Salaries and the $4bn UFC sale

Discussion in 'UFC Discussion' started by Lemmy Caution, Jul 29, 2016.

  1. Lemmy Caution

    Lemmy Caution Green Belt

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    Don't kill me if this has already been done to boredom.

    This post came about because of a stupid post on YouTube. Somebody there said that the reason there are fewer fighters in the NHL today is because they have all gone to MMA. I did not correct him.

    Anyway, there are 690 players on the NHL roster. The minimum salary is US $450,000 per season.

    Four fights a year is a lot in the UFC. You would have to make $112,500 per fight.

    $4bn is a lot of money. But perhaps not if you pay little in salaries. The UFC may be a shitty organization in many ways, but it is a great business. Many pro teams in the USA are not even seen as businesses by their billionaire owners, but as a hobby. Steve Balmer did not buy the LA Clippers to get rich. If money was all he wanted, he could just as well have bought Apple stocks.

    Yes, this post is a knock against the UFC's treatment of its fighters. But also that its cheapness makes it a highly profitable business, perhaps unrivaled in the business world. If a corporation makes 5-10% profit, it is considered solid earnings. Hollywood is said to do 5% and nobody there seems to be complaining. Major league sports teams are no different.

    PS. For those who do not follow the NHL, the number of fighters in the league has gone down because the league has cracked down on fighting. It wants to be a family-oriented league, like the NBA and NFL. Since there is virtually no fighting in the league, there is no reason for teams to carry a couple of enforcers. If less talented Canadians hockey players are turning to MMA, it’s not because of MMA, but because they simply do not cut it in the NHL.
     
  2. chitoortiz

    chitoortiz Silver Belt

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  3. VB MMA

    VB MMA Brown Belt

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    You're obviously a Troll. Quit posting under new accounts :))
     
  4. The guest

    The guest Double Yellow Card Double Yellow Card

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    Why do people insist on continually pulling this crap ?

    How do you compare the UFC to one of the 4 major pro sports leagues in Canada, and the US ?
     
  5. Lemmy Caution

    Lemmy Caution Green Belt

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    No, first account. Been stalking Sherdog on and off since the Pride days. The YouTube post just set off a train of thought. My conclusion was that the UFC must be making a killing and probably could pay out 3-5 times as much in salaries and still be more profitable (in percentage) than virtually all other businesses.
     
  6. VB MMA

    VB MMA Brown Belt

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    OK....I believe you :))
     
  7. Lemmy Caution

    Lemmy Caution Green Belt

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    I know that the Big 4 generate a lot more money. I'm talking about the huge disparity in salary. Which could explain the $4bn. When Saudi royalties buy teams for billions, they do it for many other reasons.

    The UFC can never compete with family-oriented sports. So there has to be another reason for the $4bn. At least that was my reasoning.
     
  8. Sp@cePeanut

    [email protected] Brown Belt

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    I know one thing, it's going to take a long time to get back that 4 billion. If fighter pay is ever going to stagnate, it's now.
     
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  9. Myrddin Wild

    Myrddin Wild Lets enjoy our time together!

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    I don't know anything about Hockey or if any of the fighterz are hockey players who came over, but if their minimum salary iz 450,000 per year, then I doubt MMA iz stealing them for the money.
     
  10. Credo

    Credo Punishment Belt

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    j/k
     
  11. GTS

    GTS Red Belt

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    Of course, what else would one say?
     
  12. Myrddin Wild

    Myrddin Wild Lets enjoy our time together!

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    As far as fighter pay is concerned, there's an interesting dynamic with the new owners in that a couple of the owners are hedge funds. That means that thousands of people give them their money for the sole purpose of getting a good or at least consistent return. So that part of the ownership is loveless to what a fighter makes & they probably don't even know who the fighters are. The people whose money they're investing most likely have any idea they are part owners of the UFC. They just want the return.

    The majority of the company is (or will be) owned by a huge multinational corporation who is proven to expand their products & that may include higher salaries for the fighters, but it won't be at the expense of the bottom line which must show a nice profit no matter what.

    I expect nothing to change right away. They don't want to come in & shock the MMA community. So I feel it will be business as usual at least for a while.
     
  13. eiyuu

    eiyuu Silver Belt

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    In prize fighting, lower rung fighters start out making very little.

    They need to win and prove they're worth more to get more.

    This hasn't changed in 100 years and isn't going to change now.
     
  14. Lemmy Caution

    Lemmy Caution Green Belt

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    The UFC fighters are indeed in a poor position to negotiate. The UFC is like if the NFL would own all the teams. In the NFL, the team are competing against each other for talent. In the UFC, it's my team, my conditions. Take it or leave it. You need something special in order to have leverage against the UFC as a newcomer, e.g. Overeem coming from Pride and K-1. But being 21 and having talent to burn alone will not get you big money in the UFC.

    It seems very hard to change that. As said, it was more a general criticism, of the UFC as well as the UFC fanboys on Sherdog defending the UFC.

    I do not believe the UFC fans have much say on how the UFC conducts its business. But speaking up and making people aware can do nothing but help the fighters. Call me an idealist.
     
  15. ButtonMasher

    ButtonMasher Banned Banned

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    Simple math, team sports are worth WAY more money than UFC.

    A NHL team is worth a few billion and has a roster of IDK maybe 20?

    UFC is worth 4 billion and has a roster of probably in the neighborhood of 200.
     
  16. Dana_is_your_GOD

    Dana_is_your_GOD Banned Banned

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  17. Credo

    Credo Punishment Belt

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    That´s Bones, you´re good.

    j/k, that´s Eddie Murphy
     
  18. Dana_is_your_GOD

    Dana_is_your_GOD Banned Banned

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  19. War Pig

    War Pig Brown Belt

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    How many games are in a hockey season? Take the average salary you provided and divide it by 82. There are 82 regular season games in hockey. $450,000 divided by 82 equals $5,488 per game. That doesn't even rival what the lowest paid fighter on the UFC roster would make per fight.
     
  20. Lemmy Caution

    Lemmy Caution Green Belt

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    Roster is 23.

    http://www.puckreport.com/2009/07/nhl-minimum-wage-maximum-wage-by-year.html

    This season, the minimum wage is $650,000. 1/10 of that is $65,000.

    The UFC is a private company. Does anyone outside of the owners, present and future, know their earnings? I can be completely wrong about the UFC.

    As said, it was a response to that YouTube post and the UFC fanboys. I simply offered another perspective. Which, again, can be completely wrong
     

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