Originally Posted by jasvll
Maybe this will give the 'screwing the fighters' crowd pause.
Well, the article said this:
Furthermore, despite more than doubling operating costs from a year ago, the company remains profitable.
Doubling your costs and still remaining profitable means your margins have been pretty good.
For example, although an average show might generate $2 million at the gate (ticket sales), it generates at minimum roughly $4.8 million in pay-per-view revenue (assuming 300,000 buys and a 60/40 split between Zuffa and the PPV distributor).
Conservatively, that's $6 million per fight night. And what do the combined fighter salaries come to? For UFC 76, they were just under $1 million
. Figure in judges' salaries, refs, tickets, security, insurance, etc.... expenses might add about $250,000 per show. How many UFC PPVs in a calendar year? Multiply that by $4.75 million profit. Zuffa's done well for themselves.
I know Zuffa runs an office, has lawyers, a website, etc. Those annual expenses would be less than the profits of one PPV. It's Zuffa's game, their rules, their company, their original investment. As some have pointed out, the fighter's don't have to sign with them if they don't want to. Which might be starting to happen. Fedor said no, Couture's leaving... what's going on outside the octagon is more interesting than the product inside. Someday, somewhere, a promoter will show up and offer the fighters a combined 60% of the profits... opening their bookkeeping and all. If Zuffa's not the first to do it, they could be in for a world of hurt.