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With the recent thread(s) about the UFC's negotiation tactics with fighters, I once again see people suggesting that fighters should unionize. There are a litany of reasons why this wouldn't work, but the biggest reason is as follows:
Any UFC union would require the biggest PPV stars to sign on. Although a union would absolutely increase fighter pay overall -- earning fighters 50% revenue sharing -- the highest paid athletes would likely lose money from unionization.
But why would unionization cost PPV stars money? When you look at leagues like the NHL, NFL, NBA, and MLB, basketball has the largest ratio of highest to lowest paid athletes at roughly 100-fold. Any UFC union would almost certainly not exceed this ratio.
In short, there would be a maximum athlete salary.
This means that guys like Conor McGregor would legally not be allowed to earn more than $10 million per fight if the lowest paid UFC athlete was making $100k per fight. Even if you do revenue sharing per event, the UFC would have to pay the lowest paid athlete on the PPV card $500k for Conor to make $50 million. That's never going to work.
The best hope for MMA athletes to earn more money is to extend Boxing's Ali Act to MMA, which creates a maximum contract length of 1 year. This gives athletes more freedom to work with other organizations, fostering competition.
Any UFC union would require the biggest PPV stars to sign on. Although a union would absolutely increase fighter pay overall -- earning fighters 50% revenue sharing -- the highest paid athletes would likely lose money from unionization.
But why would unionization cost PPV stars money? When you look at leagues like the NHL, NFL, NBA, and MLB, basketball has the largest ratio of highest to lowest paid athletes at roughly 100-fold. Any UFC union would almost certainly not exceed this ratio.
In short, there would be a maximum athlete salary.
This means that guys like Conor McGregor would legally not be allowed to earn more than $10 million per fight if the lowest paid UFC athlete was making $100k per fight. Even if you do revenue sharing per event, the UFC would have to pay the lowest paid athlete on the PPV card $500k for Conor to make $50 million. That's never going to work.
The best hope for MMA athletes to earn more money is to extend Boxing's Ali Act to MMA, which creates a maximum contract length of 1 year. This gives athletes more freedom to work with other organizations, fostering competition.