Already, this myth you have that the UFC is keeping all of the funds for themselves is just plainly wrong.

I am sorry, but the UFC (or more properly Zuffa) has made a ton of money.

It has been widely reported that the UFC generated $200 million in PPV revenue in 2006. (Check this story for just one example: http://sports.bostonherald.com/ufc/view.bg?articleid=190424&format=&page=4). True, as I understand PPV deals, they probably received about half of that. But something in excess of $100 million is not chump change. Plus, do not forget to add the money they have already made in 2007 to that total (with Chuck vs. Rampage reportedly giving them their most PPV buys ever)

Moreover, there is no reputable report that I have seen that states Zuffa paid $50 million for Pride. As Zach pointed out, if they paid that much they were suckers. All they got was a tape library and a completely broken promotion (although they also prevented anyone else from buying Pride).

Plus, the UFC made millions of dollars in live gate revenue. As Ivan Trembow reported in June 2006, the gate revenue of just the first 4 UFC PPVs in 2006 came to over $10 million. (http://www.mmaweekly.com/absolutenm/templates/dailynews.asp?articleid=2363&zoneid=1)

And, if you want to look at the full picture of the Zuffa’s revenue and profits, you would also have to count the money it makes from the Spike TV shows (even before it signed a multi-year $100 million deal), merchandise and sponsorships.

You also mention that the Zuffa reportedly lost $40 million before the Spike T.V. show, but the TUF show debuted in 2005 and Zuffa earned significant income that year as well.

With regard to the WEC, I have not heard seen any numbers, but I think it is unlikely that any losses are significant compared to Zuffa’s overall revenue, especially in light of the T.V. deal that the WEC signed with Versus.

So, I think there is ample reason to believe that the Zuffa and the UFC have earned a lot of money.

Finally, I do not claim that the UFC keeps all the money for itself – that a myth you created. But I do think that the UFC keeps a higher percentage of its revenue than owners/promoters in most other major sports, and they use their overwhelming market power to deflate salaries. IMO the fighters deserve to be paid more.

This makes the litigation versus Cage Rage very interesting to me.

I don’t know of any accounting standard would show the UFC brought in $200+ Million in PPV Revenues. If a company sold a car, then the entire sale of that car would go as revenues. If they have to pay another company for parts they made for them, then those would be expenses. But the structure of those PPV deals, they get half of that money. That money is being paid to them by InDemand or Time Warner. Working with financial statements every day, I can tell you that nobody with even a remote knowledge of how financials would work, would say the UFC brought in $200+ Million in Revenues for the PPV’s.

And that SpikeTV deal is for 6 years. That is around $16 Million a year. Have you seen the WWE’s financials and how much it costs to run events? And if the UFC is running the European PPV’s on SpikeTV, then a lot of that money is going to fighter salaries. Without knowing the exact details of that deal, it is impossible to speculate how much the UFC is actually profiting from it.

What we do know is very simple. They have lost money on each of their first two European Shows (Source: Dave Meltzer). This is mainly from advertising. They are losing money on the WEC shows (common sense). They have purchased 3 companies in the last year. They had to make up $40+ Million in debt to either a credit facility or to the owners of the company.

Start putting that math together, and I highly doubt fighters are getting screwed out of much money at this point. Now, in a few years, once their revenues have stabilized (and so has the sport) then fighter money should have gone up, and it likely will.

What Jeff said was very simple, and was while discussing competition: “UFC making $200 Million in PPV Revenues and seemingly paying a very small percentage of that out”.

As I have stated before, that $200 Million number is completely wrong. So what ever percentage he has in his mind, double it. Then, look at other similar business models. The percentage of athletes pay for the WWE compared to it’s revenues and expenses is very small. The athletes are a small margin of those revenues. Same with the IFL and Elite XC. The cost of running their companies is so high that in the scheme of things, fighter pay really is not the main expense.

Even if there was more competition, I don’t see fighter’s salaries all of a sudden sky rocketing.

I am listening to the Josh Barnett interview, and shame on the Fight Opinion crew for creating their own “UFC Is Made Of Money Myth”.

We brought on someone (Josh) who happens to agree with your stance and made the point during his interview. He did a pretty good job, in my opinion, advocating your side of the argument.

UFC did make an estimated $220 million USD in PPV revenue last year. You’re mixing up the term ‘revenue’ with ‘profit’. Combine this with the estimated $100 million USD Spike TV extension that they have either signed or are on the verge of signing and I’d say the group is doing pretty decently right now in terms of cash flow. Also, none of these figures take merchandising figures into account.

You really believe UFC paid $50 million USD for the PRIDE assets? Try $10-15 million USD maximum, unless they are total suckers. And with the Fishman lawsuit settled, we’ll never truly know unless the Japanese police or tax bureau goes after someone over there.

Who on our panel said that the UFC is keeping all of the funds for themselves? They’re certainly keeping a fair amount, that’s for sure. You’re putting words into our mouths now.

It was Jeff who stated that the UFC pulled in over $200 Million in PPV Revenues. That is just downright false. They get around 50% of that money and it can sometimes take up to a year to receive the money. In a likelihood, they took in around $110 Million overall. That is a huge difference.

Secondly, they have purchased the WEC, WFA, & Pride. They are losing money on the WEC right now. Let’s give a low estimate of $50 Million for Pride. Already, half of their profits are gone. And then the company lost $40+ Million before turning a profit.

Already, this myth you have that the UFC is keeping all of the funds for themselves is just plainly wrong.

I think the majority of fans Top 5 (in no particular order) is: Rua, Jackson, Liddell, Henderson, & Silva. The UFC has all 5 of these guys. Then look at the next 10:

K-1: Sokoudjou & Overeem
UFC: Ortiz, Evans, Nakamura, Machida, Lambert, & Sobral.
Undecided: Nogueira & Arona (both likely with the UFC at some point)

And with Overeem likely fighting at Heavyweight, it is nice to see that with the exception of Sokoudjou, to see all the top guys in one division so we can find out who is the best, no questions asked.

Now, the UFC just has to get Fedor & Barnett, and the Heavyweight Division will be in very much the same position. the Welterweight Division is basically all Zuffa. And the Middleweight & Lightweight divisions are so scattered across promoters that nothing will be resolved anytime soon.