Reebok Sponsorship deal - Good or Bad by the numbers

Discussion in 'UFC Discussion' started by runnpray, Aug 12, 2015.

  1. runnpray

    runnpray Full Kit Wanker

    Joined:
    May 27, 2008
    Messages:
    6,304
    Likes Received:
    4,829
    Location:
    The closest one on Grindr
    It's a good deal people. Everyone keeps saying what a crap deal this is and in my heart I agree. On the surface it seems like an unfair amount of money per fight to each fighter. But in my head, I realize that it's a business decision entered into by two companies and the total dollar value is based on something. For Reebok it's marketing dollars that create exposure and views for their product which in turn creates revenue for them. So is it a good deal or a bad one? For comparison my alma mater, ASU just signed a deal with Adidas for 8 years at $4.442M per year. The UFC deal is for 6 years at $11.6M per year. FYI all numbers used were found on google and rounded to some degree. If I am way off, let me know and I will update.

    ASU $4.442M per year
    UFC $11.6M per year

    2014 ASU live attendance = 400,254
    2014 UFC live attendance = ~400,000

    2014 ASU Gate = $51M
    2014 UFC Gate = $60M

    About the same size live audience. What about TV views?

    ASU 2014 TV views = 19.6M
    UFC 2014 TV views = ~44M (this is based on cable tv averages. I looked at 12 events - fight nights, prelimins, TUF finales, etc. averaged and extrapolated across the 48 televised events), I also assumed the pay per view is a subset of these viewers. If people want to argue that some folks ONLY watch pay per view, we can bump this up a little.)

    Ok, UFC gets about 2.25x as many views as ASU. They probably deserve 2.25x the sponorship money, but the UFC is getting 2.62x the sponsorship as ASU. Damn, Adidias screwed us... Wait! The adidias deal is the 2nd largest deal in college football. Adidias is overpaying!

    Conclusion - UFC is getting a good deal based on it's overall size and viewership, which is 2.25x of the #4 Pac-12 football team. It's actually a bad deal for Reebok in year one. I'm guessing that they are counting on viewership growth over the life of the contract to have the dollars make sense.

    The problem is that it's just that big of a sport. Very niche. When the contract is up for negotiation hopefully the UFC will be much, much bigger than today.
     
  2. Grijswaarde

    Grijswaarde Black Belt

    Joined:
    Aug 21, 2007
    Messages:
    6,862
    Likes Received:
    15,735
    Location:
    Rotterdam, Holland
    The problem is: the larger the pool of fighters, the better athletes will start doing mma. With this deal, basically most other professional sports will be more lucrative, which could result in a generation of lackluster fighters.

    Also... this sport makes you support individual fighters, not the organisation (for most people i guess), so we have some feelings about fighters being paid well.

    Also the Reebok kit just looks like crap which can be a thing for certain people.

    Also the whole story behind it basically teaches us that the UFC doesn't give a damn about fighters and is willing to lie and bend the truth

    Also people who are opposed to it can lose their job
    etc. etc.

    This is more than numbers, it just makes people feel estranged from UFC in general. For proof see all threads and reactions on Sherdog, wether you personally agree or not.
     
  3. DaveHilly

    DaveHilly Black Belt

    Joined:
    Feb 15, 2010
    Messages:
    5,674
    Likes Received:
    1,742
    I understand the way that you got to that number but there are a couple things that you didn't consider. First and foremost is that, as I understand with NCAA sports, not a dime of that ASU money will be spread out to athletes, so it's all just found money.

    The issue with the Reebok deal is that the money is being spread out to athletes and is significantly lower than what they were previously getting.

    So on one hand I understand your argument that the payment from Reebok accurately reflected what they are getting back in advertising exposure, but I think that the real issue is that it made the pie a lot smaller for all of the fighters to split and reduced their income without giving them anything except for some played out kits to make up for the loss in their income.
     
  4. Navinabob

    Navinabob Orange Belt

    Joined:
    Nov 28, 2007
    Messages:
    425
    Likes Received:
    11
    I'm not crazy about the look of the kits, but to be perfectly honest here, it's not like what the fighters were wearing before was aesthetically any better. The Reebok gear probably looks better then 90% of what the fighters were wearing before.
     
  5. MilesAbove

    MilesAbove Gold Belt

    Joined:
    Aug 13, 2013
    Messages:
    22,240
    Likes Received:
    9,004

    [​IMG]
     
  6. Malthian

    Malthian Purple Belt

    Joined:
    Mar 17, 2015
    Messages:
    2,226
    Likes Received:
    5
    I don't think the amount of the Reebok deal is bad in any way.

    I think the only real complaint people have is the terms of the Reebok deal and how it relates to athlete compensation. If the Reebok deal was on TOP of their own sponsorship deal, then nobody would be saying jack. Well, it's Sherdog so nobody with a BRAIN would be saying jack.

    It all really comes down to how the monetary compensation fits in the larger scheme of athletic compensation where you get the fighters feel like they're being screwed.
     
  7. Rational Poster

    Rational Poster Yellow Card Yellow Card

    Joined:
    Sep 18, 2013
    Messages:
    38,137
    Likes Received:
    41,511
    The thing Sherdoggers are failing to grasp, that while MMA might be a big part of their lives, it's not a big part of most people's lives.

    UFC is not as big as they Sherdoggers think it is. UFC wishes they were as big as you guys think they are. They are constantly comparing it to NBA, MLB, NFL, etc.. when in truth UFC isn't even worth what some single teams in those leagues are.

    The free-for-all sponsorship model is not going to work for the long term growth of the sport. Fighters may lose some money short and even medium term, and that sucks for sure.

    But the UFC is now able to compensate those fighters out of their own pocket now instead of having random groups of sponsors subsidizing fighter pay. If you have value they will pay you to stay, if they don't see value in you they will let you seek employment elsewhere like Koscheck, Davis, and now Thomson.
     
  8. panamaican

    panamaican Senior Moderator Staff Member Senior Moderator

    Joined:
    Aug 18, 2009
    Messages:
    37,788
    Likes Received:
    39,592
    The ASU deal is the 2nd largest in the Pac-12 for a public university. The Notre Dame deal is near $10 million per year from Under Armor.

    The UFC deal is larger than both on a per year basis but the UFC deal is the entire organization and the NCAA deals are just for 1 school within the org. It make more sense to compare a single fighter to the single school and the entire org. to the entire org.

    And I don't think Reebok is getting screwed and I don't think the UFC is getting screwed. I think the fighters got screwed.
     
  9. Rational Poster

    Rational Poster Yellow Card Yellow Card

    Joined:
    Sep 18, 2013
    Messages:
    38,137
    Likes Received:
    41,511
    You're wrong here and you just made my point.

    UFC as an ENTIRE organization is just as valuable to advertisers as single teams in other sports.

    They just aren't that big.
     
  10. BringPrideBack

    BringPrideBack Orange Belt

    Joined:
    Jul 23, 2013
    Messages:
    305
    Likes Received:
    4
    Thank you. NCAA athletes are unpaid. UFC athletes are.
     
  11. runnpray

    runnpray Full Kit Wanker

    Joined:
    May 27, 2008
    Messages:
    6,304
    Likes Received:
    4,829
    Location:
    The closest one on Grindr
    I'd bet all my vcash that the Notre Dame annual viewership >40M. ONE major college football team is the same size as the entire UFC. 13 Million people watched Notre Dame play FSU last year. Talk to me when the UFC has 13 Million view Fight Night.
     
  12. runnpray

    runnpray Full Kit Wanker

    Joined:
    May 27, 2008
    Messages:
    6,304
    Likes Received:
    4,829
    Location:
    The closest one on Grindr
    Doesn't have anything to do with the size of the sponsorship deal. If you want to argue that College athletes should be paid, start another thread where I can disagree with that opinion as well.
     
  13. ZuffaExecutive

    ZuffaExecutive Red Belt

    Joined:
    Jun 17, 2012
    Messages:
    8,299
    Likes Received:
    4,603
    What your failing to take into account is tv views.No one out side america knows who asu are or frankly cares.

    The ufc has tv deals all around the world.They get about 10m viewers i believe from brazil alone.
    There a global brand and should be compensated alot more
     
  14. YagyuINC

    YagyuINC Orange Belt

    Joined:
    Jun 28, 2015
    Messages:
    300
    Likes Received:
    14

    The UFC rips its fighters off, but not like NCAA sports. NCAA collects BILLIONS and pays the athletes 0. UFC wishes they could. Terrible example. My uncle is a D1 basketball coach. He was getting a huge 7 figure salary, and that wasn't including the sponsorship...he would get millions as well as a huge clothes budget. MMA is SOO small time. Fighters got screwed by this, it is not good for anyone but the Zuffa brass...they were not getting a big enough piece of the sponsorship, so they figured a way to screw all the fighters and managers.

    Again, UFC fighters were getting paid 5 and 6 figures in sponsorship...all NCAA players can get is clothes. I mean take Syracuse where my uncle USE to coach...these violations they got them for were things like free meals, and getting these guys gigs at the local Y for a few bucks. College athletes are basically slave labor. Sure, they get a paid education...by why is it fair for the NCAA to rake in billions, while these players can't even get a free cheeseburger without the NCAA cracking down...

    In MMA we just have a corrupt bunch of mobsters running a fight promotion where 99% of the fighters are nothing but a statistic. Reebok wasn't good for any of the fighters, don't believe the propaganda. The fighters look terrible, and uncomfortable...the stuff is ill fitting, generic, and looks like everyone wearing the same dumb shorts...WAYY too much white. I wouldn't be caught dead in one of those weird looking "kits"
    If Reebok gave me my choice of free kits, and offered to pay me to wear them, I wouldn't consider it. How come when the colleges sign a contract and the new gear goes out, they make stuff that looks good that people want to wear. With the UFC they took 5 minutes to make the most generic, low quality crap I have ever seen in a pro sport. Makes it look amateaur..and furthermore, the Octagon and having every square inch of it covered with more ads makes the whole discussion just jump to a new level of hypocrisy.
     
  15. Malthian

    Malthian Purple Belt

    Joined:
    Mar 17, 2015
    Messages:
    2,226
    Likes Received:
    5
    Corporations don't set their marketing budgets based on how much you pay your contractors and employees. They base it upon how many eyeballs will see them and how many customers you can help them create.

    The UFC could pay the fighters nothing or $1Bn each, it would make no difference to the corporations and their marketing budgets.
     
  16. KantoTerror

    KantoTerror Silver Belt

    Joined:
    Mar 31, 2011
    Messages:
    13,655
    Likes Received:
    13,226
    Lol nice try.ASU athletes are bound to go pro soon for bigger $$$. Adidas is sponsoring the league...and doesn't include the athletes dumbass.
     
  17. KantoTerror

    KantoTerror Silver Belt

    Joined:
    Mar 31, 2011
    Messages:
    13,655
    Likes Received:
    13,226

    but they do. UFC rushed this deal thinking they already got the bigger piece of the pie.
    ASU deal is a different story.
     
  18. KantoTerror

    KantoTerror Silver Belt

    Joined:
    Mar 31, 2011
    Messages:
    13,655
    Likes Received:
    13,226
    Players play for the scholarships and exposure to someday get to Pro ball...(do you know how much an NBA benchwarmer earns?) it's like LHW & HW champ money.
     
  19. runnpray

    runnpray Full Kit Wanker

    Joined:
    May 27, 2008
    Messages:
    6,304
    Likes Received:
    4,829
    Location:
    The closest one on Grindr
    Adidas is sponsoring the team, not the league. The cut a deal hoping to sell some merch based on views of the ASU uniforms. Reebok cut a very similar deal with the UFC. Not sure how fact and logic are dumbassery, but ok. You have your grasp on financial reality and I have mine.
     
  20. YagyuINC

    YagyuINC Orange Belt

    Joined:
    Jun 28, 2015
    Messages:
    300
    Likes Received:
    14
    You don't have any idea how it works. They pay exactly depending on how much the contractors and employees make. The NFL gets more per "eyeball" than the UFC, it isn't even comparable. But then, I have spent my life working in advertising and marketing with companies like Nike, and Adidas. So I can't expect some random sherdog keyboard warrior, who is probably not even out of high school, to understand something so complicated. This is not a black and white issue. Why does everyone act like it is? The bottom line, UFC fighters got screwed. The ONLY reason this deal was signed was because a. Zuffa brass gets paid, best way for them to cut out the 3rd party sponsors and managers and get a piece of the action b. the fighters had no say in it.

    In a sport like NFL, the player union would have a huge say in this and they would never agree to something like this. Here, Dana White cried and whined how the managers were screwing fighters and this would fix it. So now they made it so that is not a problem, and they still get a big piece of any contract that a UFC fighter can sign. Double dipping, and screwing the fighters out of every penny they can. Such an evil bastard.

    I think all the legal trouble coming is going to be the bane of Dana. He is going to step down, and Bellaforce will grow, while UFC becomes more and more stagnant. About 140 days left in the year, and I have not been impressed by anything UFC has done. Biggest show of the year, and people were talking about drama with WSoF. What do they have left? The last 3rd of the year is going to be slow for MMA it seems.
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.