Let me guess, VAK, Adolf and Pete Jersey rise to their feet and applaud Dana (VAK and Pete assuming he is doing it for the fighters while Adolf praising his business skills)
MMAPayout has reported previously on the UFC entertaining the idea of 360 deals as well as their moves to be the conduit between sponsors and fighters. Steve Sievert of MMAJunkie.com has also reported on the structure this could take:
MMAJunkie has learned through an industry source that the UFC is considering a new sponsorship business model, which would require any company interested in sponsoring a fighter to work directly with the UFC. The UFC would negotiate the deal for the fighter and charge the sponsoring company a promotional fee for the right to have its brand on display on fighters in the octagon.MMAPayout has learned that structure outlined in the SI piece and more fully fleshed out in the MMAJunkie piece have been acted upon, while the 360 idea seems to have stalled and possibly abandoned. MMAPayout.com has learned through industry sources that the UFC has gone so far as to contact major fighter sponsors and have informed them of the particulars of how this new sponsorship structure will work. Some major sponsors have worked out the terms and are already paying while some will have to soon. Others have been apprised of the new paradigm but haven?t been contractually obligated to cut the UFC in yet. The plan at this point seems to be piecemeal and patchwork at best.
In theory, that new fee could reduce the value of the deal for the fighter, especially since sponsor dollars are going to be in shorter supply in the foreseeable future due to the economic downturn. Hypothetically, if the UFC charges a 15 percent promotional fee, that?s 15 percent less revenue from the deal earned by the fighter.
The general consensus with those speaking to MMAPayout.com feel that the possible backlash from sponsors against the backdrop of a generally horrific sponsorship market right now has led the UFC to wait out the economic downturn before taking steps to fully implement their plans with respect to sponsorships. The situation as it sits now puts the brands endemic to MMA (like MMA apparel) in a compromised situation that has them signing on while non-endemic brands have a bit more leverage.