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$25 million in Bonuses for a UFC Executive, Who's Probably Dana White White

Discussion in 'UFC Discussion' started by avenue94, Apr 14, 2021.

  1. avenue94 Brown Belt

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    The UFC's parent company filed for another IPO a few weeks ago, so there are some interesting tidbits in its S-1. One of those is equity-based compensation in WME and Zuffa for a "senior executive" who's current employment agreement is through Dec. 31, 2028. Odds are, that's Dana White as he was given a contract in 2019 for 7 years, and most WME executives who got bonuses are listed by name. So unless there is a senior VP at the UFC/Zuffa who is getting a bigger bonus than the president, that senior executive is Dana.

    For hitting various UFC equity thresholds, Dana would receive $12.5 million ($14 million if it was after an IPO) for each instance. These aren't lump sums, they're vested over 2 years. Dana hit thresholds in June 2019 and December 2020, so he received 2 payments totaling $25 million (What's known in Dana White speak as "Deontay Wilder money")

    Further, Dana was in line for a $25 million bonus based on the value of WME as a whole ($28 million if post-IPO). But the Writer's Guild Strike, first IPO attempt that failed, and Covid seriously dropped WME's value. Depending on how their 2nd IPO attempt goes, WME may very well hit that threshold and Dana might collect another cool $28 million (again, Deontay Wilder money).

    As far as the rest of the bonuses related to UFC management, they are below. I'm not sure if they include Dana's payouts or not. They include several other UFC executives based on the holding companies those awards go to. And those figures are budget totals, so there is some overhead baked in.

    UFC Management Awards (page F-51 if anyone is curious) and other stuff
    2018:
    $11.1 million
    2019: $38.9 million
    2020: $31.7 million

    Also, in 2019, 2 senior executives redeemed $33 million in stock bonuses.

    Finally, if anyone is curious on overall UFC revenue and profit, Endeavor gives its revenue and EBITDA for sports properties, which consist of the UFC, PBR and EuroLeague basketball. It's not broken down by sport, but the UFC is about/more than 80 percent of those revenues.

    2018: $772.7 million in revenue, 35.1 percent EBITDA
    2019: $935.8 million in revenue, 44.6 percent EBITDA (UFC signed the ESPN PPV deal that year)
    2020: $952.6 million in revenue, 48 percent EBITDA (despite the UFC losing out on about $100 million in gate money)

    Long story short, it's been a great few years for the UFC, especially during Covid. And Dana White has made more in bonuses the last three years than almost any UFC fighter has made in their entire career. The only exception there is Conor McGregor. If we include other bonuses and dividends Dana has gotten during his tenure, he's made more than Conor without even including his base salary as UFC president.
     
  2. Kung Fu Kowboy Are you not sports entertained... Staff Member Senior Moderator

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    Well... Who doesn't spend $75 for each PPV to see Dana White.

    <{danayeah}>
     
  3. SeattleFightFan Steel Belt

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    Thanks for this
     
  4. Kryptt Dead Belt Platinum Member

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    upload_2021-4-14_19-33-7.png

    I dunno but I will pay $75 to see Dana White White I think...
     
    Kung Fu Kowboy likes this.
  5. avenue94 Brown Belt

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    Nah, I pay that money for legendary PPV cards headlined by Holly Holm and Germaine de Randamie.
     
  6. Maripucci Brown Belt

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    That’s great!

    Good for him.

    Congratulations
     
  7. SeattleFightFan Steel Belt

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    @avenue94 what became of Endeavor buying out the other 49.9% partners? Did that happen? Or is it a work in progress? And is the IPO predicated on that deal going through?
     
    nhbfan8080 likes this.
  8. RemyR Red Belt Platinum Member

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    Good he can use that to pay Jones now

    <JonesLaugh>
     
  9. gaffbyknees2 Purple Belt

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    Ok pay bones
     
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  10. Joseph_McBride Banned Banned

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    "A "senior executive" who's current employment agreement is through Dec. 31, 2028. Odds are, that's Dana White as he was given a contract in 2019 for 7 years,"

    19 + 7 = 28
    #SherMath
     
  11. avenue94 Brown Belt

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    I don't know for sure, I believe it's still going through, I think the S-1 mentioned the process was started in February. I'm not the biggest financial mind. And they announced the IPO already, so I'm guessing it's got to go through regardless of buying out the reminder of the UFC or not. The UFC is effectively the crown jewel for WME when they go pitch investors and ask for money since it's most of their profit at this point.
     
    PurpleStorm likes this.
  12. Osiris3657 Black Belt Platinum Member

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    Must be nice
     
  13. avenue94 Brown Belt

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    I'm assuming that the contract had an extension built in like a lot of executive contracts, and 3 years is a plenty of time to exercise that option or renegotiate. It wouldn't make sense for some UFC VP to have a longer contract than the president. And like I said it's probably not a WME executive since the bonuses they receive are listed elsewhere in the S-1, including Zuffa stock options.
     
  14. Skace White Belt

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    I would pay $200 to see dana white get inside the cage and receive a brutal beatdown for 3 rounds and then a nasty KO to finish in last minute with a Henderson / Bisping finish at the end.
     
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  15. FIghtxIQ Brown Belt

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    Give me a bonus, I'll help you guys innovate the UFC.
     
    avenue94 likes this.
  16. suffersystem Brown Belt

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    Meh, good for Dana, he fought to keep the UFC rolling during the pandemic and likely helped them make money. None of this seems remotely surprising to me.
     
  17. SaigeVanZant Silver Belt

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    Well deserved for the Warrior King

    [​IMG]
     
  18. GueseGuy Black Belt

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    The UFC is printing money no matter what they do nowadays. Look at the state of the cards and they’re still killing it. No wonder they sign all these wmma to fight for cheap. It’s the biggest scam in the game. How many event do they do in a year? 40? Based on their revenue how much is that on average per event? And the payroll doesn’t go over $2-3m on any card except for a Conor card. It’s scam of the century. These guys are killing it.
     
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  19. baba2008 Magnus Eisengrim

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    Sounds about right. Bosses usually make more than their staff.
     
  20. avenue94 Brown Belt

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    Sure. But it needs to be pointed out that the UFC's success at this point isn't built off stars or some innovation. It hinges on keeping fighter pay below 20 percent of revenue. When the UFC gets investor questions about finances, the biggest concern is always fighter revenue and making sure it doesn't grow. If that's good business, sure, but be honest about how the UFC does it.
     
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