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Rebok deal figures

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  • 06-05-2015 9:10pm
    #1
    Registered Users Posts: 4,604 ✭✭✭


    On Wednesday, the UFC officially released the figures that will be attached to the sponsored payouts athletes will receive under the new outfitting policy with Reebok that starts with UFC 189 on July 11.

    The deal signed in late 2014 will see Reebok as the titled sponsor for the uniforms worn by fighters during fight week, as well as in the Octagon.

    The new outfitting policy effectively eliminates fighters from wearing any other sponsored clothing or patches on their shorts or shirts with Reebok now taking center stage for all future UFC events for at least the next five and a half years.

    While the original announcement was made that the fighters would be paid based on rankings, the UFC has changed that structure and will now pay the athletes based on tenure with the company.

    The new pay structure is as follows (numbers are based on the athlete's status going into the fight with payouts made approximately 10 days after the bout)

    Champions will be paid $40,000 per bout

    Title contenders will be paid $30,000 per bout

    Fighters with 21 bouts or more will be paid $20,000 per bout

    Fighters with 16-20 bouts will be paid $15,000 per bout

    Fighters with 11-15 bouts will be paid $10,000 per bout

    Fighters with 6-10 bouts will be paid $5,000 per bout

    Fighters with 1-5 bouts will be paid $2,500 per bout.

    The payouts will be determined by a fighters total amount of fights in the UFC (Zuffa owned and pre-Zuffa era as well) and fights held in Strikeforce and the WEC that took place during the Zuffa era (Zuffa purchased Strikeforce in 2011, purchased the WEC in 2006).

    Fighters like McGregor are able to have additional sponsorship deals with Reebok, which could obviously yield them additional money per fight or per year depending on the terms of their individual endorsement with the company.

    UFC owner Lorenzo Fertitta confirmed on Wednesday in a conference call with FOX Sports that fighters are allowed to have apparel and non-apparel sponsors outside of fight week.

    During fight week, however, fighters will be required to wear Reebok branded gear as well as gear to the weigh-ins and obviously in the fight as well.

    Fighters who do not comply with the new outfitting policy will be considered in violation of the UFC's Code of Conduct with potential penalties being levied against them for non-compliance.

    Fighters will also have a chance to make additional money from the sale of their own Reebok branded gear that will be sold online and at events with approximately 20 to 30-percent of the profits going back to the athletes.

    The numbers released on Wednesday could fluctuate up at some point during the tenure of the deal with Reebok, but there's no set terms in place for that to happen just yet.

    UFC officials also confirmed that the vast majority of the money earned from the Reebok uniform deal will go back to the fighters with the exception of operating costs incurred from the program such as an equipment manager that was hired to handle the outfitting policy with athletes during fight week.....

    Terrible for fighters imo


Comments

  • Registered Users Posts: 51,342 ✭✭✭✭That_Guy


    Not much incentive for newcomers to fight especially given that they have to wear Reebok gear through fight week and nothing from external sponsors.

    I wonder if we'll see an influx of fighters making their way to Bellator or WSOF for a better deal.


  • Registered Users Posts: 39,069 ✭✭✭✭Mellor


    That_Guy wrote: »
    Not much incentive for newcomers to fight especially given that they have to wear Reebok gear through fight week and nothing from external sponsors.

    I wonder if we'll see an influx of fighters making their way to Bellator or WSOF for a better deal.

    I very much doubt that pre-lim fighters in belator are getting a better deal.

    And some fighters were definitely earning more previously, they all certainly weren't.


  • Registered Users Posts: 6,902 ✭✭✭MagicIRL


    I imagine this could be all rectified if fighters were allowed to continue hanging their banner in the cage before the fight starts. Standard fight fee + whatever money you can wrangle from sponsors seems fair enough, but as it stands, that is some appalling money. Especially if we consider the fees that fighters have to pay coming out of that.


  • Closed Accounts Posts: 4,987 ✭✭✭JohnMc1


    That_Guy wrote: »
    Not much incentive for newcomers to fight especially given that they have to wear Reebok gear through fight week and nothing from external sponsors.

    I wonder if we'll see an influx of fighters making their way to Bellator or WSOF for a better deal.

    Are they counting non-UFC fights in this [ex. Conor's fights in CW and all other pre-UFC fights] I highly doubt he's only getting $2,500 for his fights so far.


  • Moderators, Business & Finance Moderators, Computer Games Moderators Posts: 10,461 Mod ✭✭✭✭Axwell


    JohnMc1 wrote: »
    Are they counting non-UFC fights in this [ex. Conor's fights in CW and all other pre-UFC fights] I highly doubt he's only getting $2,500 for his fights so far.

    This only comes into effect from UFC 189 - his first payout will be as a title contender - £30k


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  • Closed Accounts Posts: 4,987 ✭✭✭JohnMc1


    Axwell wrote: »
    This only comes into effect from UFC 189 - his first payout will be as a title contender - £30k

    Yeah, but what if he loses. Would that mean he'll be getting $5K [I know he's getting a personal sponsorship from Reebok which mean's he's not getting paid by this tier system, but let's pretend he's not for this discussion] for his next fight? Or do his pre-UFC fights count? Their being vague about that detail.


  • Registered Users Posts: 93 ✭✭Mouthalmighty


    I have done a fair bit of MCing in MMA events around the country and one thing I noticed is that everybody gets paid..... except the fighters. The MC the ring girls, the doctor paramedics, ref etc. everybody gets a few quid for their effort. Most fighters got sweet FA for their efforts, training etc. This Reebok deal is essentially the same thing except on a larger scale. The people drawing the crowd get nothing per effort compared to everyone else. I mean 2.5K for a pro UFC fighter, regardless of spot on the card is laughable. In reality its probably costing some guys to fight. I saw a twitter post from Brendan Schaub ((hardly a top 10 guy) that he made a 6 figure amount for in sponsorship for his last fight.


  • Moderators, Business & Finance Moderators, Computer Games Moderators Posts: 10,461 Mod ✭✭✭✭Axwell


    JohnMc1 wrote: »
    Or do his pre-UFC fights count? Their being vague about that detail.

    Only anything that falls into this bracket.

    "The payouts will be determined by a fighters total amount of fights in the UFC (Zuffa owned and pre-Zuffa era as well) and fights held in Strikeforce and the WEC that took place during the Zuffa era (Zuffa purchased Strikeforce in 2011, purchased the WEC in 2006)."

    So in Conors case just UFC fights as Cage Warriors isnt owned by Zuffa. Pre-Zuffa refers to any fights in the UFC before Zuffa took over back in 2001.


  • Closed Accounts Posts: 4,987 ✭✭✭JohnMc1


    Axwell wrote: »
    Only anything that falls into this bracket.

    "The payouts will be determined by a fighters total amount of fights in the UFC (Zuffa owned and pre-Zuffa era as well) and fights held in Strikeforce and the WEC that took place during the Zuffa era (Zuffa purchased Strikeforce in 2011, purchased the WEC in 2006)."

    So in Conors case just UFC fights as Cage Warriors isnt owned by Zuffa. Pre-Zuffa refers to any fights in the UFC before Zuffa took over back in 2001.

    So basically if Zuffa didn't seem him as a potential Poster boy [that's not a knock against by any means] the he would be screwed along with others with so few UFC fights to them.

    This could come back to bite them on the ass. There is no incentive to work their way up to the UFC if they're going to get so little for all their hard work and sacrifices.

    UFC seriously needs some competition. They would not be pulling this if PRIDE or some other organization was at their heels.


  • Moderators, Business & Finance Moderators, Computer Games Moderators Posts: 10,461 Mod ✭✭✭✭Axwell


    How Zuffa/the UFC see him hasnt anything to do with it. Reebok have their own deal with him and thats based on his presence in the UFC, his image and him being an up and coming star with a title shot in July. It his own work and the results of his fights that got him the deal, not Zuffa. Reebok want people that stand out and have a good image in the sport (hence Jon Jones getting dropped). They signed deals with Jones, Rousey and McGregor who at the time were/are big names in the UFC but they also signed a deal with paige Van Zant, shes only 20 and has 2 fights in the UFC at bantam weight but shes a hot prospect for the future and has a great image and personality.

    The other deals are their standard deals for all fighters based on the tier system. The deal is pretty awful for fighters where most were getting way bigger and better deals off multiple sponsors. Add in the fact their management and agents would usually get a cut of sponsors deals and promotions and what not for managing all that side of things. Say they get 20% cut of your sponsor deals, well thats making Reeboks deal even more worthless now.

    The other side of the coin is fighters earn money for fighting not to wear a load of logos on their shorts and on a banner behind them. That's all bonus money and they can still get plenty of sponsorship money from endorsements outside of the cage. As it is most fighters with good deals already make more on sponsorships and endorsements they have outside of the cage.


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  • Registered Users Posts: 39,069 ✭✭✭✭Mellor


    I have done a fair bit of MCing in MMA events around the country and one thing I noticed is that everybody gets paid..... except the fighters. The MC the ring girls, the doctor paramedics, ref etc. everybody gets a few quid for their effort. Most fighters got sweet FA for their efforts, training etc. This Reebok deal is essentially the same thing except on a larger scale. The people drawing the crowd get nothing per effort compared to everyone else. I mean 2.5K for a pro UFC fighter, regardless of spot on the card is laughable. In reality its probably costing some guys to fight. I saw a twitter post from Brendan Schaub ((hardly a top 10 guy) that he made a 6 figure amount for in sponsorship for his last fight.

    How the Reebok deal is only going to the fighter, it's not like others are asking a bigger slice, so it's not really the same.

    And you realise that they still get UFC pay. Nobody is only getting $2.5k to fight


  • Registered Users Posts: 4,604 ✭✭✭dave1982


    I wonder what Reebok are paying UFC for exclusive advertising rights for all fighters.I assume UFC are ones Reebok are paying and not the fighters, UFC are just paying fighters a cut of what Reebok are paying.


  • Registered Users Posts: 93 ✭✭Mouthalmighty


    Apologies Mellor (possibly a brain fart early in the morning) but I don't understand your first point. As for the second I know fighters get paid per fight but the starting ufc wage is something like 6k appearance and 12k (double 6k) for winning. So If a fighter goes 2-1 in a year they will make a total of 35k in that year before tax managers fees etc. They're getting a pittance for putting their life on the line. Maybe it's my inner socialist but I think they should be better remunerated for their efforts. I mean a decent League of Ireland soccer player is getting that. The UFC is meant to be the "Premier League" of MMA so paying guys that is a joke in my opinion. Now I do realise nobody made fighters be fighters but still.


  • Moderators, Business & Finance Moderators, Computer Games Moderators Posts: 10,461 Mod ✭✭✭✭Axwell


    dave1982 wrote: »
    I wonder what Reebok are paying UFC for exclusive advertising rights for all fighters.I assume UFC are ones Reebok are paying and not the fighters, UFC are just paying fighters a cut of what Reebok are paying.


    $70m over 6 years is the reported deal.


  • Registered Users Posts: 4,604 ✭✭✭dave1982


    Axwell wrote: »
    $70m over 6 years is the reported deal.
    A lot less than I thought considering UFC is shown worldwide now


  • Registered Users Posts: 39,069 ✭✭✭✭Mellor


    Apologies Mellor (possibly a brain fart early in the morning) but I don't understand your first point. As for the second I know fighters get paid per fight but the starting ufc wage is something like 6k appearance and 12k (double 6k) for winning. So If a fighter goes 2-1 in a year they will make a total of 35k in that year before tax managers fees etc. They're getting a pittance for putting their life on the line.
    Your example was how everyone (ring girl, doctor, ref, announcers) take a share before the fighters get paid.
    This isn't the same on a bigger scale as nobody else is dipping in.

    Starting pay is 8k I think.
    So going 2-1 nets them $47.5k, and it might increase for third fight bringing it to about 55k
    dave1982 wrote: »
    I wonder what Reebok are paying UFC for exclusive advertising rights for all fighters.I assume UFC are ones Reebok are paying and not the fighters, UFC are just paying fighters a cut of what Reebok are paying.
    All the money is going to the fighters. UFC don't take a cut apparently.


  • Registered Users Posts: 4,604 ✭✭✭dave1982


    Was there not something a few years bout sponsors where they had to pay the UFC money to allow fighters wear branded clothing .I think I can remember Rogan giving out bout it on his podcast.alienware to be exact he was talking bout


  • Registered Users Posts: 39,069 ✭✭✭✭Mellor


    dave1982 wrote: »
    Was there not something a few years bout sponsors where they had to pay the UFC money to allow fighters wear branded clothing .I think I can remember Rogan giving out bout it on his podcast.alienware to be exact he was talking bout
    That was different. Sponsor who were featured on fighters shorts had to had a fee to the UFC, the more they sponsored, the bigger the fee.

    This is a standalone deal. The UFC said they aren't making money on this deal, I'm inclined to believe them tbh. Only because I expect this one is laying the foundations for a much bigger deal next.
    Look at the deal Nike did with the NFL after Reebok's contract ended.


  • Registered Users Posts: 93 ✭✭Mouthalmighty


    This isn't the same on a bigger scale as nobody else is dipping in.

    Ah I understand I never meant to give the impression of others dipping in, my point was that the reason there are derrieres in seats is because of the fighters and they always (from what I've seen) seem to be the people who do
    the worst financially.

    Starting pay is 8k I think.
    So going 2-1 nets them $47.5k, and it might increase for third fight bringing it to about 55k
    Ok I was under the impression it was 6k. But still 55k is still a small amount of money as far as pay for professional athletes goes.


  • Posts: 0 [Deleted User]


    Mellor wrote: »
    I very much doubt that pre-lim fighters in belator are getting a better deal.

    And some fighters were definitely earning more previously, they all certainly weren't.

    You would be surprised. I sponsored guys in Cung Le's camp years ago who were fighting in Strikeforce. The rate to put a logo on a guys shorts on the undercard was $500! Back then undercard fighters were getting around the 5K mark for sponsors at least. $2500 is beyond joke if you ask me, as are all the other numbers. As Schaub said he pulls in 6 figures for sponsorship for his last 6 fights. And he ain't exactly Jean Claude Van Damme!


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  • Posts: 0 [Deleted User]


    Mellor wrote: »
    That was different. Sponsor who were featured on fighters shorts had to had a fee to the UFC, the more they sponsored, the bigger the fee.

    This is a standalone deal. The UFC said they aren't making money on this deal, I'm inclined to believe them tbh. Only because I expect this one is laying the foundations for a much bigger deal next.
    Look at the deal Nike did with the NFL after Reebok's contract ended.

    If you look at the overall deal is $70m. You can work out the sponsor payouts card by card. I reckon looking at this month its around 500K. So if thats 6mil a year paid out fighters, in 5 years its 30mil. Hard to think the UFC signed this deal for longer then 5 years. If they did its 40 mil in their pocket roughly.
    I smelled a rat with this deal when they first announced it because they pretended they didn't even know what they had signed or how the money would work. The reason they didn't announce it was because its beyond poor for the fighters.
    Whats more amazing is not a single so called 'journalist' in MMA calling them out on this or writing a proper story on it. Afraid to lose their press pass.


  • Moderators, Business & Finance Moderators, Computer Games Moderators Posts: 10,461 Mod ✭✭✭✭Axwell


    Whats more amazing is not a single so called 'journalist' in MMA calling them out on this or writing a proper story on it. Afraid to lose their press pass.

    The press are reporting on it but the onus really is on the fighters to call the UFC out on it themselves. They are the ones being affected by it and they need to show a united front on it if they want anything to change. Its all very well they tweet and moan on twitter about it but that's not gonna change anything. The reality is only a small percentage of the current UFC fighters have openly complained about it, either the rest are happy about it or arent gonna say anything. Either way that wont change the outcome.


  • Registered Users Posts: 39,069 ✭✭✭✭Mellor


    If you look at the overall deal is $70m. You can work out the sponsor payouts card by card. I reckon looking at this month its around 500K. So if thats 6mil a year paid out fighters, in 5 years its 30mil. Hard to think the UFC signed this deal for longer then 5 years. If they did its 40 mil in their pocket roughly.
    I smelled a rat with this deal when they first announced it because they pretended they didn't even know what they had signed or how the money would work. The reason they didn't announce it was because its beyond poor for the fighters.
    Whats more amazing is not a single so called 'journalist' in MMA calling them out on this or writing a proper story on it. Afraid to lose their press pass.

    6mil a year sounds a bit low.
    There's like 45 cards a year, so that's 1080 payout's per year. I'd have thought the average was maybe 10k, 6k sounds very low. It's a 6 year deal btw.


  • Registered Users Posts: 9,405 ✭✭✭Lukker-


    Isn't Conor's deal separate to the generic one that other fighters get? Like hasn't he signed an individual deal with Reebok?

    Also, I think the Reebok exclusivity is the wrong way to go, it makes it more bland. Everyone will have the same gear and I'd say most fighters with a half decent following are probably losing out.


  • Closed Accounts Posts: 4,987 ✭✭✭JohnMc1


    dave1982 wrote: »
    Was there not something a few years bout sponsors where they had to pay the UFC money to allow fighters wear branded clothing .I think I can remember Rogan giving out bout it on his podcast.alienware to be exact he was talking bout

    Yes. This and making the fighters get rid of their Managers was the start of this. I believe potential sponsors had to pay the $100,000 to the UFC to sponsor a fighter IIRC.


  • Closed Accounts Posts: 4,987 ✭✭✭JohnMc1


    Lukker- wrote: »
    Isn't Conor's deal separate to the generic one that other fighters get? Like hasn't he signed an individual deal with Reebok?

    Also, I think the Reebok exclusivity is the wrong way to go, it makes it more bland. Everyone will have the same gear and I'd say most fighters with a half decent following are probably losing out.

    Yes. He has a personal sponsorship with Reebok. He might still get that $30,000 title match fee though.


  • Registered Users Posts: 4,728 ✭✭✭Naos


    Another way the UFC could make this better for both fans & the fighters, is to allow OTN bonuses contribute to the Tiered system.

    So Fighter A has 3 fights; he's on Tier 1 earning $2500 per bout.
    Figther B has 3 fights & 3 OTN wins; he's on Tier 2 earning $5000 per bout.

    This would encourage figthers to not only perform more often but at the same time provide additional reward to those putting on exciting fights.


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