FanPost

UFC 168 Will Cost $5 More. The Reason? Pay-Per-View Points.


I should preface this by noting that it's a theory, and by no means confirmed. It's also impossible to confirm that anyone on the card receives PPV Points, as the contracts are protected by NDAs, (Non-disclosure agreements) preventing the athletes from discussing the terms. With that out of the way, let the speculation begin!

First off, how much does that extra $5 per buy actually make the UFC? It's not quite as simple as $5 x total buys, as the UFC have to pay a hefty cut of that to the carriers. How much is the cut? Most insiders estimate it at 40% of the total.

If UFC 168 sells 1 million buys, which isn't an unreasonable target considering the UFC are aiming for it to be the years largest event, they'll make about $3 million in extra revenue from that $5 price increase.

Now, I believe Anderson Silva, Chris Weidman and Ronda Rousey all receive Pay-Per-View points. As noted at the start of the article though, this isn't information that can be confirmed due to the NDA built into UFC contracts. What I *do* have access to, is the contract the UFC offered Eddie Alvarez, and the PPV points scale they were offering him if he became champion.

You can read the contract here, on Bleacher Report.

It states that the fighter would receive:

$1 for every buy between 200,000 - 400,000
$2 for every buy between 400,000 - 600,000
$2.50 for every buy above 600,000.

If we assume both Chris Weidman and Ronda Rousey are on similar contracts, the math tells us something very interesting. At 1 million buys, they would each make $1.6 million in PPV points. Coming to a total of $3.2 million. Almost exactly the amount the UFC would make from the PPV cost increase.

It's rare for more than one star on a card to be receiving Pay-Per-View points, and it might be the first time three stars receiving them have fought on one card. One would imagine the UFC generally budgets for one star (usually the champion) on each card receiving PPV points, but three would throw those numbers out a little. This one off price increase would likely cover that increased cost, almost exactly.

It might be a coincidence... But I doubt it.

\The FanPosts are solely the subjective opinions of Bloody Elbow readers and do not necessarily reflect the views of Bloody Elbow editors or staff.

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