‘The Truth About’ is a recurring series on MMAFighting.com that takes an in-depth look at various aspects of the sport. For past installments, such as ‘The Truth About Fighting Hurt’and ‘The Truth About Knowing When to Walk Away’click here. Below are excerpts from Ben Fowlkes’ in-depth and illuminating piece on sponsorships in MMA.
For many fighters, sponsor money is the difference between prospering and just getting by. It’s the hidden undercurrent of the MMA economy.
As fighter agent Lex McMahon explained, “Younger guys who are just starting out in their careers and are in their first contract with the UFC, they’re probably making quite a bit more in sponsors than they are from fighting.”
The Cost
UFC fighter walk-out T-shirts can edge into the six-figure range, while a small decal on the thigh of his shorts might only run you a couple thousand dollars.
Just to get the right to be seen on a UFC broadcast most companies pay a fee to the UFC. While few sponsors or agents wanted to discuss actual figures on the record, most put the cost of the tax at about $50,000 per year.
In defense of the tax, leading agent attorney Dean Albrecht said “Not all up-and-coming companies can afford to pay, but the companies who can afford to pay it, usually you have less risk with them, because you know they’re a better capitalized company. So believe it or not, the UFC in effect is protecting the fighters by putting a monetary entry fee to the sponsorship game. Before, when anybody could sponsor a guy, you’d have companies not paying and that hurts everybody.”
The Benefit
Getting your logo seen on a UFC broadcast does not guarantee sales or success. If you’re looking for a simple equation where you spend a certain amount on a fight night sponsorship and make more than that in sales immediately afterward, you’re in the wrong game.
According to Albrecht, there are three distinct levels: advertising, sponsorship, and endorsement.
“The lowest level is advertising,” said Albrecht. “For example, I’ve got a guy who’s going to be on the main card for UFC 135. I can sell you a patch on his shorts on the butt, the thighs, or the crotch, or I can sell you his hat or his shirt.”
Some companies don’t see the benefit in simply using a fighter as advertising alone. What it’s after is more in the category of sponsorship, supporting a few key fighters over a longer period of time. The idea is that those fighters will also become ambassadors for the products in the gym.
Sponsorship deals typically cost a company more than simple advertisement and require more of a commitment, but the big money is in endorsement.
“There’s a premium for that, it’s exclusive, and you’re expecting that guy to be a spokesperson for you,” said Albrecht. “He’ll do appearances, and you can expect him to only wear your stuff. If he’s with you, he’s wearing your stuff when he’s out and about, he’s wearing it into the cage, he’s wearing it when he’s at after-parties. That’s endorsement.”
The Bottom Line
Sponsor pay accounts for such a large portion of fighters’ income that most make at least as much from their sponsors as they do from the promotion that employs them.
Noted manager AJ Davis responded on the UG
From: AJDavis
Member Since: 1/1/01
Posts: 515
I dont agree with this article. It paints a rosier picture then reality. Sponsorship in MMA is a steep market at the moment, with a few making major $, and the rest getting crumbs.
It will take major sponsors coming into the sport to change it, was really nice to see Nike and Burger King pick up Anderson.
I did some consulting for a group who was looking at the sport, studying the possibility of brokering major sponsors for MMA athletes. They came to the conclusion that it was still early for the effort. The exec of the Co compared MMA to an aquarium, where those inside are running around after each other for a peice of the available budgets, and the outside world can see the action, but doesnt know how to get in.
The article is correct in pointing out that endorsements are a major part of these kids income, but it is far from easy to line up significant sponsorships for the majority of the fighters.
