Article on UFC Pay on Bloody elbow

stav

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With all the awsome Conor threads going I did not see this posted anywhere.

A very interesting article on a study done on UFC pay by John Nash on Bloody Elbow.


http://www.bloodyelbow.com/2016/9/29/13040024/ufc-fighter-pay-union-association


Parts of the finding are consistent with Meltzers report that 13-15% of the revenue the UFC make goes to the fighters but it also goes far more in depth in regards to fighter pay based on position on a card as well as pay scale by quintile ( 5 brackets of percentiles 20,40,60,80 and top fighters).


Cliffs


John obtained the pay of over 70 fighters on the Roster between 2013-2015 and compiled his little study.


Pay includes, Reported pay out, PPV cut, Of the night fight Bonuses, Side agreements, Contract signing fees and discretionary pay. ( No sponsorship pay is included as far as I can tell just money paid directly from the UFC)


The average pay for the top 10% of fighters during this period was $173,500.00

The Bottom quintle average for fighters was $9,152.00


Of the top 10% of fighters though it is further broken down as top 1%, 2-5% and 6-10% of the fighters.


-Top 1% of fighters received $2,160,000 a year in total salary on average

-Top 2-5% received $540,800 per year

-Top 6-10% received $128,300 per year



Figures were obtained confidentially from the fighter and or managers directly.

Which fighters got what is not disclosed but its safe to say that the champions and Main event fighters make up the top 10% of all the fighters.


My personal thoughts are that the top fighters are getting an OK deal ( not fantastic but not terrible either).


I think $2mil average salary for a top 1% fighters is decent.

Even $500k a year for the top 2-5% of fighters would generally be decent.


Again this is without sponsorship as the UFC does not pay that money, but with the recent Reebok deal sponsorship is very shit I agree.


However what the bottom fighters are getting is disgraceful. No fighter on a UFC contract should be getting less then $40-60k a year if they fight 2-3 times.


EDIT: Not sure If I am readying it right but thats what I got
 
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yeah but fighters can also supplement their salaries with sponsorship money.



































































oh wait...
 
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That's interesting stuff.
 
Sorry TS I can't delete it
 
English Premier League Football teams pay between 50 and 85% of turnover out in wages but they're not really profitable businesses they're rich peoples vanity projects.
If 13-15% is true in the UFC, the fighters are getting stiffed.
 
Interesting article. MLB, NBA, NFL all around 45-50% revenue to players.
 
English Premier League Football teams pay between 50 and 85% of turnover out in wages but they're not really profitable businesses they're rich peoples vanity projects.
If 13-15% is true in the UFC, the fighters are getting stiffed.

That's true for Seria A & Liga BBVA too. But in Bundasliga every team is running on Profit. Also They have the cheapest season ticket out there.

Premiere league has the most stiff ticket price, The lowest price of an Arsenal season ticket is 1000 GBP( Which is the highest in England) & avg season ticket will cost you 700GBP.

While Bayern's season ticket will cost you 500 euro & that's the highest in Germany & avg season ticket price is 350 euro. Also they don't have a huge TV revenue like Premiere league but still they are running on a profit.
 
Interesting article. Conor claims to make $40M this year, while the guys ranked near the bottom of the top 10 in any weight class are lucky to make $100K. Hell, Al Iaquinta is prepared to retire and sell houses instead of fighting for low payouts.

The Reebok fighter kits/bonus structure that restricted outside sponsors will drive more guys to Bellator and other orgs before it's all over.
 
English Premier League Football teams pay between 50 and 85% of turnover out in wages but they're not really profitable businesses they're rich peoples vanity projects.
If 13-15% is true in the UFC, the fighters are getting stiffed.

Interesting article. MLB, NBA, NFL all around 45-50% revenue to players.


The business don't scale the same though. Production costs are fairly static I would guess.
Weather you have 100 million ppl watching or 1 person watching some costs are capped.

SO you have to take that into consideration. EPL, NBA, NFL would be generating far more revenue to production cost as a % as well.

This is further highlighted when you take the reported revenue and Profit of Zuffa. If you give the fighters more then 35% of the last Years revenue the UFC loses money.

So while 13-15% is not great anything more then 25% and its not worth running the business for owners and investors.
 
Ditch diggers work hard too, and the UFC doesn't give them a dime. Not a single dime!
 
15% sounds pretty reasonable given the overhead.
 
The business don't scale the same though. Production costs are fairly static I would guess.
Weather you have 100 million ppl watching or 1 person watching some costs are capped.

SO you have to take that into consideration. EPL, NBA, NFL would be generating far more revenue to production cost as a % as well.

This is further highlighted when you take the reported revenue and Profit of Zuffa. If you give the fighters more then 35% of the last Years revenue the UFC loses money.

So while 13-15% is not great anything more then 25% and its not worth running the business for owners and investors.
And last year was a great year for revenue.
 
15% sounds pretty reasonable given the overhead.

And last year was a great year for revenue.

I agree 100%.
However what the bottom fighters are getting is disgraceful.

No fighter in the UFC should be making less then $40-60k a year if they fight 2-3 times a year. Raising the minimum on the entry level fighters would not cut into the UFC's profitability in any meaningful way either.


The top fighters are about right IMO. They get paid PPV cut which is all on them. Their popularity directly affects their pay scale...that is 100% reasonable and fair.
 
The fighters should start their own promotion. I'm sure it will be wildly successful. They can pay themselves any percentage of revenue they want. It will be great.
 
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