UFC financials finally revealed

[Titleboxe]

The class-action antitrust lawsuit against the UFC has forced a lot of financial data of the company to be released in court and be made publicly available.

"The share of Zuffa event revenues going to fighters as compensation ranged from 18.6% to 20.5% from 2011 to 2013."

Very interesting, as this puts to rest all the crazy talk from numerous people; 7% according to Brendan Schaub, 35% according to Jon Anik, 50% according to Lorenzo Fertitta.

"Data includes all forms of fighter compensation—some publicly disclosed, such as fight night bonuses; others occasionally disclosed, such as show and win purses; and still others rarely disclosed, such as pay-per-view payments, letter of agreement payments and other discretionary pay."

"Readers may immediately flash to a comparison with the Big 4 sports leagues in North America, which pay their athletes around 50% of revenues, but the UFC is a different corporate entity. Its fighters are independent contractors and do not collectively bargain, there are no teams within the organization competing for talent, and the promotion is a single entity that cannot collude or conspire with itself. The question in this case is: What would fighter compensation have been but for the UFC’s allegedly anticompetitive conduct with long-term, exclusive fighter contracts (and possibly television, sponsor and venue contracts)?"

"(UFC) likely exercises monopsony power in the input market for certain types of fighters, and its wage share is significantly lower than those of the more traditional North American sports. But did it anticompetitively acquire and maintain monopsony power by raising rivals’ costs via long-term exclusive fighter contracts? And should wage share or wage levels be used to estimate that potential harm to fighters? We’re getting closer to those answers every day."

SOURCE:

https://www.forbes.com/sites/paulgi...cials-finally-released-including-the-big-one/

 

[lockjaw211]

Word I just want to see some good fights and the fights we should be seeing.

 

[Jone Jons]

I just need to be assured that the corporate shareholders get their cut, then i'll be able to sleep.

 

[VVarhead]

Cliffs: UFC is still ripping off their fighters. Now confirmed not only by sherdog users but by actual media sources.

Thanks for posting, it's actually an important topic.

 

[TheSpider]

U Fight Cheap

 

[MMA fan93]

Honestly, I feel 20% is not that bad (although wouldn't call it great either, it is much more than I anticipated). There are huge production costs and other overheads involved with running such a business, i can say that as i am into the audit business, and hence have seen a lot of other financials of companies in the similar industries. At the end of the day, we have to realise that the company also has to maintain a healthy profit margin, as does every company which wants to stay in business and grow.
Further, this is pre McGregor, so it's not like a large portion of this % is going to a single fighter.

 

[Pierced7681]

Dana’s got five Ferrari’s Heath Herring just wanted one

 

[AC1D1K]

Somebody conned somebody . Possibly the fertitas

 

[VVarhead]

Honestly, I feel 20% is not that bad

Fuck off Dana.

Do you know what real sports pay their athletes?

 

[ferrisjso]

Thing is UFC likely WAS a monopoly when some of these suits started. But I don't think that's true anymore with the rise of Bellator and One that era did die.

 

[HelloJapan]

Makes me miss @FrankieNYC RIP

 

[Titleboxe]

U Fight Cheap

 

[BobbyBuds]

Honestly, I feel 20% is not that bad (although wouldn't call it great either, it is much more than I anticipated). There are huge production costs and other overheads involved with running such a business, i can say that as i am into the audit business, and hence have seen a lot of other financials of companies in the similar industries. At the end of the day, we have to realise that the company also has to maintain a healthy profit margin, as does every company which wants to stay in business and grow.
Further, this is pre McGregor, so it's not like a large portion of this % is going to a single fighter.

100%.... This is a growing sport & marketing/expansion cost, not to mention customer acquisition to transition a fan into a new sport I can only imagine.... You're talking about an entire organization that was purchased for $1.8 Million in the 21st century.

The valuation of the company means very little as it sold at a valuation of close to 50x forward earnings... This was not cheap & the Fertittas needed to invest 20x their investment ($40M) in-order to simply keep the sport alive and get it to the mainstream.

From there, they needed to continue to re-invest without the platforms the other major sports organizations has. The cost to break through their barriers is exactly that, a cost.

You could not have possibly put 50% of revenue into the fighters pocket or the company would go bust... Dana & the Fertittas made millions a year, sure, but if we're going to look at it practically, they created enormous compensation & an entire industry that never existed prior to them. Additionally, they were not taking anywhere CLOSE to 30% of revenue for compensation (the difference between fighter pay of UFC and the big 4) & anyone who doesn't understand this isn't in a position to speak about this from knowledge.

Fighter compensation was far higher than executive compensation & the UFC/Zuffa had as many staff members working for the company as they did fighters. They had an entire floor of lawyers in their old office specifically designated to put out fires & create them where needed to move things forward.

The exponential growth in fighter pay is obvious for those looking. Everyone wants to make more & the bottom end of fighters has gone up far above inflation & the top tier the same. Compensation will continue to grow as exposure increases at this level & the fighters that do extremely well will be able to utilize their brand/image in many other avenues.

If you look at the businesses alone created by fighters from from their own gyms, spices, whisky & podcast (of which Zuffa/WME/UFC receives nothing of) the opportunities they have created is truly endless.

These lawsuits simply help keep the law industry alive, more often than not simply stealing value from both sides through the mask of a degree.. I'm not saying all lawyers are bad, or even most. There's some incredible lawyers who do amazing thing.. For the most part though, it is one of, if not the largest "value stealing" industries to ever exist... I guess that's why they make for great politicians

 

[MMA fan93]

Fuck off Dana.

Do you know what real sports pay their athletes?

How long have those 'real sports' been around as compared to the UFC? Longevity of the business obviously plays a factor. I'm sure the numbers are more than this 20% in 2019 as compared to 2013, and this is primarily because the sport's popularity is growing. Like I mentioned, a Company in its early stages (comparative for the UFC to other sports) absolutely has to retain a good amount of profits, so that it can invest in its growth, and that is what the UFC is doing/has done.

 

[lrkjr]

Don't know why they always compare it to the top sports. 50% of NFL or NBA revenue would probably exceed 100% of UFC revenue. There looks to be some room for growth of fighter pay, but don't see it reaching equal percentage levels anytime soon.

 

[VVarhead]

the bottom end of fighters has gone up far above inflation & the top tier the same

If you look at the businesses alone created by fighters from from their own gyms, spices, whisky & podcast (of which Zuffa/WME/UFC receives nothing of) the opportunities they have created is truly endless.

I honestly think you're a UFC shill/employee because what you said is plain wrong. Guys from the contender series get a 6k show 6k win contract or something along those lines. There's many fighters still fighting for 10k/10k just like years ago. You can just read official purses released by the commission for that info.

Also LOL @ bringing up fighters podcasts or their own gyms (which is super-hard work) like the UFC has anything to do with that. It's their work, what the fuck. UFC doesn't promote their fighters podcasts. Inb4 but UFC promotes their brand - no they don't. They let fighters fight because without that the sport wouldn't exist.
Some fighters in the UFC still have fucking 9 to 5 jobs and have to do podcasts and other things to make a living.

It's mind-boggling to me how you can defend the pay structure of the UFC.
Yeah, it was bought for 1,8 million years ago but dude we are in the year 2019, the company is worth billions and fighters are still fighting for 12k and a measly 3k reebok money and you're defending that?

Unbelievable. As fans of this sport we should wish them all hundreds of thousands of dollars and stick together with the fighters that make this sport happen. As long as there are fighters working day jobs the UFC isn't paying them fair, simple as that. And certainly not the bottom end of fighters.

 

[Chris Gaines]

I just need to be assured that the corporate shareholders get their cut, then i'll be able to sleep.

 

[Tuf_guy]

I just need to be assured that the corporate shareholders get their cut, then i'll be able to sleep.

Is Marky going to be able to afford snow in his driveway this year? Everything else is noise.

 

[Momentosis]

I honestly think you're a UFC shill/employee because what you said is plain wrong. Guys from the contender series get a 6k show 6k win contract or something along those lines. There's many fighters still fighting for 10k/10k just like years ago. You can just read official purses released by the commission for that info.

Contender Series contracts aren't UFC contracts.

And the guys getting 10k/10k aren't gonna be getting that 10k/10k anywhere else.

Just go on and read the threads on sherdogs. Whenever unpopular fighter threads pop up you get tons of "who the fuck is that" posts. Those guys aren't bringing in 10k to the UFC. More hardcore posters on here don't even give a fuck, the casuals are going to even give less of a fuck.

The UFC are literally investing in you if you are a nobody with that 10k/10k contract nevermind the fact they're also providing health care, travel, among other things.

 

[Oeshon]

I honestly think you're a UFC shill/employee because what you said is plain wrong. Guys from the contender series get a 6k show 6k win contract or something along those lines. There's many fighters still fighting for 10k/10k just like years ago. You can just read official purses released by the commission for that info.

Also LOL @ bringing up fighters podcasts or their own gyms (which is super-hard work) like the UFC has anything to do with that. It's their work, what the fuck. UFC doesn't promote their fighters podcasts. Inb4 but UFC promotes their brand - no they don't. They let fighters fight because without that the sport wouldn't exist.
Some fighters in the UFC still have fucking 9 to 5 jobs and have to do podcasts and other things to make a living.

It's mind-boggling to me how you can defend the pay structure of the UFC.
Yeah, it was bought for 1,8 million years ago but dude we are in the year 2019, the company is worth billions and fighters are still fighting for 12k and a measly 3k reebok money and you're defending that?

Unbelievable. As fans of this sport we should wish them all hundreds of thousands of dollars and stick together with the fighters that make this sport happen. As long as there are fighters working day jobs the UFC isn't paying them fair, simple as that. And certainly not the bottom end of fighters.

Who pays better than the UFC?