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ASK MMATORCH: Hansen and Penick answer reader questions on UFC pay, Jimi Manuwa, and UFC's 2014 schedule
Jan 14, 2014 - 10:15:24 PM ASK MMATORCH: Hansen and Penick answer reader questions on UFC pay, Jimi Manuwa, and UFC's 2014 schedule

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Welcome to another edition of "Ask MMATorch," where Torch Editor Jamie Penick and Torch Columnist Rich Hansen answer reader questions on the world of MMA. If you have a question you'd like addressed by either of them, make sure to send it in to askmmatorch@gmail.com. The more questions we receive, the more frequently we can run this feature!


Ryan F. Writes: Dana White is always quick to dismiss low fighter pay, but if you do some math it makes it seem pitiful. Let's say they sell half a million pay-per-views at $45 a piece, that's $22,500,000 million. Then add in a couple more million for the gate which makes about 25 million. I've never seen the combined fighter payroll more than $2 million. I don't think after advertisement and venue costs that they're broke. So my question is where does the other 92% go and how much is going where?

MMATorch Columnist Rich Hansen Answers: Let's run some numbers, using UFC 160 as our guinea pig. For the sake of argument, we're going to say the average price point for a pay-per-view unit was $50, and we're going to assume one factor you neglected. The pay-per-view companies take an estimated 45 to 55 percent off the top. We'll say 50% for this exercise. Might be right, might be wrong, but unless you get a sit down with a Fertitta, this is as good as you're going to get, right?

UFC 160 was an average selling PPV featuring the heavyweight champion of the world, and it happened on a holiday weekend. It sold a rumored 380,000 units, but we're going to round up to 400,000 units for math. That's $20,000,000 in PPV profit, which becomes $10,000,000 after the cable companies get their cut. UFC 160 did close to $3,000,000 in ticket sales, but that's a high number because Vegas ticket prices are crazy high. So we'll say an average pay-per-view nets the UFC $12,000,000.

The disclosed payroll was $1,533,000, with $200,000 in 'Of The Night' Bonuses, for a disclosed total payout of $1,733,000. Let's round up and call it $2,000,000 in payroll expense. So net profit minus payroll leaves $10,000,000 in the bank.

As far as numbers go, that's all I'm willing to discuss with any percentage of certainty. There are other expenses in running a show. The MGM Grand Garden Arena isn't cheap. Advertising isn't cheap, even if they do run the same promo video, with different music and different voiceovers for a month before every show. The UFC had 24 fighters on this card, which meant they paid for a minimum of 72 (possibly 96) fighters, managers, and cornermen to fly into Las Vegas. And in case you haven't priced it out lately, flights into Las Vegas aren't nearly as cheap as they were in the 1990's. And of course that means the same number of hotel rooms as well. And a million other expenses that I'm sure I don't know about are in there as well.

Obviously the source of your question would be a complaint about fighter pay, and I'm kind of with you there. I just want to point out that it's at least possible that the profit margin isn't just $25,000,000 million in profit, $2,000,000 in payroll. I take a view different than most MMA fans. I think the entry level fighters are being paid just fine. But I would like to see every first UFC contract guarantee two fights with no cuts. That would take some of the pressure off of a UFC debutee, and likely increase the quality of their first fight. I would also like to see every UFC entry contract pay airfare, hotel, and a generous per diem for not only the fighter but their spouse or partner, manager, and up to three corner persons. This is especially important for the international shows, where the UFC shamefully only pays for the fighter and one corner person.


James W. Writes: Does Jimi Manuwa have a legitimate chance of beating Alexander Gustafsson?

MMATorch Columnist Rich Hansen Answers: To steal from Bill Clinton before Congress, it depends on what your definition of 'legitimate' is. Does he have slightly more than a puncher's chance? Sure. Would be win four times out of 10? No way. It's a fight that was designed to sell tickets in the UK and to give Gustafsson a relatively easy path back to a title shot. It should be entertaining, but I wouldn't count on Manuwa getting in the way of the rematch between Jon Jones and Alexander Gustafsson.


Jason H. Writes: Do you like that the UFC is planning so many fight cards in 2014? I'd personally prefer they run one pay-per-view along with another Fox card monthly and get rid of FS1 while bringing all other UFC programing to FX. I think their current strategy over-floods the market and alongside the current injury epidemic it would give UFC fans more stacked cards if they'd do it that way.

MMATorch Editor Jamie Penick Answers: They've essentially moved to one pay-per-view a month with 13 on the year, but because of timing they'll have at least one stretch with three pay-per-view shows in six weeks. That said, there's no question that the near 50 shows coming to pay-per-view, Fox Sports 1, Fox Sports 2, Fox, and the UFC Fight Pass are flooding the market, and it's impossible for the casual fanbase to keep up with everything.

An ideal schedule with the top fighters they've got on the roster would likely be one pay-per-view level show a month, a Fox Sports 1 card a month, with the Fox level shows 4-8 times a year. They could still have the added international cards if they were treated strictly as developmental events to bring fighters to the big stage.

Unfortunately, they're stretching the top talent thin, which in turn makes it harder to stack the bigger events, and puts fighters like Alexander Gustafsson on the UFC Fight Pass after a major title fight. As for moving things to FX, it certainly would have been great for the UFC if they could have stayed on one network after moving from Spike TV. But the move has been made, and Fox Sports 1 is here to stay.

I don't hate that there is more MMA to watch, because as our own Rich Hansen likes to say, even bad MMA is better than most other things. And I understand the UFC getting pulled in a number of different directions, with Fox wanting more events, and more countries and cities wanting them to bring events. There's some necessity to them needing to run so many fight cards because of that, and they've increased their roster greatly to accommodate the added events, but there's no question that it's too much for the average fan to keep up with.