When does a promotion cut a check for the ppv sales?

[Singlelegsweep]

I'm not talking about if fighters get paid enough or not.

What i'm wondering is, if its takes so long to count or even estimate ppv buys, when do they pay it out?

It can't possibly be some closed secret when boxing and MMA have been doing it for decades.

The way I understand it, usually between $1-$3 per buy depending on the amount of buys. or in some cases an escalating percentage, like 1% for 100-200k buys, then 2% of every buy after that until 300k ext. ext.

So lets say, just because it was the last really big event, McGregor vs. Mendez sold 1mil

Does Chad and Conner need to wait like 2 months to get that money since people are still debating what it topped out at?

 

[TheLuckiest]

With a world wide PPV, you have to wait on probably dozens of companies to report the buys and then cut a check to the UFC. UFC waits on that money then cuts a check to the fighters I would assume.

The money changes hands a lot before finally hitting the fighter's bank accounts, but I imagine they get what their contract had for show/win money, bonus, then wait.

 

[scorpipede]

With a world wide PPV, you have to wait on probably dozens of companies to report the buys and then cut a check to the UFC. UFC waits on that money then cuts a check to the fighters I would assume.

The money changes hands a lot before finally hitting the fighter's bank accounts, but I imagine they get what their contract had for show/win money, bonus, then wait.

at least this guy admits he's assuming shit.

let me translate this: +1

 

[Singlelegsweep]

With a world wide PPV, you have to wait on probably dozens of companies to report the buys and then cut a check to the UFC. UFC waits on that money then cuts a check to the fighters I would assume.

The money changes hands a lot before finally hitting the fighter's bank accounts, but I imagine they get what their contract had for show/win money, bonus, then wait.

So what I understand from

http://mma-manifesto.com/ufc-fighte...ry-main/gsp-the-three-million-dollar-man.html

Less than 100,000 buys: No money
100,000-175,000 buys: $1.00/buy
175,000-300,000 buys: $1.50/buy
300,000-330,000 buys: $2.00/buy
Over 330,000 buys: $3.00/buy

My math may be off but 1 million buys = $2,632,500 right?

So a fighter would get his salary, bonus and sponsor then sit back for the ppvs?

Which leads to question number 2, the reebok deal

http://www.bloodyelbow.com/2015/5/6...lower-initial-estimates-tiers-tenure-mma-news

The sponsorship tier splits between amount of fights and champions/contenders, would it be reasonable to assume they stack for champs or no? Conor had 6-10 fights which is 5k, is that 30k for being a contender plus the 5k or just the 30?

Because the way I see it, if a fight like Jones/D2 happened it could be $500,000 salary + 40,000 reebok, + 50,000 PotN + 2,632,500 ppv points which would be mean the most a fighter could ever make for an event is about 3.3 million

 

[DetachedOrchid]

Not all main event fighters get a ppv cut but when they do i would say about 6-8 weeks since they continue to replay the ppv for a week.

 

[TheLuckiest]

at least this guy admits he's assuming shit.

let me translate this: +1

Yeah. Not a fan of people stating even educated assumptions as fact.

It is an assumption mainly based on the fact that, if the fighters get a PPV cut immediately, relies on the Zuffa gang to pay them out of the kindness of their hearts before the money rolls in.

I know that ain't happenin' :icon_lol:

Really that would be bad business.

To the OP, as far as estimating PPV buys, in the end, only the UFC will know the exact number, and they don't have to release that information. It might actually violate contractor privacy because you would reveal personal income information of the contractor. You also can't really go by the gross PPV revenue either since a bar buying the PPV technically is reported as 1 buy on one business class account, but costs anywhere from $800 to $3000 or more (in the US, anyway) and is based on max capacity of a business.

Since Zuffa isn't publicly traded, they hold no obligation to report earnings except to the IRS, and I wouldn't be surprised if there is a contract clause prohibiting any company income information from being released by the fighters, which is why the PPV earners never come out and say an exact number, even though I'm sure they are told.

 

[Singlelegsweep]

Excuse my long winded posts, i'm just trying to form an opinion of overall pay.

Right now I have the understanding a UFC fighter tops out at about 3.3million for a fight, and minimums at 10.5k. The NFL makes about 32 times the money the UFC does, and the average full time job is roughly 32k a year

I may be alone in this thought process, but an unknown guy making 1/3rd of the average US yearly income in 1 night for losing a fight seems reasonable when you consider how little a debuting unknown fighter adds to a card. And how little the UFC makes compared to the NFL/NBA/MLB.

I mean, if you're any good at all, meaning worth any money, you can fight like 3 times a year, double your money with some win bonuses and take a crack at some POTN bonuses. If you lose your first couple fights should you really expect to make as much as a doctor or judge?

 

[TheLuckiest]

So what I understand from

http://mma-manifesto.com/ufc-fighte...ry-main/gsp-the-three-million-dollar-man.html

Less than 100,000 buys: No money
100,000-175,000 buys: $1.00/buy
175,000-300,000 buys: $1.50/buy
300,000-330,000 buys: $2.00/buy
Over 330,000 buys: $3.00/buy

My math may be off but 1 million buys = $2,632,500 right?

I am not sure what the dollar/buy is. I would imagine it is negotiated. Conor may have been paid more or less. I imagine it is a scaling amount like you showed here.

So a fighter would get his salary, bonus and sponsor then sit back for the ppvs?

Which leads to question number 2, the reebok deal

More than likely. I posted right after you did about it. They would more than likely not assume an amount and cut a check. It would have to be adjusted by taking money away or by paying more out later once the final numbers roll in.

http://www.bloodyelbow.com/2015/5/6...lower-initial-estimates-tiers-tenure-mma-news

The sponsorship tier splits between amount of fights and champions/contenders, would it be reasonable to assume they stack for champs or no? Conor had 6-10 fights which is 5k, is that 30k for being a contender plus the 5k or just the 30?

Because the way I see it, if a fight like Jones/D2 happened it could be $500,000 salary + 40,000 reebok, + 50,000 PotN + 2,632,500 ppv points which would be mean the most a fighter could ever make for an event is about 3.3 million

Reebok deal seems convoluted and we don't really know exactly how it works. I would think they do add up. A contender with 4 fights would likely not get as much money as a Cerrone type company man who is contending. Then again, maybe they do and that is one of the reasons so many fighters are upset about it.

Not all main event fighters get a ppv cut but when they do i would say about 6-8 weeks since they continue to replay the ppv for a week.

Also this. You can keep on ordering it, so there is residual income. I don't know if Zuffa counts those buys, though.

 

[DetachedOrchid]

Excuse my long winded posts, i'm just trying to form an opinion of overall pay.

Right now I have the understanding a UFC fighter tops out at about 3.3million for a fight, and minimums at 10.5k. The NFL makes about 32 times the money the UFC does, and the average full time job is roughly 32k a year

I may be alone in this thought process, but an unknown guy making 1/3rd of the average US yearly income in 1 night for losing a fight seems reasonable when you consider how little a debuting unknown fighter adds to a card. And how little the UFC makes compared to the NFL/NBA/MLB.

I mean, if you're any good at all, meaning worth any money, you can fight like 3 times a year, double your money with some win bonuses and take a crack at some POTN bonuses. If you lose your first couple fights should you really expect to make as much as a doctor or judge?

I couldn't agree more.

 

[pv3Hpv3p]

I'm not talking about if fighters get paid enough or not.

What i'm wondering is, if its takes so long to count or even estimate ppv buys, when do they pay it out?

It can't possibly be some closed secret when boxing and MMA have been doing it for decades.

The way I understand it, usually between $1-$3 per buy depending on the amount of buys. or in some cases an escalating percentage, like 1% for 100-200k buys, then 2% of every buy after that until 300k ext. ext.

So lets say, just because it was the last really big event, McGregor vs. Mendez sold 1mil

Does Chad and Conner need to wait like 2 months to get that money since people are still debating what it topped out at?

I don't think people inside the UFC are debating much. I would imagine with all the technology used today they know the numbers shortly after the event and then wait for the people that might order after the fact while it's still available.

From what I understand, the reason guys like Meltzer speculate on ppv buys is that the UFC never officially release them to the public.

 

[TheLuckiest]

I don't think people inside the UFC are debating much. I would imagine with all the technology used today they know the numbers shortly after the event and then wait for the people that might order after the fact while it's still available.

From what I understand, the reason guys like Meltzer speculate on ppv buys is that the UFC never officially release them to the public.

UFC certainly gets a final number, but I think that the information reported has to be presented in an official way. Your tech comment is certainly accurate, but there are other stupid things like you said about post event orders, people who need refunds because of failed streams, formal presentation of the information, etc. I honestly don't see Comcast having their shit together enough to have a nice detailed buyer's report ready within a few days :icon_lol:

You're also right about Meltzer. A privately owned promotion doesn't have to tell anyone anything unless they are directly involved, so I think in the end, only people whose name is on the contract knows the real amount.

 

[Bokelj]

Doesn't take that long to get the numbers. As a partner in the ppv program you probably get feedback within the week. Networks report monthly numbers and that is probably where the outlets get their numbers if it's not just a rough estimate.

I worked for a publisher and we got feedback on a daily, weekly and monthly basis based on the type of magazine. We targeted our efforts based on the numbers received.

All in all my estimated guess would be the fighters get paid within the month, probably sooner.

 

[scorpipede]

Yeah. Not a fan of people stating even educated assumptions as fact.

It is an assumption mainly based on the fact that, if the fighters get a PPV cut immediately, relies on the Zuffa gang to pay them out of the kindness of their hearts before the money rolls in.

I know that ain't happenin' :icon_lol:

Really that would be bad business.

To the OP, as far as estimating PPV buys, in the end, only the UFC will know the exact number, and they don't have to release that information. It might actually violate contractor privacy because you would reveal personal income information of the contractor. You also can't really go by the gross PPV revenue either since a bar buying the PPV technically is reported as 1 buy on one business class account, but costs anywhere from $800 to $3000 or more (in the US, anyway) and is based on max capacity of a business.

Since Zuffa isn't publicly traded, they hold no obligation to report earnings except to the IRS, and I wouldn't be surprised if there is a contract clause prohibiting any company income information from being released by the fighters, which is why the PPV earners never come out and say an exact number, even though I'm sure they are told.

Excuse my long winded posts, i'm just trying to form an opinion of overall pay.

Right now I have the understanding a UFC fighter tops out at about 3.3million for a fight, and minimums at 10.5k. The NFL makes about 32 times the money the UFC does, and the average full time job is roughly 32k a year

I may be alone in this thought process, but an unknown guy making 1/3rd of the average US yearly income in 1 night for losing a fight seems reasonable when you consider how little a debuting unknown fighter adds to a card. And how little the UFC makes compared to the NFL/NBA/MLB.

I mean, if you're any good at all, meaning worth any money, you can fight like 3 times a year, double your money with some win bonuses and take a crack at some POTN bonuses. If you lose your first couple fights should you really expect to make as much as a doctor or judge?

UFC certainly gets a final number, but I think that the information reported has to be presented in an official way. Your tech comment is certainly accurate, but there are other stupid things like you said about post event orders, people who need refunds because of failed streams, formal presentation of the information, etc. I honestly don't see Comcast having their shit together enough to have a nice detailed buyer's report ready within a few days :icon_lol:

You're also right about Meltzer. A privately owned promotion doesn't have to tell anyone anything unless they are directly involved, so I think in the end, only people whose name is on the contract knows the real amount.

Doesn't take that long to get the numbers. As a partner in the ppv program you probably get feedback within the week. Networks report monthly numbers and that is probably where the outlets get their numbers if it's not just a rough estimate.

I worked for a publisher and we got feedback on a daily, weekly and monthly basis based on the type of magazine. We targeted our efforts based on the numbers received.

All in all my estimated guess would be the fighters get paid within the month, probably sooner.

Dang! People droppin some solid logic in this thread. Probably the best thread I've read on here regarding finances.

Well done.