Quote:
Originally Posted by Yamma King
this is sad and pathetic. i was starting to like dana white again but now im sickened by how he screws over the fighteres. 10% or 20%, that is ridiculous.
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Not saying it's fair but ...
1. 10% to 20% of gross revenue is much different than the same percent of profit. Figure retailers will mark it up roughly 100%. (In the agreements I've seen as a consultant, gross revenue is what the retailer ultimately charges, not the wholesale price.)
2. UFC has the marketing muscle to make this happen much better than the fighters do individually.
3. Never underestimate the acquisition costs (amount paid for each new customer or each sale, i.e. number of TV ads/number of purchases they generate, etc.) These marketing costs (even when you have the brand name of UFC) will eat into profit margins.
4. Logistical and overhead costs count too. UFC will need employees, office space, etc to administer this.
5. UFC has the monopoly power. So if a fighter or two says thanks but no thanks, they'll find enough other hungry fighters to still launch a good product. Nothing short of a union (sort of a monopoly power) will be able to counter this anytime soon. Particularly if I end up being the only one to purchase Affliction: Banned.
6. Ignore the "Not saying it's fair" disclaimer (because I don't think it's 'fair') and flame away.