Friday Afternoon Quick Hits

Three articles worth reading that I haven't had time to cover fully this week:

• 411Mania.com Interview w/ Jay Larkin - A very candid conversation with IFL CEO Jay Larkin on the state of the industry and the IFL.
  
• The Future of Golden Boy Promotions - Opinion and Analysis from CBSSports.com on the future of the company after Oscar de La Hoya retires which might explain the company's interest in MMA.
  
• Kevin Iole Defends the UFC Pay Scale - A defense of the UFC's pay scale, particularly compared to boxing, including some of the most detailed sponsorship figures that have been made public to date.
  

UFC 83 Quick Notes

• The event in Montreal drew the largest crowd in UFC history with an attendance of 21,390 for a $5+ million gate.
• According to Dave Meltzer, the event was shown at more than 1,000 bars and restaurants across Canada, breaking the previous record set by Lennox Lewis v. Mike Tyson in 2002.
  
• Payouts are not available yet, however, the UFC announced four $75,000 performance bonuses, the largest announced bonuses in company history:
• Fight of the Night: Jonathan Goulet v. Kuniyoshi Hironaka
• Knockout of the Night: Jason MacDonald
  
• Submission of the Night: Demian Maia

EliteXC/Strikeforce 3/29 Payouts

MMAJunkie.com obtained the CSAC's financial report on last Saturday's joint EliteXC/Strikeforce event. The event drew 15,192 (14,710 paid) for a total live gate of $1,117,855. Strikeforce joins Zuffa as the only MMA promoters to top $1 million at the gate in North America. The total disclosed payroll was $667,850. Reported payouts:

• Cung Le ($200,000) d. Frank Shamrock ($300,000)
• Drew Fickett ($10,000) d. Jae S. Lim ($3,000)
• Gilbert Melendez ($50,000) d. Gabe Lemley ($7,000)
• Wayne Cole ($10,000) d. Mike Kyle ($10,000)
• Joey Villasenor ($36,000) d. Ryan Jensen ($6,000)
• Billy Evangelista ($10,000) d. Marlon Sims ($2,500)
• Tiki Ghosn ($8,000) d. Luke Stewart ($6,000)
• Darren Uyenoyama ($4,000) d. Anthony Figueroa ($2,000)
• Jesse Jones ($2,150) d. Jesse Gillespie ($1,200)

CREDIT: MMAJunkie.com

WEC 3/26 Payouts

• Brian Stann ($18,000) d. Doug Marshall ($10,000)
• Chael Sonnen ($34,000) d. Bryan Baker ($5,000)
• Marcus Hicks ($10,000) d. Ed Ratcliff ($7,000)
• Steve Cantwell ($8,000) d. Tim McKenzie ($6,000)
• Hiromitsu Miura ($8,000) d. Blas Avena ($6,O00)
• Brock Larson ($24,000) d. John Alessio ($15,000)
• Richard Crunkilton Jr. ($20,000) d. Sergio Gomez ($4,000)
• Alex Serdyukov ($12,000) d. Ryan Stonitsch ($3,000)
• Chris Manuel ($3,000) v. Kenji Osawa ($5,000)
  
• Logan Clark ($12,000) d. J. Scott Harper ($3,000)

TOTAL DISCLOSED PAYROLL: $213,000

CREDIT: MMAJunkie.com

Vera's Management Dispute Provides Rare Glimpse Into UFC Negotiations

Brandon Vera's dispute with his former manager, Mark Dion, was recently settled in an arbitration hearing before the California State Athletic Commission. The commission ruled in Dion's favor and the entire affair is documented on Dion's website, CityBoxing.com. The myriad of documents made available by Dion provide a rare public glimpse into the UFC's negotiation tactics.

The entire affair was detailed by the Canadian Press. The highlights:

• Vera's second three-fight UFC deal (renegotiated prior to the expiration of his original contract) started at $16,000/$16,000 (win bonus), $20,000/$20,000, and $24,000/$24,000. The deal also included a $100,000 signing bonus.
  
• Two fights into that deal, following Vera's knockout of Frank Mir at UFC 65 in November 2006, the UFC approached Dion to negotiate a long term deal. The UFC flew Dion to Las Vegas to meet with Dana White. White gave Dion two offers on a post-it note:
• A three fight deal at $90,000/$90,000, $100,000/$100,000, and $115,000/$115,000 with an automatic upgrade to $150,000/$150,000, $170,000/$170,000, $185,000/$185,000 provided Vera became Heavyweight Champion, or
• A four year deal worth $7 million. Dion testified that White made a verbal offer of a $100,000 bonus if Vera won the title.
  
• Dion told the CSAC that the post-it note was standard operating practice:
  
• "UFC doesn't send no letters, period. They've tried to avoid all that stuff... This is all I got from Dana White. This is all I could show to Mr. Vera. There was no e-mails. Dana White likes to keep - keep himself covered on all aspects."
  
• Dion made an admittedly outrageous counter offer three days later in an effort to move negotiations. The two options presented were:
• A one-year three-fight contract at $150,000/$150,000, $175,000/$175,000, and $200,000/$200,000 with a $1.5 million signing bonus, or
• A guaranteed three-year ten-fight contract worth a total of $9 million ($3 million per year) plus a $1.5 million signing bonus. Vera would also receive a $1 million bonus if undefeated at the end of each year.
  
• In response, Joe Silva, VP of Talent Relations, offered a three fight deal at $50,000/$50,000, $60,000/$60,000, and $70,000/$70,000, escalating to $90,000/$90,000, $100,000/$100,000, and $110,000/$110,000 if Vera became champion along with a $100,000 signing bonus.
  
• Dion rejected the offer in an email to White at 4:46 PM on December 26. At 7:16 PM the UFC replies, saying it is exercising its right to extend the contract by three months per Vera's refusal to fight in June due to injury.
  
• Dion informs the company that Vera was never injured and was ready to fight as soon as possible. He hires a lawyer in January to contest the company's three month contract extension.
  
• In March Vera tells the UFC not to deal with Dion anymore.
  
• Vera's attempted to void his management contract with Dion goes to arbitration in September, claiming he was never informed of the $100,000 signing bonus offer.
  
• In October, after an 11-month layoff, Vera returns to the UFC in a loss to Tim Sylvia with a reported purse of $100,000.
  
• The CSAC ruled in Dion's favor earlier this month, finding no illegal conduct,but severed the management contract (which ran through 2010) due to deterioration of their relationship.
  
• Dion received one-third of the Sylvia fight purse as well as $100,000 in consideration of future fight purses.
  
• Garcia said: "It seems to the arbitrator that the ambiguity of the Post-it note, which appears to be the root of the current dispute, could have been avoided if the UFC had put their offer in the form of a proposed contract and sent it to (the) manager."

Vera subsequently re-signed with the UFC and will face Fabricio Werdum at UFC 85.

Japan Update: Debut Disappointing for Dream; Successful Debut for WVR

According to The Wrestling Observer Newsletter, Dream drew 14,700 fans and did an 8.9 rating on the TBS network for its 3/15 debut show built around the return of Mirko Cro Cop. That number is considered very disappointing in the Japanese television climate. The broadcast peaked with a 12.7 rating for Cro Cop's match with unknown Tatsuya Mizuno. Dream is currently the only promotion in the country with prime time television.

World Victory Road drew nearly 13,000 fans to its debut show on 3/5 which was considered a success, especially on a Wednesday night. The event featured Hidehiko Yoshida and Takanori Gomi in their first fights since the death of Pride. Gomi is believed to be earning approximately $190,000 per fight with Yoshida likely earning more than that according to Dave Meltzer. Without television, it remains to be seen how long the company can continue its ambitious plans producing frequent and expensive shows.

Strikeforce 2/23 Payouts

Strikeforce's February 23 event at the Tacoma Dome in Washington drew 7,089 for a live gate of over $500,000, a state record. Disclosed payouts for the event:

• Jan Nortje ($15,000) d. Bob Sapp ($100,000)
• Cory Devela ($10,000) d. Joe Riggs ($15,000)
• Maurice Smith ($30,000) d. Rick Roufus ($15,000)
• Eddy Ellis ($5,000) d. Steve Berger ($10,000)
• Jorge Masvidal ($20,000) d. Ryan Healy ($4,000)
• Mychal Clark ($5,000) d. Josh Bennett ($2,000)
• Lyle Beerbohm ($2,000) d. Ray Perales ($2,000)
• Mike Hayes ($2,000) d. Matt Kovacs ($1,500)
• Zach Skinner ($2,000) d. Scott Shaffer ($1,000)
• Nathan Coy ($2,000) d. Dave Courchaine (2,000)
• TOTAL DISCLOSED PAYOUTS: $245,500

CREDIT: MMAJunkie

IFL 2/29 Payouts & Business Notes

The IFL's event last Friday at the Orleans Arena in Las Vegas drew 4,280 (1,606 paid) for a gate of $102,120. Reported fighter payouts were:

• Ryan Schultz ($26,000) d. John Gunderson ($9,500)
• Roy Nelson ($24,000) d. Fabiano Scherner ($7,500)
• Ryan McGivern ($10,000) d. Matt Horwich ($12,000)
• Alexandre Ferreira($16,000) d. Lew Polley($4,000)
• Jake Ellenberger ($15,000) d. Pat Healy ($7,500)
• Rafael Dias ($7,000) d. Santino De Franco ($5,000)
• Josh Haynes ($6,000) d. Leopoldo Serao ($4,000)
• Ian Loveland ($7,000) d. Dennis Davis ($5,000)
• TOTAL DISCLOSED PAYOUTS: $165,500

CREDIT: MMAWeekly.com

UFC 82 Payouts

UFC 82 from Columbus, Ohio drew 16,431 for a $2.2 million gate, $800,000 less than the company's debut in Columbus drew last year for the return of Randy Couture. The disclosed payouts for the event were:

• Anderson Silva ($260,000*) d. Dan Henderson ($160,000#)
• Heath Herring ($140,000) d. Cheick Kongo ($30,000)
• Jon Fitch ($60,000) d. Chris Wilson ($12,000)
• Chris Leben ($110,000^) d. Alessio Sakara ($17,000)
• Yushin Okami ($28,000) d. Evan Tanner ($25,000)
• Andrei Arlovski ($170,000) d. Jake O’Brien ($11,000)
• Diego Sanchez ($60,000) d. David Bielkheden ($8,000)
• Josh Koscheck ($20,000) d. Dustin Hazelett ($12,000)
• Luigi Fioravanti ($16,000) d. Luke Cummo ($16,000)
• Jorge Gurgel ($14,000) d. John Halverson ($3,000)
• TOTAL DISCLOSED PAYROLL: $1,112,000 (including $180,000 in disclosed bonuses)

• * = includes $60,000 bonus for Submission of the Night and $60,000 bonus for Fight of the Night
• # = includes $60,000 bonus of Fight of the Night
• ^ = includes $60,000 bonus of Knockout of the Night
• Note - Dan Henderson and Andrei Arlovski each had non-typical win bonuses (i.e. not merely double the downside guarantee, ex. 10k + 10k to win) of $150,000 and $65,000 respectively (although Henderson obviously did not collect).
  

CREDIT: MMAWeekly.com

EliteXC Street Certified Results & Payouts

• Kevin “Kimbo Slice” Ferguson ($175,000*) d. David “Tank” Abbott ($126,000)
• Antonio Silva ($80,000) d. Ricco Rodriguez ($20,000)
• Scott Smith ($12,000) d. Kyle Noke ($3,000)
• Yves Edwards ($6,000) d. Edson Berto ($6,000)
• Brett Rogers ($4,000) d. James Thompson ($25,000)
• Rafael Fiejao ($6,000) d. John Doyle ($2,500)
• Yosmany Cabazes ($2,000) d. Jon Kirk ($2,500)
• Dave Herman ($1,500) d. Mario Rinaldi ($2,000)
• Eric Bradley ($1,000) d. Mikey Gomez ($1,500)
• Mike Bernhard ($1,500) d. Lorenzo Borgameo ($1,000)
• Moyses Gabin ($1) d. Jirka Hlavaty ($500)
  

* - includes $50,000 win bonus

TOTAL DISCLOSED PAYROLL = $479,001

SOURCE: MMAMania.com

UPDATE: Sam Caplan has details on the $1 man.

UFC 81 Payouts

Complete UFC 81 payouts are now available. The total disclosed purse for the event was $1,132,000, including disclosed Performance Bonsues. The breakdown:

• Antonio Rodrigo Nogueira ($260,000*) def. Tim Sylvia ($160,000*)
• Frank Mir ($140,000#) def. Brock Lesnar ($250,000)
  
• Nate Marquardt ($52,000) def. Jeremy Horn ($25,000)
  
• Ricardo Almeida ($40,000) def. Rob Yundt ($5,000)
  
• Tyson Griffin ($36,000) def. Gleison Tibau ($11,000)
  
• Chris Lytle ($84,000^) def. Kyle Bradley ($4,000)
  
• Tim Boetsch ($12,000) def. David Heath ($6,000)
  
• Marvin Eastman ($14,000) def. Terry Martin ($12,000)
  
• Rob Emerson ($16,000) def. Keita Nakamura ($5,000)
  

* = Includes $60,000 bonus for Fight of the Night
# = Includes $60,000 bonus for Submission of the Night
^ = Includes $60,000 bonus for KO of the Night

NOTES: Lesnar stood to earn a $200,000 win bonus... The $60,000 Performance Bonuses are the largest in UFC history. There had been speculation that these bonuses were being reduced due to cost cutting, however, that does not appear to be the case. It unclear how the bonuses are determined, however, pay-per-view bonuses due and show profile appear to play a large part.

Declining Bonuses Sign of Belt Tightening for UFC?

Dave Meltzer reported in this week's Wrestling Observer Newsletter that bonuses for best match, submission, and knockout at UFC 80 were $35,000. At UFC 78 the bonuses were worth $55,000 while at UFC 79 the bonuses paid $50,000. Meltzer cited the decline as symptomatic of across the board belt tightening for the company.

It should be noted that the disclosed performance bonuses have fluctuated greatly over the last year as the company attempted to find the right price point to incentive fighters into pushing the action. There are some indications that the bonuses are being priced based on the profile of the show, however, the decline of bonuses from UFC 78 to 79 is inconsistent with that theory.

Sources have told MMAPayout.com that the cuts have also affected the undisclosed discretionary bonuses typically given to top fighters following their fights. However, in recent media appearances White had given some indications that the company would be moving away from undisclosed bonuses in the wake of the Couture dispute.

UFC Fight Night 12 Payouts

MMAJunkie.com reports the following payouts from last night's Ultimate Fight Night event:

• Mike Swick ($20,000) d. Josh Burkman ($10,000)
• Patrick Cote ($28,000) d. Drew McFedries ($10,000)
• Thiago Tavares ($18,000) d. Michihiro Omigawa ($5,000)
• Nate Diaz ($30,000) d. Alvin Robinson ($7,000)
• Kurt Pelligrino ($20,000) d. Alberto Crane ($4,000)
• Gray Maynard ($16,000) d. Dennis Siver ($7,O00)
• Jeremy Stephens ($10,000) d. Cole Miller ($8,000)
• Corey Hill ($16,000) d. Joe Veres ($3,000)
• Matt Wiman ($16,000) d. Justin Buchholz ($4,000)

Total disclosed payroll was $232,000. Bonuses for Fight of the Night, Submission of the Night, and Knockout of the Night are not yet available.

UFC 79 Payouts & Business Notes

UFC 79 drew 11,075 to the Mandalay Bay Event Center in Las Vegas for a $4.9 million gate.

Reported payouts and bonuses from UFC 79:

• Georges St. Pierre ($210,000+) d. Matt Hughes ($100,000)
• Chuck Liddell ($550,000+) d. Wanderlei Silva ($200,000+)
• Eddie Sanchez ($96,000+) d. Soa Palelei ($5,000)
• Lyoto Machida ($60,000) d. Rameau Sokoudjou ($40,000)
• Rich Clementi ($28,000) d. Melvin Guillard ($10,000)
• James Irvin ($16,000) d. Luis Cane ($5,000)
• Manny Gamburyan ($20,000) d. Nate Mohr ($6,000)
• Dean Lister ($22,000) d. Jordan Radev ($5,000)
• Roan Carneiro ($10,000) d. Tony DeSouza ($7,000)
• Mark Bocek ($6,000) d. Doug Evans ($3,000)

+ = bonus included, bonus breakdown:

• St. Pierre - $50,000 for best submission
• Liddell - $50,000 for fight of the night
• Silva - $50,000 for fight of the night
• Sanchez - $50,000 for best knockout

Total disclosed pay for the event was $1,399,000.

UFC Labor Relations Back in the News: New Details on Bonus Structure; White Defensive and Defiant

The growing tensions between the UFC and its top fighters is back in the mainstream with an article in the Los Angeles Times this morning. The piece, titled This UFC Battle is All About Money, focuses on Randy Couture's resignation as an illustration of the growing criticism of the company's pay scale. The article includes quotes from Dana White, Tito Ortiz, and Randy Couture.

Most of the ground covered by the article is old news to those who follow the MMA media, however, White did reveal that the company has eliminated signing bonuses in the aftermath of the Couture resignation. It was also confirmed that Matt Hughes received a $1 million dollar bonus in the aftermath of his bout last year with Royce Gracie. However, it is not clear if the bonus was a signing bonus (as previously reported here) or a post fight performance bonus.

Of course this should come as no surprise since the distinction, or lack there of, between signing bonuses and discretionary performance bonuses was one of the issues at the heart of the dispute between Couture and the UFC. Contracted signing bonuses, a widely accepted practice in professional sports, seem much less worrisome in a labor relations context than discretionary performance bonuses doled out at management's will. However, the elimination of undisclosed bonuses of any kind is a step in the right direction (SEE: Transparency is the Answer).

Ortiz brought up his bout with Chuck Liddell last December as an example of the inequity of the company's pay scale. Ortiz claimed that the UFC made $42 million from the event while he and Liddell received $1.5 million each.

The $42 figure is misleading. UFC 66 is believed to have drawn 1,050,000 buys which would represent a total gross of $42 million, however, Zuffa's share would be at most $21 million. There have been conflicting reports on the company's arrangement with pay-per-view distributors, but the company is believed to receive 40-50% of gross pay-per-view revenues.

Ortiz went on to summarize his position:

We've had to put our lives on the line, and now that we've seen the UFC making its money back -- and more -- we're asking, 'Where's the money?' Dana's famous words are, 'I'm going to make you the biggest superstar in the world,' but they make great [dollar] numbers on their video games, merchandising, and DVDs of us fighting, and the fighters get none of it.

Perhaps the most noteworthy aspect of the article was White's aggressive response, calling Ortiz an "idiot"--again--before defiantly stating:

Am I entitled to make some money? This is a business, and the business deserves to make money. These guys wouldn't be putting their lives on the line if I hadn't busted my [rear] to build this infrastructure, and Randy Couture wouldn't be a millionaire now.

The first part of the statement is largely uncontroversial, at least as far as I am concerned. Zuffa assumes an even greater financial risk than most other promoters, particularly more than boxing promoters, and thus deserves a larger financial reward (SEE: Boxing v. MMA Pay Scale & Business Model - expanded version available in the new issue of MMA Sports Magazine). The real question is not whether or not the company deserves to make money, but rather how much? Irregardless, it is hard to understand why fighters do not deserve at least some cut of DVD and merchandise sales.

It is no doubt true that White deserves a large share, possibly even the lion's share, of the credit for the growth of MMA and with it the compensation of its top stars. However, taking the public tact that your most important employees should be grateful to you for whatever they get is probably not the most effective labor or public relations strategy, benevolent dictator rarely plays well for very long. White has to know as much, leading one to wonder whether or not White is really feeling defensive, and a little bit guilty, rather than defiant.

Envelope Math: The Fortunate 50

Sports Illustrated just released its fourth annual Fortunate 50. The list ranks the top 50 earning American athletes based on salary, winnings, bonuses, endorsements, and appearances. On the strength of their record setting pay-per-view fight in May, Oscar De La Hoya checks in at # 2 with $55 million in total earnings while Floyd Mayweather comes in at # 21 with $20,250,000.

Tiger Woods paces the list at $111,941,827 (including $100 million in endorsements), while it took roughly $15 million to crack the top 50. 25 basketball players, 12 baseball players, 5 football players, 3 NASCAR drivers, and one women's professional golfer round out the list.

For comparison's sake let us engage in a little envelope math to see how MMA's top earner, widely believed to be Chuck Liddell, compares. To be clear, this is an almost entirely speculative exercise. MMAPayout.com estimates Liddell's 2007 earnings to date, not including endorsements and appearances, at roughly $2.7 million based on:

• 5/21 - lost to Quinton Jackson - $1,707,500 ($500,000 guarantee, estimated $1.2 million pay-per-view bonus*)
• 9/22 - lost to Keith Jardine - $1,032,500 ($500,000 guarantee, estimated $532,500 pay-per-view bonus based on 400,000 buys*)
• * - assuming Liddell's pay-per-view bonus scale is similar to Randy Couture's

Conservatively, Liddell stands to make an additional $1 million for his 12/29 fight with Wanderlei Silva (based on a loss and 400,000 buys). That would put Liddell at $3.7 million for the year, not including endorsements, appearances, or undisclosed bonuses, not to mention $1.5 million in win bonuses (Liddell's contract is $500,000 guaranteed per fight, plus a $500,000 win bonus) he would have left on the table (assuming an 0-3 record). $6 million total earnings for 2007 is not an unreasonable estimate based on the above assumptions.

In the best case scenario, Liddell could have earned as much as $6.7 million in the octagon in 2007 based on the following assumptions:

• An average of 630,000 buys per fight, the number he averaged over his last four fights prior to his 9/22 fight with Jardine. Assuming that buy rate would have held up if he hadn't lost to Jackson.
• Assuming a 3-0 record resulting in $3 million in earnings

Taking into account undisclosed performance bonuses, endorsements/sponsorships, and appearance fees in addition to the above assumptions, it is not impossible to imagine Liddell taking home over $8 million in total earnings in a best case scenario.

NOTE: As the title of "Envelope Math" suggests, the exercise above regarding Liddell's salary projections is almost purely speculative with the resulting estimates representing nothing more than educated guesses.

WEC 31 Payouts

MMAOnTap.com has payouts from WEC 31 which took place in Las Vegas on 12/5:

• Jens Pulver: $60,000
• Paulo Filho: $56,000
• Urijah Faber: $40,000
• John Alessio: $26,000
• Chael Sonnen: $25,000
• Charles Valencia: $12,000
• Jeff Curran: $10,000
• Doug Marshall: $10,000
• Bryan Baker: $8,000
• Alex Karalexis: $8,000
• Ed Ratcliff: $8,000
• Brian Bowles: $6,000
• Cub Swanson: $5,000
• Marcos Galvao: $5,000
• Eric Schambari: $5,000
• Ariel Gandulla: $4,000
• Todd Moore: $4,000
• Ian McCall: $3,000

TUF 6 Finale Payouts w/ Bonuses

• Jonathan Goulet ($14,000) d. Paul Georgieff ($8,000)
• Roman Mitichyan ($16,000) d. Dorian Price ($8,000)
• Matt Arroyo ($31,000+) d. John Kolosci ($8,000)
• Troy Mandaloniz ($16,000) d. Richie Hightower ($8,000)
• Ben Saunders ($16,000) d. Dan Barrera ($8,000)
• George Sotiropoulos ($16,000) d. Billy Miles ($8,000)
• John Koppenhaver ($46,000++) d. Jared Rollins ($23,000+)
• Mac Danzig ($16,000) d. Tommy Speer ($8,000)
• Roger Huerta ($68,000++) d. Clay Guida ($41,000++)

+ = bonus included, bonus breakdown:

• Arroyo - $15,000 for best submission
• Koppenhaver - $15,000 for best knockout, $15,000 for fight of the night
• Rollins - $15,000 for fight of the night
• Huerta - $30,000 for fight of the night
• Guida - $30,000 for fight of the night

SOURCE: Wrestling Observer Newsletter

UFC 78 Business Notes

• The show drew 14,071 paid for a gate of $2.14 million.
• The arena was reportedly at about 90% capacity with all the tickets under $200 sold out (which happened immediately) and the $300 and up tickets moving slower.
• Prior to UFC 78, the company increased the bonuses for best fight, best submission, and best knockout from $40,000 to $55,000 each in an effort to ensure entertaining fights and provide a strong incentive to finish fights. The company was then left frustrated with the results which saw three of the main card fights go to decisions despite the increased financial incentive. As a result there wasn't time to air the fight of night, Thiago Avles TKO victory over Chris Lytle. The lesson learned was that bigger bonuses, large enough to now pay significantly more than contracted payouts to all but the top fighters, failed to change the fighters' mentality of playing it cautious to win.

SOURCE: The Wrestling Observer Newsletter

Boxing v. MMA Pay Scale & Business Models

MMA Weekly has quotes from Gary Shaw talking about supposed discrepancies between the boxing and MMA pay scales.

“Truthfully, I don't think there is a discrepancy,” he said in a recent conference call. “I think that people believe that. But trust me, there's not a discrepancy that you all think there is. Fighters that are starting out that are getting paid a thousand or two thousand a fight are no different than an undercard boxer.”

In comparing the pay scales of boxing and MMA, particularly the UFC, it is important to consider the differences in each sports respective business models. Boxing promotions generally operate on an event to event basis with small full time staffs. Third party partners are the key to producing successful events in this model.

As a result boxing promoters have lower overhead and can afford to pay fighters higher guarantees since they receive more contracted fees (site fees, broadcast fees, major sponsorships, etc.). These advantages come at the expense of creative control, which isn't that important in a business model designed to maximize current profits, the future be damned.

The UFC on the other hand is largely self sustained. It handles everything from television production, advertising, etc. in house. As a result it has a much higher overhead and is much more dependent on the live gate and pay-per-view revenue in order to have a successful show. In exchange for bearing greater risk, the company deserves a greater financial share.

Deciding which model is best for the fighter is not as a easy as saying which model pays better. In the short term, boxing's model may offer bigger paydays, but at the potential expense of the future. Promoters have little investment in future success, creating a make money now, worry later mentality that has hurt the sport. The UFC on the other hand may offer smaller payoffs as a percentage now, but its model should provide more consistent future paydays. The company's insistence on exclusivity inherently invests it in protecting the sport's future.