Will the Zuffa era be remembered for it's inequality?

[Wild]

Thanks to this fact that the UFC has learned from the experiences of both boxing and the WWE, they have developed a business model that lets them operate as a promoter, manager, and sanctioning body all at once, a practice that would be inconceivable, let alone illegal, in boxing. It is a model that has led the UFC to focus on putting the brand over the fighters, so that the promotions biggest star has been its president Dana White. A very smart business tactic that has made, according to a memorandum sent to potential lenders, the UFC brand "more recognizable than the sum or its individual fighters" who are "relatively interchangeable at events." It is a strategy that has also led many to cheer for the financial success of the owners over the fighters.

Some claim that the UFC's actions are more than just smart or even ruthless business practices, but instead cross the line into antitrust violations. A class action lawsuit by a group of fighters has accused the UFC of foreclosing competing promotions and using one-sided contracts in order to attain a monopoly and monopsony over MMA.

If the UFC attained their dominance of the market illegally or not will be up for the courts to decide, but there is little doubt they are, for all practical purposes, the only game in town for top MMA fighters. They contain 85% of all the top 10 fighters, and reportedly bring in 90% of all MMA revenue. Any fighter wishing to prove he is the best or hopeful of making the kind of money only a UFC star can make has little options but to sign with the "800 pound gorilla."

........

Zuffa will likely be remembered, deservingly so, for "saving" the sport and leading the UFC to its current position as a widely popular global sport. But while they enjoy the fruits of their labor, it shouldn't be forgotten that the people that played an equally important - if not even more important role - have not enjoyed the same rewards over the years.

LINK: How will we remember the Zuffa era?

 

[Kingtony87]

If you compare them to their peers idk how you can.

 

[Silverball]

"The UFC is well aware of the leverage they have in comparison to their fighters and have used it again and again to their advantage. In 2008, in order to "grow the sport," the already very profitable UFC demanded that their fighters sign over their merchandising rights. In return the fighters would get the generous amount of 10% of gross revenues or 20% of gross royalty revenues. This was followed by demands that fighters sign over their image rights in perpetuity so that they could be used in a video game for which there was no guarantee of compensation.

When Jon Fitch resisted signing, he and other AKA fighters were temporarily released until they relented and were brought back.

Last year, the UFC banned all independent fighter sponsors in the cage in order to implement an exclusive apparel deal with Reebok. Again, fighters had little choice but to accept. In each case the UFC claimed it was working on growing the sport without explaining how exclusive image or merchandise rights were necessary to bring the UFC and MMA into new markets or why the splits could not be more equitable. Where the UFC has added close to a $100 million to its revenues last year from these three moves alone, the fighters in turn have received roughly 1/10th that amount."

 

[Punch]

I'll remember them most for fucking over the fighters.

 

[Severianb]

I'll remember them most for fucking over the fighters.

The thing is, with the amount of money they are raking in, every fighter on the roster could get paid enough to train full time and the owners would still be making crazy profits.

The thing is, this would probably be good for business. It would make the fighters better and it would attract more athletes to MMA.... both of which would improve the product.

Make it so 50% of the profits go to fighter pay, like the NFL, NBA, etc. rather than the 12% or less they get now.

 

[HEATH VON DOOM]

I will remember them for buying a failing business for 2 mil and making 4 billion when they sold it. Zuffa has still made more millionaire fighters than any other mma promotion

 

[dacofty]

more than likely

 

[Wintermute]

How do they act as managers and sanctioning bodies?

 

[Silverball]

I will remember them for buying a failing business for 2 mil and making 4 billion when they sold it. Zuffa has still made more millionaire fighters than any other mma promotion

Wait, a sports franchise that sold for 4 billion dollars helped to make a small handful of fighters millionaires over the course of the last 15 years? Well then, all else is forgiven.

 

[HEATH VON DOOM]

Wait, a sports franchise that sold for 4 billion dollars helped to make a small handful of fighters millionaires over the course of the last 15 years? Well then, all else is forgiven.

Forgiveness for what? What would they have to ask that for? You seem to not know what owning a business is all about.

 

[Kingtony87]

Wait, a sports franchise that sold for 4 billion dollars helped to make a small handful of fighters millionaires over the course of the last 15 years? Well then, all else is forgiven.

The Dallas cowboys are worth 4 billion, they have a free stadium, their production costs are covered, and their roster is one tenth of the size. So yes the millionaires they have creatived considering how bad the business did their first several years is impressive. Most likely more then all of their competitors combined.

 

[Silverball]

So yes the millionaires they have creatived considering how bad the business did their first several years is impressive. Most likely more then all of their competitors combined.

Most likely? Do you have at least one source to back any of that up?

 

[Kingtony87]

Most likely? Do you have at least one source to back any of that up?

Do you have a source to combat that claim?? all over there other major competitors have gone out of completion. I'd say your claim is the more outlandish one.

 

[Silverball]

Do you have a source to combat that claim?? all over there other major competitors have gone out of completion. I'd say your claim is the more outlandish one.

Nice comeback...

 

[Kingtony87]

Nice comeback...

it is quite logically sound

 

[Silverball]

View: https://twitter.com/heynottheface/status/753641654679113728

 

[bully4me]

Wait, a sports franchise that sold for 4 billion dollars helped to make a small handful of fighters millionaires over the course of the last 15 years? Well then, all else is forgiven.

Yes, and with that comment let's forget about the fact that they spent 100's of millions growing the sport all over the world. Paying Lawyers, Lobbiests and countless others to get MMA passed in Every US State. The provinces in Canada, Germany, Austrailia, Ireland and may other countries too. Not to mention the Millions of dollars spent on USADA testing which at the same time has also cost them money with fighter suspensions and fight cancellations. The UFC has to be commended for saving the sport and it's huge growth. Without them the sport of MMA would most likely gone the way of the DOODOO Bird. I absolutely agree the UFC should pay their fighters more. The gross income you're using in your split is a bit off. I'd like to see where it lays when all cost's are done, see what's left to make a fair split with the fighters.

 

[Silverball]

Yes, and with that comment let's forget about the fact that they spent 100's of millions growing the sport all over the world. Paying Lawyers, Lobbiests and countless others to get MMA passed in Every US State. The provinces in Canada, Germany, Austrailia, Ireland and may other countries too. Not to mention the Millions of dollars spent on USADA testing which at the same time has also cost them money with fighter suspensions and fight cancellations. The UFC has to be commended for saving the sport and it's huge growth. Without them the sport of MMA would most likely gone the way of the DOODOO Bird. I absolutely agree the UFC should pay their fighters more. The gross income you're using in your split is a bit off. I'd like to see where it lays when all cost's are done, see what's left to make a fair split with the fighters.

According to Meltzer, the UFC is paying fighters 14%. Those aren't my numbers.

 

[Kingtony87]

Yes, and with that comment let's forget about the fact that they spent 100's of millions growing the sport all over the world. Paying Lawyers, Lobbiests and countless others to get MMA passed in Every US State. The provinces in Canada, Germany, Austrailia, Ireland and may other countries too. Not to mention the Millions of dollars spent on USADA testing which at the same time has also cost them money with fighter suspensions and fight cancellations. The UFC has to be commended for saving the sport and it's huge growth. Without them the sport of MMA would most likely gone the way of the DOODOO Bird. I absolutely agree the UFC should pay their fighters more. The gross income you're using in your split is a bit off. I'd like to see where it lays when all cost's are done, see what's left to make a fair split with the fighters.

Don't forget the only promotion with proper insurance. Which sure as shit doesn't come cheap.

 

[Wild]

View: https://twitter.com/heynottheface/status/753641654679113728

So exactly what's been speculated for years now. Approximately 12% to 15%. Lorenzo lying out of his ass on the ESPN documentary.

 

[Silverball]

So exactly what's been speculated for years now. Approximately 12% to 15%. Lorenzo lying out of his ass on the ESPN documentary.

"When asked what percentage of that revenue goes to fighters, Fertitta said it's "not far off what the other sports leagues pay as a percentage of revenue."

Revenue-sharing formulas in the NBA, MLB, NFL and NHL give athletes about 50 percent of revenue. "[It's] in that neighborhood, yeah," Fertitta said."

It's actually closer to the percentage that McDonald's pays its employees, if Meltzer's figures are correct.

"17.1 percent of McDonald’s revenue goes toward salaries and benefits", according to the Huffington Post.

 

[Gibberish]

No, because nothing is going to change. These new fuckers have a $4 billion loan to pay back.

 

[jason73]

they will be remembered as the greedy fucks who no matter how shitty they treat the fighters and the fans they still have dudes swinging off their nuts

 

[Sheepdog]

No, because nothing is going to change. These new fuckers have a $4 billion loan to pay back.

It's going to be quite a sight seeing that amount of money pissed away. It was a monumental fuck up paying that much.

Rousey and Jones are on the brink of being gone forever. Conor is 2 losses away from his value halving. Only a few years ago, the sport seemed to be destined for gradual decline and I think we will see a big drop very soon after 202 and MSG.

 

[benjo0101]

"The UFC is well aware of the leverage they have in comparison to their fighters and have used it again and again to their advantage. In 2008, in order to "grow the sport," the already very profitable UFC demanded that their fighters sign over their merchandising rights. In return the fighters would get the generous amount of 10% of gross revenues or 20% of gross royalty revenues. This was followed by demands that fighters sign over their image rights in perpetuity so that they could be used in a video game for which there was no guarantee of compensation.

When Jon Fitch resisted signing, he and other AKA fighters were temporarily released until they relented and were brought back.

Last year, the UFC banned all independent fighter sponsors in the cage in order to implement an exclusive apparel deal with Reebok. Again, fighters had little choice but to accept. In each case the UFC claimed it was working on growing the sport without explaining how exclusive image or merchandise rights were necessary to bring the UFC and MMA into new markets or why the splits could not be more equitable. Where the UFC has added close to a $100 million to its revenues last year from these three moves alone, the fighters in turn have received roughly 1/10th that amount."

Excellent words. I approve