Post Strikeforce Purchase, Nate Marquardt a Potentially Cautionary Tale

The entire MMA world is abuzz with speculation about the cause and meaning of the release of Nate Marquardt from the UFC, an unexpected announcement distributed online by Dana White.  I have no special insight into the reasons for this action by the UFC, but assuming that health issues are not outright endangering Marquardt's fighting career itself, then his story (whatever it is, which we will apparently learn this afternoon and/or evening in various pre-fight statements released by Dana White,  Marquardt, and others) serves as a cautionary tale to other fighters currently on Zuffa's roster:  Following Zuffa's purchase of Strikeforce, the stakes have been raised and the consequences of being on the outs with the UFC are financially more painful than ever.

Zuffa and the UFC have been the biggest game in town for several years now.  But for much of that time there has at least always been a credible default number-two organization.  Affliction, EliteXC, Strikeforce all were fallback options to fighters who were in the big show and then shown the door.  These organizations were, to varying degrees, infamous for throwing more money at top fighters than was economically viable, which was a terrible business model for the promotions but great for the fighters who rightly were willing to accept what a promotion was willing to pay them.  Most recently, Strikeforce had emerged as a viable #2 and default top competitor for the UFC.  Anyone released from the UFC - with or without a lifetime ban - had at least the potential to land on their feet with a nationally recognized brand in Strikeforce.

But the Zuffa purchase of Strikeforce was the latest, and arguably the largest, in a series of industry realities, dictated by industry #1 Zuffa, which taken cumulatively deal a devastating financial blow to those unfortunate enough to be not only released by the UFC, but overtly on their bad side, or "blacklist" if you like.

• For several years the UFC has successfully counter-programmed the events (whether on PPV e.g. Affliction or, for example, on Showtime or CBS e.g. Strikeforce) of other organizations that it viewed as respectable competition with such attractions as Anderson Silva fighting live on basic cable or the re-airing for free of recent PPV broadcasts in their entirety. In this way the UFC has been able to take money directly out of the pockets of competitors and their fighters.
• In July 2009, UFC President Dana White announced that any fighter consenting to appear in EA Sports' MMA video game would never appear in the UFC again. White has since lifted that ban, but given the UFC's general protection of exclusivity and brand identity, such embargos will likely surface again.
• In late 2010, the UFC announced that MMA apparel companies who sponsor any fighters in any competing organization will not be allowed to sponsor any UFC fighters.  Therefore, apparel sponsors you see represented in the UFC, you'll see ONLY in the UFC, and vice versa.
• Most recently, in March, Zuffa did purchase Strikeforce, removing from their way the last major credible competitor the UFC had.  The UFC, starting with their explosion of popularity in 2005, has been able to either buy or otherwise bankrupt several nationally-broadcast organizations whose broadcast footprint, industry coverage and fighter talent pool were sufficient to at least garner mention in the same sentence with UFC: the WFA, the IFL, the WEC, PRIDE, EliteXC, Affliction, and now Strikeforce.

The cumulative effect of all of this on the fighters is that a temporary hiatus from the UFC in order to hone skills, pick up experience, and then return is painful to the pocketbook; and permanent expulsion, while not an outright death sentence to the fighter's career, represents a dramatic blow to their long-term earning potential.  Most fighters earn a living via a combination of fight contracts, sponsorships, and various other endorsements.  The UFC, who rightfully is protecting its own business interests and its billion-dollar brand, has as a consequence created a situation where they now enjoy a virtual monopoly in the national MMA space and those unfortunate enough to be exiled from the UFC for whatever infraction real or perceived can expect their earnings to suffer considerably from significantly smaller fight purses, from lower-paying sponsors, from greatly diminished exposure, recognition and demand.

Several fighters have been released by the UFC since the most recent piece of the Zuffa empire (Strikeforce purchase) was put into effect, but none of them have had the apparent sentence of lifetime exile which could potentially have been levied against Nate Marquardt. Without knowing the full story, we can only speculate at this time about his specific situation; but one thing is clear - following the purchase of Strikeforce, the fighters' downside to being shut out of Zuffa has gotten steeper than ever.