Alvarez's UFC offers includes immediate title shot, % of PPV

by Steven Marroco | source:

A UFC contract outlines the company's intent to book Alvarez for an immediate title shot in March and offer a cut of the promotion's pay-per-view profits, according to an exhibit in a lawsuit Bellator MMA filed against the fighter, a copy of which ( today obtained.

An eight-fight deal would start Alvarez at $70,000 to show and $70,000 to win and raises in $5,000 increments with each win until it tops out at a guaranteed $210,000 for a win, the exhibit states. Alvarez would also be guaranteed a $250,000 signing bonus, payable in two installments of $85,000 and one of $80,000.

When Alvarez fights on a UFC PPV broadcast, the offer states it entitles him to $1 for each "buy" between 200,000 and 400,000 buys, $2 per buy between 400,000 and 600,000 buys, and $2.50 per buy over 600,000 buys.

Additionally, Alvarez is guaranteed a fight on a UFC on FOX card and three appearances as a commentator at UFC-branded events.

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tags: Eddie Alvarez (detail)  Bellator   

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NAAFS site profile image  

1/10/13 7:45 PM by NAAFS

This is one of the most intelligently debated threads I've seen on the ug in a while

Orcus Knows MMA Better Than Goku site profile image  

1/10/13 7:25 PM by Orcus Knows MMA Better Than Goku

so your argument is that whole reason the ufc gave eddie ppv points was just so bellator couldnt match? not because eddie asked for them? highly unlikely imo...if they wanted a true poison pill there would be an infinite number of different ways that the ufc could have structured the deal   and you keep using generalities re: these "real world examples" you are talking about...tell me, specifically how you quantify it? give me  a number.

Orcus Knows MMA Better Than Goku site profile image  

1/10/13 7:18 PM by Orcus Knows MMA Better Than Goku

no, the whole dispute IMO turns on whether putting eddie on spike v. fox is considered a match

Orcus Knows MMA Better Than Goku site profile image  

1/10/13 7:17 PM by Orcus Knows MMA Better Than Goku

first of all, the contract doesnt require bellator to match the "buys" it just requires bellator to match the terms, eddie could have easily negotiated in the bellator contract that bellator match the buys, but he didnt...   secondly, regardless of past performance, there is 0 guarantee that eddie will ever be on a ppv or what those ppv's will do...sure, we have a good idea they will do more than 1, but you cant really base a contract on that... think about it...put yourself in a judge's shoes..forget all these theories and possibilities or generalities...tell me exactly how you will determine what $ bellator must come up with to match eddie hypothetically getting on a ppv, and what those hypothetical buys will be

MMALOGIC site profile image  

1/10/13 7:14 PM by MMALOGIC

if Bellator comes back and ups their offer I can see Eddie re-signing with them.  The debut on spike could be a blockbuster and spike decides to invest more and eddie sees there's more of future there... or it does very poorly and spike becomes even more desperate and gives him whatever he wants...  Rampage has his last fight but zuffa and he mend fences and sign a new deal giving spike no names to sign, etc... These are unknowns.  My best guestimate is he'll end up in the UFC because i dont believe bellator will up their offer and they will settle on a release because I dont believe bellator wants this decided in court.... if they lose it will be devastating to their matching rights leverage on the rest of their fighters... and it opens a door for eddie to sue them for damages for missing out on the march ppv card as i explained above.  Tyson nams lawyer got him out of a similar situation with bellator.  Bellator has yet to win a case in court against any fighter they have legally threatened.  they use lawsuits to intimidate guys into doing what they want.  they want him to sign this contract because they cant really match the zuffa contract so they gave him a carrot and a stick.  The carrot isnt big enough yet.

MMALOGIC site profile image  

1/10/13 6:53 PM by MMALOGIC

In professional sports, a poison pill is a component of a contract, which one team offers a player, that makes it difficult or impossible for another team (which has the right of first refusal) to match. While it can often refer to a salary structure or clause that would affect all teams equally, it has taken on a new specific meaning of a clause that has unbalanced impact. For example, in March 2006, the Minnesota Vikings offered Steve Hutchinson, an offensive guard with the Seattle Seahawks, a seven-year, $49 million contract of which $16 million was guaranteed. This contract offer had two poison pills in it. One was the salary structure, which would require the team to pay $13 million in the first year of the contract. That salary structure would apply to both teams equally, as the Seahawks would also have to pay $13 million in the first contract year, were they to match the offer. The second was a clause that required Hutchinson to be the highest paid player on the offensive line, or else the entire contract would be guaranteed. Since the Seahawks had another offensive lineman, Walter Jones, with a higher salary and the Vikings did not, this clause would have required the Seahawks to guarantee $49 million, and it effectively eliminated the Seahawks' opportunity to match the contract offer In the Eddie Alvarez situation you have a Guaranteed fight on Fox... and an "intention to give eddie an immediate title shot in March on PPV" (the gsp/diaz card) Per Luke Thomas who works for spike, he's saying bellator is making up the difference between Spike and Fox platform with other benefits. Bellator is claiming they cant quantify ppv points or the ppv portion of the deal. Eddie will argue he receieved an opportunity (not a guarantee) an opportunity to be on the march card which he couldnt take because of this legal situation.  They will have the ppv numbers on the GSP/Diaz card as a real world example to give the ppv portion of the deal a value when arguing in court. Eddie will have a real world example of the value and bellator will have nothing because  they dont do ppv nor will they have done a ppv by that time. The court will decide if the 2 offers are truly a match or not.  if bellator loses it will be devastating to their matching rights leverage for every fighter they have... and if they lose it opens the door for eddie to sue bellator for damages for missing out on the march ppv card (which could be worth roughly 1.3 million plus).

Qui4u2l odio site profile image  

1/10/13 6:24 PM by Qui4u2l odio

How can BFC have a valid contract if they truly did just change the ufc on the contract to bellator when the ufc guarantees a fight on fox. Doesnt seem like it could be valid if they guarantee something they dont have

MattyECB site profile image  

1/10/13 5:34 PM by MattyECB

... but that man seems to have no idea how to use the term poison pill

MattyECB site profile image  

1/10/13 5:33 PM by MattyECB

And Bellator needs to at least make an argument to match the amount of PPV buys UFC could offer, or a gross sum in similar quantity otherwise it will be unable to match the UFC's offer lolThat's the entire legal dispute going on right now

MattyECB site profile image  

1/10/13 5:32 PM by MattyECB

Forget statistical manipulations or even grabbing a central value, if they took the absolute lowest PPV grossing of the past X years, then figured out what % that would confer to Eddie, that value above and beyond Bellator's match would probably be a pretty good way of proving disparity. PPV might fluctuate dramatically, but it maintains a consistent value above 0, which is the amount of PPV% it seems Bjorn is matching additional to his straight X/X money matches