UFC to change Reebok pay structure to tiered system

April 20, 2015

Sports Business Journal reports (subscription recommended) that the UFC is making a change to the way it will compensate its fighters through the Reebok deal.  Instead of paying fighters based on media rankings, it will pay fighters based on a “tiered system” based on tenure or number of UFC bouts fought.

There will be 5 tiers based on the number of fights an individual has had with the UFC.  The article indicates that the UFC will count fights with the WEC and Strikeforce into the number of fights an individual has fought with the organization. There will be tiers of 1-5 fights, 6-10 fights, 11-15 fights, 16-20 fights and more than 21 fights according to the article.

Title fights will be an exception to this rule as the fighters will receive greater compensation.  The UFC declined comment on sharing the amount of money each tier would receive.

The change is based on speaking with fighters and managers about the new Reebok deal according to UFC senior vice president of global consumer products, Tracey Bleczinksi.

The article includes quotes from Glenn Robinson of Authentic Sports Management and Ronda Rousey’s manager Brad Slater.  Robinson indicated that the sponsorship money has dried up over the years and that the Reebok deal is “more sustainable.”  Slater acknowledged that despite the number of sponsors a fighter may have, the total money earned was not “a really significant number.”

Payout Perspective:

The new “tiered” system appears to be a much more fair system than the media rankings which were widely criticized.  The system which rewards a fighter based on time served in the UFC (or WEC or Strikeforce) is a much more stable way of determining how a fighter will be compensated through the Reebok deal.  It also gives a fighter incentive to do their best to stay in the UFC.  Still, the unknown is how much a fighter will be paid through the deal.  The UFC does leave itself an out as the policy allows it to pay fighters more in championship bouts (e.g. McGregor at UFC 189).

The article points out that the change was based on discussions with fighters and their managers about the deal.  It’s interesting that these discussions happened now and not during the time prior to the Reebok announcement.  The new change should give a fighter more certainty as to what tier they are in and an expectancy as to how much they should receive from Reebok.

2 Responses to “UFC to change Reebok pay structure to tiered system”

  1. saldathief on April 20th, 2015 9:37 AM

    This is great! it makes it fair so the big ufc Hollywood movie stars dont make all the money bahahah

  2. BrainSmasher on April 20th, 2015 2:44 PM

    This system mid great and fixes the flaws in the last one. All the big names are veterans or champs and will get paid. The few prospects who are big name who wouldn’t get paid big money are being signed to individual contracts as McGreggor and Paige Van Zant have received. So everyone who deserved a big cut is getting it!

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