ESPN reports that Dana White’s deal under new UFC ownership is 5 years and 9% of the company’s net profits.
White owned a small percentage of the UFC under the Zuffa umbrella. He sold his shares as part of the $4 billion sale to WME-IMG. It’s not known whether White received a portion of the company under the new ownership.
Under back of the envelope math, the article compares the UFC to other entertainment businesses and opined that the UFC’s net profits could be in the $200 million range. Based on this, White’s annual salary could be $18 million. You may recall that Lorenzo Fertitta told CNN Money that the company grossed $600 million in 2015.
The article compares White’s projected salary to that of NFL commission Roger Goodell who averaged $21 million a year for the first 10 years of his time as head of the NFL. Goodell now makes in excess of $34.1 million. $3.5 million of that is base while the rest is a bonus.
Payout Perspective:
The deal for 9% of the company’s net profit gives White incentive to grow the business and see its profits continue to rise. White likely cashed out $360 million in the $4 billion sale. The new deal could put white in the same luxury neighborhood as the Fertittas.
White did also receive an equity portion of the new company however, it was reported to be significantly less than the 9% of Zuffa that he owned.
Also interesting note.. The original Zuffa agreement between the Fertitta bros and White had a covenant not to sue and all partnership disputes had to be resolved via Fist Fight, legally bound to method to resolve disputes.
I thought it was jiu jitsu, but either way.
Ari Gold is a brilliant man. Turning those UFC guys into movie stars. It is a completely diFFrent animal you are handeling. It looks like a HomRun buy for the buyers. Best of luck.