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UnderGround Forums >> Hendricks pays 50% of earnings to management


3/20/14 10:35 PM
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Underground Blog
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MixedMartialArts.com
 

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.

read entire article...


3/20/14 10:41 PM
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teamquestnorth
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When I read the title I was angry and mystified but as I read on it doesnt seem like a bad deal for either side. Phone Post 3.0
3/20/14 10:44 PM
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FETT_WTT_TFK_UGCTT_pennviachoke
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They got a nice check this week Phone Post 3.0
3/20/14 10:46 PM
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Matrixkick
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teamquestnorth - When I read the title I was angry and mystified but as I read on it doesnt seem like a bad deal for either side. Phone Post 3.0
My thoughts as well Phone Post 3.0
3/20/14 10:46 PM
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TommyRSU
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Real interesting setup. Seems weird but at the same time totally fair. They are putting a ton into the fighter financially, and they should get some $$$$. Seems like a true, symbiotic relationship. Phone Post 3.0
3/20/14 10:47 PM
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HERTSWENIP
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Edited: 03/20/14 10:51 PM
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The team takedown guys get paid very generously prior to winning, more than most of the UFC roster earns and well above the US per capita income, don't feel sorry for him, its a mutually beneficial arrangement.
3/20/14 10:49 PM
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donkey guard
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Do they buy his dip ? If so good deal Phone Post 3.0
3/20/14 10:49 PM
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PrestigeWorldwide
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I will always root for the guy that grinds it out on rice and beans until he gets his big break. Phone Post 3.0
3/20/14 10:50 PM
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Lobo8
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I would never take a deal like this but i could see why it makes sense for certain people. Their fair and upfront about it, if anybody is willing to take them up then its all good.
3/20/14 10:51 PM
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FETT_the geek
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Judging by those numbers it looks like I'm managing my wife... time for her to get some sponsorship or we'll never break even.
3/20/14 10:51 PM
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smags
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All fun and games until a fighter takes years of funding then wants out once he has to give management a million. They would undoubtedly taken legal measures to prevent such things but it's bound to end up messy imo Phone Post 3.0
3/20/14 10:51 PM
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TommyRSU
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Like in Rounders when he stakes Mike McD. 50% of your earnings, if you lose its on the house (his buddy).

Shows quite a bit of faith in your fighter. On top of that the fighter gets to train with steady revenue and benefits without the huge stress of fight to fight (or paycheck to paycheck) income. Must take some stress of the fighter, especially if he has to feed a family.

The more I think about it the more I like it. I would really like to see the fine print, but it sounds like Team Takedown takes care of their own.

Much respect. Phone Post 3.0
3/20/14 10:51 PM
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Chris
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Mixed Martial Arts LLC, COO

I think it's admirable that Hendricks kept this deal. Obviously they took care of him and provided an enviroment to build into a world champion. Lesser guys would probably sue them to get out of the contract.

3/20/14 10:52 PM
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bacon19
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Awesome...
As a sprinkler fitter I have no choice but to fully support and cheer for Hendricks!!! Phone Post 3.0
3/20/14 10:52 PM
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TMT
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Edited: 03/20/14 10:52 PM
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Team Takedown takes huge risks by investing so much in unproven fighters.

When they sponsor a guy they have to factor in the risk the guy will not ever earn enough to make their investment worthwhile.

Their site says they have four guys signed. So that's $400,000 per year to keep them going. I have to assume Hendricks has more than repayed what they invested in him, which is fine because Team Takedown took an enormous risk on him. I wonder if they are in the black when factoring all four guys.
3/20/14 10:54 PM
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OnlyTheStrongSurvive
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Chris -

I think it's admirable that Hendricks kept this deal. Obviously they took care of him and provided an enviroment to build into a world champion. Lesser guys would probably sue them to get out of the contract.

Could still happen. But if anybody signs a contract they're obligated to fulfil it Phone Post 3.0
3/20/14 10:54 PM
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teamquestnorth
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TMT - Team Takedown takes huge risks by investing so much in unproven fighters.

When they sponsor a guy they have to factor in the risk the guy will not ever earn enough to make their investment worthwhile.

Their site says they have four guys signed. So that's $400,000 per year to keep them going. I have to assume Hendricks has more than repayed what they invested in him, which is fine because Team Takedown took an enormous risk on him. I wonder if they are in the black when factoring all four guys.
Who are the other guys Phone Post 3.0
3/20/14 10:55 PM
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WeidmanBrokeTheLEGend
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Chris -

I think it's admirable that Hendricks kept this deal. Obviously they took care of him and provided an enviroment to build into a world champion. Lesser guys would probably sue them to get out of the contract.

Pretty sure it will be a solid agreement they have if they are gonna invest that kind of money in him Phone Post 3.0
3/20/14 11:01 PM
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TMT
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teamquestnorth - 
TMT - Team Takedown takes huge risks by investing so much in unproven fighters.

When they sponsor a guy they have to factor in the risk the guy will not ever earn enough to make their investment worthwhile.

Their site says they have four guys signed. So that's $400,000 per year to keep them going. I have to assume Hendricks has more than repayed what they invested in him, which is fine because Team Takedown took an enormous risk on him. I wonder if they are in the black when factoring all four guys.
Who are the other guys Phone Post 3.0

Jared Rosholt - 265, 3x D1 AA wrestler, signed to UFC
Chris Feist - 155, last fight with LFC
Chas Skelly - 145, just signed with UFC


3/20/14 11:02 PM
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da Vinci 81
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Wow, that doesn't seem like a sustainable model but I guess it's working. I'm not sure who's all on their roster but they must be very selective considering the capital investment they have to make in each fighter. Phone Post 3.0
3/20/14 11:03 PM
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shin2chin
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So know he's champion they renegotiate?
3/20/14 11:03 PM
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da Vinci 81
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^ that list just beat my post. I've heard of rosholt but don't know much about him other than he's a high level wrestler I think? Phone Post 3.0
3/20/14 11:04 PM
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teamquestnorth
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What I learned from this thread is that it pays to be in the sprinkler installation business Phone Post 3.0
3/20/14 11:12 PM
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fan4000
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Its essentially just an insane future bet or comparable to venture capital. You won't hit home runs all the time but when you do it will more than pay for the mistakes. Plus they will break even on a certain number of fighters. Phone Post
3/20/14 11:15 PM
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knee smash
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Seems like a big gamble depending on how the contract is structured. It's good for the fighters initially but I don't see many that would not try to leave once you've made it big, who's going to want to give up 50% of Ppv winnings to their management? Phone Post 3.0

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