Charles Oliveira Breaks Down UFC Performance Bonus

UFC lightweight champion Charles Oliviera revealed he’s taken home just a fraction of the 17 so-called $50,000 bonuses he’s won.

Newly crowned UFC lightweight champion Charles Oliveira received a hero’s welcome when he returned to Sao Paulo recently. After his historic win over Michael Chandler at UFC 262 Do Bronx declared that, “The favela has won!”

Oliveira’s history growing up in one of Brazil’s more impoverished areas is well documented. As is his reported generosity in giving back to his community, which includes handing out food packages to current favela residents.

The new champion recently spoke to Combate on how his life, and finances, might change now that he holds the lightweight belt.

During that appearance Oliveira got real in talking about how he still needs to worry about his income. He also exposed the realities behind receiving those much prized $50,000 performance bonuses (something Oliveira has done 17 times).

Oliveira continued to say that 30% of each $50,000 bonus he receives goes to his team. “Then you need to discount another 12% or 15% depending on which U.S State you fought in. You have other deductions for I don’t know what or to where… When you see it at the end, you got less than guys who didn’t do anything. I didn’t earn $50,000 bonuses 17 times, I actually earned $15,000, $12,000, $10,000.”

Oliviera said that his decade long tenure in the UFC, despite all these bonuses, has not lead to him becoming ‘rich’.

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When you hear stuff like this - you should realize that all the fighters don’t make nearly enough. Don’t forget that the UFC is worth by any standard - billions of dollars.

In some ways this sport is like the NFL in the 1970’s. The guys today are killing themselves to create a sport and make it mainstream. There will be a generation of fighters who are penniless and injured living on the streets. Some might make enough to have a great retirement, by catching on with media or being an actor or something else, but a very large many won’t.

In 40 years - maybe if the athletes fight together - a whole generation of fighters will receive more. But without some sort of organization or intervention, some fighters will toil for years and end up like Charles, who is on the verge of making generational money. Most will be like TJ Grant, who never made it big and had to retire to manual labour before his title shot.

Nothing we haven’t said before - they all choose to do this sport for not enough money. They all sign limiting contracts by choice. And a few get big money and fame. But the 90% have it tough.

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It’s a shame but with the championship belt and PPV points, he will get more money.

Professional sports, especially combat sports, is a capital intensive business. Mike Tyson made 0 for his first five fights. He was an investment by Cus D’Amato who wasn’t interested in money as much as his legacy as a legend boxing coach.

These fighters need to get better contracts with their teams and managers.

They need to start excluding these bonuses and extras from their management contracts.

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This is quite annoying, and not for the reason you think. This would be the same as me saying my normal job doesn’t pay me what they say they do because my check has deductions. While I do agree fighters should get paid more, I don’t agree with how they are arguing it. If you sign a contract that you pay 30% to your team, that is on you. It isn’t the UFCs job to pay you an additional bonus % because your promised a portion of it to others. And yes states have taxes an such, like they do for every job.

What fighters need to do is make better contracts with their teams and with the UFC instead of agreeing to contracts and then just complaining about them all the time.

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I agree.

This is zero to do with negotiation or management, it’s a merit bonus that is essentially written in stone.

Has everything to do with the fighter and zero to do with management.

It annoyes you that he expressed that he only gets to keep 20-25% of his bonus?

As for your simplistic view that they should just make better contracts with their team and the ufc…l bet the fighters are kicking themselves that they didn’t think of this brilliant idea.

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Whilst I do believe fighters should get paid more, Charles is not being quite straight here.

He said he gets 50k and the state takes 12% .
Fair enough. That is normal life for everyone.

He says he pays his team 30%. Well that is his choice. The traditional deal with a trainer is 10%

So you would think he should get 78% of the money. But if he is taking home less than 30% something is a miss there.

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Wait so his team gets a cut of his regular show/win money AND his bonus if he gets it? I figured they just negotiate off what he knows he’s getting at his next bout… damn

Ridiculous, if true he is getting ripped off by somebody. Management, his accountant, friend, who knows. Someone is taking his money and it’s not dana white or the tax man.

Even with 30% management fees (Sounds really high) …he wont pay tax on that amount as its valid business expense… he should be at 35k pre tax… I am not sure what he does with his income at that point so can’t guess his tax rate but he stated 12 or 15% lets say 15% that’s $5250, should still leave around 30k. Where is the rest of it going?

I know these fighters just get punched in the head for a living but they are running a business. I am an independent contractor myself and its essential to learn the basics of bookkeeping, taxation, etc even if you have an accountant to make sure you are not getting screwed.

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I’m not sure what you are trying to say.

It has 30% to do with his team and management. He should have his deal in place with his team and management that these types of bonuses are 100% his. The manager and team get their cut from the show/win money. Anything extra like performance bonuses and Venom money should be 100% his. If that isn’t his deal then he needs to renegotiate his deals or leave to another teM and manager with a better deal.

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That’s exactly what I was saying.

I was referring to the bonuses. Management shouldn’t be getting that.

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