Is the UFC business model succumbing to the competitive market?
Ben Askren’s win today reinforces the reality that there are talented fighters in promotions around the world that could very well be title contenders and title holders in the UFC if given the opportunity.
Askren was quoted as saying that he may retire at the close of his contractual obligations with MMA promotion ONE. That is rather unfortunate as he is widely seen as the best welterweight fighter on the planet not in the UFC. While he is a competitive athlete, he is more financially inclined when making decisions with his fight career.
So this, along with recent developments in the MMA market, begs the question of whether the UFC’s business model will still be able to thrive in the coming years. Also, it doesn’t help that there are rumors the UFC is in talks to sell the organization to a Chinese mega investment company.
Generally there are two prominent features that attract fighters to sign contracts with the UFC: 1) ability to fight among the best fighters in the world; and 2) potential to create the best financial opportunity for yourself.
Both of these features are arguably weakening in today’s MMA world, and where one weakens so does the other. The major difference today in promotions not named UFC as opposed to just a few years ago is, simply, that they are able to create more and better legitimate financial alternatives for fighters. More and more fighters are taking, and even able to take, advantage of this fact to create for themselves financial opportunities that the UFC cannot and/or will not match. Recent examples include Benson Henderson, Matt Mitrione, Josh Thomson, and Phil Davis who have all signed with Bellator FC. Additionally, UFC fighter Rory MacDonald spoke out on the subject of free agency, much to the disdain of the UFC. Imagine if he were to leave the promotion at a time when he is considered a top three welterweight fighter.
And what happens to the UFC product when it can no longer lay claim to being the pinnacle of competition? What happens when a UFC champion’s contract runs out and they get an insanely better offer from another promotion? [contractual provisions are likely in place for UFC belt-holders that would keep them in the promotion but a fighter could choose to vacate the belt]. That honestly could be significantly detrimental. And it is very possible.
No matter how much the UFC tries to emulate other professional sports leagues, you can’t change the fundamental nature of prize fighting. People want to see who they see as the best fighting the best, regardless of promotion. Think boxing, tennis, and other individually based sports; unlike team sports, the existence of a central league is not necessary or demanded.
So while the UFC still, by far, has the name recognition value when it comes to professional MMA, it needs to treat the competitive market more seriously now than ever before.
It may only be a matter of time…and it may be inevitable, especially as the sport continues to grow.
