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Apr 25, 2002
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FC tweaks payment structure for Reebok deal


By Alex Silverman, Correspondent

Published April 20, 2015, Page 24


Since the UFC agreed to its first exclusive outfitting deal with Reebok in December, executives from the promotion’s newly formed equipment department have spent hours meeting with fighters, their cornermen and their managers, explaining how their lives will change when the Reebok deal takes effect in July.

Along the way, one issue has become clear: Fighters want to know how they’re going to be compensated under the six-year, $70 million deal — and their thoughts on the subject have prompted a change in the payment model that the UFC originally developed.

“We’ve had some great discussions, and the fighters and managers have asked some terrific questions,” said Tracey Bleczinski, UFC senior vice president of global consumer products. “There’s been some good debate.”



When the UFC released the initial draft of its outfitting policy in January, it stipulated that fighters’ compensation for a given bout would be based on their rankings. But based on feedback collected during the information sessions, the UFC has opted instead to institute a tiered system based on tenure, or number of UFC bouts fought. Fighters also will be credited for bouts sanctioned by World Extreme Cage Fighting and Strikeforce, both of which were purchased and shuttered by UFC parent company Zuffa.

The new system places combatants into tiers of 1-5 fights, 6-10 fights, 11-15 fights, 16-20 fights and more than 21 fights. The only exception applies to title fights, as both title challengers and reigning champions will receive greater compensation. The UFC declined to share specific dollar figures for each class.

The UFC considers this model preferable for fighters because number of bouts is an objective scale, whereas fighters’ rankings are determined by media members and are subjective in nature. It plans to officially notify fighters of the change in the coming weeks.

Still, observers are asking how fighters’ compensation under the Reebok deal will compare to what they were being paid previously by individual sponsors to wear their logos in the Octagon. While most UFC fighters had once generated the majority of their income by wearing sponsors’ logos, they now are prohibited from wearing those logos during any UFC Fight Week events, including public training sessions, news conferences, weigh-ins and fights.

Authentic Sports Management CEO Glenn Robinson, who represents a group of fighters known as the Blackzilians across several combat sports, said that the sponsorship money fighters previously depended on has declined in recent years.

“There was once a real big heyday of sponsorships. There was a time when companies like Tapout were paying $50,000 to $75,000 per fight, and people were living off that sponsorship money,” Robinson said. “But those days are gone. That income level of sponsorships is not there anymore. It doesn’t exist, and a lot of fighters still count on that money.”

WME agent Brad Slater, who represents a high-profile stable of fighters including Ronda Rousey, echoed that sentiment. “The money that was garnered in large part, even if you saw five or six sponsors on people, would not necessarily always add up to a really significant number,” Slater said.

Robinson, in addition to managing fighters, owns a clothing brand called Jaco, which previously promoted itself on

Originally, UFC proposed compensating fighters based on rankings.
Photo by: Getty Images
fighters’ apparel during bouts. Still, he said from a fighter management perspective, he believes compensation via the Reebok deal is more sustainable and, therefore, better for his clients.

“You have a lot of companies that would come in for a brief period of time. They’ll sponsor really heavy for some period of time and then they go away,” Robinson said. “They don’t stick with the league for a long time because there’s not a lot of return on investment for them, whereas for Reebok, there’s a return on investment. The fighters are all getting behind a brand, the brand is going to be available for sale, so there’s a way for them to recoup their money, and there’s a cycle for the funds. Reebok makes an investment, the fighters get money, Reebok gets their money back by sales.”

Meanwhile, bringing on an official outfitter should help elevate the UFC toward the same echelon as other major sports leagues from a presentation standpoint.

“The fighters doing individual sponsorship deals and things like that … has been a tough look for the UFC,” said Mike Lunardelli, Reebok director of combat training. “It’s been a little bit all over the place. That was one of the things we talked about: How do we clean that up?”

Each fighter’s kit will feature the UFC logo, Reebok’s logo, a single sponsor logo determined by the UFC, and the fighter’s full name.

Both the UFC and Reebok said they have made efforts to allow fighters to maintain their individuality in the Octagon, but Bleczinski said fighters have not been involved in the design process in terms of aesthetics, though they have been consulted about their performance needs and involved in testing.

Fighters prior to fight week will be able to choose from a variety of shorts styles, as well as color preferences. Lunardelli added that fighters’ nationalities will be reflected in their garb, as well.

For Reebok, partnering with the UFC represents an opportunity to target a younger audience as well as to further itself as a key player in the fitness space. Lunardelli cited the company’s market research as showing that 35 million people around the world are “training like fighters,” 40 percent of whom have begun doing so in the past year. “As we saw that happening, we wanted to find a way to get into this space,” Lunardelli said.

Bleczinski said Reebok was one of several companies that expressed interest in becoming the UFC’s official outfitter, though she declined to identify the other brands. Nike, Under Armour and Adidas all had deals with individual fighters before the UFC signed its agreement with Reebok.

Alex Silverman is a staff writer for SportsBusiness Daily.
 
Apr 25, 2002
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so Conor McGregor just got out of tier 1. he'll get title challenger money on his next fight, but will get tier 2 money fights 7-10.

PVZ will get tier 1 money for her next 3 fights. they both got personal Reebok deals so as "star's" they aren't getting "fucked" as much as the non-stars.

this deal is fucked up for everybody except UFC. i hope Phil Davis' move to Bellator starts a trend.
 
Feb 10, 2006
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Alistair Overeem vs. Junior dos Santos in the works

Anton: Speaking of the next fight, there's been been talk about a match up against Junior Dos Santos. Has that been offered?

Alistair: Actually, my management is talking (with the UFC), and I hope to hear about it this week. About Junior, I can say it's a great fight and it only sounds logical to me because he's not booked for a fight, I'm not booked for a fight. Who else is there? There's not really any option available.

Anton: So what are your thoughts on that potential match up? How do you stack up to him stylistically?

Alistair: I think it's going to be a very interesting fight. He's a striker and prefers to fight on the feet, as well as I do. But I do believe I am more versatile. I have submissions, I use my legs, I am more strategic now -- especially now that I'm training out of Greg Jackson's, we work a lot on game plans, strategy.

I just see myself as the better fighter, but still, Junior is still a special case. He's a former champion, he's very tough, and you saw that on his last fight against Stipe (Miocic). He can take a lot of punishment and even if someone is pushing the pace, he can survive that. In every way, it's a very exciting fight and a very challenging fight personally.

Anton: When are you targeting to return?

Alistair: I'm thinking June, July, or August. Nothing too far away.

Source: http://www.bloodyelbow.com/2015/4/2...istair-overeem-blackzilians-jon-jones-johnson
 
Jan 29, 2005
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PHX
The actual dollar numbers for the Reebook came out. lol @ having to have 10 fights in the UFC to even hit $10,000. A lot of fighters are pissed. Some low tier guys were making $50,000 a fight just from sponsors, now what's even the point of doing this for a living.

Debut in the UFC with a 8k/8k contract with 5k sponsorship money....and then get all of that taxed, fight 3 times a year and probably actually end up with $35,000 in the bank for a years work, even less if you lose a fight.

A big deal for Lauzon | Boston Herald

The UFC has revised its policy for how fighters will be paid under a game-changing sponsorship alliance with Canton-based Reebok that is set to begin in July.

The organization initially said fighters would be compensated in tiers based on its internal rankings, a scattershot system decided by an invited, eclectic group of media members.

But after nearly universal criticism, the UFC announced in an April 20 email to fighters that, “Through further review, and in consultation with you, the UFC athletes, UFC made the decision to amend the AOP (Athlete Outfitting Policy) compensation structure, from a rankings-based model to an athlete tenure model.”

The email, signed by UFC CEO Fertitta and the organization’s president, White, stated: “This means that you will be compensated for your compliance with the AOP based on the number of cumulative bouts in which you have fought, rather than your current standing in the UFC rankings. The cumulative bouts will include the upcoming bout for which you are getting compensated.”

The deal also contains higher payouts for champions and title challengers.

The email further states that the UFC will “within the next few weeks” disclose payment tiers. It’s expected to roughly approximate $5,000 for fighters with zero to five UFC fights, $8,000-$10,000 for five to ten fights, $12,000-$15,000 for 11-15 fights, and $18,000-$20,000 for 16-20 fights.

According to the notice, fighters “will also earn royalty revenue from the sale of the products that use the athlete’s name and/or likeness” and that said “royalty payments will be made to fighters based on the terms of their UFC Merchandise Rights Agreement.”

The Reebok pact bans fighters from wearing sponsors they independently secure at UFC events, including on UFC produced content like “Countdown” specials to hype upcoming bouts.
 
Apr 25, 2002
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The UFC strawweight division just got a little deeper. "The Karate Hottie," Michelle Waterson, has inked a deal to join her fellow Invicta FC veterans inside the Octagon, MMAFighting.com's Ariel Helwani reported Monday on UFC Tonight.

Waterson, the 29-year-old former Invicta FC atomweight champion, is expected to make her 115-pound and promotional debut sometime in the summer against an as-of-yet undecided opponent.

A charismatic fighter who was expected to be the face of the Invicta FC brand following the UFC's mass signing of the 115-pound division and filming of The Ultimate Fighter 20 in 2014, Waterson (12-4) remained under contract with Invicta FC following her Dec. 2014 loss to Herica Tiburcio, however she now becomes the latest high-profile casualty of the all-female promotion's close working relationship with the UFC.

While brief, Waterson's four-fight tenure with Invicta FC proved to be a memorable one. She won 'Fight of the Night' honors in her 2012 debut over Lacey Schuckman, then captured Invicta FC's 105-pound title the following April with a stunning and electric fourth-round armbar victory over current UFC strawweight contender Jessica Penne.

Waterson defended her title once, badly beating Yasuko Tamada en route to a third-round TKO last September in a bout that served as the exclamation point to Invicta FC's first event to broadcast exclusively on UFC Fight Pass.

Her road hit an unexpected speed bump this past December though, when Waterson met unheralded 22-year-old Herica Tiburcio in the main event of Invicta FC 10. Waterson and Tiburcio battled back-and-forth for three gripping rounds before the young Brazilian caught Waterson in a nasty guillotine choke and stole away the 105-pound belt, becoming the youngest champion in Invicta FC history and snapping a six-fight win streak for Waterson.

A Jackson/Winklejohn product who has competed professionally since 2007, Waterson now joins a wide open UFC strawweight division led by Polish striker Joanna Jedrzejczyk but devoid of any clear-cut contender pecking order, meaning opportunities could come quickly for the division's newest marquee name.
 
Jan 29, 2005
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LMAO there's a rumor going around the UFC is adding a 115lbs. men's Strawweight division and they're gonna announce it at the Edgar vs. Faber show in the Philippines.

The only way I see this working is if they go to Thailand and sign a ton of 5'2" Muay Thai fighters.
 
Apr 25, 2002
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announcing 115 class at the Edgar/Faber fight in the Philippines. that shits aligned as fuck.

UFC keeps trying to take over the world. and everybody's gonna keep signing to them like its the thing to do, cus it is indeed the thing to do.
 

trips

Sicc OG
Feb 8, 2006
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Brendan Schaub
✔ ‎@BrendanSchaub
I've made six figures in sponsorship in each of my last 6 fights �� https://twitter.com/danwourms/status/596017073857253376 …


Roger Narvaez
✔ ‎@Silverback316
Wow 2500$ for my next fight for reebok sponsorship. ....i mad twice that off 1 sponsor my last fight!!!! Sucks!


Matt Mitrione
✔ ‎@mattmitrione
Congrats R @ree bok, you got the deal of the century. Unfortunately, it was at the cost of the fighters. Hope the bad press is worth it. @ufc



Ramsey Nijem
✔ ‎@RamseyNijem
I made more money my 2nd fight in the UFC on Facebook prelims. Not complaining just stating facts



Matt Mitrione
✔ ‎@mattmitrione
Per advice from my legal professional, I will refrain from further comment on this R @ree bok matter. Y'all know my sentiments.

10:47 AM - 7 May 2015
 
Last edited:
Sep 20, 2005
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FUCK YOU





Brendan Schaub
✔ ‎@BrendanSchaub
I've made six figures in sponsorship in each of my last 6 fights �� https://twitter.com/danwourms/status/596017073857253376


Roger Narvaez
✔ ‎@Silverback316
Wow 2500$ for my next fight for reebok sponsorship. ....i mad twice that off 1 sponsor my last fight!!!! Sucks!


Matt Mitrione
✔ ‎@mattmitrione
Congrats R @ree bok, you got the deal of the century. Unfortunately, it was at the cost of the fighters. Hope the bad press is worth it. @ufc



Ramsey Nijem
✔ ‎@RamseyNijem
I made more money my 2nd fight in the UFC on Facebook prelims. Not complaining just stating facts



Matt Mitrione
✔ ‎@mattmitrione
Per advice from my legal professional, I will refrain from further comment on this R @ree bok matter. Y'all know my sentiments.

10:47 AM - 7 May 2015



after the complaints UFC revised them this morning