Guys who were clearly UFC-direct signee worthy are getting fucked out of at least one full paycheck and the job security of a contract. Is the UFC gonna still sign them or pay for their surgeries if they blow their knee out training for a contender series fight the way they would if they'd already signed a UFC contract?
Alex Pereira got canshow matchups in the actual UFC to start his UFC career and rushed to a title shot despite having a few fights.
If he can get signed direct; there's at least 15 guys on this season alone who should be direct signees.
Assuming at least 5 of those finishes would have earned a performance bonus, that's a total of 15 guys getting $15,000 less each during the most important portion of their careers, plus the loss of bonuses and health insurance, so spread out across 15 guys thats prolly about $425,000 (50k insurance, 150k in bonuses, 225k in less win+show wages)
And guess who most of those guys are? Poor as fuck foreign dudes with tons of pro experience fighting against each other while a bunch of aussies and Americans with 7-2 records fight beside them lol.
The UFC is saving themselves millions of dollars at the bottom end of their roster because they don't actually give a shit if their whole roster has talent anymore and mostly want bodies and some chosen contenders.
Not unlike how pro sports teams will cut guys at the end of the roster who are actually better than other benchwarmers, but cost more.