Via TapouT/UFC press release:

The multi-year deal gives TapouT exposure at UFC® events broadcast on Pay-Per-View, FX and FUEL TV via canvas logos, bumpers and billboards. In addition, TapouT will present the “Submission of the Night” feature on UFC broadcasts, as well as take part in on-site activation at UFC events globally. The agreement also includes an extensive digital media plan, with TapouT gaining visibility across multiple social media platforms and at UFC.com. Furthermore, TapouT obtains the rights to use “Official lifestyle apparel of UFC” on hangtags, point-of-sale and advertising.

TapouT, which is owned by New York-based ABG Tapout, LLC a division of Authentic Brands Group LLC, has a long history of sponsoring UFC athletes in the Octagon®.

“TapouT has been a big supporter of the sport and its athletes for a long time,” UFC President Dana White said. “We’re excited to have them as our official lifestyle apparel partner as we get ready for some of the biggest years in UFC history.”

“It’s been a dream of ours ever since we watched the first UFC to be an official partner of the best MMA organization in the world,” said TapouT co-founder, Dan “Punkass” Caldwell.

“The UFC is a world class professional sports organization with an aggressive global growth strategy in line with ours,” said James Salter, CEO of Authentic Brands Group. “This partnership with the UFC further reinforces TapouT’s commitment to supporting the sport, its athletes and beloved fans.”

“TapouT and the UFC have had a long standing relationship over the years, which would explain why many fans already consider us as the lifestyle brand of the UFC,” said James Ling, Authentic Brand Group’s SVP of Marketing and Global Brands in an email to MMAPayout.  “We made it official so there’s no doubt in the minds of retailers and consumers that TapouT is the leading lifestyle brand in the space.”

“TapouT and the UFC’s goals are in alignment as both continue to expand international reach and market penetration,” Ling added, “As the sport continues to grow and gets further ingrained into mainstream culture, we hope to see more fans wanting to represent the sport they love by supporting the brands that support the sport.”

Strikeforce imposed the sponsor fee starting with June’s Strikeforce event. The fee also applied to Strikeforce Challengers’ sponsors.  As a result, sponsors such as Ranger Up, CageHero and VXRSI are no longer sponsoring fighters in Strikeforce.

While some do not dispute the imposition of the fee, it severed relationships some fighters had with brands since they fought at small MMA promotions. For the sponsors unable to pay the $35,000 to $50,000 fee to have its logo on a fighters’ shorts, it meant revamping its marketing strategy.

Also this year, the state of sponsors in MMA was examined as many sponsors questioned the return on investment.

Recently, clothing brand Respect Your Universe (RYU) became the UFC’s newest sponsor and signed welterweight Jon Fitch. Despite RYU, some have been critical about the UFC’s lack of obtaining new sponsorships. It will be interesting to see how many new sponsors sign on in 2012. With the Fox deal, Zuffa should be able to take advantage of the momentum.

Via RYU press release:

“We are all very excited to have Jon join the RYU team as our first Mixed Martial Arts athlete,” commented John Wood, President of RYU.  ”Jon embodies the spirit and essence of respect, honor, strength and nature; the pillars of RYU. We look forward to working with Jon and his team in the continuing growth of RYU.”

Recently, RYU announced it was UFC’s newest sponsor as UFC 141 would be its first event with the brand’s presence. The sponsorship deals come in lieu of its first full line of clothing this spring, tagged “Built for Athletes, Suited for Style.”

Payout Perspective:

RYU follows in line of most UFC brands that also sponsor its fighters. We shall see how the RYU brand determines how it picks and chooses its fighters. Fitch is a calculated “get” as he could be a top welterweight depending on how he comes back from his shoulder injury. RYU stresses that it uses recycled and organic material in its clothing. It may fit in with Fitch’s lifestyle considering his vegan diet although that may be assuming too much.

RYU is a publicly traded company that is led by former Nike executives. The company is focusing its marketing efforts into the growing UFC market.

Via the Portland Business Journal:

…the RYU brand will be visible during and running up to the event (UFC 141), including logo displays, live announcements during bouts, TV promotions and placement on the UFC website.

The ads on UFC.com alone equal tens of millions of impressions, the company said. That’s before you tally the expected million-plus pay-per-view buys, a figure that grows exponentially figuring that as many as eight people are watching per buy.

RYU raised $5.3 million from investors this past summer in preparation for the release of its inaugural full clothing line coming out next spring. Its target is the MMA-inspired premium performance apparel market.

Payout Perspective:

With Nike-pedigreed executives managing this company, we will see if RYU can make an impression in the world of MMA. The sponsorship deal with the UFC should bring the company some notoriety and we will see how that equates to customers. The apparel market in MMA is competitive and there are many brands out there and we will see if the investment in sponsorship gives RYU an edge. Being a publicly traded company, we’ll be able to see how its doing financially as it goes.

Jones chokes out Machida

Despite losing the first round, Jon Jones showed resolve to come back and defeat “The Dragon”. Jones used his size to complete a standing guillotine which rendered Machida limp.  Up next for Jones will be the winner of Rashad Evans/Phil Davis in January. At this point, Jones looks like he is gaining confidence and looks real comfortable in the Octagon, something to worry about for those in his division.

Mir snaps Big Nog’s shoulder

Frank Mir broke Tim Sylvia’s arm for his black belt and may have earned another stripe for his kimura on Antonio Rodrigo Noguiera. Big Nog had Mir in trouble but Mir was able to gather himself to reverse Noguiera, grabbed his arm and locked in the kimura. The gruesome replay were shown over and over again with the crowd “ooing” each time the arm seemingly snapped.

Zombie surprises Hominick

It took only seconds for the Chang Sung Jung to defeat Canadian favorite Mark Hominick. A disappointing return for Hominick.

Attendance, Gate and Bonuses

As reported earlier in the week 18,303 fans attended for a gate of $3.9 million Canadian ($3.77 million U.S.).According to F4Wonline.com (subscription required), about 15,000 paid although it was not a sell-out. F4WOnline opined that the disappointing turnout may be due to the UFC coming back too fast.

MMA Junkie reported the bonuses for UFC 140 with each receiving $75,000.

KO of the night: The Korean Zombie
Submission of the night: Frank Mir
Fight of the Night: Jones-Machida

Sponsorships

The Octagon included Xyience, Toyo Tires, Dodge, TapouT, Musclepharm, the UFC’s Ultmate DVD Collection, StubHub, Batteflield 3 had the side pads (including graphics) and was on the mat, Bud Light was present on the ring pads and center.

Bony Acai, Harley Davidson and StubHub were presenting sponsors for UFC 140. The U.S. Marines had its usual “mini-fighter”  matchup for Jones-Machida.

UFC.com Store owned the fighter prep point.

Harley Davidson is taking part in the UFC Hometown Throwdown promotion which had been previously promoted at other events as well as 140. Similar to the WEC version, it asks fans to pick a city in which they would want the UFC to hold an event. The promotion asks for fans to provide an email address in order to take part. The UFC will email the fans when the final cities are chosen.

Mark Hominick wore the CFL’s Hamilton TiCats gear once again.

Jon Jones wore his Form Athletics jacket in the back and during the walkout.

Brian Ebersole is now sponsored by TapouT as one witnessed via the logo shaved into his chest. He also was sponsored by BuyMMACards.com, which replaced MiddleEasy.com on his shorts.

Logistics company and fight sponsor Blue Grace made subtle changes to its logo including a visible web address for people to see.

Notably, EBX, which is a Brazilian investment company, sponsored the Nogueira brothers. We might expect more Brazilian and South American companies jumping into sponsorship with the upcoming card this January and with TUF: Brazil.

No Suffer on Mir this time as he sported a simple Jaco Hybrid Training Black t-shirt in his walkout.

The Korean Zombie did not wear his popular shirt but a white shirt with his Korean sponsors.

UFCstore.com had the Fighter prep point

More info on walkout wear here.

Jon Jones and Frank Mir broke out Xenergy drinks immediately after their win before their post-fight interview.

Not a lot of notable new sponsors here. The Octagon seemed UFC heavy. Perhaps this is due to the anticipated holiday shopping season. The UFC had indicated that new sponsors would not occur until the first quarter of next year.

Post-UFC 140 Headline

The only real headline coming out of this event is what’s next for Jon Jones. While some wish for a Jones-Anderson Silva matchup, its more likely that Jones face Rashad Evans provided he gets past Phil Davis and stays healthy enough to make it to the showdown.

Odds and Ends

- Tito Ortiz is now calling himself “The People’s Champ.” I thought the Rock was “The People’s Champ?” Copyright issues? Of course, I thought that Marshawn Lynch would have copyrighted “Beast Mode” too.

- UFC Countdown show aired on the Fox Regional Sports Networks as early as Sunday before the fight (according to the Direct TV guide) but either I was not paying attention or there was a lack of notice, but I missed the Countdown show when it was on my RSN. It appeared on the Audience Network later in the week and was online so I was able to catch it. Not sure if anyone else had a problem finding it on their RSN.

Buy Rate

Early estimations on the buy rate for UFC 140 by the Wrestling Observer have it at 440,000 buys in the US and 480,000 buys worldwide. This is a positive considering the UFC’s string of sub-400 PPV buys.  It also shows that Jones is beginning to grow as a PPV draw. Jones vs. Rampage did 475,000 buys and it has improved if you take the worldwide buy rate.

“We feel we can be the brand that really brings that innocent image to MMA- help it go mainstream,” said Mastrandrea, “We are re-branding to further target the kids. We feel there is a real need for a new generations Superhero.”

MP: When did Cagehero decide to target kids? What was the basis of your decision? Did you do any market research or look at trends to target a younger demographic?

CH: With the characters we have developed, we knew kids were always the ultimate destination.
We felt the need to educate the decision maker first. The 18-34 Male demo is the target everyone looks too, but we knew the increase in women’s interest-both as participants, and consumers in MMA was important too.  Both parents- the mother and father buy the kids their clothing.  When we looked at the numbers, we also found that the Youth Apparel Market is actually bigger then the Men’s Apparel Market.

MP: How did you find the kids to be in the commercial?

CH: It started with Stevo- the mohawked wrestling YouTube sensation.  When we saw his video on YouTube, it made both of us smile, laugh and really remember the days of Youth Sports. Days later we traveled to see him at a tournament to meet him, and his parents-the family were great people.  We then thought of the concept of the Cagehero Kids Team-  a compilation of the world’s best youth athletes across the world promoting there respective youth combat sports.    We checked out some kids in Vegas, California and then received some help from our friends over at Youth1.com.  In the past 2 days we have received almost 100 emails of new kids applying for the team.

MP: Are you still sponsoring MMA fighters? If so, who. Are they mostly in Bellator? I see that Ben Askren was in the commercial. Is he still sponsored?

CH: As far as the stereotypical MMA Marketing, walking out wearing our logo- Ben Askren is the only fighter in either Bellator/UFC that we will be marketing.  Ben is a great guy who really embodies our brand.  He also deals directly with kids, owning the Askren Brothers Wrestling Academy.  We do some outside signings/appearances with UFC guys, but for the time being we only “sponsor” in Bellator.

MP: How have/will the marketing efforts change as a result of the re-branding?

CH: We will continue to market in MMA-Bellator for now.  We have begun a stronger push with the Kids Marketing with Videos and a number of strategic partnerships with Youth-focused companies.  We are also starting to focus more on a grassroots level with a presence at Youth Wrestling Tournaments and BJJ Competitions.

MP: Are there any concerns that kids may be too young for MMA?

CH: When we started this company, we knew we were investing in the sport of MMA.  We’re passionate about it, and believe that one day it will be the largest sport in the world with acceptance by people of all cultures/ages.  With the UFC on Fox Deal, the recent Bellator-Viacom deal and the constant penetration of new markets- we think it’s only a matter of time.  Like Dana always says “Fighting is our DNA- we get it, we like it.”  Our brand will always have MMA roots.  It directly ties in with our characters as well.
Our Theory:
-In the 80′s the Teenage Mutant Ninja Turtles took over, representing the fictional art of “Ninjitsu”
-In the 90s- the Mighty Morphin Power Rangers, with martial arts/Gymnastics.
We are the new Superhero, with ties to Mixed Martial Arts- the new martial art.

MP: How will you try to bring MMA mainstream?

CH: We are trying to bring MMA Mainstream through the Kid’s Team, the characters and the message.  Some people, even if educated, are ignorant to the sport.  When you align it with Kids, Superheroes and a message like “The Hero Comes From Within”- it definitely puts the sport in a more innocent light.

Our full length script and artwork with our finalized characters is also completed.  We are currently taking it to market and attaching the proper people.

MP: What are the future plans for the brand?

CH:  The future plans for the brand is to further develop the Cagehero Kid’s Team with athletes throughout the world.  We are doing our first Youth Combine with Youth1, Ben Askren and some surprise UFC guests in the upcoming months.  Keeping the same comic book aesthetic.  As far as the Adults, we will continue to market in Bellator, and always keep our eyes open if the opportunity is right to go to the UFC. Our new adult line is more geared towards inspirational lifestyle apparel.  The Big Picture remains the same:  A comic book, a movie.  Become this generations Superhero.

Payout Perspective:

CageHero is a unique brand and based on its designs, it was poised to make an easy transition from the young male target demographic to the kids demographic. This is partly due to the comic book designs and partly due to its positive messaging. Certainly, the way the brand is positioning itself in the market, it seems like the most kid-friendly, parent approved brand to wear as opposed to the more adult-themed shirts from other brands.

The Strikeforce merger with UFC may have muted a portion of its fighters due to the UFC sponsor fee. Although it says that it may make a return, the brand has found another way to market itself within the MMA industry. Through outreach and visibility at youth wrestling and grappling tournaments and continutng its sponsorship of Ben Askren, it is making all the right moves in targeting youth with its new campaign.

CageHero also is participating in a campaign benefiting Clothes4Soul, an organization that facilitates the donations of new clothing to those in need. When you buy one shirt, it will donate one to the organization. Participating in this program helps the CageHero brand in showing that it truly is making a positive impression in the MMA community.

CageHero’s new info:
New Website:  www.cagehero.net
Facebook:   http://www.facebook.com/CAGEHERO
Twitter:  @cagehero

Fedor Emilianenko and M-1 Global’s attorneys filed a Notice of Settlement in late August informing the Court that the parties involved in the lawsuit had come to an agreement. The papers filed noted the settlement and requested to vacate all pre-trial deadlines and the October trial date.

As you might recall, this lawsuit stemmed from the failed Affliction PPV, “Trilogy.” More background info is here.

Also, J.R. Riddell of Sherdog.com provides a synopsis:

 [Fedor and M-1 Global's] complaint alleged that after Josh Barnett refused licensure by the California State Athletic Commission because of a reported positive stroids test, Affliction breached its contract by refusing to promote the third and final fight called for under their “Fight Agreement.” They claimed Affliction did not undertake “all reasonable efforts” to find a fighter to replace Barnett…

One of the claims made by M-1 was that Affliction was trying to repair its relationship with the UFC and no longer wanted to promote its third PPV.

The lawsuit saw key figures in MMA deposed including UFC head Dana White, at the time Strikeforce head Scott Coker, Affliction’s Tom Attencio and Fedor.

This past June, the Court denied the parties’ motions for summary judgment (requests to dismiss the case on a party’s behalf). At the time, the Court advised the parties that they mediate the case in order to settle the matter short of trial. However, the parties did not settle. But, as with most heavily litigated cases where the result may be in doubt, the parties carved out a settlement short of the trial date.

While the Notice of Settlement filed with the court gave the parties the opportunity to reopen the case within 30 days of the notice, it is unlikely that would happen. In most instances, the parties leave this window in the event a party fails to hold up its end of the settlement (e.g., pay the negotiated settlement). More important to the litigants and their clients, the court deadlines were vacated meaning that further legal work (and legal fees) are avoided.

According to its web site, Tap out Cancer is a nonprofit which raises awareness through the Brazilian Ji Jitsu community. It raises money “[t]hrough merchandise sales, special events, sponsorships and direct donations.” On its web site it noted that it is in not affiliated with TapouT. But, this was not enough to avoid ABG’s request.

When a vendor expressed concern about the nonprofit’s use of the “Tapout” name, the nonprofit sent an email to ABG requesting it receive its “blessing” to use the “Tapout” name. According to the nonprofit, a month and a half passed before it received a cease and desist email.

Tap Out Cancer’s web site reprinted a portion of ABG’s correspondence:

While we applaud your work with charitable causes, we unfortunately cannot grant permission for this use of our federally registered trademark. In addition to owning a stylized mark which you mention you tried to distinguish yourself from, we also own the word mark.

For your information, this use of our trademark in your business name is, in fact, and infringement of our intellectual property rights, including, without limitation our trademarks. It is not our desire to cause you any undue expense in connection with this matter in light of your organization’s goals. As such, we are willing to settle the matter with you at this stage if you can agree to: immediately cease and desist from the use of the trademark TapouT in any and all domain names, corporate names or otherwise, including by transferring the domain name to us.

(via Tap Out Cancer’s web site)

Payout Perspective:

The web site entry by the nonprofit reflects that they understand the reasons for ABG’s letter. While the timeframe took longer than expected, ABG is in its legal right to protect its trademarks. If not, more infringers would follow as the nonprofit points out. This has potential to be a public relations problem although the nonprofit used the “Tapout” name without permission. ABG’s correspondence is delicate and makes sure it is not impersonal in requesting that the nonprofit cease the use of “Tapout.”

Its a good cause, but the nonprofit should have asked ABG, or an attorney, prior to establishing the name of the nonprofit. Fortunately, it appears that there will be no further legal ramifications from this. While Tap Out Cancer indicated that it will lose money from merchandise it intended to sell, its better to take the loss now than to have to lose more money in legal fees to defend a lawsuit.

Via Mike Whitman at Sherdog.com:

“The MFC has always taken great pride in being an organization that thrives on the support of its outstanding corporate partners,” said MFC owner Mark Pavelich in the official release. “Tapout Energy coming on board with the MFC is unquestionably one of the proudest moments in the history of this company.”

Payout Perspective:

The UFC is not the only MMA organization tha has corporate sponsors. The signing of Canadian energy drink Tapout Energy is good support for one of the better organizations in Canada. Earlier this year, Good 4 U drinks entered into a sponsorship agreement with the MFC. For Tapout, its a good way to market its product to its likely target demo of young males 18-34. Out of curiosity, if anyone has had a Tapout Energy, let us know what you think of it.

A link to the commercial is here.

Payout Perspective:

In this extended version of the UA commercial, GSP is prominently featured. The numerous Primetime and Countdown shows have served as good placement for UA as much of the time viewers watch GSP engaged in some form of workout with Under Armour attire. The new UA commercial is a positive step for GSP as it shows he is on par with the likes of NFL elites like Ray Lewis and Tom Brady when it comes to athlete endorsements. It will be interesting to see if more athletic brands sponsor MMA fighters. Last week, we saw that Anderson Silva will be sponsored by Nike at UFC 134. Jon Jones will have a K-Swiss shoe. We will see if other brands pursue the likes of Cain Velasquez, Jose Aldo, Frankie Edgar or Dominick Cruz. All champions and all marketable figures.