News Anthony Joshua gets 85% of event profits when he fights

[Rebel_LioN]

In a feature article published on ESPN, Joshua’s promoter Eddie Hearn revealed that “besides millions from his endorsements, including deals with apparel, sports drinks and aftershave companies, he is making no less than $20 million per fight.”

Hearn, who has grown close to Joshua, said their business relationship has been straightforward and relatively easy. Matchroom Boxing fighters who fight on pay-per-view --- Joshua-Ruiz will be on pay-per-view in the U.K., albeit in the wee hours of Sunday morning --- own their shows, and Matchroom takes a percentage of the profits. In the case of a Joshua fight, the split is typically about 85-15 in Joshua’s favor, Hearn said.

”When you’re a pay-per-view fighter, we will say here is the revenue. We will agree on the purse for the opponent, [budget] for the undercard,” Hearn said. “We know the other costs: venue, hotel, flights, sanction fees, drug testing, etc., etc. Now we’ve done [several pay-per-view] fights together so we know the money to the dime virtually. And all the revenue -- which is the gate, pay-per-view, international TV, sponsorships -- the only variable really is the pay-per-view. And whatever the net profit of the show is all yours, and we take our percentage.

”When the fight is finished, [Joshua] will receive a complete detailed analysis of every invoice, every cost. He has the right to audit. He has his lawyer, his accountant, and they’ll look at all the numbers. He knows, having done this model for seven or eight fights, what the numbers should be. If there’s one that stands out, he might say to me, how come that’s so high?”

Anyone have an idea of what UFC fighters are getting? I doubt it’s even higher than 10%

https://www.bloodyelbow.com/2019/5/...a-pay-per-view-profits-85-percent-boxing-news

 

[Yacob]

 

[C0NCH3TO]

Thats chump change, he should try some ufc to get dat good ole rbk and Ari money.

 

[Istryker]

JEsus fuck AJ is a cash cow ..

 

[HoFF]

Good for him.

 

[Pain4Pain]

I see why he's ducking Wilder. Shieed.

 

[Taric]

I have a hard time believing all the fighters on a card are making 10% of event profits combined. For example:
UFC 200 did a total gate of $10.7 million dollars and 1 million buy rate at $65 a head. So that's 75.7 million earned.

Fighter payouts went as follows:

Spoiler

Amanda Nunes ($100,000 + no win bonus = $100,000) def. Miesha Tate ($500,000)
Brock Lesnar ($2,500,000 + no win bonus = $2,500,000) def. Mark Hunt ($700,000)
Daniel Cormier ($500,000 + no win bonus = $500,000) def. Anderson Silva ($600,000)
Jose Aldo ($400,000 + $100,000 = $500,000) def. Frankie Edgar ($190,000)
Cain Velasquez ($300,000 + no win bonus = $300,000) def. Travis Browne ($120,000)

Julianna Pena ($32,000 + $32,000 = $64,000) def. Cat Zingano ($35,000)
Kelvin Gastelum ($53,000 + $33,000 = $83,000)* def. Johny Hendricks ($80,000)*
T.J. Dillashaw ($25,000 + $25,000 = $50,000) def. Raphael Assuncao ($42,000)
Sage Northcutt ($50,000 + $50,000 = $100,000) def. Enrique Marin ($13,000)

Joe Lauzon ($54,000 + $54,000 = $108,000) def. Diego Sanchez ($80,000)
Gegard Mousasi ($75,000 + $35,000 = $110,000) def. Thiago Santos ($28,000)
Jim Miller ($59,000 + $59,000 = $118,000) def. Takanori Gomi ($55,000)

*Hendricks surrendered 20-percent of his purse for missing weight

That's a disclosed total payroll of $6,979,000.

That's a combined total of 9.2% for some of the biggest stars in MMA at the time.
Imagine what it's like with headliners that don't get paid.

 

[Serenity Now]

85/15

Sorry but I don't believe any promoter will give that much piece of the pie to a fighter unless that fighter was his own promoter like Floyd.


I think Eddie Hearn is just saying this to make AJ look good......or it is true but there's a catch somewhere.


But yes, the UFC is ripping off fighters and Im sure AJ's deal is good regardless if it's not an 85/15 splot.

 

[Rebel_LioN]

I have a hard time believing all the fighters on a card are making 10% of event profits combined. For example:
UFC 200 did a total gate of $10.7 million dollars and 1 million buy rate at $65 a head. So that's 75.7 million earned.

Fighter payouts went as follows:

Spoiler

Amanda Nunes ($100,000 + no win bonus = $100,000) def. Miesha Tate ($500,000)
Brock Lesnar ($2,500,000 + no win bonus = $2,500,000) def. Mark Hunt ($700,000)
Daniel Cormier ($500,000 + no win bonus = $500,000) def. Anderson Silva ($600,000)
Jose Aldo ($400,000 + $100,000 = $500,000) def. Frankie Edgar ($190,000)
Cain Velasquez ($300,000 + no win bonus = $300,000) def. Travis Browne ($120,000)

Julianna Pena ($32,000 + $32,000 = $64,000) def. Cat Zingano ($35,000)
Kelvin Gastelum ($53,000 + $33,000 = $83,000)* def. Johny Hendricks ($80,000)*
T.J. Dillashaw ($25,000 + $25,000 = $50,000) def. Raphael Assuncao ($42,000)
Sage Northcutt ($50,000 + $50,000 = $100,000) def. Enrique Marin ($13,000)

Joe Lauzon ($54,000 + $54,000 = $108,000) def. Diego Sanchez ($80,000)
Gegard Mousasi ($75,000 + $35,000 = $110,000) def. Thiago Santos ($28,000)
Jim Miller ($59,000 + $59,000 = $118,000) def. Takanori Gomi ($55,000)

*Hendricks surrendered 20-percent of his purse for missing weight

That's a disclosed total payroll of $6,979,000.

That's a combined total of 9.2% for some of the biggest stars in MMA at the time.
Imagine what it's like with headliners that don't get paid.

Even that 9% number is skewed because Brock Lesnar got paid 2.5 mil as well as that main card being the higher earning fighters.

 

[Taric]

Even that 9% number is skewed because Brock Lesnar got paid 2.5 mil as well as that main card being the higher earning fighters.

Oh absolutely. When Conor, Brock, or Ronda aren't on a card that percentage only gets worse imo

 

[Titleboxe]

There has been a ton of analysis on how much the UFC really shares with the fighters, hard to get data since they are a private company (things are going to change once they officially become a publicly traded company) but the percentage always ranges between 10% - 18%. It was pretty laughable when Lorenzo Fertitta claimed that they shared 50% of the profits with the fighters, one thing is for sure, the company and its top executives come first, then a handful of top fighters and everyone else gets the crumbs.

 

[Jorge Luis Borges]

I have a hard time believing all the fighters on a card are making 10% of event profits combined. For example:
UFC 200 did a total gate of $10.7 million dollars and 1 million buy rate at $65 a head. So that's 75.7 million earned.

Fighter payouts went as follows:

Spoiler

Amanda Nunes ($100,000 + no win bonus = $100,000) def. Miesha Tate ($500,000)
Brock Lesnar ($2,500,000 + no win bonus = $2,500,000) def. Mark Hunt ($700,000)
Daniel Cormier ($500,000 + no win bonus = $500,000) def. Anderson Silva ($600,000)
Jose Aldo ($400,000 + $100,000 = $500,000) def. Frankie Edgar ($190,000)
Cain Velasquez ($300,000 + no win bonus = $300,000) def. Travis Browne ($120,000)

Julianna Pena ($32,000 + $32,000 = $64,000) def. Cat Zingano ($35,000)
Kelvin Gastelum ($53,000 + $33,000 = $83,000)* def. Johny Hendricks ($80,000)*
T.J. Dillashaw ($25,000 + $25,000 = $50,000) def. Raphael Assuncao ($42,000)
Sage Northcutt ($50,000 + $50,000 = $100,000) def. Enrique Marin ($13,000)

Joe Lauzon ($54,000 + $54,000 = $108,000) def. Diego Sanchez ($80,000)
Gegard Mousasi ($75,000 + $35,000 = $110,000) def. Thiago Santos ($28,000)
Jim Miller ($59,000 + $59,000 = $118,000) def. Takanori Gomi ($55,000)

*Hendricks surrendered 20-percent of his purse for missing weight

That's a disclosed total payroll of $6,979,000.

That's a combined total of 9.2% for some of the biggest stars in MMA at the time.
Imagine what it's like with headliners that don't get paid.

First off, I agree that the UFC does not pay it's fighters a very high percentage of the profits. However, your math didn't show profit, it showed the gross income for the event. The profit was lower than $75.7 million for this event and probably substantially lower.

 

[Joonyer]

What's the exchange rate of that to UFC Reebok bucks?

 

[acannxr]

For example:
UFC 200 did a total gate of $10.7 million dollars and 1 million buy rate at $65 a head. So that's 75.7 million earned.

10-35% of the live gate goes to the arena, workers, commission, etc.

UFC PPVs in 2016 only cost $50-60, and not everyone purchased HD; for reference back when it was $45-55, the average was $51.66, so ballpark we could speculate that the average for 2016 was perhaps $56.36 if we're being generous. Additionally, the PPV revenue itself back then was probably still split at 50% with the cable companies.

Based on estimates by John Nash for Nurmagomedov vs. McGregor, production/advertising expenses could be assumed at $5,500,000 for UFC 200.

$10.7 million live gate - 35% = $6,955,000
$55,000,000 PPV revenue - 50% = $27,500,000
$34,455,000 - $5,500,000 = $28,955,000

That's a disclosed total payroll of $6,979,000.

That's a combined total of 9.2% for some of the biggest stars in MMA at the time.

24.1% for disclosed pay, which doesn't factor in PPV points and could very well boost that percentage to the 40-50% range.

For what it's worth, UFC 200 is a bad example to speculate on what percentage of revenue the fighters receive (I only ever recall Frankie giving a less than 20% number in terms of revenue that all fighters received on an annual basis).

 

[Taric]

First off, I agree that the UFC does not pay it's fighters a very high percentage of the profits. However, your math didn't show profit, it showed the gross income for the event. The profit was lower than $75.7 million for this event and probably substantially lower.

Oh definitely. There's marketing, venue, other employees, etc, etc, but that's not how payroll is calculated. You compare it to the gross income. Net income is calculated afterwards.

10-35% of the live gate goes to the arena, workers, commission, etc.
UFC PPVs in 2016 only cost $50-60, and not everyone purchased HD; for reference back when it was $45-55, the average was $51.66, so ballpark we could speculate that the average for 2016 was perhaps $56.36 if we're being generous. Additionally, the PPV revenue itself back then was probably still split at 50% with the cable companies.

$10.7 million live gate - 25% = $8,025,000
$56,360,000 PPV revenue - 50% = $28,180,000
$36,205,000 UFC revenue


19.28% for disclosed pay, which doesn't factor in PPV points or promotional expenses.

Everything you've just calculated would be completely separate line items. Venue payroll would be calculated as a percentage against the gross. Fighter payroll would be calculated as a percentage against the gross. etc

 

[Rebel_LioN]

What's the exchange rate of that to UFC Reebok bucks?

Bout Tree fiddy in 50% off Reebok coupons

 

[kflo]

I have a hard time believing all the fighters on a card are making 10% of event profits combined. For example:
UFC 200 did a total gate of $10.7 million dollars and 1 million buy rate at $65 a head. So that's 75.7 million earned.

Fighter payouts went as follows:

Spoiler

Amanda Nunes ($100,000 + no win bonus = $100,000) def. Miesha Tate ($500,000)
Brock Lesnar ($2,500,000 + no win bonus = $2,500,000) def. Mark Hunt ($700,000)
Daniel Cormier ($500,000 + no win bonus = $500,000) def. Anderson Silva ($600,000)
Jose Aldo ($400,000 + $100,000 = $500,000) def. Frankie Edgar ($190,000)
Cain Velasquez ($300,000 + no win bonus = $300,000) def. Travis Browne ($120,000)

Julianna Pena ($32,000 + $32,000 = $64,000) def. Cat Zingano ($35,000)
Kelvin Gastelum ($53,000 + $33,000 = $83,000)* def. Johny Hendricks ($80,000)*
T.J. Dillashaw ($25,000 + $25,000 = $50,000) def. Raphael Assuncao ($42,000)
Sage Northcutt ($50,000 + $50,000 = $100,000) def. Enrique Marin ($13,000)

Joe Lauzon ($54,000 + $54,000 = $108,000) def. Diego Sanchez ($80,000)
Gegard Mousasi ($75,000 + $35,000 = $110,000) def. Thiago Santos ($28,000)
Jim Miller ($59,000 + $59,000 = $118,000) def. Takanori Gomi ($55,000)

*Hendricks surrendered 20-percent of his purse for missing weight

That's a disclosed total payroll of $6,979,000.

That's a combined total of 9.2% for some of the biggest stars in MMA at the time.
Imagine what it's like with headliners that don't get paid.

What were the ppv payouts?

 

[Taric]

What were the ppv payouts?

We''ll never know that. It could be high but we have absolutely no idea and never will because the second it makes it way to the public the fighters then need to start paying taxes on it. Which at the moment they don't. It's straight cash homie.

 

[kflo]

Oh definitely. There's marketing, venue, other employees, etc, etc, but that's not how payroll is calculated. You compare it to the gross income. Net income is calculated afterwards.


Everything you've just calculated would be completely separate line items. Venue payroll would be calculated as a percentage against the gross. Fighter payroll would be calculated as a percentage against the gross. etc

The op talks about % of profits.

 

[kflo]

We''ll never know that. It could be high but we have absolutely no idea and never will because the second it makes it way to the public the fighters then need to start paying taxes on it. Which at the moment they don't. It's straight cash homie.

Lol. What??? You think they’re not paying taxes on it????? C’mon. That’s ridiculous. This is major business. It’s not fuckin cash, undocumented payments.