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analyzethis

03/22/06 1:06 PM

#50229 RE: cowboycadillac #50227

From sherdog.net:

Since the payscale for UFC 58 was released this morning, I have been forced to take a moral stance against the ultimate fighting championship. My stance is based on the numbers I feel the UFC is making, as opposed to what they are giving back to the fighters and the sport.

These number are as follows:

Revenues

UFC 58 Gate= approx. $2.25 million (This number in a conservative estimate based on the $3.3 million I know was grossed at UFC57, UFC 58 was not quite a sellout and tickets were not quite as expensive)

UFC 58 PPV revenue= 300,000x$30=9,000,000 (I subtracted $5 per buy which is the expense to the UFC, and the estimate of 300,000 is a conservative estimate based on the 400,000 sales of UFC 57)

I will exclude other revenue streams such as merchandise sales, concessions sold at the Arena and profits from the close circuit broadcast in Vegas. I have excluded these sources of revenue because I have no historic figures to draw from, which would be required to estimate their amounts at UFC 58.

Expenses

Arena Rental= $300,000 (Taken from Boxing match in 2005 at the Mandalay Bay)

NSAC= $500,000 (Liberal estimate based on numbers of $350,000 for boxing event at the Mandalay Bay)

Fighters= $500,000 (Liberal Estimate of Total Expenses including travel, salaries, and costs of medical insurance)

I have excluded any human expense i.e. Arena Employees because their costs would be more than covered by the sales of concessions and merchandise.


Profits ($11.25 mil) - Expenses($1.3 mil) = Total Revenue (9.95 mil)

-40% Taxes ($3.98mil) (Expenses are written off)

Total Revenue = $5.97 Million

Now lets say they re-invest $1Million into the company

That means that an ULTRA-CONSERVATIVE estimate of their profits from 1 show (that did not sell out, or have their biggest PPV buys) is $5 Million free and clear

And this does not include their deal with XYENCE, or the money the get from Spike TV, which of course provides millions in additional revenue.

I think the math on this is sound and it proves that ZUFFA is just a money hungry corporation of couldn't care less about the fans (media ban) or the fighters ($209,000 payroll with $5million profit). They continue to hardball fighters into taking 2x2 or 3x3 contracts (When it costs them more than that to train),and they coerce veteran fighters to take less than the are worth. I will now cease any support for ZUFFA and the UFC and with glaring numbers like these, I hope I can influence some of you to do the same.


analyzethis

03/22/06 1:07 PM

#50230 RE: cowboycadillac #50227

Thanks!! Looks like Spike just shot themselves in the foot. I wonder if they know about TFN?