I Told You The UFC Gives The Finger to Ancillary Rights

by Luke Thomas on May 28, 2008 11:07 AM EDT in News Comment 8 comments

Maybe Tito Ortiz isn't so crazy after all :

However, it is also important to consider the other revenue streams not included in the above revenue estimates, including: closed circuit television, DVDs, video games, television rights fees, sponsorships, advertising, on-demand new media purchases, and other merchandising. Many of these revenue sources rely on the infamous ancillary rights clause found in the company's standard contract. Per the clause, fighters essentially sign away the rights to their likeness and are not entitled to any compensation when it is used. The clause has been a source of contention in the company's disputes with Randy Couture and Ortiz.

...

For the sake of comparison, in a testament to the power of collective bargaining, the percentage share of gross revenue player's receive in other major sports: 59% in the NFL, 57% in the NBA, 55.6% in the NHL, and 53% in MLB.

As this sport grows and develops, I suspect the creation of a fighters' union will happen. There will be too much money and too many opportunities for young, talented fighters to not use the law, lawyers and agents to maximize their earning potential. It's happened in other sports (now a staple) and despite some of the constraints on them given the professional wrestling business model, I suspect collective bargaining to absolutely be a thing of the future.

So while I commend the UFC for paying more than many of their competitors and producing excellent events like UFC 84, I must also say it's hard to believe Zuffa makes fighters waive their rights to their own likeness to line the company's pockets. Shameful.

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but but but

but players’ unions are BAAAAAD aren’t they? they’re bad bad because…um…they’re…um

-- I've misplaced my pants.

by garth on May 28, 2008 11:45 AM EDT reply actions 0 recs

Maybe Tito Ortiz isn’t so crazy after all

Are they mutually exclusive?

Did I use that phrase right?

by mythbuster on May 28, 2008 2:32 PM EDT reply actions 0 recs

A fighters image or likeness as property

I think we are beginning to see the emergence of the realization amongst fighters and the agents and managers that steer them that these fighters and their likenesses are indeed intellectual property from which revenue can be derived. Zuffa and its affiliated businesses have reaped the benefits of contracts that fail to recognize this and now it is becoming an issue. As much as I am not a fan of Tito Ortiz, I can see his point that his image, likeness and other property associated with him ( eg: The Huntington Beach Bad Boy) are being used by Zuffa for its marketing of products and services and Ortiz is not being fairly compensated. This is going to become an issue more and more as the sport grows and conversely the income that can be derived from these images and likenesses grow as well.

by rkid on May 28, 2008 2:53 PM EDT reply actions 0 recs

I think a fighters union would be a good thing, as long as it balances things out. It could help stabilize mma from promotion to promotion. I think guys getting the shaft from smaller shows is as much a problem as low level UFC fighter pay. These guys really need someone to represent their best interests in things like games, collectibles and such.

HOWEVER, could you imagine a fighters strike?? The ramifications of that are pretty scary on many levels.

I think Tito would be a good guy to be involved in the formative stages of this, when he hangs it up.

"They said you was hung!!"

"And they was RIGHT!"

by BJJDenver on May 28, 2008 4:10 PM EDT reply actions 0 recs

A fighters’ union could probably crush a lot of smaller shows. Also, how would this work with regard to the foreign promotions?

Intentional Blog on Balls

by Richard Wade on May 28, 2008 4:44 PM EDT up reply actions 0 recs

Excellent point. I would assume that it would be like any other industry.

I’m not a big union guy, so someone with better knowledge would need to address this. I do know, that grocery stores, for example, vary from state to state. So some employees of the same company may or may not be unionized.

I would suggest some type of association that supports fighters in terms of benefits and rights, while their individual agent handles salary and contract. Don’t know if that is possible or not, but seems reasonable.

"They said you was hung!!"

"And they was RIGHT!"

by BJJDenver on May 28, 2008 4:49 PM EDT up reply actions 0 recs