Are UFC’s “locker room bonuses” still a thing?

[TheSpider]

I can’t imagine it still being a thing seeing how Dana/WME had to negotiate with Klose to give him his show money after he was assaulted by “savage” Stephens at the weigh ins

U Fight Cheap is seeming more clear by the day

 

[Kryptt]

According to the UFC — after incorrectly giving Fontana the wrong amount initially — the UFC paid a total of $13 million in discretionary bonuses to fighters in 2020. This included the Performance of the Night bonuses, which totaled $8.4 million last year, leaving $4.6 million in additional discretionary payments by the UFC.

https://www.bloodyelbow.com/2021/2/...er-room-bonuses-fighter-pay-mma-business-news

 

[Matthew Fedler]

Can someone explain to me how paying fighters under-the-table like this doesn’t constitute tax evasion? I always feel like Dana and the fighters are ‘saying the quiet part out loud’ when they openly admit not only that these payments exist, but that they are specifically utilized to avoid having to pay taxes.

 

[dildos]

It’s all bout that Reebok/venum money now.

 

[Kvothe_the_kingkiller]

Can someone explain to me how paying fighters under-the-table like this doesn’t constitute tax evasion? I always feel like Dana and the fighters are ‘saying the quiet part out loud’ when they openly admit not only that these payments exist, but that they are specifically utilized to avoid having to pay taxes.

They're not under-the-table bags of cash. They are payouts, not publicly disclosed to the press, but disclosed to the IRS.

 

[jitzmonkey]

Can someone explain to me how paying fighters under-the-table like this doesn’t constitute tax evasion? I always feel like Dana and the fighters are ‘saying the quiet part out loud’ when they openly admit not only that these payments exist, but that they are specifically utilized to avoid having to pay taxes.

It's not necessarily under the table. They can disclose it to the IRS w/o disclosing to the public.

 

[CTEGod]

They never were

 

[avenue94]

Can someone explain to me how paying fighters under-the-table like this doesn’t constitute tax evasion? I always feel like Dana and the fighters are ‘saying the quiet part out loud’ when they openly admit not only that these payments exist, but that they are specifically utilized to avoid having to pay taxes.

The UFC reports it for for their taxes and financials, and it's up to fighters to report it. The bonuses don't exist to evade taxes, their main purpose is to give a promoter control over the fighter, just like the show/win structure of payments.

 

[Matthew Fedler]

They're not under-the-table bags of cash. They are payouts, not publicly disclosed to the press, but disclosed to the IRS.

It's not necessarily under the table. They can disclose it to the IRS w/o disclosing to the public.

I can’t find a specific instance but I swear I’ve heard Dana and a handful of fighters mention not paying taxes as a perk of the bonuses. Maybe they just mean state-specific taxes for where they’re fighting don’t apply?

 

[Osiris3657]

6 months ago, troll. Figgy didn't get one of the 4 official bonuses, so Dana gave him this



Bellator doesn't give any performance bonuses, because they could only dream of having the cash flow the UFC has.

 

[You Will Vote For Dreyga]

Can someone explain to me how paying fighters under-the-table like this doesn’t constitute tax evasion? I always feel like Dana and the fighters are ‘saying the quiet part out loud’ when they openly admit not only that these payments exist, but that they are specifically utilized to avoid having to pay taxes.

They aren’t under the table. They are undisclosed. They are technically called discretionary bonuses— such bonuses are used by many corporate entities to reward behavior that helps the company.

 

[Choco]

According to the UFC — after incorrectly giving Fontana the wrong amount initially — the UFC paid a total of $13 million in discretionary bonuses to fighters in 2020. This included the Performance of the Night bonuses, which totaled $8.4 million last year, leaving $4.6 million in additional discretionary payments by the UFC.

Shady fucks.

 

[campbecc]

Can someone explain to me how paying fighters under-the-table like this doesn’t constitute tax evasion? I always feel like Dana and the fighters are ‘saying the quiet part out loud’ when they openly admit not only that these payments exist, but that they are specifically utilized to avoid having to pay taxes.

It would still be on their 1099 tax form that the UFC has to provide to them and they have to include when they file taxes.

 

[Jose Beehive]

Does it not need to go through the tax system? Do tips go through the tax system in USA?

 

[avenue94]

I can’t find a specific instance but I swear I’ve heard Dana and a handful of fighters mention not paying taxes as a perk of the bonuses. Maybe they just mean state-specific taxes for where they’re fighting don’t apply?

Cowboy used to brag to other fighters about how he hadn't paid taxes in years, then the IRS came to collect I recall. I'm not an account, but there is no reason the bonus would be any different from the purse, it's just another check from the UFC and presumably shows up on any tax form paperwork.

6 months ago, troll. Figgy didn't get one of the 4 official bonuses, so Dana gave him this



Bellator doesn't give any performance bonuses, because they could only dream of having the cash flow the UFC has.

Or if you want an idea of the sheer randomness of bonuses, Justine Kish got a small one after her incident. So let it be known Dana occasionally has a heart

 

[avenue94]

Does it not need to go through the tax system? Do tips go through the tax system in USA?

They don't show up as cash, they're most of a time just another check from the UFC. Cash tips are easier to hide than discretionary bonuses for obvious reasons.

 

[Jose Beehive]

They don't show up as cash, they're most of a time just another check from the UFC. Cash tips are easier to hide than discretionary bonuses for obvious reasons.

Okay thanks.. So when Figgy get's given a load of cash is that not technically legit then?

I figure it all works on a state by state basis right?

 

[Destino2018]

They never were

Don’t have anything to add just wanted to pay my respects to you. An account almost 20 years old deserves respect imo.

 

[Kos Fan]

They never were

Back room bonuses also seemed bizarre since fighters could never talk about it. Maybe it’s a conspiracy.

 

[avenue94]

Okay thanks.. So when Figgy get's given a load of cash is that not technically legit then?

I figure it all works on a state by state basis right?

I mean, I wouldn't put it past Dana fo occasionally just give someone cash. But that's clearly very unpractical, especially for larger bonuses (Shane Carwin's million dollar bonus bonus was obviously a check).

With Figgy, he was in Vegas, so that's probably the main reason.