Hang on just done some digging

Art Davie is a business executive and entrepreneur formerly active in Southern California advertising circles. [1] In 1993, he created and co-produced the tournament which became the televised Ultimate Fighting Championship.[2] [3] In 1998, Davie, as vice-president of K-1 USA, brought the successful K-1 kickboxing franchise from Japan to Las Vegas and North American pay-per-view television.[1]In 2003, Davie was an Executive Producer with Mandalay Sports Entertainment. In 2006, he became vice-president of television at Paradigm Entertainment Group

So just as I thought it was an entertainment and advertsing guru who 'invented' UFC as a PPV source of entertainment.

Later that same year, WOW Promotions partnered with Semaphore Entertainment Group to produce the 1st Ultimate Fighting Championship for pay-per-view television. Following UFC 5 in April 1995, WOW sold its interest in the franchise to SEG and closed the company.

So they invented it, set up a company then SOLD it for loads of cash! Hmm Marketing gimmick, cash cow, :

, WOW Promotions sought a television partner and approached Showtime, HBO and Semaphore Entertainment Group (SEG). Both HBO and Showtime declined but SEG, a pioneer in Pay-Per-View TV who had produced a mixed tennis match between Jimmy Connors and Martina Navratilova, became WOW's partner in May 1993 Hmm interesting so HBO AND SHOWTIME thought the idea was bollocks! but the mixed tennis match people thought it was good to go.

Not the most credible of origins I'd have to say.