It's a good day to be part of the UFC investment group… The news has just come out via the New York Post that the promotion of the fight will pay a dividend of 300 million dollars to the shareholders, which brings in a lot of money parent company Endeavor, UFC executives and celebrities who own shares in the company.
According to the Post, Endeavor will put about $ 150 million of that money into his bank account, while Endeavor CEO Ari Emanuel, Endeavor director Patrick Whitesell and UFC president Dana White will earn "more than 3 millions of dollars each. ”Mark Wahlberg gets about $ 500,000, while international top model Bundchen gets about $ 145,000.
This is the first dividend paid to shareholders since Endeavor bought the UFC for $ 4 billion in 2016, so it is not unusual for the company to pay four years later. But the amount of the "hangover" dividend payment, that $ 300 million payment leaving only $ 50 million in the operational coffers of the UFC.
Not that the UFC should insist too much. Their new agreement with ESPN gives the promotion a stability never seen in the fighting game, the network paying a lot of money for the broadcasting rights on their traditional networks, plus a generous amount to broadcast PPV events exclusively via ESPN +. At this point, Conor McGregor and Jon Jones could drive the Lamborghini together and die in a huge fireball and that wouldn't affect the comfortable base rate that the UFC does every year as part of the ESPN agreement.
The amount paid to investors was also compared negatively in the Post article on how much the UFC paid its fighters in 2019: $ 150 million, which represents 16% of the $ 900 million in promotion revenue. As we have repeatedly noted in similar depressing articles like this one, other major sports like the NBA, MLB and NFL are around 50%.
Except for something crazy like a combatants' union, there is no reason to imagine that the 16% figure will change. In an internal document released as part of the discovery in the UFC fighter anti-trust lawsuit, a slide titled "Risk of Fighter Compensation Inflation" said: "Fighter Comp was the most asked question by funding sources, and is a critical cost that we must actively manage. We believe our long-term assumption of 20% of revenues is reasonable. "
So if the UFC fighters are looking to make a difference, future articles will save them a lot of money ... well, Kobe said it very well:
"When you have this unit, when you work together on the same page, it just strengthens the sport and makes it better," said Bryant at a somewhat controversial 2017 UFC athlete retirement event. just for the present, but also for the coming generations, so it's extremely important. "