Hendricks pays 50% of earnings to management

 

Having a good manager can make a big difference in an up and coming fighter's career. Monte Cox famously managed a big group of UFC fighters and world champions.

Most managers take a fee for their service, some 10%, some 20%, but now UFC champion Johny Hendricks has a unique arrangement with his management team:

They called it "an educated lottery" and Team Takedown hit the jackpot combination last Saturday when its client, Johny Hendricks, captured the UFC welterweight championship in Dallas.

Team Takedown was a simple, if not ambitious, concept when it launched in March 2007: fund and manage an aspiring fighter's journey from day one all the way up to a UFC title, with a 50-50 split in profits.

"Our thought process was we could take a high-level wrestler and give them a place to live, a car allowance, health and dental insurance, a weekly paycheck so they could train -- and then they'd have a really good shot of getting to the top," said Team Takedown founder Ted Ehrhardt.

Ehrhardt started the management company with his brother Doug and close friend and business partner, Tim McBride. The trio have funded the venture for seven years with revenue from a fire sprinkler company they own together.

In addition to living expenses, Team Takedown also foots for the smaller things, like flying trainers and relatives to fight events. The company also owns the Velociti Fitness gym in Pantego, Texas, providing a homebase for the Team Takedown fighters. All together, Ehrhardt estimates that funding each fighter (and his family) costs the company around $100,000 a year.

Thus far, Team Takedown's seven-year investment has been upwards of $4 million. Ehrhardt said the company breaks even with an individual fighter when the yearly intake from purses, sponsorships and other revenues reaches $200,000. And probably most appealing to the fighter is that he doesn't have to retroactively pay back what Team Takedown invested before it started hitting that profit mark.

Of course, the real profit comes if and when a Team Takedown fighter can win a UFC championship.

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Recent Comments »

DLfromCanada site profile image  

3/22/14 11:23 AM by DLfromCanada

correct....and they seem to have that ability

Demoreo Dennis site profile image  

3/22/14 9:51 AM by Demoreo Dennis

It stays at 100g plus extras the latest signee is jamal parks and he's got the same contract

NorthFromHere site profile image  

3/22/14 9:34 AM by NorthFromHere

This kind of mgmt model works only if you are able to sign top talent prospects.

RobinHood site profile image  

3/22/14 9:34 AM by RobinHood

It's interesting how one would calculate exit clause/compensation.In partnership deals I've been involved in (banking) there would be a 2 year break clause. It would be crazy for TT and Johnny not to have such a clause in their contracts.Also, I didn't read all the pages on this thread. But how reliable is it that these 4 fighters are getting 100k benefits each? Was that per year or since 2007?I would imagine TT would be rewarding Johnny on performance, to keep him sweet.

crowbar site profile image  

3/22/14 9:32 AM by crowbar

To me,receiving a $100,000 dollars a year is living pretty high on the hog.

Twist of Cain site profile image  

3/22/14 9:28 AM by Twist of Cain

Shows his opponents mercy by only using 70% of his power, while giving 50% of his earnings away to his management. What more could be said about this fine gentleman? Class act.

Demoreo Dennis site profile image  

3/22/14 9:15 AM by Demoreo Dennis

Great idea hands down no questions asked if everyone that's involved is cool with it why all the hate?

DLfromCanada site profile image  

3/22/14 9:09 AM by DLfromCanada

What would you do if a company today offered you 150k per year STARTING salary to do what you love?

DLfromCanada site profile image  

3/22/14 9:08 AM by DLfromCanada

similair concept, I'm in sales and do great with my commissions, no complaints here, great company to which im committed 100%guess who takes the majority of my earnings/commisions though? I still bank though, it is what it is100k in benefits is insanely goodas a normal employee in the work force, you would need to earn well over 150k to net the same amount.....and then train after hours on top of thatmost in general do not make any where near that, yet alone aspiring fightersthe model is not nearly as flawed as suggested as it does not equal one guy paying hendricks 100k in cash , the company obviously subsidized these costs via various methodsadditionally, they clearly have the right eye for talent as im petty sure not many here would have banked on hendricks for the title when they did years ago most people here imo simply have zero clue re the value of money

Marcgeo13 site profile image  

3/22/14 8:56 AM by Marcgeo13

For better or worse, Everyone in life cuts their own deal.