Dana White and His 18 Millionaires
Dana White told Esquire recently:
White estimates that eighteen of his ultimate fighters earn in the millions per annum. Many others make in the hundreds of thousands of dollars. New guys make fifty to seventy-five, "depending where you are in the pecking order."
Zak Woods does a little analysis based on Dana's numbers:
Currently there are 219 fighters on the UFC's roster, if only 18 are making over a million per year that means 8.2% of the roster is making over a million.
...
Size Total Roster % of Roster paid
over $1million per/year
% of Roster paid
under $1million per/year
UFC 219 8.2% 91.8% NBA 452 83.6% 16.4% NHL 700 57.6% 42.4%
Why is this kind of analysis important? It is important to understand the tremendous chasm that exists between athlete pay between the major sport leagues and the UFC. If Dana White truly believes that MMA and the UFC will achieve a position of dominance within the sporting world in the next ten years these numbers will have to be dramatically different in that time.
Not much to add to this, other than to say, that any serious estimate of the numbers coming out of Dana White's mouth is obviously starting from a questionable premise.
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Here we go again…
It’s not an invalid point, but it would be worth looking at how much fighter salaries have gone up in the past 10 years and then looking at that as a projection for the future.
by TLow on Jan 25, 2010 10:19 PM EST reply actions 6 recs
Exactly
This is an unfair comparison considering how long the respective organizations have been around.
The real comparison should be as you said, the rate at which salaries have increased over the last 10 years.
I dont understand why people just love to hate on Dana and the UFC. They’re making huge strides in the sports progression, which has allowed us to enjoy tons of MMA. Chill out with the compensation complaining; if the fighters didn’t think it was worth it, they wouldn’t do it.
by FlyingFeint on Jan 25, 2010 10:26 PM EST up reply actions 2 recs
I can’t think if any reasons to hate UFC. I can think of 50+ to hate Dana and his HGH-face.
BOOSH
by Farthammer on Jan 25, 2010 10:43 PM EST up reply actions 1 recs
Then why isn’t every athlete in the world out there playing the big three sports? I mean seriously what the hell are all those beach vollyball players and kickboxers and surfers thinking? Professional athletes follow the sports that they love to play and are good at because they don’t really get to choose which sport they truly excel at. If they were just following the money they would all be doctors and lawyers and investment bankers because in general being a professional athlete is a shitty career move.
The median expected salary for a typical Professional Athlete in the United States is $29,484. This basic market pricing report was prepared using our Certified Compensation Professionals’ analysis of survey data collected from thousands of HR departments at employers of all sizes, industries and geographies.
http://swz.salary.com/salarywizard/layouthtmls/swzl_compresult_national_ar17000014.html
It’s not really any secret that the most popular sports attract the best athletes; it’s mostly due to exposure, but it’s not a coincidence that they also happen to be the best paying sports. America sucks at soccer because its drawing on a diluted talent pool—the country’s best athletes go to football, baseball, or basketball first. GSP may be utterly unique in the world of MMA, but there are dozens of athletes like him in every NFL locker room.
And that’s what MMA has to compete against. If the sport wants to grow and attract the best talent, it has to be seen as a viable alternative from a financial standpoint. An elite college athlete isn’t going to turn down the NFL because he wants to fight for $200 at an Indian Casino every other weekend.
by BrandonC on Jan 26, 2010 3:58 AM EST up reply actions 2 recs
All this article points out is how grossly overpaid some sports players are.
Paniczoo reincarnated.
by ziiiiing on Jan 26, 2010 7:12 AM EST via mobile up reply actions 1 recs
No it points out that their counterparts in other sports get a much fairer share of the profits
by KING FEDOR on Jan 26, 2010 8:49 AM EST via mobile up reply actions
Would you rather that money go to the “overpaid” owners instead?
Twitter: @Mike_Fagan_13
http://www.sackmikegoldberg.com
No, obviously not, are you naive enough to think thats the only option? Firstly, business owners make more money than their employees as a general rule, or do the SB Nation owners pay you millions for your great talent as a writer? NO THEY PAY YOU PEANUTS.
The money should go to developing sports and building public facilities for everyone to use instead of some brain dead twats with 10 car garages who promote the kind of shitty products that make the US population so stupid and obese.
Cheers for the patronising sarcastic comment by the way, great way to treat your readers.
Paniczoo reincarnated.
Yes the US sucks at soccer due to the fact that the US doesn’t really care about soccer, well except for the fact that it’s been the sport of choice for white suburban middle class families for decades now (soccer moms in minivans has become cliche in the US). Do you honestly think that a soccer team full of world class NBA athletes would be any good though? Being an athlete isn’t a generic description, all these guys are naturally good at different things and they gravitate in that direction growing up.
Do you honestly believe that there is this big pool of athletes out there that could excel at any sport but they just chose football? If that was the case then why don’t they all chose football? I mean what the hell were Tony Hawk and Tiger Woods thinking as kids, they should of been football stars. Only a very small percentage of football players ever actually make it to the NFL and even then only a very small percentage of those guys ever become rich playing. There are tons of young elite athletes out there who fail at their dream of making it big in football, heck we just had a whole season of TUF full of them. They didn’t perform up to expectations though now did they. Lets face it not everyone is good at every sport, it takes a very different athlete to play baseball and football because they are very different sports and there is a heck of a lot more involved in who plays where than just where the money is at. An elite college athlete isn’t going to turn down the NFL for any reason or any amount of money if he is a college football player to start with, of course only 1 in 100 college athletes ever make it to any of the major sports. The UFC will never be able to compete with the NFL for players but being as there are only like 1600 players in the NFL total there are still plenty of elite college level athletes that don’t make it. Of course why would they go to MMA from there? Amateur wrestlers make the jump to MMA not the 99% of college football players that never even play a down in the NFL.
Are you suggesting that certain people are just predisposed to being good at certain sports?
Twitter: @Mike_Fagan_13
http://www.sackmikegoldberg.com
I am stating that different sports are different and that there are very few people out there who excel at everything. Not sure why that’s hard to understand, you don’t see that many 300lb NFL body types playing in the NBA and you just don’t see multisport athletes that can compete at top levels in all those sports. The idea that someone is just athletic and thus they can play every sport at a top level is just very very rare in the real world.
You are wrong. White middle class suburban kids do get into soccer at a young age, but statistically very few stick with it past eleven or twelve. They either quit sports or move on to a different sport. Its because of that cliche, soccer in this country is viewed as a way to baby sit your kids, not a sport. As a soccer fan its annoying.
The man know simply as "Christmas Cheesesteak"
How am I wrong when I didn’t disagree with what you are saying at all. The point was that soccer isn’t a big sport in the US due to the fact that it only has limited appeal not because there are no good athletes playing it young. Everyone of my brothers played soccer growing up and two of them went to college on athletic scholarships so yes they were very good athletes they just lost interest in soccer (and no it wasn’t because of future money, they both just preferred track and cross country running as their sports of choice and that is what they were best at).
It’s not like there’s a genetic pre-disposition that says an athlete can only excel at one sport. A majority of athletes in the NFL/NBA/MLB played multiple sports at one time in their lives and made a conscious decision to focus on a single one, sometimes because of aptitude, but often due to scholarship offers and professional opportunities.
In an ideal situation, MMA becomes appealing enough that those athletes who were once raised on stick-and-ball sports from a young age can now train in Mixed Martial Arts as well. But that requires widespread cultural acceptance and greater financial incentive, and that’s little more than a pipe dream at this point.
They chose due to which sport they were most interested in and which one they excelled in not due to financial concerns. Playing multiple sports in high school doesn’t mean that your good enough to play them all in college or they you are even good enough to play any sport professionally. It’s not all about genetic pre-disposition it’s just about the fact that every sport is significantly different in a lot of ways. Football and Baseball and Basketball require very different skill sets and athletics. Same as the ideas of athleticism and body type and conditioning for MMA and pro football are drastically different. Young athletes aren’t blank slates you can just imprint with one sport or another they are all different and different things they excel at doing.
They’re thinking “I wish I was good at football, baseball or basketball”
Editor - BloodyElbow.com - SBNation's mixed martial arts headquarters.
MMA Editor - SBNation.com
by Brent Brookhouse on Jan 26, 2010 2:57 PM EST up reply actions
Seriously, I have to be honest, this site seems to hate on Dana and the UFC alot I’ve noticed.
by KRS827 on Jan 26, 2010 10:04 AM EST up reply actions 1 recs
poor BE
I find them very critical of SF as well, specially how SF is handling Herschel and Lashley, but I guess those don’t count as being critical.
they’re not even putting UFC on a bad light IMO, their just calling out DW on what DW himself said, but all of the sudden they’re haters for doing so. people need to learn how to take positive criticism of their favorite promotion, this is a healthy debate, it got us talking during a very slow news week so I say it’s good. But we could do without the ‘haters’ talks.
Pain is Temporary
Pride is Forever
Then leave. If you think we have an agenda against the UFC, then leave.
Follow me on Twitter: @MMANation.
by Luke Thomas on Jan 26, 2010 12:08 PM EST up reply actions
Normally, I hate the "If you don't like it, get out of here!" rationale
but the people complaining about anti-Zuffa bias really should get out of here if that’s all they have to contribute.
The most simple solution I can think of would be for each staff member include the following in their signature:
If you find my writing to be biased against Zuffa, you are welcome to enjoy these alternative sources for your news.
http://sports.yahoo.com/ufc
http://www.ufc.com/index.cfm?fa=news.home
Or… you know… banhammer.
"Someone is WRONG on the internet. What do you want me to do? LEAVE? Then they'll keep being wrong!"
-Randall Munroe
Agreed, and you have to realize that the “team” sports are able to unionize while individual sports have a MUCH harder time in doing so because the UFC isn’t the only game in town.
Umm not to mention ...
that they play 82 games a fuckin season!!!! And they are on TV 82 games a season … and they have the ability to sell 20,000 tickets 41 times a year at their home arena.
When Chuck Liddel can fight 82 times a year and have fans still pay for tickets to go watch the show … maybe he’ll make 20million a year salary.
by Sauce on Jan 25, 2010 10:58 PM EST up reply actions 1 recs
Phillip Rivers doesn’t average $25 million a year over the span of his contract.
by ufc4 on Jan 25, 2010 11:12 PM EST via mobile up reply actions
Phillip Rivers at least has a portion guaranteed though.
by ufc4 on Jan 25, 2010 11:30 PM EST via mobile up reply actions
Yep
Signing bonuses and guaranteed money are a big deal in the NFL. Sometimes a player like Donte Stallworth will make 9.6 million dollars for 17 catches and get cut. Which is what he’s made off of Cleveland so far, and he’s totally getting cut.
Blackout612- "Wuts teh UFC?"
Ubernoober- "It like two guy who just stand and swing for fence and try to knock each other shit out it awesome"
by Blackout612 on Jan 25, 2010 11:34 PM EST up reply actions
Or Jamarcus
Blackout612- "Wuts teh UFC?"
Ubernoober- "It like two guy who just stand and swing for fence and try to knock each other shit out it awesome"
by Blackout612 on Jan 25, 2010 11:35 PM EST up reply actions
yeah
i forgot the major sports starting in the 90s too….
by cagefightonacid on Jan 26, 2010 1:13 PM EST up reply actions
All the hair fell out during Chuck’s Pride run.
Keep firing Assholes!
Mind numbing, tedious and ultimately self defeating.
by Ubernoober on Jan 25, 2010 10:22 PM EST up reply actions 8 recs
I know man, Dana lies all the time! All that stuff he said about Brock’s life being in danger was total BS! He was just trying to pull the wool over everyone’s eyes!
In reality Dana doesn’t lie, he exaggerates.
Keep firing Assholes!
Mind numbing, tedious and ultimately self defeating.
Wait, what?
How was it bullshit?
You do know the doctors thought he was gonna have to have surgery, have part of his colon removed and would have to shit in a bag.
You dont think thats serious? Yeah I guess not, Dana saying its not looking good, we dont know if Brock will ever fight again, he is in bad shape, thats what Dana said, but that was total bullshit, the hole in his stomach, the doctors saying he might have to have serious surgery and might have to shit in a bag, thats not a big deal at all.
Its just Dana bullshitting the public right? Talk about stupid.
i think the analysis is kind of stupid
a. he’s not saying that zuffa pays them that much, just that they make that much. he’s probably including sponsorships and whatnot.
unless i’m very very wrong the nfl generates a helluva lot more revenue than the ufc. more nfl players make millions because the nfl makes more millions. that percentage zak woods makes is completely idiotic.by K Krush on Jan 25, 2010 10:23 PM EST reply actions 1 recs
Also a good point
NFL, NBA, and NHL have not only been around a lot longer, they generate way more revenue than the UFC.
by FlyingFeint on Jan 25, 2010 10:28 PM EST up reply actions
apples and oranges
Maybe he should compare boxing and UFC salaries.
by CrowCrucifix on Jan 25, 2010 10:24 PM EST reply actions 6 recs
This
Was what I was going to say.
Blackout612- "Wuts teh UFC?"
Ubernoober- "It like two guy who just stand and swing for fence and try to knock each other shit out it awesome"
by Blackout612 on Jan 25, 2010 10:31 PM EST up reply actions
Or perhaps compare salaries to what the guys in MLS or CFL make. Maybe I’m wrong but I would venture to guess that soccer in the US, football in Canada and MMA in the US/Canada makes for a better comparison…if people insist on making them.
Honestly, I don't
I don’t see the purpose in the comparison. The fact stands that mixed martial artists, in the UFC and beyond (DREAM, Strikeforce) are reaping increasingly higher paydays. It’s a good thing, not a bad thing. This is another doomsday story by Woods, because I may not live to see the day that the top fighters make KG money. I run a successful creative services studio, but I’m not making Weber Shandwick money and I never will. So should I create that parallel to judge whether or not what I’m doing is a qualified success? I get it that he said it’s going to be the biggest sport in the world, but he did say in a decade.
Blackout612- "Wuts teh UFC?"
Ubernoober- "It like two guy who just stand and swing for fence and try to knock each other shit out it awesome"
by Blackout612 on Jan 25, 2010 10:41 PM EST up reply actions
But if MMA has been around in its current form for only 10 years, the growth in the next 10 years would have to be LITERALLY exponential to reach Dana’s “biggest sport in the world” proclamation. That is, unless he’s predicting a collapse of other major sports and their infrastructure.
I don’t know why anyone takes this stuff seriously, it’s just promoter speak. Internally nobody at UFC, including Dana White, is ridiculous enough to believe this stuff. They laugh at people debating it on forums.
by Michael Rome on Jan 25, 2010 10:59 PM EST up reply actions
I like how this stuff gets posted on BE all the time then the writers act like we’re stupid for having a serious discussion about it.
by ufc4 on Jan 25, 2010 11:15 PM EST via mobile up reply actions 6 recs
It’s Dana promoter speak. if you can’t discern what to take seriously or not, well, I can’t help you. It’s kind of like debating whether Fedor really eats at Russian buffets all the time because Dana says it.
by Michael Rome on Jan 25, 2010 11:16 PM EST up reply actions
If it’s so worthless why do you guys always put an article on the front page everytime he says something like that?
by ufc4 on Jan 25, 2010 11:28 PM EST via mobile up reply actions 6 recs
I bet you can figure that one out on your own.
by smoogy2 on Jan 26, 2010 3:23 AM EST up reply actions 4 recs
Because anti Zuffa
articles are like Prozac for you?
by Riney on Jan 26, 2010 12:58 PM EST up reply actions 2 recs
I know the reason, but don’t use it as bait to draw us in then speak so condescendingly about us for talking about it.
by ufc4 on Jan 26, 2010 4:32 PM EST up reply actions 3 recs
Uhh really?
Your argument doesnt make sense. If you read the Esquire article Dana was boasting about the fact that his fighters make good money not downplaying. So if he were lying that means more than likely less fighters make less than a mil.
by andrewsj7 on Jan 25, 2010 11:39 PM EST up reply actions 2 recs
Seems like a serious analysis that you bothered to post on your site, why even bother analyzing it if it’s all just silly promoter-speak. And now that you’ve posted it, why knock people for giving their opinions about it. Also, why are you guys so butthurt about the UFC? Did baby not get credentialed? Waaaaaaaah!
You sound like the guy who owns Fight Mafia.
This grants me temporary amusement.
"Someone is WRONG on the internet. What do you want me to do? LEAVE? Then they'll keep being wrong!"
-Randall Munroe
Actually I own a critical mind that can see that many of the writers here post anti-UFC articles so regularly you can set your watch by them. It comes off as sulking, like they were slighted somehow, and the only thing I can think of is that the UFC didn’t credential them ala Sherdog.
Maybe you should use that critical mind to go back and rethink if you really do have a critical mind or just need to adjust your tin foil hat. Being critical for the sake of being critical doesn’t mean you actually know anything it just means you like to gripe about stuff.
by who me on Jan 26, 2010 8:25 AM EST up reply actions 1 recs
You might be right.
I just started coming to this site, its a solid site, they take stories from other sites and put them on here, so you get the stories from all the other sites like mmajunkie and weekly and shit, but I’ve noticed that alot of the shit on this site is anit UFC and Dana White, its kind of sad to be honest with you.
They will probably kick me off now, I actually got a warning cause I pointed out to one of the writers that he made a mistake about the Versus card and UFC Fight Night 21, I said he probably should check things before posting, and they gave me a waring saying they were gonna kick me off the site for that.
by KRS827 on Jan 26, 2010 10:09 AM EST up reply actions 1 recs
If I recall correctly
Luke was credentialed for the last UFC Fight Night and sat at the press table during the event. That “critical mind” of yours currently has no reasonable output. Maybe you should try running it on valid input instead of complains and douchery?
"Someone is WRONG on the internet. What do you want me to do? LEAVE? Then they'll keep being wrong!"
-Randall Munroe
NBA salaries.
UFC is a young league. You can’t compare the earnings and salaries for the UFC to NBA which makes billions every year.
2008-09 NBA TEAM SALARIES
By InsideHoops.com, updated Nov. 28, 2008
Dallas Mavericks: $97,496,177
Cleveland Cavaliers: $90,843,932
Boston Celtics: $90,096,624
Detroit Pistons: $87,461,049
Chicago Bulls: $79,519,753
Atlanta Hawks: $79,063,186
Denver Nuggets: $76,747,526
Charlotte Bobcats: $68,391,628
TOP 2008-09 NBA SALARIES
Highest paid NBA players:
1) Kevin Garnett (Boston) $24,751,934
2)tie Jason Kidd (Dallas) $21,372,000
2)tie Jermaine O’Neal (Toronto) $21,372,000
4) Kobe Bryant (LA Lakers) $21,262,500
5) Shaquille O’Neal (Phoenix) $21,000,000
6)tie Allen Iverson (Detroit) $20,840,625
6)tie. Stephon Marbury (New York) $20,840,625
8) Tim Duncan (San Antonio) $20,598,704
9) Tracy McGrady (Houston) $20,370,437
10) Ray Allen (Boston) $18,388,430
11) Dirk Nowitzki (Dallas) $18,077,904
12) Paul Pierce (Boston) $18,077,903
13) Shawn Marion (Miami) $17,810,000
14) Rashard Lewis (Orlando) $16,447,871
15) Michael Redd (Milwaukee) $15,780,000
16)tie Pau Gasol (LA Lakers) $15,106,000
16)tie. Andrei Kirilenko (Utah) $15,106,000
18)tie. Amare Stoudemire (Pho.) $15,070,550
18)tie Yao Ming (Houston) $15,070,550
20) Mike Bibby (Atlanta) $14,983,603
Read more: http://www.insidehoops.com/nbasalaries.shtml#ixzz0dgXXK27E
by snakecharmer1340 on Jan 25, 2010 10:26 PM EST reply actions
Just lol'in at
2)tie Jermaine O’Neal (Toronto) $21,372,000
6)tie Allen Iverson (Detroit) $20,840,625
6)tie. Stephon Marbury (New York) $20,840,625 (incorrect btw, he’s with some chinese team now and was with the celtics last year)
13) Shawn Marion (Miami) $17,810,000
nice contracts.
http://mixedmartialartsblogger.wordpress.com/
by Cory Braiterman on Jan 26, 2010 1:21 AM EST up reply actions
NBA contracts are ridiculous
Inactive players reaps many millions of dollars sitting at home because the contracts are fully guaranteed and players end up losing their talent or never getting where they should. With the economy so bad last year, you know who was the most sought after player at the trade deadline last year? Chris Mihm, because he had an expiring deal. It’s kind of stupid..
Blackout612- "Wuts teh UFC?"
Ubernoober- "It like two guy who just stand and swing for fence and try to knock each other shit out it awesome"
You think those are crazy?
Go back to the late 90s and early 00s. Alan Houston is probably STILL making money off that Knicks contract.
BOOSH
Yeah, that analysis is pretty silly. Compare NBA salaries to pro bowling salaries and we will see that the PBA has a long way to go in compensating their atheletes.
by Redravi7_2000 on Jan 25, 2010 10:29 PM EST reply actions 1 recs
Yeah NBA players are taller, studies show taller people make more money.
I dislike Matt Hughes. Shogun beat him like a dirty horse.
by MonkeyCHops on Jan 25, 2010 11:59 PM EST up reply actions
guys
all nate is doing is asking the obvious question, if DW can make the UFC the biggest sport as he’s trying to sell within 10 years time, than those numbers will obviously have to change. DW is the one telling us it’s going to be bigger than team sports (although most of us aren’t buying it), he’s the one putting his shoe in his mouth.
Pain is Temporary
Pride is Forever
by Orcus on Jan 25, 2010 10:35 PM EST reply actions 1 recs
How has he put his shoe in his mouth with this statement?
How does the salaries today compared to other sports have anything to do with where the sport will be in 10 years?
by Phildo on Jan 25, 2010 10:36 PM EST up reply actions 2 recs
no
all he’s saying is that ‘if’ the sport is going to be the biggest one, than the salaries have to change dramatically within 10 years time…
Pain is Temporary
Pride is Forever
So what does that have to do with comparing the two now? Salaries are changing and at the top end they are going up pretty fast. I’m sure the assumption is that if the UFC makes it to the level of the major US sports then of course salaries are going to also skyrocket.
The growth of the sport comes first not the salaries going up, raising salaries first doesn’t make the sport more popular. Heck as has been shown salaries rates are directly related to the money coming in to the sport. As the UFC grows the fighters salaries will go up and if they ever get to the level of the NBA then salaries will get to that level too.
by who me on Jan 25, 2010 10:52 PM EST up reply actions 1 recs
I agree
but most people here are misinterpreting what is been said in the piece, it’s not that we don’t think the salaries are comparible with the UFC’s growth (and increasing each year), it’s that it’s not going to be like big team salaries because at least in my point of view, it’s never going to be that big of a sport. The UFC will keep growing until it hits a certain point in which it will no longer grow, and that certain point is much lower than team sports IMO.
Pain is Temporary
Pride is Forever
We really have no clue where the sport will be in 10 years nor do we have a clue where the fighter payouts will be then either. We are all (Dana White included) just guessing at things.
Soccer in the US or Soccer worldwide? I would think it’s already bigger than pro soccer in the US but there is no way that it will ever reach worldwide soccer levels. I don’t see it hitting NFL levels but there is a heck of a lot of room for growth too, it very well could one day become a major sport in the future.
worldwide
but if you want a US example, than NFL will do just fine too. people need to understand that it will keep growing, but it will hit a certain level though and stop growing. that’s my guess anyhow, to think it could be bigger than team sports is way out of touch even as a guess.
Pain is Temporary
Pride is Forever
Again who knows what the future holds, 20 years from now MMA could be the only sport in the world or we could all be living on boats like a really bad Kevin Costner movie. I do completely agree that MMA fans currently over rate it’s popularity but really we don’t know what the future holds. It could be a fad sport with no real lasting power or it could be the Nascar equivalent for fight fans, who can tell at this point?
but ask yourself, do you think Nascar will get bigger than it already is? there is a certain level each sport reach that it can’t get any new fans (brain fart, don’t know the word for that I guess). Listen, combat sports are combat sports. the UFC can have great fights always, take a look at 108, but that doesn’t mean it’s always going to sell like they did 100 (don’t take this literally, I know as the sport grows the numbers will also grow, it’s just a proportional comparison). the masses takes interests in certain individuals from the sport and not just the brand, it’s always going to be like that. You can take boxing as an example, before they were in trouble and high on popularity it still would not bring any more new viewers in because that’s all they could get for a non-team sport. A team-sport will usually outsell individual sports, because it is not subjected to individuals, it’s subjected to the team. No matter if they are having a bad season the fans will watch their games.
Pain is Temporary
Pride is Forever
They all keep growing in general just as growth is always cyclical for major sports too. Sports that stagnate die. Even Boxing has it’s cycles but the very fact that there are way more people in the world than there was 20 years ago means that the sport is experiencing growth over the long term. Plateaus are going to happen as will growth spurts but long term trends are either growth or fading into obscurity, no sport stays the same and just last at that level.
I do agree that the difference between team sports and individual sport will have a great affect on things, without new stars there is no real growth in individual sports but that isn’t the end all be all of the story. It’s also that very fact that makes the future so unpredictable, one mega-star in the sport can be a real deal changer(think Tiger Woods pre-sex scandals)and there is always the possibility for one or more guys to come along over the years that could take the sport higher than it could get on it’s own without them. Those things we just can’t predict. NASCAR is one new mega-star from starting another 15 year growth spurt.
The PGA Tour earns about $800 million a year. Tennis is trickier to figure out, but it looks like the three major tennis organizations earn in the hundreds of millions as well. Oddly enough, it looks like “co-promotion” works in tennis.
Tennis is based on circuits and sanctioning groups not independent franchises, it’s cooperation between sanctioning bodies not company “co-promotion” where they are concerned.
True, but that seems to be a business structure that is both stable and conducive to the sport’s growth. The Grand Slam events are “co-promoted,” while each tennis organization controls separate circuits and tournaments. To me, that structure could be emulated in MMA, with four co-promoted cards a year being the “Majors,” and matching the best against each other, regardless of organization, while the other groups would structure their cards however they saw fit. UFC would still be the go-to organization for hybrid casual fans, but hardcores would follow the other organizations, while the real casual fans would only get stoked for the co-promoted “Majors.”
The real signigant point
is that no entity controls the tennis player’s rights, and therefore have no interest in protecting them and not risking their getting diminished.
Yup, that is pretty significant. Fighters would be better off controlling their own rights collectively, separate and apart from promotional organizations.
That would be a complete business model change from what we currently have in MMA with every organization that has ever existed in any country. That would be the major hurdle for your idea, it’s basically destroying Zuffa from the ground up and re-inventing it as WAMMA.
You say it like it’s a bad thing. I’m not impressed with the pro wrestling model as something that ca exist long-term. 10 years from now, a Zuffa version of WAMMA might actually be the structure the sport needs.
The pro wrestling model has shown remarkable long term stability in pro wrestling, it’s a viable business model. The big thing is that it’s a business model that makes Zuffa lots of money where as a sanctioning model (as in boxing) is a completely different animal. In entertainment terms it would be going from making and selling tv shows to just ranking actors by acting quality and hoping they will pay you for it. Good or bad it’s not really financially smart for Zuffa.
One could argue that while the WWF’s aggressive business model successfully drove its competitors out of business, it left the industry systematically weak, because it crippled the territorial system and developmental infrastructure necessary to create future stars. So now the free TV ratings are half of what they once were, while PPV buyrates are down, and WWE’s profits come from increased prices, and them exploiting their tape library for DVDs and OnDemand revenue. Their current core product is actually performing quite poorly.
Actually the WWE product isn’t performing that poorly at all, while not at their heyday levels their ratings are still strong and they are making more money than ever. Hell the WWE makes movies now, they have expanded their business globally and are into many different markets/industries besides just selling PPVs and weekly wrestling shows. What’s more they don’t have to worry about a competitor trying to drive them out of the business and still their market shares.
I don’t think that’s true, a huge part of NBA salaries ever going up was a union forming and the CBA. NBA revenues grew well ahead of salaries for years before unionization. I think there are a lot of factors that make a union in MMA unlikely, so I’m not entirely sure we’re going to see equivalent salaries even if the sport gets just as big. The UFC is far bigger than most NBA franchises but they pay out on a far higher scale.
by Michael Rome on Jan 25, 2010 10:57 PM EST up reply actions 1 recs
Unions are what set modern salaries and I agree that is what caused them to take the biggest jump but they would of never got to that point unless they got to that level of earning potential and mainstream recognition (does the NBA profit share like the NFL does?). There is also the fact that growth takes a lot more money in the early days than it does to run an established product, the UFC undoubtedly invest a much higher percent of profits back into the sport’s growth than the major ball leagues do. Of course the average NBA franchise doesn’t have 250 players on the team either (not to mention the huge differences in business structure both in front of and behind the scenes), the comparisons are just too complicated on numerous levels and that’s why these discussions devolve so quickly(although I do agree with your points here and lower in the discussion for the most part).
The profits reinvested point is fair, but from the analysis I’ve seen it looks like Dana and the Fertittas are pretty aggressive about cashing out with dividends.
I think the union also functions in those sports to protect the guys like the Gray Maynards of the world. In the current environment, fighters regularly in the bottom half of the top 10 in the world for years will likely retire penniless and injured. It’s unfortunate, and I don’t think anyone should delude themselves into thinking these guys are all rich.
I do think that will change, but the change isn’t inevitable.
by Michael Rome on Jan 25, 2010 11:20 PM EST up reply actions 1 recs
MMA unions just won’t happen for a variety of reasons (they are a mixed bag anyway) but that doesn’t mean that there aren’t substitutes that can help the fighters get more leverage and better contracts too. Change is inevitable it’s just that we don’t know what that change will encompass(hopefully it won’t make things worse). I have to wonder that if the sport gets big enough eventually the feds will stick their nose into it like they did with Boxing. The Mohammad Ali act really doesn’t transfer well to MMA but maybe one day we will have a Randy Couture act that will.
In general being a professional athlete is a sucky career move anyway, the vast majority of athletes in the vast majority of sports don’t make squat and even in the major sports there are plenty of Gray Maynards that get screwed over by the system. It’s good that in MMA there are people out there fighting the good fight for guys like that and things are getting better (MMA much pay is better now than it was 3 years ago even if for the most part it’s still piss poor).
yeah but you know, that’s the point. It’s the obvious question. Because I don’t think anybody fucking believes it. Not even mmalogic believes the UFC is going to become the biggest sport in the world.
The sad thing is that people are giving Dana White’s words way, way, WAY more thought and attention than Dana White does
Shaq: $21 million + sponsors. President Obama: $400,000 a year.
How do you like that stat.
by snakecharmer1340 on Jan 25, 2010 10:36 PM EST reply actions
Obama will make about $50mm after leaving office on “consulting”, book and appearance fees. Look up Clinton and GWB’s income after leaving office. He’ll be OK.
doncha know Africa is a country! and she can see Russia from where she lives! Palin 2012!
Pain is Temporary
Pride is Forever
by Orcus on Jan 25, 2010 10:49 PM EST up reply actions 1 recs
Clinton did nearly $200 million since he left office.
by snakecharmer1340 on Jan 25, 2010 10:47 PM EST up reply actions
And they say porn doesn’t pay.
Keep firing Assholes!
Mind numbing, tedious and ultimately self defeating.
by Ubernoober on Jan 25, 2010 10:48 PM EST up reply actions 3 recs
Obama only gets 50k for expenses. You have to admit that’s a crazy difference in salaries for the jobs.
by snakecharmer1340 on Jan 25, 2010 10:46 PM EST up reply actions
Yeah but Shaw is taller, studies show taller people make more money.
I dislike Matt Hughes. Shogun beat him like a dirty horse.
by MonkeyCHops on Jan 26, 2010 12:00 AM EST up reply actions
Shaw, as in Robert Shaw of “Jaws” and “The Sting”?
We're just a million little gods causin' rain storms, turning every good thing to rust.
by Anthony Pace on Jan 26, 2010 4:40 AM EST up reply actions
This is flawed in several ways
Firstly those league make significantly more in revenue then the UFC. Most of those league have more live events in a week then the UFC has in a year.
More money in, more money out.
The comparison is only valid if you were to compare revenues to salary expenditures and your not going to get those numbers from any of the sport leagues or the UFC.
by six_fish_charlie on Jan 25, 2010 10:36 PM EST reply actions 2 recs
If high fighters fought 82 times a year
they would make a hell of a lot more money. Competing 2-4 times a year is not a recipe for millionaires.
Woods roster numbers are WAY off
He is assuming that NBA & NHL team only employ one player per roster spot, when in reality teams will typically use a lot more players than that over the course of the season. NBA teams will often have as many as 20 player take the court for them due to injuries and guys getting cut for poor performance, plus they usually will have a handful of guys on payroll who never take the court.
I agree with Nate
It’s an outrage that prelim and midcard guys who don’t draw a single buy aren’t making millions.
by Dlanor A. Knox on Jan 25, 2010 10:42 PM EST reply actions
It’s easy to dismiss the low UFC pay by saying it isn’t a fair comparison. Even if you reduce it to a fair comparison, UFC pay is still shockingly low as a percent of revenue. I’m very aware of what fighters actually make, and once all the bonuses are in fighters are making something around 20% of the revenue the UFC brings in. This is compared to numbers in the 50% range in other pro sports.
Another thing about the UFC is that almost all the pay goes to the top 10% of fighters, I’d say their share is close to 80-90% of the payouts. Fighters like Gray Maynard…top 10 fighters in the biggest league in the world, basically make next to nothing.
Lots of straw men beatdowns in the comments.
I just grabbed this link at random off Forbes, it looks at the lakers in 2005: http://www.forbes.com/lists/2005/32/320250.html The UFC’s revenue is probably upwards of 350 million in 2009 all things included, if they paid out on the same level as the L.A. lakers, they’d be paying 42.3%, or about 148 million. In fact their payouts are probably closer to 70 million out of 350.
by Michael Rome on Jan 25, 2010 10:47 PM EST reply actions 1 recs
At the same time, it’s not the fact that leagues pay guys a lot that makes them major sports. It’s the other way around. Dana paying athletes better wages will not make MMA a bigger sport.
by Michael Rome on Jan 25, 2010 10:49 PM EST up reply actions 1 recs
But, to be fair, it’s the possibility of earning a high salary that convinces a world-class athlete who can compete in multiple sports to pursue one over another.
A perfect example is Herschel Walker. We’re getting him at 47. Imagine if we had a 21-year old version of him training to fight MMA.
This is true to a very limited degree. People really overestimate the degree to which young kids jumping into sports are comparing different options and the salaries. They want to be superstars—there’s a reason there are way more new MMA gyms than boxing gyms even though boxing stars make bigger money than UFC stars.
by Michael Rome on Jan 25, 2010 10:53 PM EST up reply actions 1 recs
To follow up on this, I think it’s very unlikely that at around 8 years old Herschel Walker looked into comparative football vs. basketball vs. baseball payouts and decided to go with football. It’s kind of a misconception that there are just great athletes who can jump in and do any sport professionally.
by Michael Rome on Jan 25, 2010 10:54 PM EST up reply actions
When I was 8, I wanted to be a firefighting cowboy
Only much later in life did someone inform me that the amount of water I could carry on a horse is extremely small, making it quite tricky to put fires out. Kids will want to do what’s cool to them. They don’t give a damn about money.
I think picking a running back doesn't support his case, too
Shortest average lifespan of any position in the NFL, but it is still widely considered the most desirable for high school and college football players. Everyone wants to be a running back because it’s glamorous, not because of the pay. If kids start dreaming of being mixed martial artists, they’re going to train to become mixed martial artists.
Blackout612- "Wuts teh UFC?"
Ubernoober- "It like two guy who just stand and swing for fence and try to knock each other shit out it awesome"
by Blackout612 on Jan 25, 2010 11:30 PM EST up reply actions
If they were smart
they’d become kickers.
I’m sure no kicker has ever had the serious concussion problems that plague most other NFL players. And their careers can be 20+ years. So, everybody, teach your kids to kick. You won’t regret it.
there’s a reason there are way more new MMA gyms than boxing gyms even though boxing stars make bigger money than UFC stars.
That would be because boxing gyms have already proliferated to a near saturation point, whereas MMA still lacks the infrastructure that boxing has. Furthermore, I never mentioned young kids. High schoolers are routinely pressured to switch sports by family members and coaches, based on a variety of factors, many of which are economic ones. Didn’t you read the series of articles about the basketball schools that proliferated in the former Soviet bloc countries, when they saw how lucrative an NBA contract could be?
Youth programs are often funded by people who want to cash in on future stars’ earning potential, whether through sponsorship or direct payouts. It can be argued that schools like AKA and Team Takedown employ modifications of this business plan, in its targeting of college wrestlers who are trained and developed for MMA. A direct feeder from high school, college, and Olympic wrestling programs is FAR more likely if MMA schools could pay signing bonuses and stipends to prospects.
I totally disagree
I know of 7 MMA gyms in my area. I’ve never found a single boxing gym, despite looking many times.
Thanks for posting this
I was busy looking up another NBA teams payroll versus revenue to make this same point.
In fact, I remember the two of us having nearly an identical discussion back around UFC 103 or 104. I think I’m going to go through the archives just to copy and paste my points from back then instead of trying to come up with any new insight into this.
by John Nash on Jan 25, 2010 11:05 PM EST via mobile up reply actions
very true...
and with the government of Abu Dhabi now having a share, I don’t think it’s going to change any time soon.
It’s just not relevant to compare the UFC to major sports leagues.
The revenue/expense model is totally different.
I dislike Matt Hughes. Shogun beat him like a dirty horse.
by MonkeyCHops on Jan 26, 2010 12:03 AM EST up reply actions 2 recs
This comment wasn’t very funny.
Blackout612- "Wuts teh UFC?"
Ubernoober- "It like two guy who just stand and swing for fence and try to knock each other shit out it awesome"
by Blackout612 on Jan 26, 2010 12:15 AM EST up reply actions
Why not analize Strikeforce payout also.
by snakecharmer1340 on Jan 25, 2010 10:53 PM EST reply actions 1 recs
Because it’s not the major leagues and not bringing in hundreds of million in profits?
by Michael Rome on Jan 25, 2010 10:55 PM EST up reply actions
Oh, so when you feel that Strikeforce has made it into the major leagues...
You’ll start posting regular articles about how they’ll fail ant day and you can’t trust that lying liar Scott Coker. You guys act like a spurned ex-girlfriend toward the UFC, dude.
Yes analyze Strikeforce payout with zero ppv revenue to the UFC. That makes perfect sense. The UFC pays fighters better than Strikeforce or any other mma org. There is that what you wanted to see.
by scrambledeggs on Jan 25, 2010 10:59 PM EST up reply actions
I’m sure the UFC pays fighters more just as I am equally positive that a higher percentage of revenue goes towards the fighters in Strikeforce.
by John Nash on Jan 25, 2010 11:13 PM EST via mobile up reply actions
It probably did in Affliction and EXC too and look where that got them.
Several fighters will get monster paydays in the short run and eventually all of them will be out of luck and looking for work.
What’s your point?
by Razreshat on Jan 26, 2010 8:36 AM EST up reply actions 1 recs
Thanks for this retarded percentage based analysis. NBA and NHL players play 82 games a year, UFC fighters fight 2-4 times a year. So go ahead and multiply every UFC fighter salary by 30 (or 20 or 40) and you’ll have a fairer comparison.
Seriously, this is just straight up retarded.
by IWillPartyHard on Jan 25, 2010 10:58 PM EST reply actions
You complain about a bad comparison and then used a dumber criteria. Congratulations. Should NFL teams multiply game salaries to reach an equivalent because they play 16 games instead of 82? Seriously.
by Michael Rome on Jan 25, 2010 11:00 PM EST up reply actions
The NFL is really a poor example because of the obsene amount of money their tv deals make them.
Having two opportunities to make money every year is simply a significant fact. There are NFL franchises worth more money then the entire UFC. If NFL players only played 3 games, then yes, they would make much less money, simply because the teams would make much less money. It’s a fact. The UFC might be a cash cow, but it’s got nothing on the NFL.
Nobody’s claiming that it isn’t. The only relevant criteria is revenue vs. salaries and expenses for athletes. All the other factors (games played, etc) are distractions that simply go into the overall revenue equation.
by Michael Rome on Jan 25, 2010 11:13 PM EST up reply actions
Fighters make 20% of the revenue compared to the 50-60% that players in the four major leagues make. How the hell does the number change that equation?
by John Nash on Jan 25, 2010 11:11 PM EST via mobile up reply actions
NBA and NHL players train year round as well.
If we were comparing percentages of revenue that go to fighters/players, fine. Then the argument can devolve into how a fighters union would raise that percentage (duh, it would).
But the article is comparing percentage of players/fighters that make over a million dollars. It is a pointless comparison considering the NHL and NBA have higher revenues than the UFC, and have 2,460 games per year, compared to the 20-30 events the UFC does a year.
The article is either very poorly thought out, or just meant to piss a bunch of people off, which considering the amount of irate comments, it has succeeded in doing so.
Some numbers to think about.
NBA Revenue 08/09: $3.2 billion
NHL Revenue 08/09: $2.4 Billion
NFL Revenue 08/09: $6.0 billion
MLB Revenue 08/09: $6.2 billion
UFC Revenue 09: $300+ million
The numbers aren’t even close to comparison, so, why are we comparing their percentage of millionaires???
by IWillPartyHard on Jan 26, 2010 2:56 PM EST up reply actions
It’s a hard to topic to deal with simply because of the backstage bonus issue. It pushes pay up for some guys so it’s not reported.
And anyone talking UFC revenues should know that half of the PPV money (about half of UFC’s revenues according to Lorenzo’s Congressional testimony) goes out the door right away to the cable companies.
The guys at the bottom are definitely underpaid, but as long as the UFC lives off of PPV bucks, the current salary structure is smart.
Agreed. But the other way of looking at it is that the PPV model puts a drag on profit growth AND compensation growth, one that could hinder the UFC’s expansion somewhere along the line.
Yes, that’s true. But if the biggest boxing match of all time generated $120 million in revenue from 2.4 million PPV buys, UFC 100’s $56 million in revenue for 1.7 million PPV buys, while impressive, is hardly replicable. However, the Super Bowl has 90-100 million viewers a year, selling ad spots at $3 million a pop.
At some point, to grow the audience to a respectable 15-20 million, comparable to the World Series, but 3-5 times the existing audience, they’ll need to ween itself off of PPVs as the main source of revenues, and onto network fees an corporate sponsorships, because a regular TV audience of over 10 million grows the sport’s fanbase faster than the 1 million regulars they have now. Bigger fanbase means bigger sponsorships, and more sponsors. It also means that its stars become bigger stars. Fedor jumped into relevancy by fighting on CBS, like Kimbo Slice before him, but while Kimbo has a larger than life personality, Fedor was aided in no such fashion. Could you imagine what Georges St. Pierre on network TV could do for his brand.
So while I agree that abolishing the PPV model right now is foolhardy, it should be in the company’s long term plan, because attempting to sell a million PPVs every time out is a path with lower upside than attempting to grow a fanbase on free(ish) TV.
I don’t think there are many fighters, let alone 57%+ of the UFC roster, that are worth remotely near one million dollars.
The quality of fighters able to have contracts in what is considered the biggest organization is a very influential factor on these percentages.
Compare the financial earnings of the varying sports to how long these athletes have been doing the sports on average and then act like this is a big deal.
We all know why this is
so why are we even having a debate?
Fighters have no collective bargaining.
Therefore, fighters have virtually no power.
If fighters have no power, there’s no compelling reason to give them a higher amount of salary.
Dana White, nor ANY OTHER BUSINESSMAN IN THE UNIVERSE, is in the business of giving people more money then they have to. The UFC isn’t a charity! If the NFL, NBA, NHL, MLB, or ANY other major sport could get away with giving their fighers 25% of their revenue, they WOULD DO IT. Instead, they all have collective bargaining agreements SPECIFICALLY telling the league what percentage of revenue MUST go to players. It’s great that we all think we’d give fighters more pay. If’ we’re so smart and altruistic, lets start an organization and topple the UFC with our incredibly generous payscale. Can we all hate on it? Sure, that’s our prerogative and right. But it’s smart business, and there’s simply no compelling reason for the UFC to change the status quo right now. We’re basically saying Dana White, the Fertittas, and the UFC should all just be nice guys and give the fighers more of their money. Why? What compelling reason could they possibly have? When they are forced to, they will. Until then, they won’t. I wouldn’t either.
Agreed
I hold no animosity towards Zuffa for making as much money as possible. As a company that is there job. But since a fighters’ union and collective bargaining agreement is currently a pipe dream, I am an ardent fan of competition. In this case Strikeforce. Sure they don’t pay as much as the UFC, but what people have failed to notice is how much more they have to pay second tier fighters to steal them away from Zuffa, and how much more Zuffa has to pay those same fighters to keep them out of Strikeforce’s hands. Pay doesn’t go up just because the boss is making more and feeling generous, it goes up because of supply and demand and competition for that supply and demand.
by John Nash on Jan 25, 2010 11:40 PM EST via mobile up reply actions
The only way that the NFL or any major sports league, should be compared to the UFC, is if they go by percentage. How much does the highest paid NFLer make as a percentage of the NFL revenue? Then he same for a UFC fighter.
Many MMA guys complain about not being able to train full time and having to work, but it hasn’t been that long since it was common for NFL player, MLB players, etc, to have normal jobs as well as playing their sport, especially in the formative years of the leagues.
No one ever talks about how little mid to low card SF fighters or even WEC fighters, make compared to their UFC counterparts. We shouldn’t blast Dana, when the uFC is paying the most of any promotion, in my estimation.
There is NO doubt, that if the UFC made NFL type revenues, the fighters would make major money.
If you compare the UFC to the MLS, I bet the average UFC fighter makes more than the average MLS player.
Well, in fairness
the most people who have ever watched a UFC event is less then 6 million, compared to the 70+ million who watch the superbowl every year. There is a major difference in terms of sheer eyeballs.
I think it’s more about age than it is about success.
Blackout612- "Wuts teh UFC?"
Ubernoober- "It like two guy who just stand and swing for fence and try to knock each other shit out it awesome"
by Blackout612 on Jan 26, 2010 12:16 AM EST up reply actions
That escalated quickly.
Like, that really got out of hand.
"Someone is WRONG on the internet. What do you want me to do? LEAVE? Then they'll keep being wrong!"
-Randall Munroe
by pdl on Jan 26, 2010 12:39 AM EST up reply actions 2 recs
Am I the only one who is impressed by these numbers. If you had asked me yesterday how many fighters I would guess made over a million a year I would have probably said around ten. Its almost double what I had guessed. Pay scale has come a long way and as long as the sport continues to grow so will the pay. Before the stats were distorted by those misleading comparisons I was impressed.
The man know simply as "Christmas Cheesesteak"
by Neil Manich on Jan 26, 2010 12:21 AM EST reply actions 3 recs
As somebody that has seen 3 of 4 Minnesota teams bailed out
I think the comparison is bullshit. Only the Vikings have not gotten public money for stadiums. How many teams need public money to be “competitive” and would not be able to make a profit without a jacked up stadium filling their pockets???
by Lynchman on Jan 26, 2010 12:41 AM EST reply actions 1 recs
The comparison is ridiculous,
but you won’t see any of the writers on this site point that out. They start swinging from the balls of anyone who comes out with an anti-Dana article. I wonder if they even know why they’re so mad at him?
So if we factored in and included all the public funds that these other sports leagues get what percentage of that total would the players then be getting?
Also these other major sports don’t have to pay to advertise their sport like the UFC does. Their TV partners advertise their product for them. So you would also have to subtract the UFC’s advertising budget from it’s revenue to be able to compare percentages on a fairer level as well.
Just BE.
by mattman73 on Jan 26, 2010 10:45 AM EST up reply actions 1 recs
Add in the percentage, whatever it is, that the UFC spends to grow the sport.
Gaining sanctioning in states like New York doesn’t come without cost, let alone international expansion.
We should compare this to the number of radio announcers that make in the millions compared to how many make, oh, say, 24k a year.
The comparison is meaningless. Then compare how many aspiring NBA players there are that make 0 dollars per year relative to how many make any money at all. Compare that to the number of MMA fighters aspiring to get a million a year.
While it is not exactly fair to compare what NBA or NFL players make to that of UFC fighters, i dont share in the opinion that these numbers are complete nonsense. Certainly, there are many professional athletes that are grossly over-paid but it doesn’t mean that UFC fighters should be making 3 and 3 or 7 and 7 either.
There has to be a happy medium reached somewhere. Without a fighters union, collective bargaining or legitimate competition, Zuffa will continue to pocket the lion’s share of the profits. If you analyze the percentage of profits that NBA or NFL players earn vs. that of UFC fighters, it is obvious that the current Zuffa business model is more concerned w/growing their own business and making a few fighters rich more so than paying the vast majority what they have rightfully earned as high-level professional fighters.
"It would appear that the strain was more than he could bear".- Doc Holliday
by MyFistYourFace on Jan 26, 2010 12:47 AM EST reply actions
Not gonna read through all the comments, but I keep seeing something like, “Those sports make more money.”
I did some really cursory research. UFC fighters, without considering unreported bonuses, are making (off memory) less than 10% of the UFC’s revenue. You can probably get that up to 12-15% with bonuses. All 4 major sports make 55-60% of total revenue.
It would be a better to compare this to the PGA, PBA, ATP, etc.
Twitter: @Mike_Fagan_13
http://www.sackmikegoldberg.com
I’m very aware of what fighters actually make, and once all the bonuses are in fighters are making something around 20% of the revenue the UFC brings in.- Michael Rome
Yeah, thanks for pointing that out. My guesstimates about that data were probably low. 20% sounds about right.
Twitter: @Mike_Fagan_13
http://www.sackmikegoldberg.com
Not correct.
I have spent a fair amount of time, in the past, on the revenue structure.
20-30% is, depending on the card, correct. Those with multiple guys getting a cut of the ppv are higher up.
UFC 100 did an estimated 1.5 mil buys. The UFC would get about 30 mil from that. Add the gate of 5.1 mil and you have a little over 35 million. GSP and Lesnar together made about 8.6 million, which is 22-24%. That is two guys. Add the rest of the disclosed (and Mir made more than the disclosed amount, that I do know) and you have about 28%. With backstage bonuses, it is likely around 30%.
I have looked at various UFC events and the ppvs always fall in that general range. No numbered event, since TUF, has paid out 10%.
It tends to be about 20%.
You’re not factoring in all the revenue. There is a lot of new international revenue that fighters have no part of in their contracts. Do you think they’re getting a dime of the money on the new TV deal in China or the new ones in Mexico or Europe? Of course not. They get no piece of the Spike money. They get no piece of the bud light deal. They get no piece of the Harley deal. They get no piece of the video game deal or DVD’s. They get no piece of the UFC.com revenue. They will get no piece of the UFC gym revenue. They will get no piece of the UFC magazine revenue.
It goes on and on. On shows with multiple big PPV guys, the percent is 25-30%+. But once you account for all the revenue everywhere, 20% is about right. Also, it’s worth noting that the PPV scales in contracts for fighters does not adjust with the UFC’s cut.
For example, say a guy like Rampage makes $3 per buy for every buy above 500,000. Now, imagine the UFC’s cut on PPV goes up from $22 per buy to $26.40 based on market share and UFC success on PPV. That would be a 20% increase. But Rampage’s rate would not increase to $3.75 per buy over 500k buys.
by Michael Rome on Jan 26, 2010 1:29 AM EST up reply actions
I’m not really trying to make a moral argument about pay, I believe the “right” number is whatever parties come to in an open market. I think however there are strong arguments that a few UFC tactics are open restraints on trade and that we don’t really have an open market.
Even then, I think the UFC has a choice to make in the next 5 years. Anyone who says a union is impossible knows nothing about sports history—nearly every commissioner of every sport that is now unionized said the same thing. It’s up to Lorenzo to either make the necessary changes to take away the case for a fighter’s association or just let it happen. Instituting better health care coverage and increasing the fighter share to 35% or so would probably make everyone happy enough to get rid of union incentives.
by Michael Rome on Jan 26, 2010 1:37 AM EST up reply actions
I will say it again.
Image rights will be one of the greatest wedge issues if a fighters union is to be made. Even high level guys who make good money are losing huge amounts of revenue by not having their image rights, and lower level fighters stand to gain from it as well. Pay disputes can be squashed by buying the stars and leaving smaller, replaceable guys to protest. Health coverage can go away with a strong public option and government support for all people. Dana’s obsession with lifetime image rights will be the catalyst for widespread organization.
"Someone is WRONG on the internet. What do you want me to do? LEAVE? Then they'll keep being wrong!"
-Randall Munroe
I have no problem with a union, but it would have to include, at least, all U.S. MMA fighters.
For the UFC to abide by certain rules and not others would be total bunk.
Why would it have to include all US MMA fighters? MLBPA doesn’t include the minor league players. NBAPA and NFLPA doesn’t include college players.
Twitter: @Mike_Fagan_13
http://www.sackmikegoldberg.com
Because the UFC competes with other companies for the services of fighters. For the UFC to have to ahere to certain standards while Strikeforce does not is BS.
by Lynchman on Jan 26, 2010 7:45 AM EST up reply actions 1 recs
a union would need to include all professionals to truly be effective, college players aren’t professionals by definition.
Minor league baseball players? NBAD league players? Minor league hockey players? These are all professionals.
Twitter: @Mike_Fagan_13
http://www.sackmikegoldberg.com
Where have you seen anything that suggests that the UFC gets an increase based on market? Looking the UFC, WWE and others, I have never seen anything that has ever suggested such a high percentage. You may know something I do not, but based on what I have read and heard from the few cable folk (mainly MN, WI and Iowa) I know, it is a set amount for almost all in the ppv business. From Meltzer to Payout and others, I don’t recall anyone ever talking about a sliding scale. The UFC likely gets about 20 for a regular broadcast and 22-25 for HD.
Also, if you want to include all of the UFC sponsorships, you really would have to include fighter sponsorships. Fair is fair, you can’t include one without the other.
UFC gym revenue: Some fighters (Penn, GSP) will get a cut of the money from the gyms with their name.
If you include every single bit of UFC revenue, you have to include all of the fighter revenue. I am just counting the actual event revenue.
…Fighters make next to jack shit in sponsorships. If you want to include those to make it fair, it wouldnt move the fighter percentage by a decimal. It’s one of the hilarious myth of the UFC pay apologists, go talk to any MMA agent about their fighters and what they make on sponsorships.
by Michael Rome on Jan 26, 2010 1:39 AM EST up reply actions
Really?
Some guys make significantly more off of sponsors than the promotion pays. Shockingly major names.
Local guys often make more money selling tickets and with multiple sponsors than the promoters give them.
Can you disclose who you heard makes next to nothing on sponsorships? Or some vague numbers at least?
"Someone is WRONG on the internet. What do you want me to do? LEAVE? Then they'll keep being wrong!"
-Randall Munroe
by pdl on Jan 26, 2010 1:53 AM EST up reply actions 1 recs
Rome is right.
Many sponsorship deals are designed to prey on naive fighters, especially fighter apparel deals. I can’t say more than that, but a fighter is lucky indeed if his sponsors are able to offset the cost of his training camp.
by Jonathan Snowden on Jan 26, 2010 9:31 AM EST up reply actions
Every few years they negotiate an increase with Joe Hand and the cable companies. It’s gone up by a few dollars…why would it go up or down at negotiation? The success or failure on PPV.
by Michael Rome on Jan 26, 2010 1:41 AM EST up reply actions
Maybe you know more than those in the field.
If you want to say that each card does not have a fair amount of endordsement money (paging GSP, Lesnar, Liddell, Ortiz, Couture), then you are full of it. Joe Lauzon offered up a breakdown on the forum that had him making 30-40k for one fight based on logos on shirts, shorts, hats and whatnot. Maybe Joe way lying.
Is 2-30 a fair amount? I think it shoudl be higher, but I also sit in a market that has bailed out 3 f**king pro teams and has an NFL team making it clear that they will leave if they don’t get a new stadium funded mainly by the public. Forgive me if I don’t cheer for the pathetic NFL, NBA, MLB and NHL business plans.
That was the Underground forum
that Joe was on. I think it was for the Florian fight, but I am not certain.
MMA reveune overall has a ways to go. As the sport has grown, so has overall fighter pay. Could the UFC pay more? Sure, but it is going to happen when more companies are bidding for the services of fighters. In that area, Strikeforce will play a key role, but that is likely a good year away.
Nate Quarry
made 60k for his UFN 19 bout. We know that Fight Mafia owes him 7700. That would be another 10% of his revenue. That one deal. Does anyone here think that Quarry did not make more?
Michael,
I really respect your writing and you, along with Leland, are the ones that I consider must reads on Bloody Elbow, but we may have to agree to disagree on some of this. I don’t doubt your knownledge, but I also have had heard enough from fighters and camp guys to know that most UFC and Strikeforce guys make some decent coin from sponsors.
MMA doesn't get Govt Subsidies
Every other single sport has such a sense of entitlement that cities are expected to build monuments to their sports and new ones every 20 years with constant remodeling. MMA organizers have to lease and pay for the cost of running their sport in cities so they aren’t able to overpay the fighters.
Just another case of a someone starting with an idea and only using the statistics they need to make that idea seem like it’s legit. Not nearly enough in-depth break down of revenue streams and expenses for this to mean anything other than someone had a point they wanted to convey and they used only the stats they needed to back that up without any regard for real fair and balanced analysis.
Just BE.
lol. laces out…..good times.
Gatti. Dekkers. Pele. Aoki. Kang. Vanderlei. Basillio. Harry Greb.
by theworldsoldestsport on Jan 26, 2010 11:57 AM EST reply actions
It is both alarming and pathetic that so many comments here demonstrate a serious lack of critical thinking and reading comprehension skills. If there were ever a reason to demonstrate why I visit the comments less and less, this notion that meaningful comparisons are out of bounds after Nate’s post are a shining example. This is just sad.
Follow me on Twitter: @MMANation.
By all means, run comparions, but it is also worth pointing out the major differences.
I totally admit I am upset by the taxes I have had to pay to cover the venues for the Twins, Wild and Twins. It is also likely to happen again with the Vikings.
For me, it is noteworthy that many sports teams need outside revenue streams to make a profit.
There may be some less than impressive comments here, but I also see some very valid points being made.
by Lynchman on Jan 26, 2010 12:27 PM EST up reply actions 2 recs
So you don't agree with several of the posts here
and you just call those people “dumb” because they don’t see it your way? Amazing. Unions are bad for business. Period. Unions are good for workers. Period.
And comparing sports with TV deals, private TV stations, and they are LEAGUES. I have no issues with comparing the UFC to any team. A sport doesn’t lose a great player, a team does. If the UFC lost Lesnar he would be with a rival promotion.
by Riney on Jan 26, 2010 1:08 PM EST up reply actions 1 recs
The Bulls, the NBA, and basketball as a whole suffered from losing Michael Jordan
when he went to play baseball. So… the team, league, and sport all lost a great player. Also, your ideas about unions are incredibly rudimentary and quite frankly ignorant.
To Luke: Sorry to disappoint, sir. There seems to be an echo chamber that half of the active posters make up. They are almost a caricature of MMA fandom…
"Someone is WRONG on the internet. What do you want me to do? LEAVE? Then they'll keep being wrong!"
-Randall Munroe
Your site is excellent, and your staff are, for the most part, extremely friendly and kind with their knowledge. I do enjoy your writing. That being said, I will never understand why you are so condescending towards your readers.
The man know simply as "Christmas Cheesesteak"
by Neil Manich on Jan 26, 2010 1:13 PM EST up reply actions 3 recs
I don’t understand the condescending attitude towards the readers either. Some opinions aren’t as well thought out as others but it would be nice if everyone was free to share their opinions and engage in discussion without being reprimanded for being inferior thinking idiots.
Just BE.
by mattman73 on Jan 26, 2010 2:19 PM EST up reply actions 1 recs
Meaningful discussion needs people from both sides presenting their viewpoints, even poorly thought out viewpoints. I can see getting upset about some of the silly attacks on writers in the comments section but not just because commentators have differing opinions.
by who me on Jan 26, 2010 4:56 PM EST up reply actions 1 recs
And there’s nothing more meaningful than comparing an MMA promotion that has been around for less than 2 decades to pro sports leagues that have been around a hundred years or more. And don’t say that it’s because Dana White said that it will be the biggest sport in the world in 10 years because your own Michael Rome has said repeatedly how stupid we are to take that seriously.
by ufc4 on Jan 26, 2010 4:31 PM EST up reply actions 1 recs
You seem to have created a website where people like to take a piss and claim their territory.
We're just a million little gods causin' rain storms, turning every good thing to rust.
by Anthony Pace on Jan 26, 2010 5:04 PM EST up reply actions
Like dogs.
We're just a million little gods causin' rain storms, turning every good thing to rust.
by Anthony Pace on Jan 27, 2010 2:52 AM EST up reply actions
MMA Payout
disagrees with this article as well.
I have to echo the comments of hleb and mattman in terms of condescending attitude towards posters. Luke’s comment actually has me re-evaluating just how much time I want to spend on Bloody Elbow.
by Lynchman on Jan 26, 2010 3:37 PM EST reply actions 1 recs
Here's an interesting rebuttal from mmapayout
A couple of things,
-If we are going to go by revenue, then Zuffa’s payroll looks terrible compared to the other major leagues. At $400 million in revenue, I am willing to conjecture they have no more than $80 million in total payroll, with the majority of it going to the top 20 fighters. Compare that to the 50-60% of revenue that the players in MLB, NBA, NHL, and the NFL get. In addition each of those leagues provide insurance, and pay for the training of their athletes, a luxury mma fighters don’t have.
- The UFC is new and growth takes time, fair enough. But isn’t it a lot to ask that fighters sacrifice now so that future fighters and the current owners make massive profits down the road.
Take Dana White for example. Not only is he thought to make a $2 million dollar a year salary, but he has seen his net worth grow from $200,000 when Zuffa purchased the UFC to $125 million now. In addition he has received millions in dividends, and probably another $10 million or more from Flash Entertainment. If the fighters have to wait for the maturity of the sport, shouldn’t we ask the same of the owners.
- You wrote "The growth of the sport – and fighter pay – will come in time." What guarantee is there of that? If the UFC accomplishes what Zuffa plans, to become the sole major league in mma, then what reason will there be for a greater share of the spoils being giving to the fighters? In capitalism pay is based on supply and demand and competition. If there is no other promotion even close to the UFC, then how will there be anyone competing for fighters and thereby driving up their wages? They will be a monopoly without a collective bargaining agreement. They will in effect be a monopsony – an imperfect market where many sellers only have one buyer. In this case, numerous fighters and only one major mma promotion.
And you should stick around. At least you can present a coherent argument. I think the part that is frustrating is reading the “Zuffa is evil” and the “How dare you say anything bad about Zuffa” posts. Those like you who can add to the debate are surely needed.
I think the part that is frustrating is reading the "Zuffa is evil" and the "How dare you say anything bad about Zuffa" posts.
Abso-fuckin-lutely. It takes up like 70% of a comment section and the same shit is always said. It’s a battle of keyboard warriors constantly drawing a line in the digital sand and daring someone else to step across it. I’m reminded of the scene in Gangs of New York where the two different fire departments get to the building, and instead of putting out the fire they get in a battle because the other one dared to show up.
We're just a million little gods causin' rain storms, turning every good thing to rust.
by Anthony Pace on Jan 26, 2010 5:09 PM EST up reply actions
Loved that scene in the movie and the bool. Although the movie comparison that always comes to mind for me is “Emperor of the North Pole” where Ernest Borgnine wants to kill Lee Marvin for having the temerity of trying to ride his train.
I’ve never seen that movie, but that scene sounds awesome. I love me some Lee Marvin, and Ernest Borgnine’s face makes me happy for some reason. I’ll have to check it out.
We're just a million little gods causin' rain storms, turning every good thing to rust.
by Anthony Pace on Jan 26, 2010 5:35 PM EST up reply actions
This will blow your mind
I wasn’t describing a scene, I was describing the whole friggin’ plot! Awesome flick directed by Robert Aldrich.
Only thing to keep in mind is that the studio dumped it, so basically it came out with a temp mix and temp score. Those are the only negatives to the pic.
Awesome.
We're just a million little gods causin' rain storms, turning every good thing to rust.
by Anthony Pace on Jan 26, 2010 5:47 PM EST up reply actions
This is such a funny stupid article. When the UFC has as many sponsors that pay as much as the NBA or NFL, then salaries will increase. For now, Condom Depot I doubt pays the way that Doritos does. Sure UFC has Bud and Harley (going bankrupt), but that doesn’t mean they pay nearly what they do for other sports. Doritos paid more for a 30 second commercial last year for the super bowl than Dana did for an entire UFC event. Not comparable. Along the lines of everyone else’ points, fighters fight at max 4 times a year, vs 82 in the NBA or 17 in the NFL.
by b_radical on Jan 26, 2010 7:16 PM EST reply actions 1 recs

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