Nowadays, it's impossible to watch a UFC press conference or an interview with Dana White and not see the subject of fighter pay discussed. In classic fashion for the UFC president, he generally deflects and insults just about anyone who sides against him on the issue, which hasn't done him any favors.
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To make matters worse, figures such as Jake Paul have grilled White and the promotion on the issue, which has only brought more attention. However, do Paul and others actually have an argument? Is there even an issue with fighter pay? Let's take a look at the UFC's biggest controversy.
6 UFC Reebok Deal
Various UFC fighters have complained about their pay since the beginning of the promotion. However, the issue really only began gaining traction in 2014 and 2015, which was the beginning of the UFC's deal with Reebok. The promotion brought in the apparel company to make it look more professional, but it only led to more issues.
With the introduction of Reebok, fighters weren't allowed to make any money off their own sponsors. Before the deal, competitors could have logos on their shorts and have a banner in the octagon, which was now banned. They would receive money from Reebok, but a fraction of what they previously did.
5 Acquiring Other MMA Companies
One of the biggest elements of the UFC fighter pay controversy is the fact that the UFC is essentially a monopoly. In fact, the promotion is currently in court over this exact issue and has been since 2014.
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The lawsuit alleges that the UFC purposely, and illegally created a monopoly and the fighters have suffered as a result. For years, any real competitor to the UFC was swallowed up, such as PRIDE, WEC, Strikeforce, and more. With the purchasing of all real competition, it meant the promotion could pay as little as they wanted, which has contributed to the fighter pay problem. Something Dana White loves to say is that if people don't like how much the UFC pays their fighters, they should just start their own promotion and pay them. That idea doesn't work if the UFC keeps buying companies out.
4 Controversial Contracts
To contribute to the issue of lack of pay, the UFC's contracts have also come under fire as well. Recently, UFC Heavyweight Champion Francis Ngannou has brought lots of attention to the issue that comes along with being a titleholder for the company.
The UFC has or had, two big clauses for their fighter contracts. One, they're essentially allowed to extend you for any reason if you're out for an injury or take time off. Secondly, they're able to extend your contract as a champion automatically, to make sure you don't leave the company as champion, although the champion clause has been contested in court.
These processes are generally done to keep you locked into your current deal, and under whatever pay you have. Unless you're a big free agent, you're likely on a lower-aid contract to start your career, which the UFC will keep extending whenever convenient.
3 UFC Fighter Revenue Going Down
A popular line of thinking used by UFC supporters is that the promotion can't afford to pay fighters like other team sports such as football or basketball. However, that's not exactly the issue. Yes, the promotion likely can't afford to pay UFC debutantes what an NBA bench-player makes, which is in the area of six figures. However, they can afford to do so much more than they are doing.
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The UFC in the early 2000s paid as much as 40% of their profits to fighters. That number has steadily decreased since that time. The most recent numbers suggest that fighters make 16% of the UFC profits, which is a far cry from the 50% that the NBA and NFL players get. However, that's also a lot less than what even other MMA companies pay. Strikeforce has been revealed to have paid 63% of their revenue to fighters, and Bellator currently pays 45%.
2 Fighter Pay Is Up, But Profits Have Improved Even More
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The UFC is correct when saying that fighter pay is up. That is an indisputable fact, that is backed up by court documents that have been released in the UFC's ongoing antitrust lawsuit. However, while pay is up for fighters, the gap is only still widening between the competitors and promoters. Revenue for fighters has increased anywhere from 1.5x to 2x since 2005. Meanwhile, the share going to the promoter has increased 3.5x during the same timeframe.
Also, UFC is currently as profitable as it ever has been, with a broadcasting deal with ESPN, and million-dollar sponsorships with Crypto.com, Monster, and more. None of which, the average UFC fighter will ever see a cut of. The UFC was forecasted to have made $980 million in revenue for 2020, of which fighters saw roughly $196 million.
1 What Happens Now?
The best bet in increasing UFC fighter pay is a combination of things. Public pressure from figures such as Jake Paul (yes, seriously) is a big help in getting the issue to the forefront. However, the biggest way to fix this issue is the ongoing UFC antitrust issue that has been brought up previously. The lawsuit is currently seeking a $5 billion dollar payout for any previous and current UFC fighters.
So, that's extremely unlikely to happen. However, what is possible, is that the UFC will be forced to re-work contracts, and to make a lot of changes. Things such as the champion's clause have already been removed due to the lawsuit, and depending on how things go, could not be the first change. However, it all depends on how the court ruling goes. So far, the UFC has been unsuccessful in getting the suit dismissed.
