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Thread: Boxing v. MMA Pay Scale & Business Models

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    Default Boxing v. MMA Pay Scale & Business Models

    November 6, 2007
    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.
    http://www.mmapayout.com/
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    i have been saying that for a few days.

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    For every Golden Boy there is 1,000 Cardboard Box Joes. You can't compare a UFC fighter with someone who manages and promotes his own self pretty much. There AREN'T that many boxers who make more than million a bout. And I'm sure the percentage of boxers who are paid adequate money is actually smaller than that of MMA fighters.

    Payouts for MMA have been steadily going up and that, I think, is a huge positive that people should be focusing on.

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    Quote Originally Posted by DemonPig
    For every Golden Boy there is 1,000 Cardboard Box Joes. You can't compare a UFC fighter with someone who manages and promotes his own self pretty much. There AREN'T that many boxers who make more than million a bout. And I'm sure the percentage of boxers who are paid adequate money is actually smaller than that of MMA fighters.

    Payouts for MMA have been steadily going up and that, I think, is a huge positive that people should be focusing on.

    I can name 20 boxers off the top of my head that make over a million a fight.

    pbf
    oscar
    Sugar Shane
    B Hop
    Joe C
    Winky
    Taylor
    Kessler
    Roy Jr
    Tito
    Vitali
    Cotto
    Tarver
    Kelly P
    Wlad
    James Toney
    Sam Peter
    other Russian champ hw
    other Russian champ hw
    Pretty much every champion in boxing above 130 pounds
    Dawson


    i mean the list goes on an on an on
    Last edited by Dork8503; 11-08-2007 at 05:19 AM.

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    [QUOTE=DemonPig]
    For every Golden Boy there is 1,000 Cardboard Box Joes. You can't compare a UFC fighter with someone who manages and promotes his own self pretty much. There AREN'T that many boxers who make more than million a bout. And I'm sure the percentage of boxers who are paid adequate money is actually smaller than that of MMA fighters.
    Not true. The fighters you see on HBO, SHO, and PPV, make considerably more money than the lower tier MMA fighters. Not as much as the main eventers, but more than the rest.

    That's due to less fighters on the cards, and the one time basis payoffs, if you will.

    Honestly, the UFC coiuld learn something from that IMO. Most world class P4P boxers make more than 10 mill a fight.


    Payouts for MMA have been steadily going up and that, I think, is a huge positive that people should be focusing on.
    True, but Dana and the fertitas are making 10 times more than their fighters and they didnt shed an ounce of blood. Main event boxers usually make about 90% of the PPV revenue from what I'm told.

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    Quote Originally Posted by Dork8503
    I can name 20 boxers off the top of my head that make over a million a fight.
    Exactly! I would rep you, but need to spread it.

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    [QUOTE=harlemhustla145]
    Quote Originally Posted by DemonPig
    Not true. The fighters you see on HBO, SHO, and PPV, make considerably more money than the lower tier MMA fighters. Not as much as the main eventers, but more than the rest.

    That's due to less fighters on the cards, and the one time basis payoffs, if you will.

    Honestly, the UFC coiuld learn something from that IMO. Most world class P4P boxers make more than 10 mill a fight.


    True, but Dana and the fertitas are making 10 times more than their fighters and they didnt shed an ounce of blood. Main event boxers usually make about 90% of the PPV revenue from what I'm told.

    they make 65-70% of ppv

    But again you can not compare the pay. UFC an dana might make 10 more but they are paying for everything unlike boxing

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    [QUOTE=harlemhustla145]
    Quote Originally Posted by DemonPig
    Not true. The fighters you see on HBO, SHO, and PPV, make considerably more money than the lower tier MMA fighters. Not as much as the main eventers, but more than the rest.

    That's due to less fighters on the cards, and the one time basis payoffs, if you will.

    Honestly, the UFC coiuld learn something from that IMO. Most world class P4P boxers make more than 10 mill a fight.


    True, but Dana and the fertitas are making 10 times more than their fighters and they didnt shed an ounce of blood. Main event boxers usually make about 90% of the PPV revenue from what I'm told.

    But your missing the point of the article.. ALL of the risk, 100% of it falls in the UFC, they pay a full time staff, pay for production, pay for the venue, pay for all the travel and lodging costs, etc... The fighters only risk is to fight, and that is by there choice.

    The UFC should make 10X more than the fighters if they have 100% of the risk.
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    what the hell is wrong with the quotes

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    [QUOTE=jrube]
    Quote Originally Posted by harlemhustla145


    But your missing the point of the article.. ALL of the risk, 100% of it falls in the UFC, they pay a full time staff, pay for production, pay for the venue, pay for all the travel and lodging costs, etc... The fighters only risk is to fight, and that is by there choice.

    The UFC should make 10X more than the fighters if they have 100% of the risk.
    Oh I agree. The UFC takes the biggest risk, but as of late, that risk is paying out dividends, consistently. I just think the UFC's business model is too much like prowrestling. It's like, back in the WCW/WWF days, you'd never see Hulk Hogan wrestle Shawn Micheals. What I'm trying to say is, we'll never see all the dream fights we want to see. I really want to see Fedor fight the best. (I.E. Randy Couture) but the UFC doesnt do "non exclusive" contracts... Which I think is going to hurt the UFC's credibility in the future. The UFC also needs to start leting in NON BIASED press into their shows. Like MMAWEEKLY, MMANEWS, YAHOO sports, ESPN, hell even sherdog. I guess I'm still upset at Dana failing to sign Fedor. I mean seriously, wtf?
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