News UFC’s celebrity investors gets a $300M dividend

[Randlewand]

The UFC considers this $300,000,000 as "income of a spiritual nature" for their fighters, and files taxes accordingly. Another solid victory for the fighters!!!

 

[empsim]

Rich getting richer, is normal

 

[NoBiasJustMMA]

Your mutual funds (which are just baskets comprised of dozens of stocks/bonds/cash) will pay dividends quarterly or annually. It's how companies reward their shareholders beyond capital appreciation (share price appreciation). Not all companies pay a dividend, but many do, especially large corporations.

Got ya, I was confused as to why that is news all of a sudden, I would imagine that they have been doing this for a while now since WME bought the company at the least.

 

[Alpha_T83]

“No one forced them to sign their contracts bla bla I’m 14 bla bla”

Also its more complicated.

You can pay them "whatever they will take" if they are true independent contractors. However that requires them to have short contracts and no exclusivity. Once you sign long term, potentially indefinite contracts in which you own their rights and likeness, then they are no longer independent contractors.

At this point, UFC fighters are contracted mem2bers of an athletic association, and legal precedent stipulates 50% revenue sharing.

I'm still shocked that this hasn't made it court. The UFC have done a good job shutting down legal challenges.

 

[Alpha_T83]

you really don't understand how dividend payments work? Do you not own any shares of stock or mutual funds?

Except you should only be getting dividends if the company is profitable. So if the UFC had $600M in profit, then paying $300M dividends to investors is fine.

It doesnt sound like the UFC has been super profitable in 2019 with ESPN+.

Also there is the added issue of revenue sharing with the fighters. Paying your fighters only 16% and handing out $300M to investors is a scumbag move.

 

[Bob Sapp]

“No one forced them to sign their contracts bla bla I’m 14 bla bla”

"they should've picked different careers bla bla"

 

[burningspear]

Marky Mark is a cunt.

 

[BForrester]

Except you should only be getting dividends if the company is profitable. So if the UFC had $600M in profit, then paying $300M dividends to investors is fine.

It doesnt sound like the UFC has been super profitable in 2019 with ESPN+.

Also there is the added issue of revenue sharing with the fighters. Paying your fighters only 16% and handing out $300M to investors is a scumbag move.

I'm not privy to the "new" UFC's financials, so I can't say whether or not paying out a dividend was fiscally sound. I also completely agree about how poorly the fighters are compensated relative to revenues.

 

[BForrester]

Marky Mark is a cunt.

He's a shitty actor, too, unless he's playing a very narrow range of character. His work on "The Departed" being the lone exception I can come up with.

 

[TriangleMonkey]

Funny you mention about Eric, because he seemed to be very inactive on social media but recently he posted a new pic of himself, he is looking great!!, can't wait to see how he develops on his young mixed martial arts career

Some recent pics of Silva, I wish him well, he is still very raw but is developing very well the young boy

Hairline appears in good shape I see

 

[SaigeVanZant]

We gotta take care our celebs before anything

 

[BForrester]

Got ya, I was confused as to why that is news all of a sudden, I would imagine that they have been doing this for a while now since WME bought the company at the least.

Some companies pay dividends on a regular schedule (monthly, quarterly, biannually, or annually). Some, whether or not they pay a regular dividend, will pay occasional "special" dividends, stock splits or share buybacks as ways of rewarding their shareholders. This sounds like it was a "special" dividend type scenario.

 

[20falarVerdades]

UFC is a private company, not a sports league

It seems like we have no data to indicate whether the dividends payout was warranted or not. How much did the investors invest anyway ?

That said,

The top guys are being well compensated. We rarely see champions complaining about pay

Thing is, plenth of fighters are in reality C-level athletes who are lucky to make a career in athletics. If they are not satisfied they can just go to Bellator

 

[BRaVo cHoKe]

Probably included the Reebok credit too.

Tbh the fighters would probably way better off if they didn't get an extra penny from the UFC but were allowed to get more sponsorships again. There has to be a middle ground because I understand why the UFC doesn't want shit like this

But these guys should be at least allowed to have MMA brands like Tap Out and Venum and as well as allowing fighters to wear some more mainstream sponsors other than Reebok. Fucking retarded that these guys have a "uniform", honestly iconic shorts are one thing fighters can to to help cement their brand and image over the years. Think of Anderson's black and yellow shorts or Penn's black belt shorts, stuff like that helps fighters stand out from one another.

If there ever is a fighter's union issue number 1 on the agenda should be ending the Reebok deal.

And at this point it really blows my mind that Reebok hasn't stepped up to make more custom apparel for the premier fighters in the organization. Bryce Mitchell is still waiting for his pair of camo shorts.

 

[pick999]

They can thank conor now

 

[clutchCAT420]

Havnt given one penny to ufc since 2013. F them. Stream for free and ignore stupid cards.

 

[cmw43]

Except you should only be getting dividends if the company is profitable. So if the UFC had $600M in profit, then paying $300M dividends to investors is fine.

It doesnt sound like the UFC has been super profitable in 2019 with ESPN+.

Also there is the added issue of revenue sharing with the fighters. Paying your fighters only 16% and handing out $300M to investors is a scumbag move.

They've got guaranteed money on ESPN plus they just did a McGregor PPV. The deal with ESPN is worth $1.5billion.

 

[Spitfire3000]

Getting life altering injuries for fighting for peanuts and Reebok coupons whilst this shit is going on.


“DeY sIgN Da CoNtRacTs sO iTs DeR oWn fAuLt!”

Well it is.

They're too scared to form unions and shit on the guys that try it like Dillashaw and GSP. They're happy making 16 show 16 win and some reebok discounts.

 

[oscerthegrouch]

I don't understand how this would even work. Why are they called investors when the UFC is giving them money? Are they going to give the UFC more money back? Isn't that just a loan?

really >? i wouldnt trust u to run hot dog stand lol
takes money to make money

 

[Pakman]

Defend from what? There's no charge here. I do think the sports management companies and agents should have to answer for being poor negotiators relative to the unionized sports, but that's not really wrong, it's just poor job performance.

For my part, I don't like to give away more than I have to for things. Maybe you're the type who would prefer Damir Hadzovic have your money regardless even if he's not asking for it, but I personally would prefer I have my money. So even though Marky Mark is rich AF, I can't really blame him if he'd rather he keep his dividend than give it to a dude who's not even negotiating for it.

This x100

 

[tatsuke]

Individual combat sports will never have unions.

There is no incentive for the top performers and earners to give their opponents any advantage.

I never really thought about this. From a fan's perspective, I'm all for the fighters making more cash, because I want MMA to attract the best-of-the-best athletes. At the same time, if I'm participating in the sport, I want all the advantages that money can buy, and I want them to myself.

At the end of the day, the biggest stars have proven they don't even need an organization (read: Conor vs Floyd), so there isn't even incentive in said organization "surviving".