Bottom line, ZUFFA and Dana have shown a willingness to compromise, the very spirit of negotiation. M-1 has shown no such interest. M-1 looks much worse then ZUFFA does in this sense. M-1 and Fedor would be much beetter off in the UFC if we're talking Fedor's long-term interests.
Let's say that Fedor comes into the UFC and dominates like some of you expect. Six fights from now, Fedor is likely to be close to retirement. Let's say Fedor retires then, 6-0 in the UFC and unquestionably the # 1 HW in two different eras of MMA, and of course # 1 HW of all-time. Now, Fedor is well-known not just in Russia, but in the # 1 MMA market, the United States. Now, he's no longer a fighter, so UFC ahs no hold over him there, but his name is well-known, and "Fedor Emelianenko presents M-1" has cache in the world.
No, it's about money. They want to take 50% of the profits when they aren't even close to bringing in 50% of the profits. They want those profits, win or lose. So let's say the UFC makes $30-$50 million in profits per PPV Fedor fights on. That's $180-$300 million over the course of the contract. Is Fedor worth that? Hell no. They're intentionally pricing themselves out of the contract because Fedor doesn't want to fight in the UFC. The schedule is too demanding, Fedor doesn't like to fight that often, and he doesn't have a history of facing consistently tough competition in back to back fashion. In short, he liked the way Pride did business, with infrequent fights, and often freakshow fights. The UFC is more sport and less entertainment.