How To Save the UFC
Loss of live gate and forced to rent an island to put on fights. But wait… fighters are still able to paid at the same rate? How much does the UFC really make during normal times? From not being given health insurance (as a fighter??), 1099 contracts with forced non-compete clauses, and no retirement support from the $4.2 billion company. Fighters learned they are only receiving 16% of the revenue generated. A brief history and analysis of how fighters and UFC management can improve working conditions and save the sport before it is too late…
When an NFL player holds out for more money during training camp, what happens? Are they given more money from their team? Sometimes. Are they allowed to enter free agency to check their market value? They absolutely are. Well, the reason this is the case, is because the NFL players has a players union that supports the player if needed to ensure fair play.
There is no such organization in the UFC. With their major stars holding out in the UFC, why are these not major stories? The UFC has lost live gate as a revenue stream but is still able to hold fights, rent an island in Abu Dhabi and save a WME company that is in freefall.
How are they able to pay the fighters the same amount of money if they are losing all this revenue due to Covid-19? Well, the fighters are taking notice and standing up to the big bad corporation (Screw Corporate *Andy Bernard Reference*). History shows that these holdouts will not be quick. And the issue will also rear its head to betting fans similar to how they affect fantasy football.
The consequences of these player hold-outs can even trickle down to the gambling industry, where bettors find themselves wagering on contract negotiations on top of the fights themselves. The rippling effects on the gambling industry manifest themselves when, for example, a Michigan fan goes to MichiganSharp.com to find out how to bet on their favorite fighters. Currently, fans can bet on Jon Jones (+120) vs Francis Ngannou (-140) even though the fight is not close to being announced and Jones is holding out.
This is obviously frustrating for fight fans and it affects football just the same when a running back holds out. While NFL players hold out for bigger money off their rookie deals, UFC fighters are holding out for above poverty level pay. For basic things like health insurance and retirement benefits. Whether it is fantasy football or sports betting, UFC could lose fans when their favorite fighters hold out for months on end. Then, without resolution, they typically return until they just can’t continue to survive without income. Poor business practice for a $4.2 billion company.
Note: When an NFL player maintains league status for 3 years, they qualify for a pension of $46,000 per year as per the new NFL Collective Bargaining Agreement.
A Brief History of Fair Payment Grievances in the UFC
Cung Le, Nate Quarry, and Jon Fitch Lawsuits December 16th, 2014
- The lawsuit claims that the UFC is not practicing fairly towards their fighters. When filed the 58-page court document that was filed in the state of California states,
“As part of the scheme, the UFC not only controls Fighters’ careers but also takes and expropriates the rights to their names and likenesses in perpetuity. As a result of this scheme, UFC Fighters are paid a fraction of what they would earn in a competitive marketplace.”
- The lawsuit claims the UFC as a monopoly after buying nearly all its competitors in 2014.
Why this is important
February 2020 New York Post Article: Sources tell The Post UFC’s fighters cost the Las Vegas promotions company less than $150 million last year — or under 16 percent of its $900 million in revenue. By contrast, Major League Baseball, the National Basketball Association and the National Football League all share between 48 percent and 50 percent of revenues with their players, data shows.
Randy Couture
- Former UFC Heavyweight Champion
- 13-month holdout to get his release from the company. Refused to fight for the UFC, wanted to go elsewhere. UFC would not grant release and forced him to fight for the UFC.
Why is this is important?
- Yahoo! Sports reported that Randy Couture was making $3 million per fight as their biggest star in the UFC. His actual per fight salary was about $500,000. A far cry from what media outlets believed he was worth.
- Randy Couture wanted to leave the company and go elsewhere so he could make more money.
- The UFC refused, drowned it out in court, and through undisclosed means, ended the lawsuit and got him to fight again under the UFC banner. (not everyone can live without an income for over a year)
Vitor Belfort
- “We are pretty much living in slavery. We can’t use our own sponsors; they are banned inside the Octagon… It’s a contact sport. I don’t think it’s fair for someone to earn 500 dollars to be elbowed in the face. There has to be a retirement plan, which does not exist now.”
Mark Hunt
- Former UFC Heavyweight was badly mistreated by the UFC throughout his career. Multiple lawsuits fought UFC star Brock Lesnar who was not required to take a drug test.
- Was dominated by Lesnar who later tested positive for Performance Enhancing Drugs. The only fighter to not be tested weeks leading up to a major fight.
Why is this is important?
- Hunt had not wanted to fight for several years. He sued the UFC for allowing Lesnar to go untested for their fight, through an “exemption.”
- “I want to finish my career, but I have to pay for this lawsuit against the UFC.” A union would help him with this lawsuit so the fighters do not take it out of pocket.
- Hunt on Dana White, “He’s a thieving little grub. That’s all he is. A lot of the fighters are scared to speak up about it. You’re actually fighters not just in the Octagon, but everywhere. To get guys like this to come around to kiss-ass these (expletive) guys like Dana White, it’s a joke.
Myles Jury’s breakdown is eye-popping of what a typical UFC fighter actually makes in this industry. Jury explains….
- Gym Fees- including using facilities and coaches, 5%–10%.
- Management Fees- responsible for negotiation and brokering- 20%
- Taxes- 1099 employees must pay Uncle Sam! 30%
- Medicals- Somehow the UFC does not pay medical bills, varies depending on damage but Jury says it can vary between $500-$1000.
- Miscellaneous- Nutritionist to help fighters make weight, bring training partners into the camp to prepare, coach’s flights to and from the fight location. This can range across the board depending on the fighter but Jury estimates about $1,000.
Why is this is important?
According to Myles Jury, fighters who make $20,000 a fight (most of the roster) lose nearly 50% of their salary to these costs.
Grey Maynard
- In 2011, Maynard had an all-time great headlining fight against Frankie Edgar at UFC 125. Maynard’s purse for that card was $26,000.
- The $50 pay-per-view received 270,000 buys and had a live gate of $2.17 million. Had he not received the “Fight of the Night” bonus (only one given per night) Maynard says he would’ve lost money as the main eventer.
Why is this is important?
- Maynard explains, “I think they know what they’re doing. They want to keep their fighters poor because it keeps them hungry, and they’ve gotten away with it all these years. They pay you on a tip system like you’re a stripper or something.”
Henry Cejudo
- The triple champ retired in March of 2020. When asked if he could be lured back into the company Henry said, “money talks.”
- Has been complaining about fighter pay for months and has refused to fight until he makes more money as a champion.
Jorge Masvidal
- See the tweet from Masvidal: “Please don’t compare us to these other leagues. I wish we can negotiate for less pay like the other leagues where the players get half the revenue they generate. We are negotiating from like what 12% to maybe 18% of the revenue we generate? We are negotiating down from way under”
Why this is important
- Masvidal is a huge star for the UFC. His fight against Kamaru Usman is on track to be the biggest PPV of 2020.
- Has said he will not be silenced or bought from talking about fighter pay.
- A willing participant in fair fighter pay talks inside the company.
Jon Jones
- Undefeated UFC champion in the UFC.
- Vacated the Light Heavyweight Title as he demands more money.
- Wants Deontay Wilder-like money- Wilder make $4 million per fight + PPV Profits… (about $10–$15 million a fight)
Why is this is important? Could they afford to pay him Deontay Wilder money?
- Jones typically brings anywhere from 500,000–800,000 PPV buys every single fight (like clockwork).
- On the low end, at $60 per pay-per-view, that is $30 million. All of this is not including live gate, advertisement money, and endorsements. In all, there is nearly $50 million to be spread throughout the card.
- Jon Jones on the high end brings in over $60 million per fight. This is easily in range of what Wilder brings in for boxing. Jones could easily make $10–15 per fight if he can draw 800,000 PPV’s+ per fight (a move to Heavyweight makes this easily possible).
Dana White VS Dominique Foxworth
Can be found here starting at 2:41.
Credentials
- Dominique Foxworth is a former NFL football player who was the president of the Players Association from 2012–2014.
- He has a Master's Degree from Harvard University and is a consistent contributor for ESPN.
This gained traction from UFC fighters across the board. Former fighter Brendan Schaub in his podcast “Below the Belt with Brendan Schaub” breaks down the video saying “can you imagine if the UFC had a representative like Dominique Foxworth?” Well, what would happen if they did? It could turn the sport on its head and jeopardize its future, pushing it to lengths similar to how boxing is a mess.
Why is this is important?
Having someone with a history in sports unionization is coming for UFC fighters. Whether it is Dominique Foxworth or another high-ranking union official, someone will need to step up and bring the UFC fighters some leverage.
The next article in this series will discuss what it takes for fighter unionization. The UFC does not want this to be a topic of conversation because it could cost them millions of dollars. Companies dating back to the 19th and 20th centuries have fought for fair pay and workers' rights. Fighting is a newer sport (UFC started in the early 1990s). This sport has a lot of catching up to do to avoid holdouts and walkouts amongst the fighters. They are the top company in the industry by a longshot and their fighters are grossly underpaid. The UFC will do anything to avoid a work stoppage and fighter strike. They need to get ahead of this before it spirals beyond their control.
