UFC Merchandising Agreement - Fighters Get Scammed

[KJGould]

I think Dana is in danger of believing people go to a UFC event because it's UFC, and not who's fighting.

If the terms of the contract are true, no fighter in their right mind should sign it. UFC have ZERO merchandise if none of the fighters are onboard.

[FortheLoveofMMA]

sorry everyone, i tried staying up and responding to everyone, but i couldnt get on the forums for a few hours last night and fell asleep. Ill play catch up now.

[FortheLoveofMMA]

Originally Posted by KJGould

I think Dana is in danger of believing people go to a UFC event because it's UFC, and not who's fighting.

If the terms of the contract are true, no fighter in their right mind should sign it. UFC have ZERO merchandise if none of the fighters are onboard.

Which is exactly the point. Why should fighters sign away 90% of their potential revenues? Why not unify under one brand, make the sponsors/merchandisers come to them, and keep every bit of profit their likeness creates? This is what every other sport does, MMA fighters should be no different.

Companies would flock to sign fighters, if this were to happen.

[FortheLoveofMMA]

Originally Posted by lsa

please tell me the difference between MMA and UFC.
Because last time I checked UFC used the unified rules... which make them MMA.

I think you misunderstood what i meant.

[FortheLoveofMMA]

Originally Posted by SuperNerd

Wow, sherdog was not the place for this topic.

While some of the responses have not been well thought out, and honestly downright childish, its important that every MMA fan has a chance to review this Agreement and the hazards it produces.

I appreciate everyone that has taken the time to respond, even if their response was nothing more then 'Youre an idiot, stupidhead!'

[swirldog]

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.

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.

[swirldog]

Originally Posted by KJGould

I think Dana is in danger of believing people go to a UFC event because it's UFC, and not who's fighting.

If the terms of the contract are true, no fighter in their right mind should sign it. UFC have ZERO merchandise if none of the fighters are onboard.

In danger of believing it? I think, sadly, it's true. The IFL's Otto, in a recent interview, stated people have a blind loyalty to the UFC and want to trash anything different. Not saying the IFL was great (I went to 2 of their events -- the second because I had a relative who needed chaperoning and really wanted to go -- and wasn't overly impressed), but he's right. Read the posts on here.

Check out all the UFN>Affliction posts too.

[KOnah]

Even with that agreement being in the UFC stands to make successful fighters very rich men. In short if your not quality don't sign with the UFC.
And if your Fedor (or the like) you negotiate your own, personal contract

It does suck though. Sooner a genuine competitor to the UFC emerges the better.

[Kajun]

Originally Posted by p0id0g

why would the UFC let them out of an agreement? let's use a hypothetical example...

let's use diego sanchez. let's say diego signed one of these agreements, and then he went on a killing spree and won 5 fights in a row in devastating fashion and becomes a fan favorite. now because the fans like him and because he's proved his worth when contract time comes around he can say to zuffa "i will only re-sign with the UFC if we can work out new deal for licensing". the UFC comes back and says "we are willing to let you out of your licensing agreement if you take slightly less guaranteed money per fight on your next fight contract". and the negotiations go back and forth. if Diego Sanchez is a hot commidity, he can probably get out of that licensing agreement without giving up much else. if they don't cave in he can look to sign elsewhere that will pay him enough to where he can negotiate a buyout of his licensing agreement. this agreement does not put money into zuffa's pockets once a fighter leaves the UFC, so if someone offered to buy their way out of it, i'm sure they would listen. not ideal, but hey you did sign the contract at one point in time.

and as for the Andy Wang example, we don't know the exact definition of "likeness" that they speak of in the article, but i'm pretty sure it would mean Andy Wang associating himself in any way to his time in the UFC for profit. that's one we can't know for sure without knowing the exact details defined in the actual contract.

I still don't know how a licensing agreement would result in lower bids for a fighter on the market. if anything, it would drive up the asking price for an elite fighter under the agreement because it would take more incentive for a fighter to leave the UFC. but just like the rest of life, the asking price is ultimately determined by supply and demand - as in the supply of fighters at your level and the demand for them by the orgs.

You dont see how another company wouldnt want to sign a fighter that they cant use in any type of promotion work? Why would they pay you top dollar when they cant use you for anything other than fighting? No posters, Commercials, shirts, hats or anything else.

[M.M.A.SuPreMaCy]

ttt for AKA!