UFC on Versus: Payout Perspective

Welcome to another edition of Payout Perspective! This week, we’ll be taking a look at the UFC’s debut on Versus with an event that featured a light heavyweight bout between rising star Jon Jones and Brandon Vera, in addition to a heavyweight contender showdown between Junior dos Santos and Gabriel Gonzaga.

In an attempt to make these PP segments a little more reader friendly, we’ve decided to break the event coverage into separate posts: one focusing on the business story lines, and then several others detailing the numbers as they become available.

Business Story Lines:

– Jon Jones continues his ascent:

The hype train was not derailed on Sunday night as Jon Jones crushed Brandon Vera with a brutal left forearm to the cheek on his way to a swift TKO victory. He seems to give fans a glimpse of something new every time out, which is part of why he is so hyped – people want to know what he’s going to do next.

Why exactly is he so hyped? He’s got all the tools to become a star; another member of the next generation, alongside GSP, that could help carry the sport to the next level. Really. Not only is he that rare combination of young, explosive, dynamic, humble, and hard-working fight talent, but he’s also got some broader appeal. He’s not super charming or good looking, but he’s relaxed, personable, and the type of guy you could coach to be more engaging and a better self-promoter.

I especially think that when it comes to targeting different segments of the MMA demographic, Jon Jones could play a role in generating more interest for the sport amongst the black community – a potentially lucrative, and as of yet untapped, consumer base.

– dos Santos every bit a contender:

While not as hyped from a commercial standpoint, Junior dos Santos is every bit the legitimate fighting prospect as Jon Jones. In fact, he’s probably further ahead in terms of his quest to obtain a title shot; another win and he’ll get his chance. The only question right now is who.

Cain Velasquez would be the logical choice as he appears to be in the same position within the division. Velasquez also just defeated dos Santos’ mentor Rodrigo Nogueira, which gives the UFC a promotional angle to work with. Some part of me thinks the UFC may shy away from this option, because both men are capable of challenging for the belt right now and a loss would eliminate one for the next 12 months. However, the other side believes that because Brock won’t defend until July, it’s tough to keep two young and attractive fighters off the cards for that long.

The other option, here, is the loser of the Mir-Carwin fight next week. That individual will be looking at the same sort of recovery time as dos Santos (barring any significant injury) and either man would be a solid test for dos Santos.

– UFC makes long-term investment:

Steve Cofield of Yahoo! Sports points out the UFC grossed only $568,125 for the event, but paid out $200,000 in disclosed performance bonuses alone (which doesn’t include the likely 200-400k they will pay out in other show/win and non-disclosed bonuses).

The UFC will earn its share from the Versus deal, sponsorships (Bud Light, Harley-Davidson, Tapout, etc.), and merchandise sales, but it certainly won’t make a killing on this fight. Why hold it, then?

The deal with Versus is and always has been a long-term play: it gives the UFC another distribution medium with an audience that skews more towards sports lovers than SpikeTV; it helps them push their PPV content – the real money maker – to a new segment of consumers; and also bolsters the interest and awareness that the WEC is able to garner on the same network.

Sure, the UFC could have held this event somewhere else – and on a different network – to generate a bigger gate, with better overall ratings, but it chose to take the short-term hit now so that it could reap a greater rewards in the future.

– Sponsorship Watch:

The UFC returned to its sponsor staples with this Versus card – Bud Light, Harley, Tapout, etc – which is likely a reflection of the number of people watching this card relative to the downturn expected for UFC 110.

Musclepharm continued its push on the fighter sponsorship front, which leads me to wonder if BSN won’t start sponsoring more fighters. Seemingly one in every four fighters is covered with an “MP,” and that putting the UFC’s official supplement sponsor at a bit of a disadvantage where exposure and recognition is concerned.

However, it should be mentioned that these sponsorships are comprehensive deals that often extend well beyond what the fans see on television. BSN gets a fair amount of signage on the UFC website, which is well-trafficked.

Note: Brandon Vera had one of his major sponsors blacked out on his canvas during the fight introductions. We’ll work to find out who that was.