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Affliction Tries to Broker Deal With UFC to Cease MMA Operations

Fronted by Luke Thomas.

The story is available at MMAWeekly, and cites several sources in the world of MMA. Allegedly, Affliction and the UFC were discussing a scenario in which Affliction would partner with the UFC for exclusive apparel. The UFC would then buy out the contracts they desire and cut the extra fat. Affliction is also reported to have been the one to reject the deal, which I can imagine may not have been as generous as they expected, given that this appears as a giant white flag to Dana White and Zuffa.

A meeting took place between UFC and Affliction executives on Sept. 26, where the idea was first openly discussed. Affliction Vice President Tom Atencio was present, in addition to UFC president Dana White. According to a source, Randy Couture and his lawyers may have attended the meeting as well. Talks were cordial, and Affliction executives agreed to come up with a proposal of their own. All agreed the group would reconvene in a short time period to sort through the issues of a potential deal.

Communication began to deteriorate, though, with Affliction’s ad campaign for EliteXC’s “Heat,” on Oct. 4. The airing of several ads trumpeting Fedor Emelianenko’s return reportedly made UFC executives wary the deal was not being taken seriously.

The scoop at MMA Weekly.

The FanPosts are solely the subjective opinions of Bloody Elbow readers and do not necessarily reflect the views of Bloody Elbow editors or staff.

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Wow.

Good stuff. It makes sense they would try to do something like this. Affliction is hemorrhaging money and they are probably considering anything to keep the shirts on their backs. heh.

by pud333 on Oct 22, 2008 9:11 PM EDT reply actions  

hey
given that this appears as a giant white flag to Dana White and Zuffa.

Please explain this in more detail. I am not sure what you mean here. Thanks.

by banter on Oct 22, 2008 9:16 PM EDT reply actions  

They made it clear they need to get out of the MMA business and are looking for a way out.

by Michael Rome on Oct 22, 2008 9:21 PM EDT up reply actions  

That they wanted out of the promotion business and were trying to make a peace offering with their t-shirts and contract offering.

by LiuLang on Oct 22, 2008 9:21 PM EDT up reply actions  

It seems to me that Zuffa would construe these actions as Affliction abandoning ship. They’re hemorrhaging money, and at the rate that they are, it is only a matter of time before they have to give up the MMA game. If the UFC is going to offer them some money to cease operations and also become their apparel partner, they may see the negotiations as the ol’ white flag. Please take us back, you know? I mean, you could look at it the other way, but one of them is making money and the other is just bleeding it out..

by Blackout612 on Oct 22, 2008 9:22 PM EDT up reply actions  

thank you guys

I guess I’m pretty dense…that seems so obvious after reading your replies.

I’ll just go f*ck myself now.

hahaha

by banter on Oct 22, 2008 9:28 PM EDT up reply actions  

"According to sources from within Affliction and CBS, there may be little time for the clothing company cum fight promoter to mourn the loss. Talks of a broadcast partnership that could place Affliction on primetime television are ongoing. "

by smoogy on Oct 22, 2008 9:24 PM EDT reply actions  

A “deal” to put them on CBS is just death. It’s a faster death. Their only hope for survival is to actually be bought by CBS.

Writers at MMA sites have repeatedly fallen for all of Affliction’s bullshit “deals.” By the time Attencio is done running press conferences I expect partnerships with Goldenboy, M-1, CBS, Disneyland, Iraq, and Lehman brothers.

This one could finally happen, but it only means something if CBS buys it.

by Michael Rome on Oct 22, 2008 9:30 PM EDT up reply actions   1 recs

That’s the whole thing. With what CBS was paying for MMA, with Afflictions huge payroll, you would have to think their losses would be huge. It only makes sense if their in a position to lose money so they can promote some future PPV in which they would make some cash. They just don’t seem to be in a position to lose more money, so I don’t see how it makes sense.

by LiuLang on Oct 22, 2008 9:50 PM EDT up reply actions  

Hey Smoog… hows my ass smelling? lol

by mmalogic on Oct 23, 2008 2:24 AM EDT up reply actions  

There’s been a rumor floating around that the Affliction people got into a shouting match with the Fertittas, wonder if it had something to do with this deal falling apart?

by who me on Oct 22, 2008 9:24 PM EDT reply actions  

I’ve heard a lot of rumblings about these guys having contact in recent days/weeks. This shores up some of the loose talk.

by Blackout612 on Oct 22, 2008 9:27 PM EDT up reply actions  

Not a just rumor ...
Both sides believed the deal was off the table, but on Monday, a conference call took place between, among others, Lorenzo Fertitta and Todd Beard, Affliction’s co-founder.

Though the deal was not formally rejected by Affliction, it was clear that the goodwill between the parties had disappeared. While it’s unclear how the conversation went south, it went south quickly, with both parties directing profanities at one another. Towards the end, Beard reportedly told Ferttita, "you’ve (expletive) with the wrong guy."

Needless to say, Affliction’s window of opportunity with the UFC appears to be closed.

"It's like a flying knuckle sandwich." --Rogan
"And many men have eaten it." -- Goldy

by thetakeover on Oct 22, 2008 10:25 PM EDT up reply actions  

I’m not sure if Beard knows anything about the Fertitta’s and their connections in Vegas.

by steveoc24 on Oct 22, 2008 10:36 PM EDT up reply actions  

Being as I’ve never heard of t-shirt guyTodd Beard I had to wonder why he was the wrong guy to (expletive) with as opposed to the casino mogul who’s grandfather was a mobster (and probably his father too)?

by who me on Oct 22, 2008 11:05 PM EDT up reply actions  

Exactly..

Probably not a good choice of words on Beard’s part considering the Fertitta’s have been running Vegas for decades.

by steveoc24 on Oct 22, 2008 11:15 PM EDT up reply actions  

I see the other T-shirt dude’s threat of “you’ve (expletive) with the wrong guy” as an empty threat. Pretty soon Affliction won’t have a pot to piss in if they continue on this route. They’d better hope CBS buys ‘em out or else it’s over.

by pud333 on Oct 23, 2008 1:03 AM EDT up reply actions  

Okay, I'm taking bets...

What are the over/under that Affliction will actually have their second show before folding tents? I say Affliction won’t make it to January.

The problem with Affliction is that not only are they losing money on MMA, that’s a given, but they are also losing sales in their shirt business as well. If 500k UFC fans stop buying shirts, that’s $25 mil in lost sales.

by cyph on Oct 22, 2008 9:41 PM EDT reply actions  

It was fun while it lasted.

I never understood why Affliction would get into MMA, it makes no sense to me. Why not just keep selling $60 shirts to a cult fan base? Maybe I just lack the business acumen and formal education of Mr. Atencio to see the light.

by Ubernoober on Oct 22, 2008 9:47 PM EDT reply actions  

I think they overestimated their brand loyalty and underestimated Zuffa’s reaction to starting their own fight promotion. They probably thought it would be great to have UFC fighters wearing shirts with their own promotion on it. But I can’t believe anyone didn’t raise their hand and say it might be a bad idea.

by Dropkick434 on Oct 22, 2008 10:04 PM EDT up reply actions  

I never got it eather if you take what Atencio says which I don’t ,it was to help fighters out and give them better pay days and another option? But that just makes no sence what so ever when you want to make $ and bring in profit. I think like the poster below says Affliction overestimated their brand loyalty BIG TIME and thought tons of UFC fans would jump ship of follow bolth orgs which is just not the case. Affliction had a good thing going with the UFC they pretty much burned there own bridge !!!

by Shocbomb on Oct 23, 2008 12:57 AM EDT up reply actions  

anyone here see The Dark Knight..

…remember when Bruce Wayne decides to partner up with the guy from Hong Kong then the deal falls apart, but it turns out that it was just so Wayne Industries (the larger company) could get a look at what the smaller company really had going on.

Afflication 2 will NOT happen.

by RipeTide on Oct 22, 2008 10:06 PM EDT reply actions  

That’s actually an interesting analogy.

by pud333 on Oct 22, 2008 10:30 PM EDT up reply actions  

You’re insight is very close to the reality…

by mmalogic on Oct 23, 2008 2:54 AM EDT up reply actions  

with that said....

Dana could still learn a thing or two about selling shit from WWE. Those fuckers can sell some merch. Hit a Toys R Us action figure section sometime.

by RipeTide on Oct 22, 2008 10:07 PM EDT reply actions  

That’s coming, the people that make the WWE action figures are making the UFC ones.

by Phildo on Oct 22, 2008 10:13 PM EDT up reply actions  

White flag from zuffa? Affliction is the one and only one who would benifit from this deal. If Dana sticks to his usual F you policy to his compitition like he usually does, then he can just sit back and watch affliction sink like all the rest. What does affliction have to offer besides Fedor? No one wears those cheesy shirts anymore. It makes no sense for the ufc to try to help them out in any way after they crossed them. It makes even less sense that affliction wouldn’t jump through hoops and take anything the ufc offered.

by Josh H. on Oct 22, 2008 10:13 PM EDT reply actions  

The negotiations

..are the white flag. Not the deal itself. Such a deal doesn’t exist; it never happened.

by Blackout612 on Oct 22, 2008 10:17 PM EDT up reply actions  

It’s not a white flag from Zuffa it would be opening up a new income stream and getting rid of a competitor and getting Randy Couture what he wanted at the same time. Affliction is still selling a lot of clothing and that part of their company is growing and they are losing millions on MMA. This actually sounded a bit like the Golden Boy deal, they talked a lot about co-promotion and mixed cards but the only thing that really seems to of come out of that was the apparel agreement. For Affliction to get a apparal deal with the UFC would be the most important thing to their primary business, it seems the MMA business is more about personal pride at this point.

by who me on Oct 22, 2008 10:27 PM EDT up reply actions  

For sure

I just assumed he had the names accidentily switched..

by Blackout612 on Oct 22, 2008 10:39 PM EDT up reply actions  

My bad. You were saying that affliction was raising the white flag. I misread it and thought you were saying zuffa was.

by Josh H. on Oct 22, 2008 11:23 PM EDT up reply actions  

It’s been 6 months since Affliction MMA came into existence, nearly 4 since their only card and close to three till their next announced card. They are already having financial problems, their payroll is scary, they don’t have much for signed talent beyond a couple of top guys and they have been leery of signing new talent. They had to move the venue of their first card from Dallas to LA, had to cancel their second card and details of the next card is very sketchy(even the stuff directly from Atencio). They literally have had more mega-press conferences than events and their fighters are having to look for other places to fight already. At least ProElite showed that it could actually put on multiple shows before CBS signed the tv contract. I still don’t see why CBS would sign a tv contract with these guys at this point, CBS on it’s own has more MMA experience than Affliction does.

by who me on Oct 22, 2008 10:18 PM EDT reply actions  

To be fair

We know about as much as Affliction 2 as we do about UFC 94, and they are a week apart

by smoogy on Oct 22, 2008 11:10 PM EDT up reply actions  

ufc 94 is rumored to be strong. Fitch, Penn, St. Pierre, Bonnar, Thiago Silva, and Machicha. I know that most of those are rumored, but if that is the card; Whoa.

by Josh H. on Oct 22, 2008 11:28 PM EDT up reply actions  

You can already buy tickets for UFC 93(also a week apart from Affliction 2).

by who me on Oct 22, 2008 11:34 PM EDT up reply actions  

I bet you $100 dollars UFC 94 takes place. =)

by Dropkick434 on Oct 23, 2008 1:42 AM EDT up reply actions   2 recs

All good points and very very true. They already have a troublesome history and its been what not even a half a year ? Its not to hard to see why they wanted to save face and throw up a white Flag and to get out of the MMA business the best and most feesable way possible ? All in all the future for Affliction is not looking good. I give them to mid summer early next fall before they fold. I myself took the over 3 events when me and a few friends bet on a under over for how many events Affliction would put on before closing shop and going under.

by Shocbomb on Oct 23, 2008 1:05 AM EDT up reply actions  

Dana has his foot on Affliction's throat ...

Affliction is in no position to bargain or negotiate. They’ve realized they totally boned it by losing their advertising on UFC—every time I see their logo airbrushed out of a fight repeat, I think of all the free advertising they lost with their stupid vanity promotion.

I was interested in this nugget:

Randy Couture and his lawyers may have attended the meeting as well.

Is this just because of the looming possibility of a Fedor fight? Seems pretty crazy that they’d give Couture such access to these negotiations unless he had some larger stake …

"It's like a flying knuckle sandwich." --Rogan
"And many men have eaten it." -- Goldy

by thetakeover on Oct 22, 2008 10:19 PM EDT reply actions  

Ah, here's why:
The partnership was placed further in doubt by Affliction’s lucrative licensing deals with UFC champions Randy Couture and Georges St. Pierre. Couture’s clothing line, Xtreme Couture, is controlled by partners of Affliction, according to court filings from the now-dismissed legal action with the UFC concerning Couture’s employment agreement. Couture has a substantial, but minority interest in the popular clothing brand.

"It's like a flying knuckle sandwich." --Rogan
"And many men have eaten it." -- Goldy

by thetakeover on Oct 22, 2008 10:22 PM EDT up reply actions  

Randy’s lawyers were there because Affliction is fucked per his deposition and some of the shit they pulled…

Zuffa only agreed to drop charges against couture not anyone else.

by mmalogic on Oct 23, 2008 3:00 AM EDT up reply actions  

what reason would they turn it down. I wonder who approached who because it does not make sense for Affliction to turn down the deal. And if CBS buys them, they really need to bring in a good staff with a successful mma background, even if it comes from regional. Im not sold On CBS running it.

by The Bronzeville Bully on Oct 22, 2008 10:30 PM EDT reply actions  

Affliction realized they were being played…

There is no way in hell Affliction is ever getting back in the octagon.

by mmalogic on Oct 23, 2008 3:01 AM EDT up reply actions  

So what happens to WAMMA if Affliction flops. As far as I know they’re the only promotion now doing business with WAMMA.

by drano1 on Oct 22, 2008 11:28 PM EDT reply actions  

I train with a couple of guys from one of the major mma clothing companies. They told me before Tapout started clothing TUF exclusively, that UFC/Zuffa had invested huge in Tapout, monetarily. If true, i doubt that UFC would make any type of exclusive deal with Affliction.

http://eliotmarshall.com/

by BJJDenver on Oct 22, 2008 11:35 PM EDT reply actions  

when did they invest all this money in Tapout?

by drano1 on Oct 22, 2008 11:40 PM EDT up reply actions  

Not sure, but I would say it was probably around the time that Affliction decided to promote.

It makes sense to me, if you look at the prominence that Tapout has developed in the UFC, in TUF specifically and the Tapout show seems to have a UFC influence to it.

I don’t think this would be any kind of shocking news if it is true and actually makes quite a bit of sense for Zuffa and Tapout.

http://eliotmarshall.com/

by BJJDenver on Oct 23, 2008 11:57 AM EDT up reply actions  

Affliction doesn’t produce MMA apparel they produce fashion clothing for young males and happen to sponsor lots of athletes and entertainers. Tapout is pushing a MMA product where as Affliction is just pushing fashion on the demographic. Affliction could release UFC brand clothing that was sold exclusively by Affliction but that wouldn’t necessarily mean that the UFC had to be exclusive to Affliction for MMA training products and apparel.

by who me on Oct 23, 2008 12:31 AM EDT up reply actions  

good points.

http://eliotmarshall.com/

by BJJDenver on Oct 23, 2008 11:58 AM EDT up reply actions  

sorry. have an addiction to the enter button, lol.

I believe that Tapout is making UFC casual wear now. I’m sure Dana would happily play one against the other, to broker a lopsided deal with Affliction.

http://eliotmarshall.com/

by BJJDenver on Oct 23, 2008 12:00 PM EDT up reply actions  

Well that would definitely get Affliction’s attention, it’s one thing for them to be fighting it out in the UFC’s industry but quite another for the UFC to be helping another clothing company hit them where they live.

by who me on Oct 23, 2008 5:36 PM EDT up reply actions  

Zuffa’s sponshorship model has changed from a “xyence” model to a “tapout” model.

by mmalogic on Oct 23, 2008 3:03 AM EDT up reply actions  

elaborate

now they invest in profitable instead of loaning money to an utter loser so they can tell creditors that they have sponsors?

by Kid Nate on Oct 23, 2008 11:27 AM EDT up reply actions  

You pretty much got it…

Not just profitable though – but actually a good and valid product…. and one that already comes with a “Dana”… A “Lorenzo” can always be hired and brought in to take the business to the next level… but a “Dana” focused and behind the product is hard to come by.

Zuffa has a captive audience so besides the blue chips you can spawn a dominant player in each relative category that caters to this demo.

Tapout will soon be as big as the UFC and probably surpass it in terms of revenue.

by mmalogic on Oct 23, 2008 12:18 PM EDT up reply actions  

Oh man

What I would give to be a fly on the wall of that meeting. The profanity alone could probably make Richard Pryor blush.

by Rundownloser on Oct 23, 2008 3:14 AM EDT reply actions  

Making a dead man blush would indeed be impressive.

by Richard Wade on Oct 23, 2008 5:19 PM EDT up reply actions  

The bottom line is the idiots at affliction thought they were going to do a minimum… A MINIMUM of 250k buys on their first show (which is barely break even).

They thought they would be in the money by show 3.

The reason why they are having way more press conferences than shows is because they are dying to find a way out.

Their latest gimmick is this “reality show m-1 partnership”

The mixed boxing/mma was their “Hex”

Their biggest loss wasn’t the first show… it was getting kicked out of the UFC.

Once they see their clothing retail trend numbers they are fucked (double team style).

by mmalogic on Oct 23, 2008 3:16 AM EDT reply actions  

It seems to me that only douchebags wear Affliction shirts anyway.

by nitro on Oct 23, 2008 3:40 AM EDT reply actions  

I don't want to do a full article on this...

since I’ve really talked WAMMA into the ground.

But if Affliction goes, shortly after Pro-Elite went…WAMMA is completely done. It would have been hard enough for them to establish any real, legit presence in Japan (DREAM wants nothing to do with them). So they really had to become relevant in the states. And now there is no “major player” left in the US beyond the UFC. I guess should CBS or Showtime make their play then that would be a small opening, but I just don’t see it mattering at all.

This would be the end of the world for WAMMA.

Contributing Editor - BloodyElbow.com - SBNation's mixed martial arts headquarters.

by Brent Brookhouse on Oct 23, 2008 10:52 AM EDT reply actions  

I absolutely wouldn’t mind if Affliction grew to the prominence of say, Pride, for instance. assuming they were running a good promotion and forced UFC to continue to be high level. I still think healthy competition is good. As for WAMMA, why do we need them? I don;t really see where they are doing anything positive or even productive for the sport. I really miss the good old days of Pride/UFC huggery, lol. It was so much fun watching people argue about who was better!

http://eliotmarshall.com/

by BJJDenver on Oct 23, 2008 12:03 PM EDT up reply actions  

I agree...

with all of that. I don’t think we need WAMMA at all. I’m just saying…this would be the absolute death of their plans.

Contributing Editor - BloodyElbow.com - SBNation's mixed martial arts headquarters.

by Brent Brookhouse on Oct 23, 2008 12:18 PM EDT up reply actions  

It seems WAMMA has hung their hopes completely on Affliction at this point, even the fact that discussions like this happened isn’t very good news for their future(well it’s not like they had much of a future anyway).

by who me on Oct 23, 2008 5:38 PM EDT up reply actions  

Well, WAMMA never actually had any footing in the game to begin with. Nobody gave a damn about who they were trying to push as the WAMMA champion…lol

http://mma4real.net/

by Tha Realness on Oct 23, 2008 12:50 PM EDT reply actions  

We are UFC. You will be assimilated. Resistance is futile

by Ubernoober on Oct 23, 2008 3:48 PM EDT reply actions  

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