower orders, perhaps, yet it worked. The middle class likewise eschewed bathroom humor except in such venues as locker rooms, probably for the same reasons. Still, they knew what “distasteful” meant.

But as the peasantry and proletariat gained economic power, inevitably they also asserted dominance over the arts, or entertainment as the arts came to be under their sway, as well as schooling and the nature of acceptable discourse. If millions of people who can afford SUVs want scatological humor, television will accommodate them. Since all watch the same television, no class of people will escape the sex-and-sewage format. This happened. Today the cultivated can no longer insulate themselves from the rabble.

DreamWorks to make ‘Ghost’ in 3-D

Wednesday, April 16th, 2008

DreamWorks to make 'Ghost' in 3-D:

DreamWorks has acquired rights to the Japanese manga “Ghost in the Shell” with plans to adapt the futuristic police thriller as a 3-D live-action feature.

Story follows the exploits of a member of a covert ops unit of the Japanese National Public Safety Commission that specializes in fighting technology-related crime.

Created by Masamune Shirow, “Ghost in the Shell” was first published in 1989. It went on to generate two additional manga editions, three anime film adaptations, an anime TV series and three videogames. The second anime film, “Ghost in the Shell 2: Innocence,” was released in the U.S. by DreamWorks in 2004.

Vitamins ‘may shorten your life’

Wednesday, April 16th, 2008

Vitamins 'may shorten your life':

The trials involved 233,000 people who were either sick or were healthy and taking supplements for disease prevention.

After various factors were taken into account and a further 20 studies excluded, the researchers linked vitamin A supplements to a 16% increased risk of dying, beta-carotene to a 7% increased risk and vitamin E to a 4% increased risk.

Vitamin C did not appear to have any effect one way or the other, and the team said more work was needed into this supplement — as well as into selenium.

In conclusion, “we found no evidence to support antioxidant supplements for primary or secondary prevention,” they said.

It was unclear exactly why the supplements could have this effect, but the team speculated that they could interfere with how the body works: beta-carotene, for instance, is thought to change the way a body uses fats.

Mexico Drug War Causes Wild West Blood Bath

Wednesday, April 16th, 2008

I do believe that every time I read a New York Times story that mentions firearms, I find something just plain wrong — and I’m hardly a gun nut. From Mexico Drug War Causes Wild West Blood Bath:

One sign of the desperation to end organized crime in this border town [of Ciudad Juárez] is that the good guy on the police recruitment posters is not a clean-cut youth in a smart police cap, but a menacing soldier in a black mask and helmet carrying a heavy machine gun.

Heavy machine gun means something; it refers to heavy, typically tripod-mounted, crew-served, automatic weapons, like the water-cooled Maxim machine gun or the .50-caliber Browning. These are not assault rifles, but replacements for light artillery field guns.

And then there were none

Wednesday, April 16th, 2008

Ollie Johnston, the last of Disney’s Nine Old Men, has died at age 95:

Walt Disney lightheartedly dubbed his team of crack animators his “Nine Old Men,” borrowing the phrase from President Franklin D. Roosevelt’s description of the U.S. Supreme Court’s members, who had angered the president by quashing many of his Depression-era New Deal programs.

Although most of Disney’s men were in their 20s at the time, the name stuck with them for the rest of their lives.

Perhaps the two most accomplished of the nine were Johnston and his close friend Frank Thomas, who died in 2004 at age 92. The pair, who met as art students at Stanford University in the 1930s, were hired by Disney for $17 a week at a time when he was expanding the studio to produce full-length feature films. Both worked on the first of those features, 1937′s “Snow White and the Seven Dwarfs.”

Johnston and Thomas and their families became neighbors in the Los Angeles suburb of Flintridge, and during their 45-minute drive to the Disney Studios each day, they would devise fresh ideas for work.

Johnston worked as an assistant animator on “Snow White” and became an animation supervisor on “Fantasia” and “Bambi” and animator on “Pinocchio.”

He was especially proud of his work on “Bambi” and its classic scenes, including one depicting the heartbreaking death of Bambi’s mother at the hands of a hunter. That scene has brought tears to the eyes of generations of young and old viewers.

“The mother’s death showed how convincing we could be at presenting really strong emotion,” he remarked in 1999.

Johnston’s other credits included “Cinderella,” “Alice in Wonderland,” “Peter Pan,” “Lady and the Tramp,” “Sleeping Beauty,” “101 Dalmatians,” “Mary Poppins,” “The Jungle Book,” “The Aristocats,” “Robin Hood” and “The Rescuers.”

Johnston wrote a number of books with Frank Thomas, but their Illusion of Life is considered the bible of animation.

He Wrote 200,000 Books (but Computers Did Some of the Work)

Tuesday, April 15th, 2008

Noam Cohen writes about Philip Parker, saying, He Wrote 200,000 Books (but Computers Did Some of the Work):

Philip M. Parker seems to have licked that problem. Mr. Parker has generated more than 200,000 books, as an advanced search on Amazon.com under his publishing company shows, making him, in his own words, “the most published author in the history of the planet.” And he makes money doing it.

Among the books published under his name are “The Official Patient’s Sourcebook on Acne Rosacea” ($24.95 and 168 pages long); “Stickler Syndrome: A Bibliography and Dictionary for Physicians, Patients and Genome Researchers” ($28.95 for 126 pages); and “The 2007-2012 Outlook for Tufted Washable Scatter Rugs, Bathmats and Sets That Measure 6-Feet by 9-Feet or Smaller in India” ($495 for 144 pages).

But these are not conventional books, and it is perhaps more accurate to call Mr. Parker a compiler than an author. Mr. Parker, who is also the chaired professor of management science at Insead (a business school with campuses in Fontainebleau, France, and Singapore), has developed computer algorithms that collect publicly available information on a subject — broad or obscure — and, aided by his 60 to 70 computers and six or seven programmers, he turns the results into books in a range of genres, many of them in the range of 150 pages and printed only when a customer buys one.

If this sounds like cheating to the layman’s ear, it does not to Mr. Parker, who holds some provocative — and apparently profitable — ideas on what constitutes a book. While the most popular of his books may sell hundreds of copies, he said, many have sales in the dozens, often to medical libraries collecting nearly everything he produces. He has extended his technique to crossword puzzles, rudimentary poetry and even to scripts for animated game shows.

Weighing the National Character

Tuesday, April 15th, 2008

In Weighing the National Character, Fred Reed concludes that it’s what the technology makes it:

One hears much admiration from politicians of the American “national character,” by which seems to be meant the aggregate of prevailing values of the majority of the population. I gather that Americans tend to regard their national character as comprising such things as freedom, independence, individualism, and self-reliance. One thinks of Daniel Boone or Marlboro Man.

In fact we no longer have these qualities and probably never will again. Generally we now embody their opposites. Modern society has become a hive of largely conformist, closely regulated and generally helpless employees who depend on others for nearly everything. The cause is less anything particularly American than the technology that governs our lives. The United States just moves faster in the direction in which the civilized world moves.

Character springs from conditions. Consider a farmer in, say, North Carolina in 1850. He was free because there was little government, self-reliant because what he couldn’t do for himself didn’t get done, independent because, apart from a few tools, he made or grew all he needed, and an individualist because, there being little outside authority, he could do as he pleased.

All of that is gone, and will not return. Freedom has given way to an infinite array of laws, rules, regulations, licenses, forms, requirements. Many make sense, may even be desirable in a complex world, don’t necessarily make for a bad life, but they cannot be called freedom. Various governments determine what our children learn, whether we can paint the shutters, who we must sell our houses to, who we can hire, what we can say if we want to keep our jobs, where we can park, and whether and how we can build an outbuilding.

People who live infinitely controlled lives become accustomed to such control. Obedience becomes natural. And so it has.

Although we speak of democracy, in fact we have little influence over the circumstances of our lives. All matters of importance — what values our children are taught, for example — are determined by remote bodies over which we have no power. When jurisdictions are large, the effort needed to change things that powerful lobbies do not want changed is prohibitive. And of course we vote for candidates, not for policies. Once elected, they do as they please.

Individualism has withered under the pressure of the mass media and a distaste for eccentricity. Self-reliance died long ago. We depend on others to repair our cars, grow our food, fix the refrigerator, and write our operating systems. The habit of reliance on others has reached the point that even the right of self-defense has come to be regarded as wrong-minded.

The gain is that these things are usually done better than we could do them ourselves. The loss is that we are utterly dependent on others. As things become more technologically complex, the reliance on specialists grows. Almost anyone could learn to repair a flathead Ford, but today’s Corolla is vulnerable only to a trained technician. Of course it’s a better car.

Most poignantly, we are become a nation of employees, fearful of losing our jobs. Prisoners of the retirement system, afraid of transgressing against the various governing bodies before whom we are helpless, unable to feed ourselves, we are at least comfortable. We are not masters of our lives.

Colbert and Kamen Solve the World’s Water Problems

Tuesday, April 15th, 2008

Loretta Hidalgo Whitesides notes that there has been much buzz about the water-purifying machine that Segway inventor Dean Kamen demonstrated on the Colbert Report and collects the facts:

  • It is designed to supply a village with 1,000 liters/day of clean water. (Colbert Report)
  • You can use any water source — ocean, puddle, chemical waste site, hexavalent chrome, arsenic, poison, 50 gallon drum of urine. (Colbert Report)
  • Vapor compression distillation is not new. Doing it in such an incredibly efficient way such that it takes only 2 percent of the power of convention distillers is new. (R&D World and Gizmodo commenter)
  • The are no filters to replace, no charcoal, no anything disposable (just distillation). (Colbert Report)
  • The Slingshot (as its called) can use half the waste heat (450 watts) from a sterling engine electrical generator (prototype also being designed by Kamen’s company) to boil its water. (TED)
  • The heat put into the water is recovered with a “counter-flow heat exchanger” and recycled to heat the next batch of water (that is part of the novel bit). (TED and Gizmodo commenter)
  • Slingshot will be less then 60 lbs. (TED)
  • The prototype slingshot was hand-built for $100K. The goal is to get production units down to $1,000 to $2,000. (CNN)
  • The sterling engine, used as an electrical generator, can produce about 200 watts of power (it will never be more then 20 percent efficient) and 800 watts of waste heat (the waste heat that slingshot uses). TED
  • Later sources say the sterling engine can generate 1 kilowatt or enough power for 70 high-efficiency light bulbs. (CNN)
  • The sterling engine can run on anything that burns, propane or even cow dung. (CNN)
  • The slingshot is a David and Goliath reference aimed at putting water and power back in the hands of the individuals. (AP)

Half-Assed in Haggledom

Monday, April 14th, 2008

Fred Reed explains that third-world countries are poor because they’re Half-Assed in Haggledom, and he lists a number of suspected economic laws:

  • The easier it is to bribe a working-stiff cop, the poorer the country.
  • Prosperity varies inversely with the time between beginning negotiations to open a factory and getting first product.
  • National income is inversely proportional to the amount of trash in the streets.
  • Per capita income [negatively] correlates with the average number of minutes by which people miss appointments.
  • Countries that bargain have less money than those that don’t.

His last suspected economic law is not the kind of thing one says in polite company.