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VIDEO: ESPN's UFC Fighter Pay Story Interesting, Informative, Not Damning

Ken Shamrock was very outspoken about UFC fighter pay on ESPN's Outside The Lines segment.

Ken Shamrock was very outspoken about UFC fighter pay on ESPN's Outside The Lines segment.

Outside of UFC 142, one of the hot button topics last week was ESPN's Outside The Lines doing an investigative piece on UFC fighter pay. Aggressive reaction and a promise of a counterstrike from UFC President Dana White came quickly as ESPN is apparently back on his bad side.

The segment ran, a panel discussion followed and the consensus (among social media anyway) was that it was a good, interesting piece but not exactly damning of the UFC. In reality, the tone, numbers and the feel was in the written companion feature that debuted earlier this week. Yahoo's Dave Meltzer recapped the issues last week, as he as interviewed for the feature but wasn't used in the final cut.

John Barr was the journalist in the nine minute opening segment that focused heavily on Zuffa co-owner Lorenzo Fertitta, crediting him and brother Frank with the revival of the UFC. Fertitta was asked about an MMA monopoly, which he said is ridiculous. Enter Ken Shamrock who is not in the good graces of the UFC, who essentially said that it is. Promoter/manager Monte Cox explained that he has to take what the UFC gives his fighters and that only the fighters who "fight through the gauntlet and get to the top" get paid.

Fertitta was asked about why fighters are scared to come out and talk publicly to which he explained that anyone can say what they want and there's no retribution. He said they've paid out $250 million to fighters and made 39 millionaires. The piece then shifted focus to the entry level fighters and the graduating scale for their first three fights (ex. $6000 show/$6000 win for opening fights), explaining that the scale is better than what some boxers get but not close to the four major league sports.

The real crux of the story was the focus on how much of the organization's revenues goes toward the fighters. Fertitta didn't give an exact number, but said it was in the "neighborhood" of 50% like the four major sports. This was disputed in the panel discussion that followed the segment with some estimating that number to be around 10%. The discretionary bonuses were covered in full with a claim by an unnamed fighter that you have to "kiss ass" to get them.

At no point was health insurance brought up, nor was marketing/promotional/event expenses which would have made the story a bit more well rounded. For the full video and what happened during the OTL panel discussion, join us after the jump.

Star-divide

The panel discussion (not yet available online) featured host Bob Ley, former UFC Heavyweight Champion Ricco Rodriguez, ESPN reporter Josh Gross and Mixed Martial Arts Fighters Association' head Rob Maysey. Ley brought up some of the angry comments that White had on Twitter and that White declined to be on the show.

Ley asked Rodriguez about his past dealings with White to which Rodriguez said that his conflicts about pay with White are a major reason he's not in the UFC. He talked about having to fight in other countries and organizations to make money, but didn't come across bitter. Rather, he seemed resigned to the situation at hand.

Maysey looked nervous and didn't add much to the discussion, while Gross reiterated a lot of the points he and Barr made in the online story. However, he did bring up some positives like how White and Fertitta made a private donation to Dan Miller's efforts to get a kidney transplant for his son.

Will this cause sweeping change or some sort of uprising? It's doubtful as most hardcore fans will simply shrug because a lot of the info was already known and unless mainstream journalists start to point to the issue, the casual fans won't care either.

Watch the video and comment below about what you think about all of this. Is White overreacting? Do you care about fighter pay? Was this an attack job by ESPN or simply a good journalistic piece?

0 recs  |  85 comments

Comments

Was this an attack job by ESPN

To answer this, I ask another question: Was Josh Gross involved?

The video wasn't an attack job, it was for the most part speculative

I understand the reasons for anonymous sources, but it’s hard not to think they’re just a step up from imaginary friends in certain scenarios, particularly anything that might be deemed as a ‘hit piece’.

Without hard copy documentation that can prove UFC’s distribution of revenue there’s not much that can be done. The only thing that can be argued is if UFC’s denial to disclose is a matter of them trying to hide something rather than just smart business sense or personal preference.

Not intentionally being critical,

but that is not a flattering image of Ken, he looks strung out. Yikes.

(I love the old approach of prefacing a harsh opinion or statement with denial of intent)

If Ken Shamrock managed his finances better he wouldn’t be on this show. With all roids and abuse he’s taken, I wouldn’t be surprised if he becomes MMA’s version of Gary Busey soon.

it’s depressing

Dude, it's Ken Shamrock.

I’m surprised he looks decent.

no different than pro wrestling

did you know pro wrestler can make more money wrestling on the independent circuit than starting out in the WWE

but they work their butt off to get more money

Really fascinating stuff. Credit to Monte Cox for having the bottle to give his views on camera. You have to think Zuffa are pretty lucky to be unaffected by the Ali act.

i know they dont have to disclose all revenue streams but you gotta think these agents have quick access to the latest PPV and gate revenue. it cant be that hard to get a good revenue estimate on any given event .

Why is Dana so intent on getting their version of the interview out?

I think Lorenza Fertita is represented pretty fairly and this didn’t seem to make him look like a bad guy at all.

White heard "Josh Gross" was involved and instantly lost his mind.

Exactly, this piece is all fluff. No nasty insinuations made and Lorenzo came off really well. there is no reason for the UFC to get pissy about this. If ESPN really wanted to get tough they would talk about the potential anti competitive effects of the SF purchase to the consumer.

it’s also a great commercial for the ufc. a ton of awesome highlights (and most if not all are non-knockout highlights) crammed in there.

he was when the preview article was posted before the weekend. The article came off a lot worse than the piece, especially the median income gaffe.

so entry level fighters should get 400,000 a year

Get out of here. I think that the pay structure is as good as you are going to get it. What happens when you pay out more than you make, you close up shop and cancel checks you have written to fighters. I am also curious as to what it cost to cover a professional fighter on insurance. Is there a huge discrepency between entry level fighters and top tier guys? Yes, but guess what you have that in any sport.
As for the guys complaining about not getting bonuses, I have a feeling it is the ones getting knocked out and subbed when they fight. This buisness pays you to win.
Ok b.e. I’m ready for the regulars to rip me apart.

There is a much larger pay discrepancy in the UFC

Much, much, much larger. Let’s use MLB as the point of comparison here, which has the largest contracts for stars since there’s no salary cap. The general consensus is that GSP makes somewhere around four million per fight (as a conservative estimate). If an entry-level fighter is making 6k show/6k win, GSP is making around 330 times as much per fight. A league minimum contract in MLB is somewhere between 300-400k, while the largest is around 25 million/year. That’s about an eightyfold difference. The UFC’s pay scale, then, is dramatically tilted toward the guys at the top, far more so than any other major sport.

IMO, the stars in all the major sports are overpaid. Not many people bring that up though.

The president of the U.S. makes what, 400K annually, and Alex Rodriguez makes over 50x that?

Agreed

But baseball is the most extreme example, which is why is used it as a comparison. Nobody, however, is saying that GSP, Anderson or Overeem is overpaid, and comparatively they’re taking a much larger slice of the pie than the Alex Rodriguezes or Albert Pujols of the world.

Shit gets messy when you try to compare it to any other sport. All the sports it’s typically compared to have unions and government intervention… Pro wrestling is probably the closest to it in a financial sense, unfortunate as that is for me to admit.

But should it be?

Fundamentally, that’s what this argument is about. If the UFC wants to be taken seriously as the umbrella organization for MMA, then they need to have more in common with the MLB, NFL, NBA, and NHL than with the WWE or even boxing.

That's impossible, as is though. Those sports have had way more time to develop.

MMA is just a baby when you think about all of the events over time that have helped shaped the modern landscape of the major sports.

Basically, until as many people watch the UFC as they do the NFL, the participants in the sport won’t be able to be paid equally to the NFL. The UFC is still in it’s growing stages, where NFL has pretty much reached most everywhere it wants to be.

but media also moves faster these days. up until fairly recently the nfl’s coverage consisted of a 1 or two games of the week on one TV network (which was often the same teams like the cowboys and steelers). during the week the only coverage it got was from local newspapers. it was only until cable tv and ESPN that the sport became a phenomenon. with the internet expanding fantasy football and gambling, it became a national obsession.

the ufc may never grow to be larger than it is today as a niche sport for cable television and the internet. the big thing it does have going for it, though, is the potential for international expansion that dana touts so fervently.

Yeah, and It’s also people beating the shit out of each other. It’s never going to be as popular as the NFL in the market that currently matters most financially. Not everyone enjoys violence.

yeah, the thing i most often hear about MMA from my non-ignorant friends is something to the effect of “it’s a great sport to watch twice a year but too brutal to watch every week.”

Not saying that the pay scales should be equivalent to other major sports, just that they should eventually be shooting for that model.

It's not an apples to apples thing though

A baseball team needs the 25th man on the roster or they are at a significant disadvantage. The UFC simply would not put on a Felipe Arantes vs. Antonio Carvalho fight (or whoever you want to pick) on if it cost them anything significant. Those guys have basically zero current value to the UFC, they are only even signed for event filler/potential future main eventers.

The better comparison would be to minor league players or D-leaguers—-MiLBers get paid approximately 12k a year to play as minor league filler/potential future big leaguers. You’re not getting paid until you’re in the big leagues (yes, draft bonuses and all that, but just saying it’s not all that different: if you are easily replaceable, you aren’t valuable and that’s true everywhere).

The only thing you can compare to MMA is boxing or pro-wrestling

How are you going to compare a team sport to a individual combat sport?

you kidding? sports stars are underpaid if anything

they do all the work, yet the owners get most of the money. owners don’t pay for the stadiums, don’t have to provide their own media, and largely don’t even have to do any marketing.

it’s the time, attention, and money that fans give to sports that’s overblown. take even a tenth of that energy and give it to, say, finding a cure for cancer or reforming public education and the country would be significantly better off.

they do all the work, yet the owners get most of the money. owners don’t pay for the stadiums, don’t have to provide their own media, and largely don’t even have to do any marketing.

This doesn’t make sense as it’s written. Players don’t pay for stadiums either… They don’t do ALL the work, by any means.

I don’t know why anyone needs 20 million a year, whether they’re a running back, owner of the Yankees, Brad Pitt, CEO of Google… So I agree with the latter portion of your statement. Entertainment is valued way too highly in our society.

people pay to see the players. people also like to see those players organized and motivated, which is where the coaches come in. if given the opportunity, the players union in any sport could easily conjure up a system to effectively handle all the anciliary stuff (like negotiating TV rights) on their own.

i agree that it’s absurd on the surface for a baseball player to have a $300 million guaranteed contract, but it’s fair when you think of that athlete’s role in bringing revenue to the team. and yeah, the entertainment obsession in our society is ridiculous. the average person might profess to value causes like world hunger and deadly diseases, but that same person might give a small, perfunctory amount to a charity while freely donating thousands of dollars to tickets and apparel for their favorite sports team.

People vastly underrate an individual's ability to create millions/billions worth of value to millions/billions of people
indeed

the nfl essentially gets an entire day of the week to preach to the nation. imagine if, say, the quest to cure cancer or paralysis got that attention. heck, imagine if it even got 15 minutes.

what people need to realize is that the people in the first fight that is lucky to be on facebook are closer to minor league players than the 25th guy on a baseball team.

No argument here

But the difference between a minor league contract and the league minimum salary isn’t that extreme.

you need to go further down. The people opening a ufc card are not AAA in baseball, they are AA to A level, those people get paid peanuts.

We’ll have to agree to disagree about that. I would say AA or A is the rough equivalent of King of the Cage or another regional promotion.

Yes it is

Minor leaguers get something like $12-13k a year + some expenses for 6 months.

That depends

On the minor leaguer. If we’re talking about somebody drafted in the 35th round and sent to low-A ball, sure, but not high AAA prospects with a good shot of making it onto a major league roster in the near future.

40-man roster players who haven't been called up to the big leagues are guaranteed 30k per year
Comparing the UFC to the NFL, MLB, NBA etc is silly.

The UFC doesn’t have near the amount of revenue.

A more fair comparison would be boxing.

Agreed

also the UFC and MMA in general is only 20 years old. It cannot be compared to pro sports that have been built up over a century. Most likely Pro MMA Fighters will be making those absurdly high salaries as the sport grows over the next several decades.

Psh, I’m not going to attempt to rip anyone apart except the people who pretend they actually know how much UFC fighters are paid.

Please also rip the people that think they know how much the UFC makes.

NFL Practice Squad players make $5,700 per week.

Say what you will about the NFL making more money but lets not forget that each team is an independent franchise, just like a McDonalds or a Best Buy. I can guarantee that the Fertittas make a HELL of a lot more money than the Jacksonville Jaguars do in a year but a guy who only practices, never actually plays, gets paid a hell of a lot more than a low level UFC fighter who also has to pay for his own training, supplements, travel (for camps), etc.

Nothing too surprising in the piece

If you’ve paid attention over the last couple of years, then this wasn’t shocking in any way. The UFC could probably afford to pay its fighters more; there’s simply no way Zuffa pays anywhere close to 50 percent of their revenue, as other major sports do, and Lorenzo’s claims that they do are simply disingenuous. The UFC has been investing heavily in their brand, and while that sucks for guys like Jon Fitch – who represents the clear counterargument to the “keep winning and you’ll get paid” idea – I fully expect fighter pay to rise dramatically over the next five-ten years.

So sick...

I am so sick of this fighter pay BS…it’s the same in any industry where you essentially work for yourself or own your own business. At least in fighting you can make a little bit of money. In most businesses or when you buy into a franchise you shell out a few hundred K or hope you break even in your first couple of years.

Don’t give me this UFC is making money on their sweat cause EVERY business makes you cut your teeth learning and not making money as part of the process of the establishment shelling out the dollars, vision, and infastructure before you got there and giving you the platform for you to perform on.

Curious

I’m curious to find out what “proper” pay should be from those that believe fighter pay is unfair. Personally I like the pay model, as a fan I benefit from it. I’m sure if I was a fighter I would feel a little different.

Unless you were a really good fighter.
I'd say

The minimum should be 12k show/12k win.

That's really not that much more on the grand scale of things.

A few guys at the bottom of a card always walk away with 6K/6K at least. Zuffa wouldn’t take a hit financially just to do it though, so one way or another they would balance that out, even if it meant less back-room bonuses just to appease the masses. They have no reason to willingly do it anyways, honestly… This is something that needs to be on the minds of fighters, not fans, IMO. They’re the only ones who could really change it.

We're on the same page

It’s just the guys at the absolute bottom of the pay scale whose situation worries me. I don’t think Zuffa needs to completely overhaul their model or anything like that, just that it’s ridiculous that guys fighting in the biggest organization in the world, even at the bottom of the card, are paid peanuts.

Not a solution to the current issue, just a couple more things I wanted to add...

But any fighter thinking about one day becoming a UFC star should always have a backup plan, and I think a lot of them don’t do it. Fighting for a living is a luxury. That doesn’t mean they should be treated like slaves, but if you’re becoming a cage fighter for the money, instead of just being able to do something you love for a living, you have your priorities all messed up. Just thought I’d bring that up since it often gets overlooked.

Also, if the UFC did pay people better as a whole, more talented people would most likely attempt the sport, so that’s one reason for them to do so. There are other more financially stable things an athlete can do nowadays. At this point, company expansion seems to be more important to Zuffa though.

A backup plan should be necessary for anyone going into a sport professionally

But I’m not getting why a talented fighter shouldn’t have a reasonable expectation of being able to make a good living on their skills. Nobody tells a 21 year old NFL prospect or a 17 year old MLB prospect that they should be prepared to have a side job to make ends meet.
Totally agree on the second point. Talented athletes go where the money is, which is part of the reason why heavyweight is such a thin division.

Is a random undercard fighter

Really worth 24k?

I still feel disappointed, i think this could have been so much better.

If they do it a different weekend, and don’t run the preview (or maybe run a better preview) they can have someone from zuffa to make the panel discussion more worthwhile. Letting Ricco claim pay is the only reason he’s out of the UFC is a joke, Maysey bringing up Randy Couture is also a joke. That story needs to be dead and buried, he had a contract, he had to honor it. Just like the Packers didn’t let Favre walk to the Vikings and the Bengals held on to Carson Palmer until they could get something.

That said, it wasn’t as bad as I thought it was going to be after reading the preview, but it also didn’t have too much new information. Definitely not worth the headache it created over the weekend.

Fighter pay is fine sure it could be better but really what do you bring to the table if you are some unknown prospect?

Fighters make way better money once they get to that second or third contract. If you win you get paid if you don’t you don’t.

In the end we really don’t know squat because the UFC is a private company.

I’d imagine the percentage of fighters that start out as an opener and make it to the top tier in the UFC is pretty small. This to me is the biggest reason you don’t see fighters getting more money on the undercard. The flameout rate of even guys considered elite prospects is far too high. How could you invest that much money into fighters that may never hold any other value to the company than being a body in the cage? The only system I find comparable to the UFC could be baseball.

Here are some numbers

Class AAA—First year: $2,150/month, after first year no less than $2,150/month
Class AA-First year: $1,500/month, after first year no less than $1,500/month
Class A (full season)—First year: $1,050/month, after first year no less than $1,050/month
Class A (short-season)—First year: $850/month, after first year no less than $850/month
Dominican & Venezuelan Summer Leagues—no lower than $300/month
Meal Money: $20 per day at all levels, while on the road.

Now granted. some baseball prospects are given large draft-day bonuses, but between some above-average contracts amongst UFC prospects, fight bonuses and sponsorships, I’d imagine that would level the playing field in terms of yearly income.

The similarities between the two go beyond just the numbers. The trajectory of baseball prospects are similar to that of MMA prospects. Often times solid information or scouting reports on prospects is scarce. This leads to many top prospects failing to meet expectations, while less heralded prospects explode on to the scene and find success. With all of these variables baseball teams use this to advantage by providing themselves depth within the organization via organizational players throughout the minors, utility men, bullpen arms, DL candidates, etc. In practice, this isn’t much different. For every Bull Durham there’s a George Roop or Ian Loveland.

My basic point here is that you can’t invest big money into fighters who will not bring in any profit other than that of filling a space. It’s a harsh reality, but it clearly isn’t the only sport that uses cheaply paid talent.

I'd maybe buy a AAA comparison, but

anything below that is pretty low. by the time a guy gets to the ufc he’s been fighting on the regional circuit for at least 3 years, and will have accrued a dominant record (not to mention the years he’s spent competing in whatever component martial art that forms his base). this is akin to a minor league baseball player rising up the ranks and getting a big league callup. remember that even the worst major league player put up big stats in the minors. unless you’re a cain velasquez-level prospect, the opening slot on a ufc card is going to be the reward for several years of hard work so, i mean, i don’t think it’s fair to label them minor leaguers. perhaps you can do that for a few TUF guys, but there was nobody on that card last night who was minor league. even carlo prater has some big wins on his record.

They probably are "AAA" caliber fighters

But the UFC isn’t MLB either.

the best comparison would probably be the classic “AAAA” journeyman in MLB— the pinch hitter, relief pitcher, defensive replacement type of guy who’s constantly bouncing back and forth from AAA to the big leagues. the ufc is the big leagues— plain and simple. a bottom of the card ufc guy is going to beat up pretty much any regional guy even if he can’t handle most ufc fighters.

I didn’t mean any disrespect, it was only meant to be used a reference to scale against. Even still, a great track record isn’t always indicative of instant success or stardom. A comparison I would make would be Jake Rosholt, Jason Reinhardt or even Mac Danzig to COUNTLESS 1st Round picks in baseball. There have been many players who were dominant through college, were given large bonuses and never made it past AAA. Rosholt was seen as a no-brainer prospect, and while he still has time, never worked out in his UFC debut. Mac Danzig had an extensive background in the regional circuit, but hasn’t been able to repeat that success in the UFC sitting at 4-5. Jason Reinhardt sucks and is 20-0 outside of the UFC. Those are three guys off the top of my head, and I’m sure there are many more examples like this.

My point is that it is incredibly difficult to project who will and won’t succeed in the sport as there are too many variables. If a young athlete gets larger in most sports, it will usually only increase his effectiveness. In baseball or MMA you’ll have to change weight classes or positions, and may not be as effective. Injury risk is probably just as high in terms of pitchers as it is for MMA fighters. Combining physical variables like these along with lack of information amongst the amateur and regional circuits, varying degrees of competition, and often a different set of rules (think wooden/metal bats and ring/cage), it’s a difficult science to truly project who will succeed.

I think it’s just that the big leagues are that tough. Even a great wrestler and athlete like Rosholt can get subbed in the UFC, just like a reliever with a 95 mph fastball can get taken deep in MLB. Either dominates in AAA.

From my armchair perspective, I don’t think scouting is as tough as it’s made out to be. The majority of mlb first rounders who don’t at least sniff the big leagues do so because of injury. Yeah, not everybody can recognize superstars out of a lineup of guys with big league skills, but it’s not hard to figure a d-1 national wrestling champ is gonna be a ufc-caliber fighter. Whether that guy develops into a championship contender is a different story.

excellent post

There are so many flame outs, but the ones who stick can make do all right.
The world needs ditch diggers too.

That is also only during the season by the way

Which for MiLBers is March-September basically

I would say the reason Dana

is so upset by this piece and by many of the pieces Josh Gross has done is this. Dana has worked 80 plus hour weeks for the last 10 years to grow the sport of MMA and the UFC. Yes he has made money doing that but he has made a lot of other people money also including the journalists who cover the sport for a living. Instead of being critical of the UFC why not put out positive journalism in an attempt to help the sport. Let’s face it, every journalist, website owner, etc that pays their bills from the sport of MMA owe Dana White a thank you because those revenue streams wouldn’t be there if not for him. That’s not to say Dana deserves a pass and should never be questioned, there are things he has done that he clearly shouldn’t have. Josh Gross has been very critical of Dana White and the UFC, there is no argument about that. Ken Shamrock was made a millionaire by the UFC and he is the only validated source ESPN can come up with to show that the UFC doesn’t pay the fighters fairly. That doesn’t add up. ESPN was soured over the FOX deal, I believe that is non debatable. I don’t think the piece was accurate and the sources it came from all have a history of negativity with the UFC.

On Ricco

He henna tattoo’d a GoldenPalace logo onto his back for his UFC 39 fight with Randy Couture.

The casino and Mohegan Sun commission nearly stopped UFC 39 from ever happening as a result which at the time would of bankrupted the UFC.

Oh, he's totally resigned.
Ley asked Rodriguez about his past dealings with White to which Rodriguez said that his conflicts about pay with White are a major reason he’s not in the UFC. He talked about having to fight in other countries and organizations to make money, but didn’t come across bitter. Rather, he seemed resigned to the situation at hand.

Fucking up that 12-fight winning streak against a string of cans is probably another major reason why he’s not in the UFC.

What Lorenzo says isn’t true. He says its close to 50/50 but just doing research from UFC 140 and the numbers don’t jive with what Lorenzo said.
UFC 140 Live gate: $3.1M
PPV buys: 480K
Lets average the PPV buys at $50 ($45 and $55 for HD) a shot so thats roughly $24M
Fighter Salaries including fight bonus were about 1.9M
I haven’t factor in a percentage of PPV money the top fighters got but I also didn’t factor
in sponsor and advert dollars the UFC got. Add those up and thats not close to 50% share with the fighters.
UFC- Over 27M
Fighters- About 2.1M
Lorenzo says that’s close to a 50/50 split?
Is the UFC a better pay scale than boxing? Yes.
Is it close to MLB, NBA and NFL…Not by a long shot
I know you will say I’m comparing Apples to Oranges but Lorenzo and Dana are the ones that want to compare themselves to other Pro Sports Leagues, so be careful what you wish for.
Also, Lorezno bringing up the ESPN Fight salaries is a bit unfair since ESPN is the broadcaster not the fight promoter. That’s like complaining to Spike why the UFC fighters don’t get paid enough.

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