Originally Posted by samurice
The number one problem is the lack of competition the UFC has. They are the number one organization and no one can compete with them within the US right now. So they can pay their fighters shit, put on a crappy card every month, hype it up and end up with millions every month. Of course another big problem are the little guys who are letting this happen. The people downloading or watching the fights free on the Internet are not contributing to this problem as much as the people who actually pay. If the UFC can continue to pay their fighters as little as possible, they are going to.
This is someone who knows what they are speaking about.
I am in the entertainment business. I do concerts in large venues like the UFC, so let me explain to you how some of these expenses work.
A building to rent out costs you maybe $100,000.
The production costs wouldnt exceed more than $50 - $100k for the event.
Fighters salaries are minimal, lets call it $750,000.
marketing / promotions is probably a million, but remember, they do a lot of marketing within there own resources i.e. spike tv, website, emails etc etc...
Add that up and a UFC costs $2million MAX!!!
They make that back at the gate!
Even if they do half a million PPV buys at $40 and they net 75% of that, that is still $15mil net.
I dont care how much debt they ran up (I have no clue or idea), but know this. There is no way they havent been able to recoup a huge amount of money in the last few years with the sudden rise in UFC's popularity. Look at all the additional revenue streams that the UFC takes in.
PPV, Sponsorships, Gate Revenues, Merchandising (we all know people with tuques or hats). They are a big business and they are getting away with murder because they are able to. Where else can a 25 year old guy not have to work a 9 to 5, and go make $40k+ a year doing something they enjoy. We all either wish we could fight or be involved somehow. They are pimping these people, and let me tell you something, it could be a bad move if they dont start sharing the money with their fighters.
The big bucks is in the global appeal of UFC. You think it is coincidental that UFC is going to Montreal now that GSP is the champ? Do you realize how much bigger that is going to make UFC in another country. Thats how boxing makes its money. Intertnational PPV buys, hence the reason there are many european, spanish, mexican, and international fighters. The UFC has made their mark in the us and now they are expanding globally but not paying their fighters fairly. If they do Montreal, it is the smartest thing they ever did. They will gross record gate sales because of GSP's hometown appeal. You dont think he deserves at least a percentage of that?
I wont profess to know what they are getting paid, I have heard some stupid numbers, but there is no reason why a champion like GSP, or Chuck isnt making a million a year. Considring pro boxers can make anywhere from 1 million to 20 million a fight. They are the ones selling the fights and the PPV's and enabling them to expand.
Athletes are just that ... athletes. They are not business minded people, and all its going to take is 1 smart athlete to realize they are getting ****ed.
The music business is a totally different game. The artists make all the money. If I paid an artist like Madonna to perform at Arco Arena, I would not only have to give her half a million as a guarantee, but then there aer back end deals (bonuses/overages) which go 80% to the artist and 20% to the promoter. In the concert world, the artists realized they were the selling point so they got it covered. Just like boxing. Boxers get percentages and bonuses on PPV sales if there appeal helps sell fights.
I am doing a basketball game in canada this week. The game is an offshoot of the And 1 streetball tour. The guy doing the tour, is the premiere player for And 1. He gets $50k a year being the poster boy for And 1, which makes 100 million a year. He got fed up, so he started his own streetball league and he is not only charging a quarter of what an And 1 game costs to buy, but he is making twice the money.
The smartest thing the UFC can do is pay their fighters more so they can prevent anyone else from trying to start their own league.
Remember, their is huge money is prize fighting, all it takes is for a person with more money like a Donald Trump or someone on that level to decide they want to try it out, and as long as the UFC pays their guys properly, then they wont have to worry about anyone jumping ship.