Grab a pencil and paper: I'm about to teach you what the Reebok deal is really about.

[fishead]

the only real upside to the Reebok deal is that it keeps banana hammocks out of the cage.

 

[Jackonflame]

I'm sure they're making some money off of this deal, but that's not why they did it.

The truth is that letting all the fighters brand themselves on the UFC's stage was likely a facilitation nightmare. For every single fighter on every card they had to make sure nobodies wearing anything that would conflict with the UFC's built in sponsors or be in poor taste for a live PPV broadcast.

In the end getting UFC branding unified under a respectable, known sponsor like Reebok is a move to create an atmosphere of legitimacy. In the future this will likely create more opportunities for the UFC and it's fighters, but they're doing this at the expense of their current roster, which is low of them.

Such as?

 

[Emjay]

You could just STFU regardless. Would probably be a good thing in general.

You sound mad

 

[kurtwpg]

You're overcomplicating it. I expect the UFC is taking money directly from the deal.

 

[leto1776]

You're overcomplicating it. I expect the UFC is taking money directly from the deal.

The good 'ol Vegas skimming act. As Casino bosses, the Fertitties know all about it.

 

[Zigmeister]

Could this thread just have one thing in the title $$$$

That is what it is about.

 

[edco76]

/Nudges sherbro beside him. "Hey man, can I borrow a pencil?"

 

[Paradigm]

Average Rant. But why precisely did I need this pencil and paper?

hahaha...came here to post that. I'll probably return mine to the store for a refund. who uses pencils nowadays?

 

[kurtwpg]

The good 'ol Vegas skimming act. As Casino bosses, the Fertitties know all about it.

It's not really skimming per se. The money goes to you first. Then you tell people you will distribute 100% of it to the fighters. Then you don't. It's not like there are accountants on the other end demanding proof the fighters got it all.

 

[Hammurabi]

Nice rant but utterly false when looked at through the eyes of an educated business man. I've already debunked this whole thing, guys.

Here's how I did it:

http://forums.sherdog.com/forums/f2/explaining-reebok-deal-businessliteracy-3000761/

 

[Godzilla3232]

Such as?

Bigger/better affiliated sponsors in the future; Sponsorship deals for amounts of money that aren't embarrassing. A more inclusive and beneficial network deal.

Image and branding matter. This is an important step towards cleaning up the UFC's image for actual mainstream potential. It's just a shame they couldn't secure a better deal and that they're not really compensating the current roster for the losses they're eating towards this end.

 

[Lovetap]

It's also about being able to renegotiate the TV contract deals at a higher rate in the future. Now the TV networks don't have to worry about competing or potentially "offensive" sponsors. Also there is the possibility of adding the TV network's logo on the kit as well.

Of course none of this money goes to the fighters directly. It would be up to the UFC to increase fighter pay to compensate for them.

Also a conspiracy theorist might say that reducing the sponsorship opportunities helps to keep the fighter down in that they don't have an independent money stream available (which they could take elsewhere - say to Bellator). In addition the move also helps to discourage fighters from having managers as previously much of what your manager did related to finding sponsors. The UFC would rather deal with fighters individually and without any collective or outside representation.

 

[runnpray]

A business is trying to make money - shocker! The real issue is the amount that was put in - 70 million for all the fighters is blasphemy. They need to multiply that number by 4 or 5x to make the fighters happy. Dana and the UFC will always look to make money that's what they do and that's what makes successful business. The idea of having 1 brand to legitamize everything like the all of the other pro sports in America makes sense. It needs to grow with time and a lot more $$$

Agree with most everything except the $70M. It's a fair deal based on number of views Reebok gets in return for their money. For it to grow 4-5x Then the UFC needs to increase the views by 4-5x or get 4-5 more sponsors for the fighters (like Monster) which is what I predict will happen.

 

[runnpray]

It's also about being able to renegotiate the TV contract deals at a higher rate in the future. Now the TV networks don't have to worry about competing or potentially "offensive" sponsors. Also there is the possibility of adding the TV network's logo on the kit as well.

Now we are talking and making sense.

 

[Elmonstro1]

its only to get worse

 

[SnowBlynd]

TS says so. Nothing to back it up, but TS says so. I am convinced.

That means you believe dana?

 

[MMA]

This thread is so dumb. I'm not surprised the author thought we needed a pencil and paper to follow it.

 

[hadrian999]

Call me crazy but the reebok deal struck me as much more Machiavellian. the ufc basically is able to cut off the majority of outside revenue to fighters without actually banning endorsements. this makes fighters much more dependent of the ufc and thus more easily controlled. Over time this will make it a financial hardship for fighters to say no to fights or sit out for an extended amount of time to try and force a better deal.

 

[bigwaverider]

That means you believe dana?

nope