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UnderGround Forums >> UFC considers removing bonuses to pay for...


7/1/13 3:57 PM
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luctaro
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epwar - 
luctaro - 
epwar - 
Wonkamaster - Like they can't afford to do both? Lol.

This.  

Dana & Lorenzo discussing doing this to look magnanimous.  The fact is they can easily do BOTH!    


I suppose they can but this is no chump change. They put on 33 events, at their current 50K bonus, thats 6 mil 600k extra to share.

$6.6 million is chump change to a company that makes over $500 million in revenue.


And why should those 6.6 millions go to some John Doe if everybody came to see Cigano or GSP or Johny Hendricks?

My point is, 6.6 millions its ALOT of money. People were asking to raise minimum to 15/15? Thay can raise it alot more using that money.

And who says they make 500 mill profit a year?
7/1/13 3:58 PM
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UNREASONABLE EXPECTATIONS
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I think they should leave the bonuses the way they are and offer incentives for exciting fights and finishes for the guys not on the main card.

7/1/13 4:00 PM
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Leghound
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epwar - 
luctaro - 
epwar - 
Wonkamaster - Like they can't afford to do both? Lol.

This.  

Dana & Lorenzo discussing doing this to look magnanimous.  The fact is they can easily do BOTH!    


I suppose they can but this is no chump change. They put on 33 events, at their current 50K bonus, thats 6 mil 600k extra to share.

$6.6 million is chump change to a company that makes over $500 million in revenue.


If their margins were similar to someone like Cardinal Health or Amazon that'd be the difference between making a profit and a loss.

7/1/13 4:01 PM
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IIAces
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epwar -
luctaro - 
epwar - 
Wonkamaster - Like they can't afford to do both? Lol.

This.  

Dana & Lorenzo discussing doing this to look magnanimous.  The fact is they can easily do BOTH!    


I suppose they can but this is no chump change. They put on 33 events, at their current 50K bonus, thats 6 mil 600k extra to share.

$6.6 million is chump change to a company that makes over $500 million in revenue.

And where does it say they clear that a year? Maybe gross but that's before payroll, advertisement, venue rental, vender providers, production cost and PPV points. Plus putting promos together, flying fighters to press conferences and hotels every event. Not to mention the week long hotel stay week of the fight.

Lets not forget they have a fuck load of employees we never see in an office keeping shit together. I mean come on. They are a company and have to stay liquid plus profit. It's not fucking cheap to put on the events they are showing. Y'all act like Zuffa makes 100million a year. Phone Post 3.0
7/1/13 4:02 PM
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IIAces
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Plus they pay fighters to show up to the promos and interviews. Phone Post 3.0
7/1/13 4:08 PM
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12SixElbow
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They need to axe win bonuses, and give finish bonuses.

Or, double lower level fighter pay, and keep the bonuses, because you're worth hundreds of millions and the difference between 6 and 12 is fucking peanuts to you

7/1/13 4:17 PM
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DWray
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Get rid of bonuses all together and pay the lower-tired fighters more... and include a finish bonus.
7/1/13 4:18 PM
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Lasko
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Robbing Peter to pay Paul always works well.

7/1/13 4:23 PM
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JerodR
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Remove bonuses? Sure, take away the one incentive to go for a finish in the fight.

Lets assume they do not have extra money to pay more for the sake of argument. I agree with the statement made earlier about just lowering the bonus and taking that money to up the pay of the lower fighters on the card.

Perhaps they should take a look at the pay structure and put a bit of extra importance on finishing the fight rather than just winning.

Don't get rid of the bonus though. The guys that finish fights and put on a solid performance deserve those bonuses without question.
7/1/13 4:26 PM
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Il Duce
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This could be seen as a possible test of the unity amongst the higher and lower ranks of fighters. Does the upper tier rally in support of that idea, or shoot it down for personal interest? If they all agree to take a possible cut to a bonus for the greater welfare of the group, this would indicate the need for the promotion to bump the lower man's cheese before they try to unionize. If the higher paid fighters say "hell no, gimme my bread, suckah" then the UFC may feel more solid in their position with lower pay. Hmm, interesting possibility. Phone Post 3.0
7/1/13 4:30 PM
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caseharts
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12SixElbow -

They need to axe win bonuses, and give finish bonuses.

Or, double lower level fighter pay, and keep the bonuses, because you're worth hundreds of millions and the difference between 6 and 12 is fucking peanuts to you

This Phone Post
7/1/13 4:34 PM
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Cyril Jeff
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I disagree with this line of thinking, truth is, the guys on the prelims aren't bringing in $12-15K worth of ticket sales or viewership, right?

 

they could give a $5-10K bump for every fight to the prelim fellas, or the chance to win $50-65K across the entire card, which one will produce more exciting bouts?

7/1/13 4:35 PM
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wbensken
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Looking at the fighters who have won multiple 'of the night' bonuses, do you see them changing their approach or style with the bonus gone?

I understand it's an extra incentive to some fighters to go for a finish but to a lot of these names I see it's just how they do handle business every time they fight regardless. Phone Post 3.0
7/1/13 4:38 PM
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Haulport
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LOL!

The UFC pulls in ~$15-20mm in revs per PPV and they need to cut something to pay a handful of guys $30k more?

I must be using a broken version of Excel to do my P&Ls................

7/1/13 4:45 PM
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i remember halloween
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I think they should get rid of the win bonus and implement a finish bonus instead.

7/1/13 4:45 PM
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luctaro
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wbensken - Looking at the fighters who have won multiple 'of the night' bonuses, do you see them changing their approach or style with the bonus gone?

I understand it's an extra incentive to some fighters to go for a finish but to a lot of these names I see it's just how they do handle business every time they fight regardless. Phone Post 3.0

I actually do see them changing. Its no secret in every card theres 1 or 2 fights were both fighters are aiming to at least win the Fight of the Night bonus. Take that away and you only get:
-Win bonus.
-Increase in Sponsorship money since you are a popular fighter.

Since we know the sponsor side is hurting and its not what it once was, thats not a good incentive. So all you have is an incentive to WIN no matter what as a away to maximize your profits.

No Bonus money could only work with Guaranteed fighter pay.
7/1/13 4:48 PM
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JoeHurley
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It's funny how easy it is for people on here to spend zuffa's money saying "they can afford it" but raise the ppv price by $5 and they raise hell even though they can aford it. Phone Post
7/1/13 4:54 PM
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damnyouwoman14
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RedDragons - Do both. Lower the bonuses and pay the lower level fighters more.
This. Phone Post
7/1/13 4:55 PM
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Xspur
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We have seen MMA organizations attempt to enter the market and fail. The UFC was failing when zuffa bought it. Lets face it, Zuffa has a business model that works and is responsible for the sport we love being so readily available to us fans. Lets stop pretending like we know better than them what works.

Often times just because you can do something doesn't mean its the best choice. Phone Post
7/1/13 5:02 PM
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Steve4192
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More guaranteed money is a good thing for fighters. It's difficult to make a budget when a large percentage of you income is based on arbitrary bonuses. The more Zuffa shifts from bonuses into show money, they better fighters will be able to make sound financial plans.

This is a step in the right direction.
7/1/13 5:03 PM
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RKing85
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I would say maybe make the bonus like $25,000 each and give each fighter an extra 2-3 thousand on to their show money.
7/1/13 5:15 PM
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time traveling 12er
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I always enjoy the part where everyone assumes they know that the UFC can afford to do both.

What is the proof?

Affliction could do both! Pride could do both! Strikeforce could do both!

Funny thing is we know for a fact that Viacom can do both. They can also afford health insurance . Fuck I bet their entry level office staff gets health insurance. They pay less, they have no insurance, but the complaining fans only bug the UFC over pay somehow. At the same time they defend them over the Alvarez thing as "just business."
7/1/13 5:23 PM
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Phisher
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Oh gimme a break. They can do both. It'd only be a couple hundred grand of extra expense for every card.

7/1/13 5:24 PM
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ausgepicht
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Oh, c'mon. This is weak.

Like, the UFC is struggling so much that they will have to find a way to take money from another area.

How about this? Keep the bonuses and also increase the pay for lower tier fighters and still turn a profit?

7/1/13 5:59 PM
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MMALOGIC
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Ive been preaching this for a while now... in order to improve the product you have to get rid of the financial stress on the fighters... when more than 50% of your money (and sometimes up to 90%) is dependant on what transpires for 15 minutes in the octogan, fighters go into each fight with a massive amount of stress which hurts performance.

Ive been calling for the cancellation of the silly game show bonuses (fotn, sub of the night, ko of the night) and all the other discretionary bonuses and absorbing them into the show money.

SHow money needs to represent at least 2/3rds of a fighters pay and performance will improve dramatically.

if a guy like joe louzan is exciting you give him a new and bigger contract.  contracts are based on previous performances... you're next paycheck should be determined by what you've previously done not by what you're about to do in the next 15 minutes... that's ridiculous.

ZUffa's bonus system hurts the product because it's geared towards those who flourish in a boiler room situation like high stress sales.  less than 10% of the population is productive in such an environment. 

 


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