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Old 10-11-2008, 03:33 AM   #1
chaman4g

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Can the UFC get in trouble for locker room bonuses?

Always wondered... does the UFC and the fighter pay taxes on this? I know its a regular practice but does under the books really mean tax free?

Not a big questions, but if anybody knows I would love to hear the answer.

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Old 10-11-2008, 03:34 AM   #2
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Old 10-11-2008, 03:59 AM   #3
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It is all accounted for....

It's still an expense, it's just not on public record b/c zuffa is a privately held company.

It's not like under the table cash or anything. When the Zuffa crew had their response to Randy's press conference during all that "Randy leaves UFC" bullshit, they had their head of accounting (I forget the formal name of his position) there and he showed a cancelled check for one of Randy's bonuses. So, yes, we can safely assume that the lockerroom bonuses are recorded in the Zuffa books and that the fighters receiving said bonuses have to report that cash as income.

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Old 10-11-2008, 04:01 AM   #4
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No, it's totally legit.

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Old 10-11-2008, 04:08 AM   #5
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Originally Posted by burly View Post
It's still an expense, it's just not on public record b/c zuffa is a privately held company.

It's not like under the table cash or anything. When the Zuffa crew had their response to Randy's press conference during all that "Randy leaves UFC" bullshit, they had their head of accounting (I forget the formal name of his position) there and he showed a cancelled check for one of Randy's bonuses. So, yes, we can safely assume that the lockerroom bonuses are recorded in the Zuffa books and that the fighters receiving said bonuses have to report that cash as income.

thanks for the explanation, I always thought under the table meant under the table...

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Old 10-11-2008, 04:29 AM   #6
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thanks for the explanation, I always thought under the table meant under the table...



Yeah it is LITERALLY under the table. The money transfer from the promoter to the fighter under the table recieves a exempt called the "no elbow on the table" tax free exempt because it is passed under the table under penal sector code 1175.



However, the exempt usually does not go through, because the money requires for the fighters to buy only food since the currency was passed under the table. But since they are professional athletes and don't want to be fat, they don't opt to buy food and they then have to report ir to the IRS.

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Old 10-11-2008, 04:30 AM   #7
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thanks for the explanation, I always thought under the table meant under the table...
But it's not truly under the table cash. These bonuses allow the UFC to pay a fighter w/o having to report it to the athletic commission. I can think of three big advantages for doing this.

1) it is in the UFC's best interest not too disclose exactly what a fighter makes b/c when this information is available to a fighter who is in negotiations with the UFC, he can point to a fighter in the UFC with similar accomplishments to his own and demand what that fighter makes which could potentially hurt the UFC's pocketbook and drive up salaries at a faster rate.

2)By claiming that "lockerroom bonuses" are paid to fighters who perform well, it can encourage fighters to fight harder in an effort to achieve those bonuses

3)It's a good excuse to get the media off their backs about fighter pay.

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Old 10-11-2008, 04:30 AM   #8
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Originally Posted by North_Star View Post
Yeah it is under the table. The money transfer from the promoter to the fighter under the table recieves a exempt called the "no elbow on the table" tax free exempt because it is passed under the table under penal sector code 1175.



However, the exemple usually does not go through, because the money requires for the fighters to buy only food since the currency was passed under the table. But since they are professional athletes and don't want to be fat, they don't opt to buy food and they then have to report ir to the IRS.
i thought it might be a cash bonus, since they call it under the table... nice to know you put in all the thought in your post lol

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Old 10-11-2008, 04:32 AM   #9
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i thought it might be a cash bonus, since they call it under the table... nice to know you put in all the thought in your post lol


No it's a cash bonus which is paeed literally under the table, and it has to be passed under a fast food chain or a resturant table for legitimacy purposes.

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Old 10-11-2008, 04:34 AM   #10
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No it's a cash bonus which is paeed literally under the table, and it has to be passed under a fast food chain or a resturant table for legitimacy purposes.
it sucks cause all bonuses get taxed basically 50%.. i would know

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