The contract details that UFC has offered to Eddie Alvarez are starting to come due to his pending lawsuit from Bellator. Eddie is close to a top 10 talent, has been in some exciting fights, and could find some success in the UFC, but he lost to the Bellator Champion only two fights ago, so why is he considered so valuable?
First let's start with the contract details as they are being reported multiple outlets -
-$250K Signing bonus
-$70K show / $70K Win, that goes up by $5K every win
-One Guarantee fight on UFC's Network partner FOX. (Big viewership numbers = big sponsorship money)
-PPV Cut - $1 per buy between 200K-400K; $2 per buy between 400K-600K; $2.50 per every buy over 600K.
These are some very solid numbers for any free agent fighter, much less one that isn't on a long winning streak, or a proven big time draw. Bellator has matched the contract, but due to the fact that Bellator doesn't do PPV's, their contract is not equal, and that is why this will be settled in the courts. But back to my point about why Alvarez is so valuable...
British Fans have Bisping, Hardy, Sass, Pickett, etc...
Japanese Fans have Okami, Gomi, Hirota, Mizugaki, etc...
Canadian Fans have GSP, MacDonald, Cote, Bocek, etc...
Aussie fans have Sotiropoulos, Lombard (by defection), Perosh, and now some TUF fighters, etc
Korean fans have Kim, Jung, Lim, and even Ben Henderson has embraced his Korean heritage.
Russians even have a few guys with Nurmagomedov, and Khabilov
UFC's next target Mexico has HW Champ Cain Velasquez, Erik Perez, and Joey "The Mexicutioner" Beltran... and some other quality fighters who have names ending with a z (Cruz, Sanchez, Benavidez, Diaz)
Who do Puerto Rican MMA fans have to cheer for? Jorge Rivera, at best a mediocre fighter spent part of his childhood in Puerto Rico, but he is now comfortably retired now. UFC has announced that they are going back Puerto Rico for a show in 2014, but who is going to headline? UFC loves to use talent that can pull the local crowd in. There is also a 800,000 strong Puerto Rican community in New York City, and just in case you missed the news, UFC has booked Madison Square Garden for their 20th anniversary show this November (Politics pending). NYC also has the brand new Barclays center in Brooklyn giving UFC another target arena. Anyone who has seen a Miguel Cotto, or Felix Trinidad fight in NYC knows that the Puerto Rican Fan base gets behind their fighters, and is passionate. Now Alvarez is not a native Puerto Rican, but he comes from Puerto Rican heritage, and with a lack of other options on the roster, he becomes very valuable to the UFC appealing to a ethnicity that has long supported combat sports, and has a great lineage of Boxing Champions. This is a lucrative market, and Eddie Alvarez could be the guy to help them cash in on it.