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I'm typically a UFC defender (check my post history), but those terms seem rather harsh (and some of them would have difficulty in a court of law).
On the other hand (sadly), they aren't that different from what a lot of recording artists sign away. The American Idol contestants essentially sign their lives away to 19 Entertainment, which is rationalized on a similar basis (i.e. you wouldn't get any of this money if it wasn't for Idol/UFC).
Let's wait and see what the fighters actually end up signing. This is clearly the opening offer, which a fighter is under no obligation to sign. Some people will probably sign it without negotiating, others won't. The offer may/will change drastically if none of the fighters (or at least few of the key guys) opt in. They aren't going to want to release an action figure series without Liddell, Rampage and GSP (or whichever top guys you want to name).
Another point: currently fighters get no DVD or Video Game revenue, so this is all new money. If it wasn't for the exclusive nature of the agreement I wouldn't really have an issue with it. As this is written, it would curtail the business for Cage Fighter/Affliction/Warrior Wear because fighters wouldn't be able to have a signature shirt (by my interpretation of what the union guy is saying).
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"There are things that I believe that I shall never say, but I will never say that which I do not believe."
- Immanuel Kant
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