Authentic Brands Group Announces SVP Media and Entertainment
May 18, 2011
NEW YORK, May 18th, 2011 – New York based intellectual property company Authentic Brands Group has named Mike Straka senior vice president of media and entertainment to head up strategic content initiatives for brands including TapouT, TapouT MPS, Silver Star, Iron Star, Sinister, Hitman Fight Gear and Marilyn Monroe.
“Straka’s expertise in multimedia will help grow our content offerings and distribution across all of our brands on multiple platforms,” said Jamie Salter, chairman and CEO, ABG. “His demonstrated body of work in MMA has made him one of the most respected broadcast journalists in mixed martial arts today. We are looking forward to having Mike Straka represent our brands in all forms of media and entertainment.”
“Mike has been a huge supporter of MMA and TapouT throughout the years,” said Dan “Punkass” Caldwell, president and co-founder of TapouT. “We are excited to have him on our team and look forward to collaborating with him as we continue to be the leading MMA apparel and lifestyle brand.”
A former vice president and executive producer at FOX News Digital, Straka brings nearly twenty years of major media experience to ABG and will be responsible for building strategic media partner- ships for ABG brands, and head up content channels that will serve to make Tapout.com, TapouT Radio and ABG’s partners the premier destinations for mixed martial arts news and entertainment coverage.
“This is a dream job for me,” said Straka. “MMA is my passion and TapouT is the leading brand in MMA lifestyle and entertainment. To be a part of the vision set upon by the late Mask and his partners Punkass and Skyskrape more than ten years ago is an honor. Authentic Brands Group is a company that cultivates the type of entrepreneurial spirit and environment that I thrive in, and I’m up for the challenge.”
In addition, Straka will represent ABG and TapouT on all forms of media, analyzing fight cards, break- ing UFC® news and interviewing the fighters.
While at FOX Straka was responsible for video operations, vendor relations and online programming, and he was the host and executive producer of “Fox Fight Game,” one of the first weekly MMA pro- grams dating back to UFC 32.
Most recently, Straka was the host of “Fighting Words with Mike Straka” on HDNet, a one-on-one interview program featuring the biggest names in MMA, including UFC president Dana White and a rare interview with UFC chairman and CEO Lorenzo Fertitta, as well as dozens of sit-downs with the world’s greatest MMA fighters.
UFC 128: Payout Perspective
March 22, 2011
Welcome to another edition of Payout Perspective. This time we look at UFC 128 held at the Prudential Center in Newark, New Jersey. The show was topped by Jon Jones stopping Mauricio Rua to win the UFC Light Heavyweight title.
Jones fights crime, beats Rua
To top off being a favorite , fighting close to his hometown and having his own Spike TV special prior to challenging for the Light Heavyweight crown, Jon Jones helped stop a burglar just hours before the fight. Although he looked nervous and Rua looked calm, Jones destroyed Rua to win the belt. Rua looked slow and out of shape, but perhaps that was a testament to the speed and skill of Jones.
For Jones, a matchup with Rashad Evans is next although it may happen late 2011 as it is reported that Jones may have broken a bone in his hand. Thus, Evans will not have fought in the UFC since May 2010.
Faber kisses Rosie, survives to win in UFC debut
Urijah Faber defeated Eddie Wineland and will face Dominick Cruz next. Wineland did well for himself as he stuffed several takedown attempts at the outset, but Faber eventually solved Wineland. After the fight, Faber gave a rather mechanic call out to Cruz. Perhaps the venom will step up if they become opposing TUF coaches. Whenever the fight happens, it should be a great fight.
I think that the UFC should have Faber-Cruz coach TUF as this can help gain more exposure to the lighter divisions. Plus, it should elevate Faber’s presence to the mainstream. I think Faber (and Jose Aldo) are the two fighters that can give the lighter weight divisions a boost in giving them respect and more visibility on UFC cards.
Not able boos for “The California Kid” coming out to 2Pac/Dre. I guess the East Coast-West Coast rap battle is still alive. And yes, that was Rosie O’Donnell that he kissed walking to the ring. I liked Rosie better when she was a VH1 DJ.
Bonuses
MMA Junkie reports the bonuses for 128.
Brendan Schaub and Erik Koch earned $75K apiece for their KOs and Edson Barboza and Anthony Njokuani earned $75K each for their Fight of the Night on Spike TV. There were no fights ending in submissions so that can explain the double KO bonus.
Attendance and Gate
MMA Junkie reports that 12,619 fans attended UFC 128 for a gate of $2.14 million. The numbers were not as good as GSP-Hardy and did not draw as many fans as Bisping-Evans. In fact, UFC 128 had a slightly better gate than UFC 78. It is likely that Jones will draw much better in the future.
Via MMA Junkie:
- UFC 111 (St-Pierre vs. Hardy): $4,000,000 gate (17,000 attendance)*
- UFC 128 (Jones vs. Rua): $2,140,000 (12,619)*
- UFC 78 (Bisping vs. Evans): $2,100,000 (14,071)*
- UFC 53 (Arlovski vs. Eilers): $1,100,000 (12,000)*
Ratings
UPDATED 3/22/11 – MMAPayout confirmed today with SpikeTV the ratings for the UFC Prelims. UFC 128 Prelims earned a .85 household rating, a .92 in Men 18-49, a 1.03 in Men 18-34, and an average audience of 1.3 million viewers. According to MMA Junkie, the ratings show a strong increase from the UFC 127 Prelims on ION.
The lead-up shows for UFC 128 included the usual Countdown show and a special for Jon Jones, “In the Moment.” The Jones pre-event show did better than the Countdown show. It did very well considering it went up against NCAA Tournament games. It will be interesting to see how he GSP-Shields Primetime series will do in comparison.
Sponsorship Watch
MMAPayout Emiritus Kelsey Philpott was on hand and tweeted about the scene outside the arena pre-UFC 128 where the UFC held a Tailgate Party. This was a great way for sponsors to get out in front of its audience. Tapout and Xyience were among the sponsors outside interacting with fans. The newest product out there for the MMA fan: Tapout energy bands.
Sponsors in the Octagon included Harley Davidson, BSN, BoostMobile, Xyience, Affliction, Tapout , Toyo Tires and Bud Light had the center of the Octagon.
The UFCStore.com was actively involved in the PPV as it sponsored the tale of the tape and also ran an ad during the first round of the Jones/Rua fight which I thought was a little annoying.
Jon Jones had Iron Bridge Tools as a fight sponsor on the back of his shorts. According to my count, this is the second time that a challenger has won the UFC title with a tool sponsor on the back of his shorts as Cain Velasquez wore a Milwaukee Tools logo when he beat Brock Lesnar. I don’t think Gray Maynard or Vito Belfort had a tool sponsor on the back of their shorts. Are you listening Jake Shields?
Big night for sponsor Form Athletics as Jon Jones and Urijah Faber won their fights.
Public Relations for 128
The UFC was all over the NY/NJ area promoting UFC 128. Details on some of its appearances are here. Aside from promoting 128, the UFC made an effort to promote the legalization of the sport in New York. Notably, Dana White and Lorenzo Fertitta appeared on a NY public affairs program to discuss the fight for legalization.
Aside from local media, notable print media stories included Jon Jones in WSJ which asked whether Jones would be the breakthrough star the UFC (and MMA) needs.
Jones appeared on a local morning show in NY where he was asked to display what he does in the Octagon.
UFC Fighter Jon ‘Bones’ Jones: MyFoxNY.com
I think Middle Easy explains my sentiments.
Via Middle Easy:
Hopefully in 2012, we can collectively agree that any form of media asking a fighter to place them in a rear-naked choke needs to come to an end. Actually, that’s not entirely fair. Let’s make a rule that if you ask a fighter to place you in a rear-naked choke, you can’t tap out. The blood running through your neck will have to come to a complete halt and your unconscious body will need to collapse to the floor in order to realize how much of an idiot you were for asking someone to choke you out.
Trending during 128
Twitter was abuzz Saturday night as #ufc128 #Crocop #Schaub #Miller and #Faber were all trending. I’m sure Jones was trending as well although I did not check after the fights.
Odds and Ends
- MMA is great because it’s the only sport where one of its champs seconds a fighter as Frankie Edgar did at the weigh-ins for Ricardo Almeida
- The Miller Brothers fought back to back and went 1 and 1.
- Jon Jones gave a shout out to his after-party during his post-fight interview, a taboo in the UFC. But, Jones quickly amended his announcement to say it was for charity. Perhaps the champ was taking liberties with his newfound position.
- While there are many MMA fans that loathe the comparisons to pro wrestling, “USA, USA” chants broke out during the main event. The last time I heard that I think The Iron Shiek was wrestling Sargent Slaughter.
- If Herb Dean did not stop the Jones-Rua fight, Rua was tapping.
- Faber received his Brown Belt in BJJ after the Wineland match. Not as dramatic as when Randy Couture received his Black Belt for choking out James Toney or when Frank Mir received his after breaking Tim Sylvia’s arm.
TapouT sponsors race car at Nascar’s Nationwide series
March 6, 2011
MMA clothing brand TapouT unveiled its sponsored race car at NASCAR’s Nationwide Series on Saturday. The TapouT Chevrolet placed 12th in its first ever race.
Via MMA Junkie:
In February, MMA clothing manufacturer TapouT announced it was branching out from its core audience with a multi-year partnership with racing team Kevin Harvick Inc.
“I expect NASCAR and MMA fans to be in a bit of shock – in a good way,” TapouT exec Tim “Skyskrape” Katz stated in the original announcement. “TapouT has never ventured outside of MMA like this, but seeing how the fans love both sports, I think they will be the real winners here.
Payout Perspective:
An interesting partnership considering the TapouT merger last year as well as the sponsors choice to diversify with sponsorship in another sport. Similar to MMA, NASCAR has shown the potential for long-term growth. It would be interesting to see the research performed in deciding this sponsorship. Based on TapouT’s investment in NASCAR, it tells us that MMA fans are big into NASCAR as well.
Former Tapout Employee Receives $3.2M Jury Award
January 26, 2011
Following up on my earlier post, Former TapouT Employee’s Wrongful Termination Lawsuit Set for Trial in January – Claims Against Kreiner Dismissed, according to the Beverley Hills Courier, the former employee, Michelle Thomas “was today awarded $2.4 million in punitive damages by a Los Angeles Superior Court jury.”
According to the article, “[t]he panel deliberated for about a half-hour before finding in favor of Michelle Thomas in her wrongful termination case. The same panel on Monday awarded her $840,000 in compensatory damages, bringing her total award to more than $3.2 million.”
Consistent with the allegations in the complaint, the article provides that Thomas testified “that employees were told to pay out of their own pocket for any television subscriptions needed to view the company’s show on the Versus cable network, called ‘TapouT,’ as well as pay-per-view Ultimate Fighting Championship bouts.”
Justin Klein is an attorney at Satterlee Stephens Burke & Burke LLP in New York City where he concentrates his practice in commercial litigation and represents clients in the fight industry. He regularly addresses current legal issues that pertain to combat sports, including efforts to legalize MMA in New York, at his Fight Lawyer website. He is a licensed boxing manager with the New York State Athletic Commission as well as the founder and Chairman of the Board of the New York Mixed Martial Arts Initiative, a non-profit organization that gives inner city youth the opportunity to experience the emotional and physical benefits of martial arts training. Justin lives in New York City where he trains in jiu jitsu and boxing.
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MusclePharm Raises $1.4 Million
January 8, 2011
In December, nutritional supplement company, MusclePharm, raised $1.4 million through convertible promissory notes and a registration agreement with accredited investors.
“We are very pleased with the successful completion of the agreement with the investor and believe this capital will support our capital requirements for growth,” commented Brad Pyatt, MusclePharm’s Chief Executive Officer. “We appreciate our investor’s confidence in MusclePharm as we continue to execute our long-term growth strategy.”
This capital raise, combined with the previously released fulfillment agreement with IVitals, further enhances the Company’s overall financial strength for future long-term profitable growth. Management will continue to focus on the development, sales & marketing of MusclePharm’s growing portfolio of nutritional supplement products.
Payout Perspective:
It was announced last month that nutritional supplement company, MusclePharm, owed Zuffa approximately $375,000 in over-due sponsorship fees accrued over the course of a year-long agreement between the two companies starting in January. This outstanding debt was subsequently sold by Zuffa to a collection agency in the Fall.
Many were surprised to see the brand return to the Octagon in January. The WEC deal had expired and Zuffa didn’t appear to have any outstanding obligations to the company. Why would it do business with a company that had already failed to pay its debts? The answer is ostensibly because MusclePharm was able to raise new capital in December to fund new marketing efforts and recommit to sponsoring UFC fighters (including the payment of the UFC “sponsor tax”).
MusclPharm’s new apparel partnership with Tapout is encouraging. It’s a textbook case of two brands working together to better leverage the sponsorship of a property and increase value. This is something that’s going to hit across multiple sponsorship objectives such as awareness, interest, intent to purchase, favorable attitudes towards the brand, and increased sales.
However, I remain skeptical that the company can turn things around. The company sponsors a lot of fighters and that’s a good thing, but if it blows through its working capital again, then it’s likely to leave a lot of people in the lurch. Here’s a glimpse of its liquidity and capital resources as of November 15th’s Q10 (emphasis mine):
Liquidity and Capital Resources
Our primary source of operating cash has been through the sale of equity and through the issuance of convertible secured promissory notes and other short term debt as discussed below.
At September 30, 2010, the Company had cash of $10,657 and a working capital deficit of $2,578,866, compared to overdrawn bank accounts of $17,841 and a working capital deficit of $1,223,074 at December 31, 2009. The working capital deficit increase of $1,355,792 is primarily attributed to the operating losses incurred for the nine months ended September 30, 2010.
Cash used in operating activities was $2.4 million for the nine months ended September 30, 2010, as compared to cash used in operating activities of $0.4 million for the nine months ended September 30, 2009. The increase in cash used in operating activities for the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009 was primarily the result of the net operating loss net of non-cash expenses, for the current nine month period.
Cash used in investing activities was $30,395 for the nine months ended September 30, 2010, as compared to cash used in investing activities of $5,510 for the nine months ended September 30, 2009. The increase in cash used in investing activities represents purchases of various fixed assets. We also maintain a website http://www.musclepharm.com), designed for customers and investors. Future investments in equipment and other fixed assets, as well as further development of our Internet presence will largely depend on available capital resources.
Note: I pointed out last week that Tapout has been much less consistent on the activation front in the last six months (due, in part, to what I believe to be the ABG acquisition and likely marketing strategy reformulation). However, the partnership is something I also believe needs to be recognized; more sponsoring brands need to co-promote, because its an innovative way of pooling resources, leveraging a sponsorship, and creating value that might not always be present with stand alone activation strategies. Kudos.
Silver Star President Talks ABG Deal
September 7, 2010
The fastest growing sport in the world just got put on an even faster track to mainstream awareness and one step closer to Madison Ave’s biggest dollars after one of the biggest brand licensing companies have jumped directly into the deep end of the mixed martial arts’ pool.
Authentic Brands Group LLC, a company with a giant global footprint in the worlds of apparel, consumer electronics and action sports has today announced the acquisition of TapouT, TapouT MPS, Silver Star Casting Company, Iron Star and Hitman Fight Gear to it’s portfolio, which also includes the Bob Marley Brands, among dozens of others.
In today’s press release, Authentic Brands Group’s Chairman & CEO Jamie Salter said, “This sport is still in its infancy. We strategically chose these acquisitions as our first big move because we’re getting into the right business at the right time. We’re looking forward to working with the best brands and the best athletes in the world as we transition these two companies into global lifestyle brands with our retail and licensing partners.”
In his first interview since the announcement, Silver Star president and founder Luke Burrett tells me the deal took about nine months to close, and it’s going to be mean big things for MMA fans.
“Authentic Brands Group is a brand development and licensing company. In conjunction with Leonard Green & Partners, our mandate is to acquire, manage and build long-term value in prominent consumer brands,” says Burrett, who will maintain his title for the Silver Star and Iron Star brands.
He said ABG’s overall strategy for the brands is to become a full licensing model.
“The beauty of a full licensing model from the consumer standpoint is that the products get better – at least it will with us because our internal mandate is to work with the best in class licensees,” said Burrett. “Its a simple formula really, the best brands work with the best licensees and best retailers. Plus, we have rigorous rules and regulations for our licensees – we literally approve every single product, ad, you name it. Because of this strategy, each partner gets to do what they do best, and we can focus on what we do best – and that’s marketing and building a brand.
That means TapouT’s Punkass and Skyskrape, along with Luke’s wife, Charis Burrett, will continue to be mainstays on the MMA scene, although today’s press release makes no mention of TapouT chairman Marc Kreinert.
Burrett says the acquisition of his company has always been part of his and wife Charis’ strategy.
“In business, every company reaches a point where they need to make the best decision for the company,” he said. “Charis and I have put many years into Silver Star and still have a lot of passion for the brand! ABG is the right partner and we look forward to a great future. This acquisition will strengthen every facet of Silver Star, not just MMA, so we look to our partnership with ABG to take the company to the next level in all of areas,” he said.
Silver Star sponsors UFC Middleweight champ Anderson Silva and fan favorite Clay Guida, and has had deals in place at one time or another with the likes of Georges St. Pierre and Jon Bones Jones.
The buzz about the ABG acquisitions, which may include more brands in the near future (think Sinister), was loud at last month’s UFC Fan Expo, where guys like Burrett, Skrape and Punkass were noticeably more relaxed than usual, with representatives from ABG doing most of the heavy lifting this time around.
“Since we are now going into a licensing model, I will have more time to work with our athletes and the marketing direction of the brand,” he said.
Toronto Company buys TapouT, Silver Star and Hitman
September 6, 2010
MMA Weekly reports that TapouT, Silver Star Casting Co. and Hitman Fight Gear have been sold to businessman Jamie Salter.
The MMA clothing brands will be merged under Salter’s Toronto-based Authentic Brands Group, LLC.
From Bloomberg:
Salter’s Toronto-based Authentic Brands Group LLC is betting the three labels — TapouT, Silver Star Casting Co. and Hitman Fight Gear — are ripe for expansion as mixed martial arts tightens its grip on the mainstream. J.C. Penney Co., Kohl’s Corp. and Macy’s Inc. already sell some of the gear, and the new owners and founders are looking to add sales both at home and overseas.
“These are some of the most exciting brands I’ve seen in years,” Salter said in a telephone interview. “The popularity of mixed martial arts and the UFC is soaring around the world. The last time I saw a sport with this much potential was 20 years ago with snowboarding.”
Salter wouldn’t say how much his firm paid for the brands.
Payout Perspective:
This purchase shakes up the MMA merchandise market as this merges TapouT with two of its competitors. According to the Bloomberg article, TapouT President Dan “Punkass” Caldwell and Tim “SkySkrape” Katz will be joined by Silver Star’s Luke Burrett.
The acquisition shows the growth of the MMA market and this marks the further expansion of the brands into mainstream awareness. What will be interesting in the coming days will be the organizational leadership of the new company. What changes will be made to the brands? Will Caldwell and Katz be able to work with Burrett and vice versa? What affect will the merged companies have on the identity of the individual brands? We will have more on this later this week.
Tapout and Fathom Co-Promoting for UFC 118
August 23, 2010
Tapout Clothing and Fathom Events will partner to host the new UFC 4-Pack promotion at UFC 118. Purchasers of four tickets to UFC 118 at any Fathom Events-sponsored showing in the U.S. will be eligible to receive a free Tapout t-shirt.
Payout Perspective:
Co-promotions are probably under-utilized in sports today, but I tend to think we’re going to see an increase in their number over the next few years as companies look to maximize the impact of activation while also minimizing cost and risk. This particular promotion happens to work because Tapout is the presenting sponsor of UFC 118 and Fathom decided the event was big enough to show and promote in theaters.
MMAPayout.com has talked about the value of the Fathom Events theater distribution deal in the past. Tapout now has the opportunity to leverage the same exposure vehicle to not only further tie its brand to the UFC, but also increase general awareness and interest of the brand on its own.
Tapout Generated $200 Million in Revenues Last Year
August 18, 2010
Michael Lev-Ram of CNN Money writes that Tapout earned $200 million in annual revenues last year, which is 16 times greater than the company’s $12 million in revenue from 2006.
Payout Perspective:
I imagine some people will scoff at the $200 million annual revenue claim, but the figure seems probable (or at the very least in the ballpark) when you take into consideration the growth of the sport over the last few years and how Tapout has set about expanding its business.
These guys aren’t just selling t-shirts out of the trunk of their cars anymore. Sure, the UFC has provided a platform to generate awareness for the brand and promote its products. But it’s been the diversification of its product lines and the cultivation of nationwide distribution channels that’s really made the difference for Tapout.
MMA is more than a sport – it’s a lifestyle. Tapout has played a major role in fostering that lifestyle. Making its products available to all those wishing to embrace that lifestyle has proven to be the key to its success.
Kudos to Lewis, Caldwell, Katz and Kreiner for their tremendous vision and hard work. May Charles Lewis also rest in peace.
Fedor Tapout Shirt Nixed
June 26, 2010
Pedro Carassco of BJPenn.com is reporting that Tapout has nixed a potential signature t-shirt deal with Fedor Emelianenko for his fight against Fabricio Werdum allegedly because the UFC threatened the popular MMA clothing line with a lifetime ban from its Octagon if it went through with the deal.
Initially, Fedor Emelianenko, the number one heavyweight fighter in the world, secured a deal to sport the always growing and ever popular “TapOut” clothing line at this weekend’s Strikeforce events.
However, during my time here in San Jose, while spending time with very legitimate sources close to the situation, I was advised that certain parties within the UFC halted TapOuts participation in the event and threatened a UFC lifetime ban, if Emelianenko came out wearing their line.
Payout Perspective:
I want to emphasize that this is still just an allegation. If there’s only one thing you ever learn about the MMA business it’s this: nothing is ever completely as it seems.
However, with that said, I’m inclined to think these allegations are somewhat true based on what we’ve seen from the UFC in previous situations. If you recall, the UFC banned long-time BJ Penn supporter, RVCA, from the octagon last year when it sponsored Fedor against Brett Rogers. RVCA later dropped Fedor and was allowed to return to the octagon.
Thus, it wouldn’t surprise me if the UFC gave Tapout some sort of warning (nor does it surprise me that BJ Penn’s website is the one breaking the story…).
——-
Why does this make sense for the UFC? I suppose the rationale is two-fold:
1.) Tapout, the world’s premier MMA clothing company, would add credibility to Fedor and Strikeforce through the t-shirt deal.
This is significant when you consider the larger context of the decision. The heavyweight division has always been very important to combat sports, and it bothers the UFC that they do not have the undisputed best heavyweight in the world. The Tapout deal would lend further credibility to Fedor and Strikeforce – although it’s unclear how much – at a time when the UFC is preparing to showcase its own best heavyweights in Brock Lesnar and Shane Carwin next week.
Moreover, it’s been widely speculated that a potential Strikeforce PPV hinges on this fight. Here we enter territory where Strikeforce could actually be considered a direct competitor to the UFC.
2.) If Fedor doesn’t want to play ball and make his money in the UFC, then the UFC will make it hard for Fedor to play ball and make his money elsewhere.
This isn’t a move designed to bring Fedor back to the bargaining table. It’s a demonstration of the same “with us or against us” mentality that the company has always demonstrated in its business practices. If Fedor doesn’t want to play ball with the UFC – which assuredly drives Dana and Lorenzo crazy – then the UFC is going to do everything in its power to ensure Fedor cannot associate with anything closely related to the UFC, in order to benefit for himself.
I’m not sure I agree with the logic, but I can see the UFC’s side of the argument. I can also try to put myself in Dana White’s shoes as he’s assuredly endured some frustration in dealing with the numerous talking heads and flip-flopping position of M-1 Global and Fedor Emelianenko.
——-
There are obviously multiple other perspectives, here.
- The Fedor/Strikeforce contingent is likely angry, because it misses out on sponsorship money, the credibility it would add to the brand, and marketing channels that Tapout has at its disposal.
- Tapout is disappointed, because the t-shirt would have sold well amongst the hardcore crowd. I’m sure, depending on what actually happened (i.e., the nature of the UFC coercion), the company might also feel one half obligated and the other half betrayed. Tapout has stuck with the UFC through thick and thin, but it’s also been a mutually beneficial partnership: Tapout has built its brand largely on the back of the UFC, but has also helped to support the UFC and its fighters in the leaner years.
- The fighters will probably see this as a UFC power move that’s taking money away from one of their own. I can almost guarantee that the decision hasn’t earned the UFC any extra good will amongst the ranks, which is potentially a dangerous long-term consequence of this move.
- The fans are likely to see this entire thing from the perspective of Fedor and Strikeforce. In general, the MMA fan base has traditionally been very pro-fighter and pro-competition. It’s understandable, but sometimes the sentiment, while good intentioned, is misguided and uninformed (e.g., the reaction to disclosed payout releases or the entire fighter pay discussion as a whole).
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What are the long-term consequences of this decision? The UFC may have done more harm than good with this decision:
1.) The absence of the Tapout shirt may deprive Fedor of some money and Strikeforce of some additional publicity, but it’s not going to thwart them from staging a PPV in the Fall (if Fedor wins).
Moreover, the additional press given to both parties as a result of the UFC’s alleged pressure might outweigh whatever press Fedor and Strikeforce might have received from Tapout anyway. The theory here being that fans would have seen Fedor in a Tapout shirt and thought, “oh that’s cool (but not out of the ordinary for an MMA fighter to wear Tapout)” and that would have been the end of it. A few t-shirts sold, some money made, and everyone moves on. Not so…
2.) The UFC’s apparent involvement isn’t going to thrill the fighters. If you’re a fighter, you understand the sacrifices that other fighters need to make in order to earn a living in the sport. When somebody interferes with a fighter’s ability to earn a living, the natural reaction is one of disdain and resentment – regardless of whether the fighter is in your organization or not. Sometimes its a rational reaction, sometimes its not, but it’s a reaction the UFC may feel the brunt of in the future.
