UFC holding up Anderson Silva's $6 million payday

Discussion in 'General MMA Discussion' started by TFK, Feb 9, 2015.

  1. TFK

    TFK WBC Silver Diamond Emeritus Champ

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    http://www.mmamania.com/2015/2/8/80...million-payday-from-anderson-silva-until-nsac


    How the mighty have fallen.

    The fallout from former Ultimate Fighting Championship (UFC) middleweight kingpin Anderson Silva's positive pre-fight UFC 183 test for steroids has reportedly gotten a lot worse for "The Spider," as Brazilian outlet Veja.abril.com is reporting that UFC is withholding nearly $6 million in pay from the former champion.

    Silva made a reported $800,000 ($600,000 to show, $200,000 to win) in salary for his unanimous decision victory over Nick Diaz in the main event of UFC 183 -- which will now more than likely be overturned to a "no contest" once the Nevada State Athletic Commission (NSAC) votes on the subject.

    The remaining sum is reportedly Silva's earnings from pay-per-view (PPV) points, and considering how well UFC 183 did business-wise, "The Spider" was expecting a hefty chunk of change.

    UFC brass will apparently withhold the funds from "The Spider" until the NSAC makes its final ruling, and with a disciplinary hearing not planned until March or April, it may be quite some time before Silva sees that money.

    Even worse, with the NSAC likely to overturn the victory for Silva, the Brazilian may forfeit his win bonus -- and could potentially face a hefty fine as well.

    Silva himself has denied ever taking steroids (see test results here), and UFC has indicated they will back the former champion as due process plays out.



    TFK
     
  2. Trplsec

    Trplsec Sleeps in a Cage

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    $6 million?

    Is this what Mike is always referring to as "Slave wages"?

    Travesty.
     
  3. mikE

    mikE "Twinkle Toes" McJack

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    I don't refer to them as slave wages. I refer to UFC fighters being grossly underpaid. It's not a difficult to understand distinction if you aren't being simplistic.

    "Dave Meltzer of The Wrestling Observer reports that UFC 183, headlined by Anderson Silva and Nick Diaz, did a huge pay-per-view number, landing between 600,000 and 700,000 buys. This is way above industry expectations."

    If you think $6 million is adequate pay for a guy bringing in those kinds of numbers, that's your problem.
     
  4. REEDsART

    REEDsART MATCHMAKER

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    Unless UFC Plans on REFUNDING their ppv Take, it Seems SHITTY of them to "Withhold" 6 mil from the Guy MOST Responsible for the Success of It...



    REED
     
  5. Anthony

    Anthony Admin Staff Member

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    good point. Withold his purse, not the PPV numbers. everyone is getting paid off those numbers, so should silva.
     
  6. Anthony

    Anthony Admin Staff Member

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    I think it's plenty. 6 million for a fight is pretty good. Not everyone needs to or should be paid like mayweather.
     
  7. REEDsART

    REEDsART MATCHMAKER

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    6 Mil is Certainly NATHAN to Sneeze @, but in Comparison to the # of Miilions the PPV Generated, 6 Mil is a SMALL Portion of That...



    REED
     
  8. Neil

    Neil tueur de grenouilles

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    silva is one of the top 3 draws in the sport and possibly the greatest mixed martial artist ever. was his contract up after his two losses?
     
  9. Trplsec

    Trplsec Sleeps in a Cage

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    There are times when being simplistic is a good way to go. This is a perfect example. My simplistic view allows me to tell you EAXCTLY how much Silva should be paid. However, from your perspective, you claim UFC fighters are "grossly underpaid" but when pressed, you can't tell me what they SHOULD be paid.
     
  10. Anthony

    Anthony Admin Staff Member

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    disagree completely. at 49.00 a pop of 650,000 ppv buys that makes roughly 32 million. the PPV providers automatically take half so now that drops it down to 16 million.

    of 16 million, anderson gets 6. That leaves 10 million to cover everything else. 6 million is a damn good payday for that amount of buys.
     
  11. Trplsec

    Trplsec Sleeps in a Cage

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    That's tough to say without knowing how many fighters on the card got PPV points. And if there are others, how much was involved.

    If the PPV did 600K buys and the show did $1 mil live gate, what is $6 million, about 20% ?
     
  12. Anthony

    Anthony Admin Staff Member

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    Diaz definitely has PPV points. Not as much as Anderson, but still. i doubt anyone else on that card got points.
     
  13. Trplsec

    Trplsec Sleeps in a Cage

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    In looking through it, I can't think of anyone else that I would bet got points. Maybe Meisha?

    So if the PPV providers do get half, that means Silva pulled down about 38% of the UFC's revenue net the PPV provider expense.

    Diaz made $500k in reported payout. If you figure he got another $300K in PPV % and the other fighters on the card (with bonuses) ate up another $300K, Silva grabbed almost half of what the UFC earned after fighter payroll and the PPV provider split.

    You factor in all the other cost the UFC has with an event like this and it is safe to say Silva banked better than 50% of the UFC net earnings from UFC 183.

    That doesn't sound too bad.
     
  14. Anthony

    Anthony Admin Staff Member

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    Tate wasnt even on the PPV so she got nothing. And no way Nick made less than a million. he just signed a new contract in the Summer, i know there are points in there that got him paid.

    But yeah, when you take into account the providers get half and the amount it cost them to put them show on, 6 million is very good. UFC has a huge staff that needs to get paid.
     
  15. REEDsART

    REEDsART MATCHMAKER

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    That's ASSuming Every Single Viewer Watched the SD Version of the Pay-Per-View, Which is Laughable in REED's Opinion...The HD Version was $59.99, Which REED is Willing to Bet the MAJORITY of Watchers Paid For...For Verizon Customers, Pricing was $64.95 HD/ $54.95 SD...

    So, Uuuuuh, Yeah, 6 Mil is a SMALL Portion of the Overall Pay Per View Take, Factoring In the ACTUAL Price...




    REED:kidcool:
     
  16. Anthony

    Anthony Admin Staff Member

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    but even factoring all that in doesnt mean anything. Ok, let's factor all of that in.

    Lets say EVERYONE bought HD (we know it's bullshit, but whatever. I will even round it up to 65.00)

    65.00 x 650k is roughly 42 million

    Cut that in half for PPV provider. 42mil divided by 2 = 21 mil

    Silva's cut = 6 million.

    Now you have 15 million to work with (we know it's not 15 million, but whatever)

    15 million has to pay:

    1. Rest of the Fighters
    2. Venue fees at the MGM Grand
    3. Production staff
    4. Marketing it took to promote the show
    5. All UFC staff involved
    6. Executives Pay
    7. Countless other things that goes into something like this.

    And then STILL generate a profit big enough to want to do this again.

    6 million out of 21 million is a huge chunk of money. (and we all know it wasnt 21 million, but whatever)
     
  17. REEDsART

    REEDsART MATCHMAKER

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    1. You DO Realize Pay-Per-View ISN'T UFC's Only Revenue Stream, Right???...& Even if All Fighter Purses were Paid JUST from PPV (Which they AREN'T), UFC 183 TOTAL Fighter Payouts Amounted to 2.18 Million, INCLUDING Silva and Diaz, Who Ate Up MORE than Half of That...Their Purses Added Up to 1.3 Mil, While the Other 11 Bouts Paid Out LESS than a Million!!!

    2. REED Knows for a FACT the Site Fee has NATHAN To Do w/PPV, in Boxing...REED Would Be Shocked if MMA's Any Different...In Boxing, the Site Fee is Typically THE 1st Expense Paid, Because Venues AREN'T Gonna Book a Date for You Based on a Promise of PPV Sales, Months Down the Line...But @ the HIGHEST Levels of Combative Sports, Venues Actually PAY THE PROMOTERS for their Product, from Time to Time...

    When Manny Pacquiao Fights @ that Fancy Hotel in China, the Hotel PAYS Bob Arum...There IS NO "Site Fee" Coming Out of the Promoters Pocket OR the PPV Cut...Given UFC's Popularity, Frequency of Shows & Presence in Vegas, REED Doubts they're Paying a Site Fee to the MGM Grand, @ This Point...& Even if they Are, it's EXCLUSIVE From the PPV Money...The Venue Itself is IRRELEVANT to a PPV, so WHY Would a Site Fee or Any Other Monies Be Allocated from the PPV Cut???...

    3. On Air Talent is the HIGHEST Production Cost, but Let's Not Pretend Goldberg & Rogan are Breaking the Bank...Rogan's Got Money, but that's from his Non-UFC Exploits (Stand Up Comedy, Fear Factor, etc.)...Not Only that, but Production People are More than Likely Making a YEARLY Salary, as Opposed to an Event by Event Purse...

    4. So UFC DOESN'T Have a Marketing Budget???...

    Bottom Line, a PPV is a Separate Entity Unto Itself...It's a Pie on a Different Shelf that Everybody DOESN'T Get a Slice of...& w/the MANY Revenue Streams UFC has @ its Disposal, there's NOfuckingWAY they're Paying what You've Stated, PER PPV...





    REED:kidcool:
     
  18. Anthony

    Anthony Admin Staff Member

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  19. REEDsART

    REEDsART MATCHMAKER

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    Instead of REEDing REED's Words, you're Deflecting, Which is WEAK as Hell, but Typical for You...

    Of Course the Venue is Taking a % of an Event Held Within their Confines...% of Attendance, Concessions, Parking, etc., Which are All INDIVIDUAL REVENUE STREAMS, Exclusive of PPV...The Venue DOESN'T Play a Part in the Broadcasting of a PPV so WHY Would they Be Privy to a Cut of It???...

    You & REED were Having a PPV Debate, but You, in your Infinite Business Wisdom, Made NOfuckingMENTION of the VARIOUS Streams of Revenue @ UFC's Disposal...So Instead of Being an ASSHOLE, Get your OWN Business Sense Up, Playboy...




    REED:wack:
     
  20. Anthony

    Anthony Admin Staff Member

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    Yes, but it all gets calculated in the UFC's budget. The UFC depends on that PPV money in order in to pay it's debt accumulated for that event. That Revenue generated from everything but the PPV isnt going to cover the expenses the UFC has accumulated as a result of this event. They need PPV to pay it's bills.
     
  21. Anthony

    Anthony Admin Staff Member

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    see it's similar to flipping a home except the UFC is financing itself.

    So you first have to get a loan from the bank or you can borrow from yourself. In this case, the UFC borrows from itself.
    You buy the house, hire someone to come up with a design, hire a crew to demo and fix the place up according to your design. Usually you have to hire a contractor, plumber and an electrician. buy all of the equipment. If you need a new roof, you hire a roofer. Then you hire a landscaper for curb appeal. now after the house is finished you have to sell the house. And after you pay the bank back all of the money you put into it (or in this case, the UFC pays itself back) and make a profit.

    that PPV money is the way they are going to pay themselves back from everything they borrowed, including purse and still hope to have a profit afterwards.
     
  22. Haymaker

    Haymaker WBC Silver Diamond Emeritus Champ

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    Is this the first time they withhold a PPV purse?
     
  23. Anthony

    Anthony Admin Staff Member

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    Ufc is now denying they are holding up the PPV purse
     
  24. Muzse

    Muzse "Twinkle Toes" McJack

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    agREED
     
  25. TFK

    TFK WBC Silver Diamond Emeritus Champ

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    Yeah, the UFC is denying it, and it's been said that the commission controls the payouts, not the UFC. So if the money is being held up, it's the commission that is doing it.


    TFK
     
  26. Anthony

    Anthony Admin Staff Member

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    I thought the commission only controls the purse payouts. Not the bonus or PPV money.
     
  27. mikE

    mikE "Twinkle Toes" McJack

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    The UFC underpays its fighters, always has, and keeps its finances secret in order to keep everyone guessing.

    Lets hope the antitrust lawsuit brings some real facts out in the open.
     
  28. REEDsART

    REEDsART MATCHMAKER

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    None of that Means 6mil SHOULD Be "More than Enough" for Anderson Silva, Considering his Status in UFC and Martial Arts as a Whole...

    You're No More Privy to How UFC Divy's Out Money than REED is. Ditto for Silva's Expenses...

    REED is All for Elite/Legendary Fighters Making as MUCH as they Can, While they're Still Relevant...You and Others Seem to Want to CAP a Fighter's Earning Potential, While Burying your Heads in the Sand when the Secrecy of UFC's Bookkeeping is Noted...




    REED
     
  29. mikE

    mikE "Twinkle Toes" McJack

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  30. Anthony

    Anthony Admin Staff Member

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    ok :palm:
     

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