"Variety is Life, Uniformity is Death"
Pyotr Kropotkin
***UPDATED on December 9, 2014 ***
By: Rich Bergeron
The UFC recently revealed a plan to revolutionize their sponsorship situation by partnering with a multi-billion-dollar Massachusetts-based apparel company called Reebok (looks like they need to update the text under Johny there). Early reports from the mainstream MMA media are giving this new development rave reviews. It's the greatest thing to ever happen to MMA if you believe these empty, UFC-bootlicking overtures. Perhaps they are not as well versed as I am on the reality behind the Zuffa facade.
Looking past the immediate benefits the top-tier fighters will surely see under this plan, the early indications show more fighters may see a major negative impact before they ever get a chance to realize any positive dividends. As soon as I examined the context of this "deal," I couldn't help but ask one glaring question. What will happen with all the sponsors who will now be excluded from the inner circle?
UFC Heavyweight Brendan Schaub reported recently that he lost a large group of sponsors already, even with the new policy not taking effect until next July. Schaub also indicated that Greg Jackson, a popular trainer with one of the most well known camps in the industry, lost all of his regular sponsors as well. The new rules will require all of a fighter's cornering staff to wear Reebok outfits as well.
You can be damn sure Jacob "Stitch" Duran won't be wearing his usual Xyience outfits in the cage, either. The former UFC staple recently sold to a Texas outfit, which is deciding to move away from MMA sponsorship. The ever-present cut man and hand-wrapper was also a stockholder in Xyience who saw his shares wiped out when the Fertitta brothers drove the company into the ground in order to take it over for themselves after a contentious bankruptcy. Stitch still rocked the brand anyway. Until now.
The Fertittas, through their Fertitta Enterprises holdings company, left several fighters expecting Xyience sponsorship money hanging when they could have easily been paid at the time. Few of those fighters ever donned the Xyience logo again once the Fertitta brothers were in a full ownership position. Matt Serra might be the only exception. The UFC's majority owners failed to pay about a million dollars in outstanding sponsorship fees while in control of Xyience to those fighters repping the brand. Yet, the brothers immediately provided the money for Xyience to pay the first installment of a blockbuster multi-million dollar organizational sponsorship to the UFC. In other words, the Fertittas showed their true colors, proving they'd put money into their own pockets before paying their fighters what they were entitled to. CLICK HERE for more on how the Fertittas used Xyience for immense personal benefit.
That huge Xyience sponsorship deal would never be fully realized, because Xyience folded. Harley Davidson and Bud Light would take over their middle of the mat spot only after they outbid the Xyience contract that was never going to be possible anyway. This is Fertitta business acumen at its most crafty and devious level.
Remember folks, these are the same guys who put together this new uniform policy with Reebok, and likely with a little help and input from Massachusetts-native Dana White. So far, it looks like this arrangement might only make a flawed system worse. It simply pours all the money into the pockets of all the well-established fighters who don't need it nearly as much as the young, hungry prospects. It's hard to imagine how so many prospects and lesser knowns will fare under this protocol.
It's easy to wonder if the future under this scenario could include a mass exodus of fighters who simply can't cope under the new conditions. Yet, these are not factors greedy folks like the Fertittas and White seem to grasp with any clarity or sense. They simply see another way to virtually guarantee exciting, bloody, and violent fights that get more fans interested in their organization. It's also another way to shackle each fighter to the organization, stripping away any semblance or spirit of independence a UFC charge will now be permitted to display.
The message is clear: be exciting, dynamic, and entertaining if you want to make any real money in this league. If you're average or below-par, get used to being broke.
Lorenzo Fertitta recently took the time to explain the new plan, which sounds suspiciously like the old plan. Compared to the existing fight pay and bonus system, it's right up the same alley. "At the end of the day, the more successful you are and the more demand there is for you, as an individual brand, the more you're going to sell," The UFC executive and Casino owner explained. "That's the way the system works. It's a capitalistic system here at the UFC."
Another future development for the program includes designating so-called "legends" of the UFC who will earn their own "kits" to be sold to the general public, and those fighters along with active fighters will receive kickbacks from all sales. It sounds fabulous on the surface, especially for those who are deemed special enough to the organization to receive the most lucrative in-career and retirement benefits. Yet, surely there will be some of the most devoted and resilient journeymen and tough-as-nails guys who always stepped up when needed who will be left with no such benefits despite having fought just as hard or harder than the guys who do get the extra check every month.
The absolute worst part of this six-year deal with Reebok is the restriction on existing and future fighter sponsors. Yes, fighters can still have outside sponsors other than Reebok and those with their own exclusive UFC deals. There's only one catch. It sounds like the only time they can display their unique sponsors is while they're hanging out on the couch at home or hobnobbing at local non-UFC events. All these sponsors fighters typically plaster all over their shorts and custom fight banners will be excluded from being displayed at any fight week events after this plan takes effect. This alienates a myriad of supporters, ranging from small-time local "mom and pop" outfits to major national brands.
Is this wrinkle a necessary evil? Perhaps the champs and top ten fighters in every weight class might say yes, but what about the up and comers who depend on those sponsors to get by when the regular fighter pay is miserable? UFC President and Part Owner Dana White points to fighters struggling with sponsorship issues in the past as the catalyst for this deal being needed right now. He neglects to explain that the UFC's "gatekeeper" fees represented a huge obstacle to most eager sponsors who wanted to get involved with those fighters.The policy already makes sure the UFC is paid a hefty sum before the average fighter gets a penny from those sponsors who can afford the luxury of having their brand appear on a square inch of fight short space on a UFC broadcast.
White insists that the new plan means every fighter gets a sponsor, no matter what. "...you're getting paid every time you get in," White said. "And it's more incentive to get bigger and better."
Lorenzo Fertitta piggybacked on that sentiment by telling reporters that fighters under the new plan won't have to do all that aggravating legwork of finding sponsors anymore. Now they can concentrate solely on training.
Yeah, Lorenzo, great point, if you're talking about those top-tier fighters making all the serious bank. But, what about the guys who go in there and don't get the chance to win the popularity contest because they can't seem to get off the preliminary cards? How much are they really making under this new plan, and is it really better for them than trying to generate their own sponsors to back them? If their "kits" don't sell, won't they just have to work harder outside the cage and away from UFC events to make ends meet?
The biggest question of all, the one that so few MMA media outlets ask, is why doesn't the UFC just pay a better flat wage for prospects and newcomers to the organization? A minimum $10,000 per fighter for a three round bout, win or lose, would be a great place to start and would be within the organization's means without this added exclusive sponsor deal.
The nearsighted and narrowly-framed parameters of this uniform plan fail to account for the blowback and the backlash that will surely result. Trainers who used to rely on sponsorship money may now have to charge their fighters more. Sponsors locked out now may go to competitors and never come back. Fighters weighing their prospects might be wary to enter an organization where only the top-tier fighters are guaranteed any hope of making a formidable wage. As a young fighter in the smaller circuits, sponsorships and your day job keep you alive as you pursue your dreams. How can you remain loyal to the same folks who got you to the UFC if the UFC tells you to leave all your supporters at the cage door? Who wants to fight for bosses who don't even really get the very sport they wield their iron fists over?
Lorenzo Fertitta also explained that "virtually" all, if not the entire amount of the deal's face value will end up in the pockets of the UFC's fighters. This may indeed be true in principle, but not quite so in practice, especially if you look at how the Fertittas operate. If something looks too good to be true with these corporate Goodfellas, it usually is. Even if every cent Reebok dishes out over the six years of this contract does end up going to certain fighters, the UFC most certainly benefits on a number of fronts. Those few sponsors who will be permitted to join the Reebok logo on fighter kits will no doubt be taxed separately in some way. Since all those other sponsors can no longer get in the UFC through the fighters, some of the more financially powerful companies will be scrambling to get ad space in the Octagon and through other UFC channels, creating fierce bidding wars for the spaces that are currently occupied by other major brands.
Of course, the expiration of the new deal means re-negotiating another new deal that could eventually pay the UFC's executives and owners light years more than the fighters in the long run. Not to mention what happens if another apparel company wants to take over the role and outbid Reebok.
Ultimately, this plan is about control and coercion. It might give a handful of the UFC's most dynamic fighters a great retirement income if they can become "legends," but it's also another way to keep those fighters loyal to and under the watchful eye of Big Brother Zuffa. They're flat out telling fighters they don't have to be independent anymore. It's time for them to depend on the UFC and Reebok now. "Just fight for us, don't be a businessman," Uncle Dana might as well be saying.
Whatever benefits this program provides in the short term, the long-term issues seem troubling to say the least. Wanderlei Silva is concerned enough about the lower-tier fighters who may be impacted negatively by this deal that he recently offered to help them out in advertising their sponsors on his social networks, which exposes the fighters and their sponsors to millions of followers.
The bottom line is this plan is still going to do little to alleviate the problems obscure, unknown fighters face just trying to get themselves on the map in the first place. Unfortunately, the UFC continues to portray the attitude of an unruly Goliath, towering over the MMA landscape with outrageously controlling contracts, the most talented block of fighters in the sport serving out those contracts, and now a totally exclusive outfitting deal that is purposely designed to be a popularity contest.
If you agree or disagree, please explain yourself in the comment section.
Pyotr Kropotkin
***UPDATED on December 9, 2014 ***
By: Rich Bergeron
The UFC recently revealed a plan to revolutionize their sponsorship situation by partnering with a multi-billion-dollar Massachusetts-based apparel company called Reebok (looks like they need to update the text under Johny there). Early reports from the mainstream MMA media are giving this new development rave reviews. It's the greatest thing to ever happen to MMA if you believe these empty, UFC-bootlicking overtures. Perhaps they are not as well versed as I am on the reality behind the Zuffa facade.
Looking past the immediate benefits the top-tier fighters will surely see under this plan, the early indications show more fighters may see a major negative impact before they ever get a chance to realize any positive dividends. As soon as I examined the context of this "deal," I couldn't help but ask one glaring question. What will happen with all the sponsors who will now be excluded from the inner circle?
UFC Heavyweight Brendan Schaub reported recently that he lost a large group of sponsors already, even with the new policy not taking effect until next July. Schaub also indicated that Greg Jackson, a popular trainer with one of the most well known camps in the industry, lost all of his regular sponsors as well. The new rules will require all of a fighter's cornering staff to wear Reebok outfits as well.
You can be damn sure Jacob "Stitch" Duran won't be wearing his usual Xyience outfits in the cage, either. The former UFC staple recently sold to a Texas outfit, which is deciding to move away from MMA sponsorship. The ever-present cut man and hand-wrapper was also a stockholder in Xyience who saw his shares wiped out when the Fertitta brothers drove the company into the ground in order to take it over for themselves after a contentious bankruptcy. Stitch still rocked the brand anyway. Until now.
The Fertittas, through their Fertitta Enterprises holdings company, left several fighters expecting Xyience sponsorship money hanging when they could have easily been paid at the time. Few of those fighters ever donned the Xyience logo again once the Fertitta brothers were in a full ownership position. Matt Serra might be the only exception. The UFC's majority owners failed to pay about a million dollars in outstanding sponsorship fees while in control of Xyience to those fighters repping the brand. Yet, the brothers immediately provided the money for Xyience to pay the first installment of a blockbuster multi-million dollar organizational sponsorship to the UFC. In other words, the Fertittas showed their true colors, proving they'd put money into their own pockets before paying their fighters what they were entitled to. CLICK HERE for more on how the Fertittas used Xyience for immense personal benefit.
That huge Xyience sponsorship deal would never be fully realized, because Xyience folded. Harley Davidson and Bud Light would take over their middle of the mat spot only after they outbid the Xyience contract that was never going to be possible anyway. This is Fertitta business acumen at its most crafty and devious level.
Remember folks, these are the same guys who put together this new uniform policy with Reebok, and likely with a little help and input from Massachusetts-native Dana White. So far, it looks like this arrangement might only make a flawed system worse. It simply pours all the money into the pockets of all the well-established fighters who don't need it nearly as much as the young, hungry prospects. It's hard to imagine how so many prospects and lesser knowns will fare under this protocol.
It's easy to wonder if the future under this scenario could include a mass exodus of fighters who simply can't cope under the new conditions. Yet, these are not factors greedy folks like the Fertittas and White seem to grasp with any clarity or sense. They simply see another way to virtually guarantee exciting, bloody, and violent fights that get more fans interested in their organization. It's also another way to shackle each fighter to the organization, stripping away any semblance or spirit of independence a UFC charge will now be permitted to display.
The message is clear: be exciting, dynamic, and entertaining if you want to make any real money in this league. If you're average or below-par, get used to being broke.
Lorenzo Fertitta recently took the time to explain the new plan, which sounds suspiciously like the old plan. Compared to the existing fight pay and bonus system, it's right up the same alley. "At the end of the day, the more successful you are and the more demand there is for you, as an individual brand, the more you're going to sell," The UFC executive and Casino owner explained. "That's the way the system works. It's a capitalistic system here at the UFC."
Another future development for the program includes designating so-called "legends" of the UFC who will earn their own "kits" to be sold to the general public, and those fighters along with active fighters will receive kickbacks from all sales. It sounds fabulous on the surface, especially for those who are deemed special enough to the organization to receive the most lucrative in-career and retirement benefits. Yet, surely there will be some of the most devoted and resilient journeymen and tough-as-nails guys who always stepped up when needed who will be left with no such benefits despite having fought just as hard or harder than the guys who do get the extra check every month.
The absolute worst part of this six-year deal with Reebok is the restriction on existing and future fighter sponsors. Yes, fighters can still have outside sponsors other than Reebok and those with their own exclusive UFC deals. There's only one catch. It sounds like the only time they can display their unique sponsors is while they're hanging out on the couch at home or hobnobbing at local non-UFC events. All these sponsors fighters typically plaster all over their shorts and custom fight banners will be excluded from being displayed at any fight week events after this plan takes effect. This alienates a myriad of supporters, ranging from small-time local "mom and pop" outfits to major national brands.
Is this wrinkle a necessary evil? Perhaps the champs and top ten fighters in every weight class might say yes, but what about the up and comers who depend on those sponsors to get by when the regular fighter pay is miserable? UFC President and Part Owner Dana White points to fighters struggling with sponsorship issues in the past as the catalyst for this deal being needed right now. He neglects to explain that the UFC's "gatekeeper" fees represented a huge obstacle to most eager sponsors who wanted to get involved with those fighters.The policy already makes sure the UFC is paid a hefty sum before the average fighter gets a penny from those sponsors who can afford the luxury of having their brand appear on a square inch of fight short space on a UFC broadcast.
White insists that the new plan means every fighter gets a sponsor, no matter what. "...you're getting paid every time you get in," White said. "And it's more incentive to get bigger and better."
Lorenzo Fertitta piggybacked on that sentiment by telling reporters that fighters under the new plan won't have to do all that aggravating legwork of finding sponsors anymore. Now they can concentrate solely on training.
Yeah, Lorenzo, great point, if you're talking about those top-tier fighters making all the serious bank. But, what about the guys who go in there and don't get the chance to win the popularity contest because they can't seem to get off the preliminary cards? How much are they really making under this new plan, and is it really better for them than trying to generate their own sponsors to back them? If their "kits" don't sell, won't they just have to work harder outside the cage and away from UFC events to make ends meet?
The biggest question of all, the one that so few MMA media outlets ask, is why doesn't the UFC just pay a better flat wage for prospects and newcomers to the organization? A minimum $10,000 per fighter for a three round bout, win or lose, would be a great place to start and would be within the organization's means without this added exclusive sponsor deal.
The nearsighted and narrowly-framed parameters of this uniform plan fail to account for the blowback and the backlash that will surely result. Trainers who used to rely on sponsorship money may now have to charge their fighters more. Sponsors locked out now may go to competitors and never come back. Fighters weighing their prospects might be wary to enter an organization where only the top-tier fighters are guaranteed any hope of making a formidable wage. As a young fighter in the smaller circuits, sponsorships and your day job keep you alive as you pursue your dreams. How can you remain loyal to the same folks who got you to the UFC if the UFC tells you to leave all your supporters at the cage door? Who wants to fight for bosses who don't even really get the very sport they wield their iron fists over?
Lorenzo Fertitta also explained that "virtually" all, if not the entire amount of the deal's face value will end up in the pockets of the UFC's fighters. This may indeed be true in principle, but not quite so in practice, especially if you look at how the Fertittas operate. If something looks too good to be true with these corporate Goodfellas, it usually is. Even if every cent Reebok dishes out over the six years of this contract does end up going to certain fighters, the UFC most certainly benefits on a number of fronts. Those few sponsors who will be permitted to join the Reebok logo on fighter kits will no doubt be taxed separately in some way. Since all those other sponsors can no longer get in the UFC through the fighters, some of the more financially powerful companies will be scrambling to get ad space in the Octagon and through other UFC channels, creating fierce bidding wars for the spaces that are currently occupied by other major brands.
Of course, the expiration of the new deal means re-negotiating another new deal that could eventually pay the UFC's executives and owners light years more than the fighters in the long run. Not to mention what happens if another apparel company wants to take over the role and outbid Reebok.
Ultimately, this plan is about control and coercion. It might give a handful of the UFC's most dynamic fighters a great retirement income if they can become "legends," but it's also another way to keep those fighters loyal to and under the watchful eye of Big Brother Zuffa. They're flat out telling fighters they don't have to be independent anymore. It's time for them to depend on the UFC and Reebok now. "Just fight for us, don't be a businessman," Uncle Dana might as well be saying.
Whatever benefits this program provides in the short term, the long-term issues seem troubling to say the least. Wanderlei Silva is concerned enough about the lower-tier fighters who may be impacted negatively by this deal that he recently offered to help them out in advertising their sponsors on his social networks, which exposes the fighters and their sponsors to millions of followers.
The bottom line is this plan is still going to do little to alleviate the problems obscure, unknown fighters face just trying to get themselves on the map in the first place. Unfortunately, the UFC continues to portray the attitude of an unruly Goliath, towering over the MMA landscape with outrageously controlling contracts, the most talented block of fighters in the sport serving out those contracts, and now a totally exclusive outfitting deal that is purposely designed to be a popularity contest.
If you agree or disagree, please explain yourself in the comment section.
