UFC deal way more lucrative for Alvarez

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ClownXBaby

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There is no way Bellator can match the contract regardless of if they copied it straight over and put their name on it because of the PPV structure. They don't do PPV's and even if they tried there wouldn't be nearly as many people watching as the UFC gets.

If Alvarez fought in just 2 PPV cards with an average of 500,000 buys then he'd get an extra 400,000 per card on top of his fight purse. Not to mention the chance of the Fight/KO/Sub awards they offer.

Then there is the exposure he would get that would raise his sponsorship money and if he does very well and wins a title maybe even endorsement deals. I don't see any upside to signing with Bellator.

Does Bellator actually believe their deal is just as good or is it just businesses tactics to slow the process? It's a bad idea to try to piss off the UFC, every other org that tried is gone.

What do you guys think?
 
There's no guarantee of being on a PPV to get the PPV bonus from either company, the UFC will probably put him on free cards if they get him so they don't have to pay it.

Even setting PPV revenues aside, Eddie would make quite a bit more in the UFC, with more sponsorship money and the way Alvarez fights, he's likely to end up with a lot of OTN bonuses.
 
GSP Apologist said:
It's a bad idea for UFC to have competition?
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I dont understand what this has to do with the TS's point. The point is that Alvarez will make more money signing with the UFC. It has nothing to do with whether the UFC should have competition or not.
 
Jawth said:
There's no guarantee of being on a PPV to get the PPV bonus from either company, the UFC will probably put him on free cards if they get him so they don't have to pay it.

Even setting PPV revenues aside, Eddie would make quite a bit more in the UFC, with more sponsorship money and the way Alvarez fights, he's likely to end up with a lot of OTN bonuses.
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With an 8 fight deal, it would be nearly impossible for him NOT to fight on a PPV in the UFC.
 
question about something that hasnt really been addressed-what about bellator saying they "intend" to give alvarez a title shot? i understand why the ufc would use that langue b/c of the high frequency of injuries lately, but what does bellator mean by they "intend" to give him a title shot? does he get one right away? do they mean they intend to give him a shot if he wins the tourney again?
 
MrKilroyT said:
With an 8 fight deal, it would be nearly impossible for him NOT to fight on a PPV in the UFC.
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Not if they're actively trying to avoid putting him on one so they don't have to pay him his bonus. They're doing the same thing with Lombard, only reason he was on 149 was because he was an injury replacement.

IMO the only way he gets to be on a PPV is either as a injury replacement or to fight for the title.
 
ClownXBaby said:
There is no way Bellator can match the contract regardless of if they copied it straight over and put their name on it because of the PPV structure. They don't do PPV's and even if they tried there wouldn't be nearly as many people watching as the UFC gets.

If Alvarez fought in just 2 PPV cards with an average of 500,000 buys then he'd get an extra 400,000 per card on top of his fight purse. Not to mention the chance of the Fight/KO/Sub awards they offer.

Then there is the exposure he would get that would raise his sponsorship money and if he does very well and wins a title maybe even endorsement deals. I don't see any upside to signing with Bellator.

Does Bellator actually believe their deal is just as good or is it just businesses tactics to slow the process? It's a bad idea to try to piss off the UFC, every other org that tried is gone.

What do you guys think?
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Bellator doesn't even come close to having the $ the UFC does. Even if Bellator matches the offer, the UFC could easily offer more
 
holy shit you are slow on the uptake lol

yes TS, Bellator has a stipulation in the contract from 4 years ago that says they can "match" a UFC offer. and last week they gave the exact same offer that the UFC gave him, and claimed they are fulfilling the "letter of the law", regardless of potential PPV revenue.

so it is up to the courts to decide interpret "letter of the law" and and what "match" really means.

WHY are they doing it? shrug.

as i've said in other threads, Eddie's lawyers and Zuffa lawyers are not daft. they must have seen this coming (considering a stupid sherdogger like me did). they COULD have offered him something like $300k/$300k and no bonus instead of $70k/$70k and opportunity for $1m in PPV $ and bonuses, and see if Bellator is willing to match that guaranteed $. they chose not to go that route, and now it goes to the courts. i have to assume there is more going on than what appears to the armchair lawyers like us.
 
Mikeyz said:
Bellator doesn't even come close to having the $ the UFC does. Even if Bellator matches the offer, the UFC could easily offer more
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NO they couldn't. It's a one and done deal. If Bellator matches the offer, Eddie is contractually obligated to Bellator. UFC cannot counter offer.
 
MrKilroyT said:
NO they couldn't. It's a one and done deal. If Bellator matches the offer, Eddie is contractually obligated to Bellator. UFC cannot counter offer.
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actually, there has been some talk that this is not true. i will try to find it.

EDIT: damn, a guy named junbo79 went on a fucking rant against me on page 11 of this thread http://www.sherdog.net/forums/f2/no-alvarez-2347879/index12.html and although 99% of it was flat out wrong, he did post an article that suggested that UFC can now do another counter offer. and then at some point he figured out how wrong he was in the rest of the post, he went and edited out the whole thing lol so i guess i have no source.
 
Of course the UFC deal is worth more but they didnt guarantee the PPV fights so they dont have to put him on PPV.

Of course does anyone actually believe he will go 8 fights in the UFC without being on a PPV? But they didnt guarantee it so Bellator can match and never give him a PPV fight.

All the UFC had to do was guarantee some PPV fights and then Eddies argument could hold up that Bellator will have to give me PPV fights but they arent a PPV company so its not a true match.
 
SeattleFightFan said:
actually, there has been some talk that this is not true. i will try to find it.

EDIT: damn, a guy named junbo79 went on a fucking rant against me on page 11 of this thread http://www.sherdog.net/forums/f2/no-alvarez-2347879/index12.html and although 99% of it was flat out wrong, he did post an article that suggested that UFC can now do another counter offer. and then at some point he figured out how wrong he was in the rest of the post, he went and edited out the whole thing lol so i guess i have no source.
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Thats not true SFF,

http://www.mmajunkie.com/news/2013/01/how-eddie-alvarez-and-bellator-arrived-at-dueling-lawsuits

On Nov. 1, Bellator's legal department informed Alvarez that it had formally modified his promotional agreement to waive the 90-day exclusive period. But there was a catch: He could only negotiate an offer with Zuffa. Other suitors were subject to the original term, which preceded a one-year matching period.

Bellator reminded Alvarez he was required to immediately forward any offer from Zuffa. The promotion had 14 business days to match.

And it included another reminder: "Should Bellator elect to match the offer, no further offers may be entertained by you and you will be obligated to contract with Bellator on the terms that Bellator agreed to match." (Rebney said on Thursday that such language is standard in contracts for both Zuffa and Bellator.)

The UFC responded within the next two weeks. A letter from Zuffa, dated Nov. 14, documents a signing bonus offer of $250,000, payable in three installments.
 
GSP Apologist said:
It's a bad idea for UFC to have competition?
Click to expand...

well.....YES

It is a bad idea for Bellator to be direct competition to the UFC.

Bellator will not do well if they go head to head with the UFC.

They need to continue to do what they did for so long, they have a diffrent format, diffrent feel to their product and haven't had any clashes with the UFC like they are having now.

They were off the UFC's radar and did better than anyone expected. Now they put themselves on the UFC's radar and Dana/UFC are going to go out of their way to put Bellator down.

So it's a bad idea for Bellator to DIRECTLY complete with the UFC
 
CC27 said:
Thats not true SFF,

http://www.mmajunkie.com/news/2013/01/how-eddie-alvarez-and-bellator-arrived-at-dueling-lawsuits

On Nov. 1, Bellator's legal department informed Alvarez that it had formally modified his promotional agreement to waive the 90-day exclusive period. But there was a catch: He could only negotiate an offer with Zuffa. Other suitors were subject to the original term, which preceded a one-year matching period.

Bellator reminded Alvarez he was required to immediately forward any offer from Zuffa. The promotion had 14 business days to match.

And it included another reminder: "Should Bellator elect to match the offer, no further offers may be entertained by you and you will be obligated to contract with Bellator on the terms that Bellator agreed to match." (Rebney said on Thursday that such language is standard in contracts for both Zuffa and Bellator.)

The UFC responded within the next two weeks. A letter from Zuffa, dated Nov. 14, documents a signing bonus offer of $250,000, payable in three installments.
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right. thanks. as i said, i had read an article a week ago posted as a source by someone else which implied differently, and that person had since edited it away. glad to know i can put that one to bed.
 
SeattleFightFan said:
holy shit you are slow on the uptake lol

yes TS, Bellator has a stipulation in the contract from 4 years ago that says they can "match" a UFC offer. and last week they gave the exact same offer that the UFC gave him, and claimed they are fulfilling the "letter of the law", regardless of potential PPV revenue.

so it is up to the courts to decide interpret "letter of the law" and and what "match" really means.

WHY are they doing it? shrug.

as i've said in other threads, Eddie's lawyers and Zuffa lawyers are not daft. they must have seen this coming (considering a stupid sherdogger like me did). they COULD have offered him something like $300k/$300k and no bonus instead of $70k/$70k and opportunity for $1m in PPV $ and bonuses, and see if Bellator is willing to match that guaranteed $. they chose not to go that route, and now it goes to the courts. i have to assume there is more going on than what appears to the armchair lawyers like us.
Click to expand...

I think it will pretty interesting to see what happens. Even though it is the same contract, I'm certain if they had a professional appraise the present value of each one, the UFC contract would be worth considerably more.

So will the courts side in favor of Bellator saying that as long as the the wording and guaranteed amounts in the contract are the same, it constitutes a match? or will they side with Zuffa saying that even though the contracts are word for word the same, the value of the UFC contract is higher so it doesn't constitute a match?

I feel like the outcome will be a pretty big deal in the world of contract law.
 
BrizzoBoi said:
I think it will pretty interesting to see what happens. Even though it is the same contract, I'm certain if they had a professional appraise the present value of each one, the UFC contract would be worth considerably more.

So will the courts side in favor of Bellator saying that as long as the the wording and guaranteed amounts in the contract are the same, it constitutes a match? or will they side with Zuffa saying that even though the contracts are word for word the same, the value of the UFC contract is higher so it doesn't constitute a match?

I feel like the outcome will be a pretty big deal in the world of contract law.
Click to expand...

it is very interesting. i've been curious about this for months, ever since i heard about the "matching" criteria. lockerroom bonuses, FOTN/SOTN, sponsorship earning potential and video game "likeness" earning potential are 4 other areas that i was curious about other than PPV $.

i expect the 3 parties to come to some sort of agreement before it actually goes to court. and that he fights in the UFC this summer.

about the world of contract law....i have no idea, but i have to assume that something like this has happened in some other arena (not MMA). it must have. i'm guessing all the lawyers are looking for similar court cases.
 
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