Time For UFC Purses Breeze Past the $10 Million Dollar Mark
Even with a few weeks of air, it's hard to digest just how successful UFC 196 was. UFC sold eight million dollars worth of tickets, set a record for undercard viewership on Fox Sports 1 and beat UFC 100's revenue record for overall event revenue. But so what? Those things are impressive, but more or less expected at some point for a star like Conor McGregor.
What makes the success of UFC 196 so amazing was that it was done in two weeks.
UFC has long been a company that thrives off of star power and grudge matches. McGregor brought the star power, but when Rafael Dos Anjosretired to a life of poverty pulled out with injury less than two weeks before March 5th, there had to be real questions of whether McGregor would continue his upward pay-per-view buy trend without a new championship to shoot for.
Somehow, some way, Conor McGregor and Nate Diaz generated a grudge match out of thin air. In two weeks; really in just two days, the audience of pay-per-view buying sports fans were made to believe that those two guys really hated each other.
The rumored rematch, Diaz vs. McGregor II, is the rumored main event for UFC's next attempt at setting a one-night revenue record: UFC 200. There is no question that Diaz and McGregor will be able to talk fans into buying a lot of tickets and pay-per-view buys. There is a slight question of whether UFC 200 will set a revenue record. Even with a bigger arena, more time to build and the rounder number, the build up to UFC 200 will see Nate and Conor have a different energy than they had in their incredible head-to-head UFC 196 interviews on Fox Sports 1 and CNBC. Different isn't necessarily bad, but it may not be good enough to set a new record.
UFC is surely aware that star power and grudge matches titillate their audience, but they may be reluctant to embrace one aspect of athletic star power: salary. When an athlete in any sport signs a large contract, it gives the athlete a boost. The salary gets reported in the press and it causes sports fans -- even casual ones -- to pay attention.
Diaz and McGregor are going to make millions of dollars once the receipts for UFC 200 are tabulated, so why not get some press now? At the press conference where the Diaz vs. McGregor bout agreements are announced, UFC should also announce that both men are fighting with a $10 million downside guarantee.
The risk is minimal UFC 200 will fall so short of projections that a $20 million main event will cause the company harm, and a $10 million purse announcement would guarantee headline coverage across mainstream sports media. It might even get UFC back on places like CNBC, where a few curiosity buys for UFC 200 could be sold.
UFC is a business that has been built on a model of low guarantees and high bonuses. A $10 million purse announcement would irreversibly alter that model. For UFC to make UFC 200 all that it can be; and for the future growth of the company, changing the pay structure for main events is worth the risk.
What makes the success of UFC 196 so amazing was that it was done in two weeks.
UFC has long been a company that thrives off of star power and grudge matches. McGregor brought the star power, but when Rafael Dos Anjos
Somehow, some way, Conor McGregor and Nate Diaz generated a grudge match out of thin air. In two weeks; really in just two days, the audience of pay-per-view buying sports fans were made to believe that those two guys really hated each other.
The rumored rematch, Diaz vs. McGregor II, is the rumored main event for UFC's next attempt at setting a one-night revenue record: UFC 200. There is no question that Diaz and McGregor will be able to talk fans into buying a lot of tickets and pay-per-view buys. There is a slight question of whether UFC 200 will set a revenue record. Even with a bigger arena, more time to build and the rounder number, the build up to UFC 200 will see Nate and Conor have a different energy than they had in their incredible head-to-head UFC 196 interviews on Fox Sports 1 and CNBC. Different isn't necessarily bad, but it may not be good enough to set a new record.
UFC is surely aware that star power and grudge matches titillate their audience, but they may be reluctant to embrace one aspect of athletic star power: salary. When an athlete in any sport signs a large contract, it gives the athlete a boost. The salary gets reported in the press and it causes sports fans -- even casual ones -- to pay attention.
Diaz and McGregor are going to make millions of dollars once the receipts for UFC 200 are tabulated, so why not get some press now? At the press conference where the Diaz vs. McGregor bout agreements are announced, UFC should also announce that both men are fighting with a $10 million downside guarantee.
The risk is minimal UFC 200 will fall so short of projections that a $20 million main event will cause the company harm, and a $10 million purse announcement would guarantee headline coverage across mainstream sports media. It might even get UFC back on places like CNBC, where a few curiosity buys for UFC 200 could be sold.
UFC is a business that has been built on a model of low guarantees and high bonuses. A $10 million purse announcement would irreversibly alter that model. For UFC to make UFC 200 all that it can be; and for the future growth of the company, changing the pay structure for main events is worth the risk.
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