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Go Back  Sherdog Mixed Martial Arts Forums > Fight Discussion > The Heavyweights: UFC and WEC > UFC is not cheap - Market Value

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Old 07-15-2007, 10:14 AM   #1 (permalink)
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UFC is not cheap - Market Value

The UFC is offering fighters what their market value is. Some of you simpletons might say wait a minute, if it is market value, why is K1 offering 10x more to some fighters? The simple reason is that they are in a DIFFERENT market. K1 is huge in Japan and was a bigger promotion than PRIDE. I have never seen a K1 MMA match for sale on PPV in the US.

Again, more simpletons might suggest that since the EliteXC organization offered the same amount as K1, that the market is closer to that number. Again, this is false logic. Simply because one organization is offering a shit ton of money to fighters, does not mean that is what the market dictates. See the WFA and IFL's financial situations for more examples of this.

Another fanboy argument is that other major sports pay out millions. Other major sports have been around for well over 100 years, in some cases. Other major sports are on national broadcast television, have multi-billion dollar revenue schemes, and have player unions. Boxing promotions RARELY pay their undercard fighters more than the UFC pays their undercard fighters.

Dana White's #1 goal is PROFIT. Zuffa's #1 goal is PROFIT. They are a business. Their market is in the US and somewhat in Europe. It is not in Zuffa's interest to pump a lot of money into overhyped Internet legends when in MMA, there are no guarantees. The Cro Cop signing backfired in their face. Noguiera was less than stellar against Heath Herring.

For the simpletons: Zuffa = Money. Zuffa can potentially use money if they sign unknown (in the US) fighters to big money.
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Old 07-15-2007, 10:24 AM   #2 (permalink)

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Oh boy..another MMA pay discussion. I'm just gonna stay out of this one this time. It just leads to circular arguments amongst a bunch of 15 year olds who don't even have jobs yet pretend to understand the workings of multi million dollar companies.
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Old 07-15-2007, 10:25 AM   #3 (permalink)

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This isn't going to be a popular thread.
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Old 07-15-2007, 10:26 AM   #4 (permalink)

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Originally Posted by Hoids View Post

Dana White's #1 goal is PROFIT. Zuffa's #1 goal is PROFIT. They are a business. Their market is in the US and somewhat in Europe. It is not in Zuffa's interest to pump a lot of money into overhyped Internet legends when in MMA, there are no guarantees. The Cro Cop signing backfired in their face. Noguiera was less than stellar against Heath Herring.

For the simpletons: Zuffa = Money. Zuffa can potentially use money if they sign unknown (in the US) fighters to big money.
how do you know?

how are you so sure, that Zuffa's main goal isn't to GROW the sport, then sell it to a Private Equity group for billions of dollars???


that has been the big trend in Business for the last 5 years or so.. Profits are what non-business people talk about. Growth is where the money is at.

But I do agree Dana is paying them what they are worth.

If not, then why don't they go to elite, or K1? or better yet, why not start their own company.

Think about this. (for all of you who do not know business...) The main reason a person does not start a company is barriers to entry.

Try starting a lawn care business you need mowers, labor etc... (the equipment is the barrier). As is the lost income from leaving your current, prior job.

Try starting a software company to rival Microsoft and you need: Engineers, Logistics chains, accountants etc... Let alone the knowledge on how to write a code as complicated as any OS.

Try starting a new MMA company and what do you need????? Fighters, and what else???? umm... I am gonna stick with Fighters and fighters only.

If they hated the UFC so much, about 15 of them could leave and form their own org... fight a few matches, and bring in more talent. It would take no money (the PPV and TV companies would pick up the tabs, let alone outside investors).

All they need is THEIR NAMES. Nog, Cotoure, Lidell, W. SIlva etc.... not real hard. No barrier to entry.

So why don't they do it? because they are adequately compensated in the UFC.

This isn't the NFL where the league has a multi billion dollar TV deal, and it is in the interest of about 500+ companies for the NFL to succeed.

In MMA, anyone can break off anytime, start their own league, and take a shot at it.. Look at IFL. Or Bodog for that matter.

They don't do it more often, because they are not underpaid.
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Old 07-15-2007, 10:32 AM   #5 (permalink)
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Old 07-15-2007, 10:33 AM   #6 (permalink)

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That picture is awesome!!
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Old 07-15-2007, 10:33 AM   #7 (permalink)

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Again, more simpletons might suggest that since the EliteXC organization offered the same amount as K1, that the market is closer to that number. Again, this is false logic. Simply because one organization is offering a shit ton of money to fighters, does not mean that is what the market dictates.
Um, yea it does brilliant guy. Just like when one team in the NFL does something ridiculous and offers someone at a certain position a ridiculous amount of money it then gives every other player at that position a new amount to negotiate off of. So every player with equal stats will then get paid same and those with higher stats get paid more. Owners always fight over that shit. It may not be a preferable system but it is exactly how the "market value" is figured.

Quote:
Originally Posted by Brutikis View Post
how do you know?

how are you so sure, that Zuffa's main goal isn't to GROW the sport, then sell it to a Private Equity group for billions of dollars???


that has been the big trend in Business for the last 5 years or so.. Profits are what non-business people talk about. Growth is where the money is at.

But I do agree Dana is paying them what they are worth.

If not, then why don't they go to elite, or K1? or better yet, why not start their own company.

Think about this. (for all of you who do not know business...) The main reason a person does not start a company is barriers to entry.

Try starting a lawn care business you need mowers, labor etc... (the equipment is the barrier). As is the lost income from leaving your current, prior job.

Try starting a software company to rival Microsoft and you need: Engineers, Logistics chains, accountants etc... Let alone the knowledge on how to write a code as complicated as any OS.

Try starting a new MMA company and what do you need????? Fighters, and what else???? umm... I am gonna stick with Fighters and fighters only.

If they hated the UFC so much, about 15 of them could leave and form their own org... fight a few matches, and bring in more talent. It would take no money (the PPV and TV companies would pick up the tabs, let alone outside investors).

All they need is THEIR NAMES. Nog, Cotoure, Lidell, W. SIlva etc.... not real hard. No barrier to entry.

In MMA, anyone can break off anytime, start their own league, and take a shot at it.. Look at IFL. Or Bodog for that matter.

They don't do it more often, because they are not underpaid.
It isn't just the big names we are talking about, but anyway it's that easy to start a league? PPV would pick up the tabs? Bwahahahahahahahaha you are a business genius there warren buffet

Last edited by opusx : 07-15-2007 at 10:39 AM.
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Old 07-15-2007, 10:43 AM   #8 (permalink)

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That picture is awesome!!
Why do you keep posting and reading a thread, you call BS?
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Old 07-15-2007, 10:48 AM   #9 (permalink)

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Why do you keep posting and reading a thread, you call BS?
Why did you post in a thread you contributed absolutely nothing to? Besides to ask stupid questions?

***EDIT***

This coming from a guy who's post history is full of one line gems like "might be true", "ban this idiot", "wrong forum". At least if your going to be the "Sherdog Thread Substance Police" you could not be a hypocrite.
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Old 07-15-2007, 10:52 AM   #10 (permalink)
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Quote:
Originally Posted by Brutikis View Post
how do you know?

how are you so sure, that Zuffa's main goal isn't to GROW the sport, then sell it to a Private Equity group for billions of dollars???


that has been the big trend in Business for the last 5 years or so.. Profits are what non-business people talk about. Growth is where the money is at.

But I do agree Dana is paying them what they are worth.

If not, then why don't they go to elite, or K1? or better yet, why not start their own company.

Think about this. (for all of you who do not know business...) The main reason a person does not start a company is barriers to entry.

Try starting a lawn care business you need mowers, labor etc... (the equipment is the barrier). As is the lost income from leaving your current, prior job.

Try starting a software company to rival Microsoft and you need: Engineers, Logistics chains, accountants etc... Let alone the knowledge on how to write a code as complicated as any OS.

Try starting a new MMA company and what do you need????? Fighters, and what else???? umm... I am gonna stick with Fighters and fighters only.

If they hated the UFC so much, about 15 of them could leave and form their own org... fight a few matches, and bring in more talent. It would take no money (the PPV and TV companies would pick up the tabs, let alone outside investors).

All they need is THEIR NAMES. Nog, Cotoure, Lidell, W. SIlva etc.... not real hard. No barrier to entry.

So why don't they do it? because they are adequately compensated in the UFC.

This isn't the NFL where the league has a multi billion dollar TV deal, and it is in the interest of about 500+ companies for the NFL to succeed.

In MMA, anyone can break off anytime, start their own league, and take a shot at it.. Look at IFL. Or Bodog for that matter.

They don't do it more often, because they are not underpaid.

How can they grow it if they spend themselves right into the shitter? Since they are the only game in town and have no competition in the US, growth = profits at this venture. If they chose to reinvest the profits back into the company, fine, but they are still in it to be profitable.
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