Affliction Payroll

by Michael Rome on Jan 25, 2009 2:27 AM EST in News Comment 73 comments

Credit to MMA Weekly for getting this. Fedor's undisclosed bonus is widely reported to be at least 1.3 million, putting their total payroll at 4.6 million or higher:

MAIN EVENT FIGHTERS

– Fedor Emelianenko $300,000 (no win bonus) def. Andre Arlovski $1,500,000 (win bonus would have been $250,000)

MAIN CARD FIGHTERS

– Josh Barnett $500,000 (no win bonus) def. Gilbert Yvel $30,000 (win bonus would have been $9,300)

– Vitor Belfort $200,000 (includes $80,000 win bonus) def. Matt Lindland $225,000 (win bonus would have been $75,000)

– Renato "Babalu" Sobral $90,000 (includes $30,000 win bonus) def. Rameau Thierry Sokoudjou $50,000 (win bonus would have been $50,000)

– Paul Buentello $90,000 (includes $20,000 win bonus) def. Kiril Sidelnikov $10,000 (win bonus would have been $25,000)

– Dan Lauzon $12,000 (no win bonus) def. Bobby Green $4,000 (win bonus would have been $4,000)

– Jay Hieron $45,000 (includes $25,000 win bonus) def. Jason High $10,000 (win bonus would have been $5,000)

PRELIMINARY CARD FIGHTERS

– Antonio Rogerio Nogueira $150,000 (includes $30,000 win bonus) def. Vladimir Matyushenko $50,000 (win bonus would have been $30,000)

– L.C. Davis $14,000 (includes $7,000 win bonus) def. Bao Quach $7,000 (win bonus would have been $6,000)

– Albert Rios $6,000 (includes $3,000 win bonus) def. Antonio Duarte $3,000 (win bonus would have been $2,000)

– Brett Cooper $10,000 (includes $5,000 win bonus) def. Patrick Speight $2,000 (win bonus would have been $3,000)

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Dre got 1.5 Mil???Damn..no wonder UFC didn’t match that.

by The Bronzeville Bully on Jan 25, 2009 2:30 AM EST reply actions 0 recs

He had a “Fedor clause”

by smoogy on Jan 25, 2009 2:46 AM EST up reply actions 0 recs

On Fedor's unreported bonus

That’s supposed to be paid by M-1 Global. There was a report on his rumored contract a long time ago while the UFC discussions were ongoing. Its supposed to be nearly 2 million paid by M-1 Global per fight.

Gimme 1 Round!

by skwirrl on Jan 25, 2009 4:11 AM EST up reply actions 0 recs

No, this isn’t right. I’ve spoken with people at EliteXC, they were going to be required to pay that, not the M-1 side. The 2 million from M-1 was going to be from Monte Cox and that partnership. That’s why he got his money back.

by Michael Rome on Jan 25, 2009 4:15 AM EST up reply actions 0 recs

M-1 Global doesn't get Co-billing on their card either

M-1 Global gets their name on the show – they pay Fedor’s salary

Gimme 1 Round!

by skwirrl on Jan 25, 2009 4:29 AM EST up reply actions 0 recs

It also makes it alot easier

Because he lives in Russia and would pay disgusting taxes on his salary over here. So this way nobody has to get in trouble with the IRS

Gimme 1 Round!

by skwirrl on Jan 25, 2009 4:29 AM EST up reply actions 0 recs

You DO realize

Thats why it was Affliction/M-1 Global Day of Reckoning

Gimme 1 Round!

by skwirrl on Jan 25, 2009 4:31 AM EST up reply actions 0 recs

They also were partnered with Bodog for Fedor and Bodog was the one footing the bill for Fedor. If M-1 mixfight wanted to spend that kind of money Fedor would be fighting on their cards not ones where they have to partner up just to get their name on the banner.

by who me on Jan 25, 2009 4:36 AM EST up reply actions 0 recs

That’s different…

M1 is getting close to 2m for fedor per fight (which they then pay fedor like 400k or some absurd piece – but Fedor does have some ownership in M1 )

In addition:

Affliction co-promotes with M-1.

M-1 also provides “consulting”

and M1 provided the 2 broadcasters on the ppv.

by mmalogic on Jan 25, 2009 4:41 AM EST up reply actions 0 recs

Thank you

M1 gets paid for the right to use their client. They pay Fedor. Fedor is the face of their organization which is invaluable. They get to co-billing.

Gimme 1 Round!

by skwirrl on Jan 25, 2009 4:45 AM EST up reply actions 0 recs

A more complicated way of saying what was said in the first place, Affliction pays that much money for Fedor, whether Fedor gets it or not in the end is irrelevant to the point of how much comes out of Affliction’s pocket for him to be on the show.

by who me on Jan 25, 2009 4:49 AM EST up reply actions 0 recs

Well

I didn’t think Affliction shelled out the full 2 million for Fedor. But I’ll take Logic’s word on that. I thought they shelled out like 500K + his 300K and gave them co-promotion rights and other ancillary benefits such as fights for Sedelnikov

Gimme 1 Round!

by skwirrl on Jan 25, 2009 5:10 AM EST up reply actions 0 recs

What was said in the article above was that the undisclosed bonus was reported to be around 1.3 million so yea it’s quite possible that they didn’t shell out two million (but then no one else was claiming that). The co-promotion, ancillary rights and added flock of M-1 fighters seems to be part of the deal for Fedor regardless of what is paid and is probably one of the big sticking points with the UFC.

The original reported M-1 Global contract was 10 million for 6 fights, I don’t know if that contract is in place as that was with Cox involvement but it would work out about the same to 300k with a undisclosed 1.3 million dollar bonus per fight. With Fedor so deeply intwined with M-1 mixfight there is no telling what he personally makes compared to what is payed for him to be on a show but for this discussion what is paid out for him is what matters.

by who me on Jan 25, 2009 5:31 AM EST up reply actions 0 recs

I wonder if the UFC will be able to steal away Vitor Belfort at that price. I doubt they want to pay that much to bring him in. Sure he has a name, some powerful hands, and a renewed game recently. But, that is a significant investment and the Lindland KO didn’t answer some important questions (how does he do off his back now, what is he gonna do when he isn’t winning, etc.). I hope that he comes back, but I won’t be surprised if he stays with Affliction.

Also, I really hope that Fedor, himself, is getting a bunch of money under the table, and not favors and such for M-1 instead.

"I see him beating Anderson Silva. I see him picking him apart. Him at a 131 years old...(trails off)." - Tito on Belfort at Affliction:DOR

by Rundownloser on Jan 25, 2009 2:35 AM EST reply actions 0 recs

Well, what they can offer him is something like 100,000 a fight and a 6 fight deal. And a middleweight title shot.

by Michael Rome on Jan 25, 2009 2:38 AM EST up reply actions 0 recs

Yeah, I suppose although he would be making slightly less in the UFC, his notoriety and thus his pull with sponsors would go through the roof.

"I see him beating Anderson Silva. I see him picking him apart. Him at a 131 years old...(trails off)." - Tito on Belfort at Affliction:DOR

by Rundownloser on Jan 25, 2009 2:47 AM EST up reply actions 0 recs

Let’s not forget sponsorship money.

by subo on Jan 25, 2009 2:54 AM EST up reply actions 0 recs

With Shogun established at 150k or more, I think Vitor can get that much, considering his early contributions to the UFC. He is one of the most marketable foreign fighters they don’t have.

by smoogy on Jan 25, 2009 2:48 AM EST up reply actions 0 recs

True enough. I think he could get that + a bonus to fight Anderson straight away. Combined with the sponsorship money, he’d be vastly improving his lot.

by Michael Rome on Jan 25, 2009 2:53 AM EST up reply actions 0 recs

I think the UFC, if wise, would scrap Leites/Silva and get Belfort in there immediately. Belfort was a big name for the early Zuffa once he returned from PRIDE and there’s a chunk of the fanbase willing to go crazy for “The Old Belfort” when he shows up. That was “The Old Belfort”.

by D.Capitated on Jan 25, 2009 11:25 AM EST up reply actions 0 recs

Fedor has to be getting a cut of the PPV or merchandising or something.

by a tommy point on Jan 25, 2009 2:36 AM EST reply actions 0 recs

$1.5 mil for just over 3 minutes work.

Crazy.

by Pandanus on Jan 25, 2009 2:40 AM EST reply actions 0 recs

A lot of preparation preceded that three minutes.

Bolts from the Blue // "Game over." - Jamal Williams
Bloody Elbow // "Every normal man must be tempted at times to spit upon his hands, hoist the black flag, and begin slitting throats." - H.L. Mencken

by Richard Wade on Jan 25, 2009 4:37 PM EST up reply actions 0 recs

Over $3.3 million in fighter payroll

The over/under on how much Affliction loses tonight has been set. Place your bets now.

by subo on Jan 25, 2009 2:45 AM EST reply actions 0 recs

Not to mention the unspoken Fedor bonus.

by subo on Jan 25, 2009 2:46 AM EST up reply actions 0 recs

This is how T-Shirt guys roll.

by Pandanus on Jan 25, 2009 2:48 AM EST up reply actions 0 recs

I wonder how much Zito and Farrell got paid. And Oscar. And Trump. And M1.

by Jahbulon on Jan 25, 2009 11:51 AM EST up reply actions 0 recs

Unspoken Fedor bonus

Is paid by M-1 Global like it was last time and like it will be next time. His contract is with them and they pay his salary. Now if you wanna include them because they are affiliated with Affliction then its alot.

Gimme 1 Round!

by skwirrl on Jan 25, 2009 4:14 AM EST up reply actions 0 recs

That M-1 Global was Monte Cox’s M-1 Global not M-1 mix fight. Why would the Russians(Fedor’s own management) pay Fedor that money to fight on a US Affliction card?

by who me on Jan 25, 2009 4:23 AM EST up reply actions 0 recs

Because he's the face of their entire organization

And he gets their organization exposure. Would you know who M-1 Global is without Fedor?

Gimme 1 Round!

by skwirrl on Jan 25, 2009 4:26 AM EST up reply actions 0 recs

Also Monte Cox was working WITH M-1 Global

He wasn’t synonomous with it. When he left they maintained the M-1 Global promotion company. Mousasi also fights under their banner.

Gimme 1 Round!

by skwirrl on Jan 25, 2009 4:27 AM EST up reply actions 0 recs

Monte Cox was working for the theater people and that whole deal fell apart due to to the fact that they didn’t have a signed contract and couldn’t pay Fedor that much money.

by who me on Jan 25, 2009 4:34 AM EST up reply actions 0 recs

Yea he gives them publicity but that still doesn’t answer the question of why they would pay him instead of the people he was actually fighting for on the card. If that was the case Fedor would of been fighting for EliteXC, Strikeforce, Dream and anyone else who could come up with 300K. If M-1 mixfight is forking over that kind of money for Fedor to fight for Affliction then Affliction would undoubtably be forking over that much money to M-1 mixfight. Hell the same guy who owns M-1 mixfight is Fedor’s manager, why would he be paying Fedor out of his pocket when he can get the promotion who is actually putting on the show to pay for it?

by who me on Jan 25, 2009 4:31 AM EST up reply actions 0 recs

As I remember

Affliction is paying M-1 Global for the rights to have Fedor so in that way, they ARE paying him. But its indirect. And I don’t think they pay his full salary

Gimme 1 Round!

by skwirrl on Jan 25, 2009 4:43 AM EST up reply actions 0 recs

Indirect doesn’t mean that the money doesn’t come out of Attencio’s pocket so that still counts against what Affliction is paying out. Just because the contract pay situation is complicated doesn’t mean that Affliction still isn’t the one on the hook for the money.

by who me on Jan 25, 2009 4:47 AM EST up reply actions 0 recs

I agree. Would Affliction have anything to do with M-1 if it wasn’t for Fedor?

by Jahbulon on Jan 25, 2009 12:01 PM EST up reply actions 0 recs

You think M1 global gives fedor to Affliction for 300k in return for their banner in the ring? On a show no one watches?

You think these guys are that stupid???

They got the best deal out of anyone from affliction.

These guys will negotiate your fucking left nut away from you.

Co-promotion was a “condition” to have fedor.

Now M1 doesnt pay Fedor that much but that’s just how shit works over there.
.

by mmalogic on Jan 25, 2009 4:46 AM EST up reply actions 1 recs

Crazy Russians eh? I don’t trust Finkie at all, I really want to see how much of the money paid to have Fedor on a card actually goes to Fedor.

by iiowyn on Jan 25, 2009 11:57 AM EST up reply actions 0 recs

I think it’s fair to include them because where is M-1 getting the money from?

If they’re not being paid directly by Affliction, they’re getting a cut of the revenues. On paper Affliction isn’t paying that money to Fedor, but the money that Fedor gets is money that either came from Affliction originally, or revenues that they had to share with M-1.

by Phildo on Jan 25, 2009 9:35 AM EST up reply actions 0 recs

Bottom line is they probably need 7 million in revenue to break even at a conservative estimate. It’s probably closer to 8, but they are pulling in about 18 dollars per buy. You can do the math and see the big problem.

by Michael Rome on Jan 25, 2009 2:48 AM EST reply actions 0 recs

I guess the question is, what is considered an acceptable loss at this point? You’d have to think the investors got into this knowing it could take a half dozen or more events to approach breaking even.

by smoogy on Jan 25, 2009 2:50 AM EST up reply actions 0 recs

I don’t know of any investors, this is all money from within the company.

I think Tom made it clear they can’t lose that kind of money again. I don’t want to be negative, but this is not an acceptible loss. There’s a reason they are saying no show till July, they are taking time to try to get funding because this show was almost canceled, and they need money to go forward.

by Michael Rome on Jan 25, 2009 2:54 AM EST up reply actions 0 recs

This show was canceled, originally – I’m sorry, when you buy ad time in Times Square and on a freaking NASCAR vehicle, and then you don’t have it, and then you have one three months later by the same name, that’s a cancelled event, not a rescheduled one.

by subo on Jan 25, 2009 2:56 AM EST up reply actions 0 recs

I hope with all the various established names involved, they’re able to attract investment and continue, because the potential there is undeniable. Yes, the between-fight segments were probably a step back from Banned, but the show overall was great, and anything that can draw six figures on pay per view with no real connection to the mainstream media must raise some eyebrows in that industry.

by smoogy on Jan 25, 2009 3:05 AM EST up reply actions 0 recs

That is the strategy at the moment…

this show was more of a “sales” piece to someone who is willing and capable to bankroll this thing.

The losses have to be looked at like: (im chartering a 20 million dollar yacht, paying bonjovi to come on and play and inviting the key players in the banking industry to network and see my presentation on what I want to pitch them)

Is it worth it? sure if you make the deal. But you dont get many shots as this is a pretty expensive lead generator for your idea.

They got most everything in place:

the big names on the board.

Proof of operations.

Proof of product.

The PR.

UFC’s huge numbers in this down economy which they can point to as potential upside.

This is a classic play.

The challenge is the current economic climate which makes this daunting – but still their best chance.

If this was 18 months ago and you throw in some focus group data… A decent investment banker would of been able to capitalize this project within 60 days.

by mmalogic on Jan 25, 2009 4:19 AM EST up reply actions 1 recs

I do agree with this analysis

to a certain extent.

Unfortunately I’m not sure where the capital is coming from now. In your mind where is it coming from? Goldenboy?

by rainmaker6 on Jan 25, 2009 4:40 AM EST up reply actions 0 recs

I didnt say the capital is coming…

I just said this is the scenario and probably their best chance.

In these types of deals the “figure heads”: Golden Boy, Trump, etc… don’t provide the capital as they bring something else of value to leverage.

Their names and backgrounds.

You need these type of guys on the roster to get capitalization.

If the capital is secured it is usually done by an entity you have never heard of.

Sovereign wealth funds, hedge funds, etc…

I guarantee there was at least a dozen or more investment bankers, reverse merger and M&A firms at the show tonight.

by mmalogic on Jan 25, 2009 4:56 AM EST up reply actions 0 recs

That would make sense with what Larry Merchant said about ODLH. I could see Golden Boy stepping in to take the lead if someone else was fronting the money(like HBO and Showtime does for Golden Boy boxing events), I don’t see Trump or Golden Boy putting their own money into this as backers though.

Even if this is a proof of concept ploy for legitimate investment money they would still have to show viability, especially in this market, and that may be what comes back and gets them. The UFC numbers are great but the laundry list of huge money losing failures outside of the UFC will also get the attention of investors, particularly if Affliction’s losses resemble those companies losses. Still there always seems to be crazy billionaires out there willing to get behind all sorts of things so you never know maybe they will get lucky.

by who me on Jan 25, 2009 5:07 AM EST up reply actions 0 recs

If it wasn’t for the economy it would almost be a lock.

They still have a shot though… and it all depends on the data they look at.

If it’s Mark Cuban he’s not touching it… he gets good data.

If It’s being looked at through the old “Coke and Pepsi” lens then you’ll get some bites.

They’ll see Zuffa’s spectacular numbers which look even better in this economic climate, see goldenboy and their success and experience in the fight business, trump being a reputable name and they’ll convince themselves there’s no pepsi to UFC’s “coke”.

And the cycle will just repeat…

I for one would like to see something transpire… I fear things may get boring.

Competition keeping the caw sharp has a lot of merit…

I mean the creativity and extra work and brain storming it will take to get a guy like fedor is valuable -

This creativity opens doors to other things, improves the operation and fortifies the defenses.

Now if there’s no one in play to keep one on their toes all this value is lost…

So the argument of I don’t want to support this org because I want fedor in the UFC is the same as I want to buy or over value a non zuffa card because I want competition – regardless if the product is good or not.

I mean if Zuffa deserves to be the only ORG and have every single best fighter then it should be Zuffa’s business practices and innovations that determine that.

If a non Zuffa org deserves to be around it should be determined by the value they deliver, their business strategy, execution, etc…

Why try to break a caterpillars cacoon unnaturally – when it’s the caterpillars struggle to break said cacoon that will ensure it’s survival… once it becomes a butterfly?

Oh, and Ill probably wind up making more coin… but that’s just an after thought :)

by mmalogic on Jan 25, 2009 5:53 AM EST up reply actions 2 recs

Meanwhile a bigger and older butterfly is duct taping the cocoon shut?

Also, have we ever seen you on a Dana blog? =P

by iiowyn on Jan 25, 2009 12:05 PM EST up reply actions 0 recs

Honestly this is where I think the numbers generated by the IFL and EliteXC and the other’s in the MMA graveyard really hurts the sport. With the exception of Zuffa the financial research information on the sport looks really bad (and even Zuffa had a rocky past). It doesn’t take much research to get a real ugly picture of the business behind the sport and these big spectacular failures make it all the more visible.

by who me on Jan 25, 2009 2:07 PM EST up reply actions 0 recs

8 million?
“Conservative” is a….conservative way of putting that estimation.
I would say that number is, at best, half of what was spent.

by Simco on Jan 25, 2009 3:48 AM EST up reply actions 0 recs

Probably a 3 million ad budget, arena costs aren’t high. I don’t see where they spent over 10 million.

by Michael Rome on Jan 25, 2009 3:52 AM EST up reply actions 0 recs

Yeah people definately overestimate Arena costs

My high school raised enough money to rent out Arco Arena for my classes graduation back in the day. Arena’s are not million dollar investments

Gimme 1 Round!

by skwirrl on Jan 25, 2009 4:18 AM EST up reply actions 0 recs

Maybe, but I’m sure that the rate Arco charges depends on the type of event being put on.

by Jahbulon on Jan 25, 2009 12:16 PM EST up reply actions 0 recs

They will squeeze as much as they possibly can out of the renter. Y’know because they can, and that is business.

by iiowyn on Jan 25, 2009 12:27 PM EST up reply actions 0 recs

Just think about it in terms of the % of the facility being used, utilities, wear and tear, clean up, etc. If a bunch of 3rd grade girls wants to rent my house for a slumber party on a Wednesday night, they’re going to get a much cheaper rate than a bunch of frat boys who want to throw a kegger on a Saturday night.

by Jahbulon on Jan 25, 2009 12:40 PM EST up reply actions 0 recs

Arena’s don’t make money unless events are booked so the rental cost isn’t much compared to other expenses for a promotion. Considering the arena makes $20 per parking for around 3000-4000 vehicles plus an average of $10 per person at the concession stand they can afford to offer a reasonable rate. Also, the Honda Center is desperate to book any event, they only have a hockey team.

by bignerd on Jan 25, 2009 9:32 PM EST up reply actions 0 recs

How much did Affliction pay AA

or Fedor or Randy or Barnett to wear their sponsered clothing when not fighting for them? I’m sure it was quite a bit as it is.

Gimme 1 Round!

by skwirrl on Jan 25, 2009 4:15 AM EST up reply actions 0 recs

Does anyone know if there is any truth to what Larry Merchant said about ODLH involvement?

by who me on Jan 25, 2009 4:27 AM EST up reply actions 0 recs

1.5 mil?

wow. way overpaid IMO – or those in the UFC are way underpaid.

www.fromthecage.com

by JoeyKT on Jan 25, 2009 2:51 AM EST reply actions 0 recs

Oof. No wonder T-Shirt Guy and Oscar were talking in "if"s and "hopefully"s at the presser afterward.

by Chris Nelson on Jan 25, 2009 3:52 AM EST reply actions 0 recs

Did you attend the presser or see it online? What else did they say? Any info would be appreciated.

by thesource on Jan 25, 2009 4:09 AM EST up reply actions 0 recs

Just one main event fighter in UFC 91 made more than Andrei and Fedor combined…

by mmalogic on Jan 25, 2009 4:23 AM EST reply actions 0 recs

Finalized buys in on that fight?

by Michael Rome on Jan 25, 2009 4:24 AM EST up reply actions 0 recs

It’s never finalized bro… it’s always an accurate estimate for months.

It remains pretty accurate though.

by mmalogic on Jan 25, 2009 5:01 AM EST up reply actions 0 recs

No he didn't

Fedor makes close to 2.3 Million.

And only 300K gets reported to the US government for taxes. The other 2 million is off the books and paid by M-1

Gimme 1 Round!

by skwirrl on Jan 25, 2009 4:25 AM EST up reply actions 0 recs

yes he did :)

1 fighter made more than both combined.

if you add another main event fighter they double what both did combined.

by mmalogic on Jan 25, 2009 4:59 AM EST up reply actions 0 recs

Whats Lesners PPV%

??? I thought they got table scraps as far as percentage. When Chucky and Tito did a million buys Chuck made like 2.5 million with PPV.

Gimme 1 Round!

by skwirrl on Jan 25, 2009 5:13 AM EST up reply actions 0 recs

chuck made over 10mil in one year before affliction entertainment knew what its dick was.

by mmalogic on Jan 25, 2009 5:22 AM EST up reply actions 0 recs

$1,500,000.00!?!?!?!?!?!?!?!?!?!?

$7700 a second in that fight

They spent the gate (you know because all those people bought tickets) on The Pitbull.

WOW!

by RipeTide on Jan 25, 2009 7:25 AM EST reply actions 0 recs

Affliction’s Pay Strategy:
1) Take UFC pay
2) Add zero
3) ?
4) Turn a profit

by Ubernoober on Jan 25, 2009 9:22 PM EST reply actions 0 recs

I figured payroll would be the same because they cannot reverse some of those contracts. I also know they drastically cut the advertising budget to save dollars. Ticket sales won’t be that far off from the first event, it will be lower but not abysmal at all. It’s difficult to expect PPV numbers to be higher given the advertising plan. I felt Affliction was just trying to survive this with a loss they could live with.

With all that said I honestly feel they are making some in roads. Fedor was by far the most popular fighter at the event and he is suppose to be some unknown Russian. If I bring up Fedor in a conversation a lot of people ask, “is that the 36 second guy?” so the promotion has succeeded in some exposure. I really felt Fedor got over on the American audience this weekend. He is going to be a legit draw from this time on. If he keeps winning, Affliction can actually cut their payroll drastically after the 3rd event and formulate a business plan that makes money. He really is like having a Lebron James on the roster, if management can figure out the rest he is going to lead them somewhere.

by bignerd on Jan 25, 2009 10:01 PM EST reply actions 0 recs