Meltzer: Closest competitor, WWE, pays out 13-15%

12 - 
LayNprayNINJA - 
Lanfear - 



Are you gonna post your bs formula on all the threads about this? Get a life.


 He is SO proud that his 8th grade algebra class is paying off, that he doesn't mind making a fool of himself on the 12th grade Business tip.
do better ,show us what you know instead of acting like a women.

 


 I already did, in the post right above the one you quoted.



1. Calhoon is ONLY taking into account disclosed purse. He leaves out PPV revenue, which we know both Overeem and Brock got, the "Of the night" bonuses and the other bonuses that multiple fighters have confirmed are recieved. 



We have NO WAY of knowing what those bonuses are in total. 



2. Calhoon is also just calculating the total revenue (estimate) and neglecting to factor in the COST of putting on the show. Rental for the arena, paying the employees of Zuffa who work the show, paying the Commission, advertizing, etc etc etc.



3. Calhoon is also just "doubling" the fight purses because McCorckle said so...when in reality McCorkle said that doubling the purse is about right for the lowest paid undercard type fighters, and that the higher end guys get much much more than that.





In summary: His entire logic is completely flawed, from the payouts, to the revenue.

joe k - Good post Calhoon but you didn't calculate the PPV bonuses. Reem made 2M+ on those and Brock even more.


I divided the ppv profits in half to account for ppv bonus', ppv provider fee, and misc costs for promotion.

I figure $24,000,000 is a generous number and I wanted to error on Zuffa's side.

Calhoon - 
joe k - Good post Calhoon but you didn't calculate the PPV bonuses. Reem made 2M+ on those and Brock even more.




I divided the ppv profits in half to account for ppv bonus', ppv provider fee, and misc costs for promotion.



I figure $24,000,000 is a generous number and I wanted to error on Zuffa's side.





 PPV provider takes around 1/2 by themselves.....so yeah. You did not err on the side of Zuffa.



Production costs, and marketing are well into the millions by themselves. 

LayNprayNINJA - 
Calhoon - 
joe k - Good post Calhoon but you didn't calculate the PPV bonuses. Reem made 2M+ on those and Brock even more.


I divided the ppv profits in half to account for ppv bonus', ppv provider fee, and misc costs for promotion.

I figure $24,000,000 is a generous number and I wanted to error on Zuffa's side.


 PPV provider takes around 1/2 by themselves.....so yeah. You did not err on the side of Zuffa.

Production costs, and marketing are well into the millions by themselves. <br type="_moz" />

Source?

to the guys criticizing the "failed math"... even companies who make yearly projections know it "failed math" but at least its an attempt. its not conclusive evidence at all, and he's not writing a thesis but at least there is some thought behind it... if you have better #s then simply add them to the equation so that a clearer picture can be told.

anyone know what the building cost for holding an event are? production costs? what taxes does the ufc have to pay?

Calhoon - 
LayNprayNINJA - 
Calhoon - 
joe k - Good post Calhoon but you didn't calculate the PPV bonuses. Reem made 2M+ on those and Brock even more.




I divided the ppv profits in half to account for ppv bonus', ppv provider fee, and misc costs for promotion.



I figure $24,000,000 is a generous number and I wanted to error on Zuffa's side.





 PPV provider takes around 1/2 by themselves.....so yeah. You did not err on the side of Zuffa.



Production costs, and marketing are well into the millions by themselves. <br type="_moz" />


Source?


 Common knowledge if you are talking about the PPV providers.



Where are your sources for your calculation that dividing the PPV revenue in half is enough to cover the cut the provider takes, PLUS the fighter PPV cut, plus ALL promotional and production costs? 




LayNprayNINJA - 
Calhoon - 
LayNprayNINJA - 
Calhoon - 
joe k - Good post Calhoon but you didn't calculate the PPV bonuses. Reem made 2M+ on those and Brock even more.


I divided the ppv profits in half to account for ppv bonus', ppv provider fee, and misc costs for promotion.

I figure $24,000,000 is a generous number and I wanted to error on Zuffa's side.


 PPV provider takes around 1/2 by themselves.....so yeah. You did not err on the side of Zuffa.

Production costs, and marketing are well into the millions by themselves. <br type="_moz" />

Source?

 Common knowledge if you are talking about the PPV providers.

Where are your sources for your calculation that dividing the PPV revenue in half is enough to cover the cut the provider takes, PLUS the fighter PPV cut, plus ALL promotional and production costs? 

<br type="_moz" />

If it's common knowledge then you should be able to find a source.

Fedors Jim Jams - to the guys criticizing the "failed math"... even companies who make yearly projections know it "failed math" but at least its an attempt. its not conclusive evidence at all, and he's not writing a thesis but at least there is some thought behind it... if you have better #s then simply add them to the equation so that a clearer picture can be told.



anyone know what the building cost for holding an event are? production costs? what taxes does the ufc have to pay?


 No, only Zuffa knows those total figures. To speculate that taking only 1/2 of the PPV revenue to cover ALL of that is absurd, as most all agree that the PPV provider alone takes about 1/2 the revenue. He is also using the high end of the price of the PPV, where many onlt pay 45 and some got promotional codes and discounts.

Calhoon - 
LayNprayNINJA - 
Calhoon - 
LayNprayNINJA - 
Calhoon - 
joe k - Good post Calhoon but you didn't calculate the PPV bonuses. Reem made 2M+ on those and Brock even more.




I divided the ppv profits in half to account for ppv bonus', ppv provider fee, and misc costs for promotion.



I figure $24,000,000 is a generous number and I wanted to error on Zuffa's side.





 PPV provider takes around 1/2 by themselves.....so yeah. You did not err on the side of Zuffa.



Production costs, and marketing are well into the millions by themselves. <br type="_moz" />


Source?


 Common knowledge if you are talking about the PPV providers.



Where are your sources for your calculation that dividing the PPV revenue in half is enough to cover the cut the provider takes, PLUS the fighter PPV cut, plus ALL promotional and production costs? 



<br type="_moz" />


If it's common knowledge then you should be able to find a source.


 Estimates from insiders come in between 40-60%. You have google, use it.



Also, stop deflecting and avoiding my questions and other issues with your flawed logic...

 Calhoon, I am only trying to point out that you were far from being "fair" and looking at the total expenses/payroll when you did your math. I am not claiming to know more than you about the actual figures. Only pointing out how far off you are.

LayNprayNINJA - 
Calhoon - 
LayNprayNINJA - 
Calhoon - 
LayNprayNINJA - 
Calhoon - 
joe k - Good post Calhoon but you didn't calculate the PPV bonuses. Reem made 2M+ on those and Brock even more.


I divided the ppv profits in half to account for ppv bonus', ppv provider fee, and misc costs for promotion.

I figure $24,000,000 is a generous number and I wanted to error on Zuffa's side.


 PPV provider takes around 1/2 by themselves.....so yeah. You did not err on the side of Zuffa.

Production costs, and marketing are well into the millions by themselves. <br type="_moz" />

Source?

 Common knowledge if you are talking about the PPV providers.

Where are your sources for your calculation that dividing the PPV revenue in half is enough to cover the cut the provider takes, PLUS the fighter PPV cut, plus ALL promotional and production costs? 

<br type="_moz" />

If it's common knowledge then you should be able to find a source.

 Estimates from insiders come in between 40-60%. You have google, use it.

Also, stop deflecting and avoiding my questions and other issues with your flawed logic...<br type="_moz" />

Provide a link if it is so easy to google.

LayNprayNINJA -  Calhoon, I am only trying to point out that you were far from being "fair" and looking at the total expenses/payroll when you did your math. I am not claiming to know more than you about the actual figures. Only pointing out how far off you are.

So you are getting on my case claiming that i am far off much in the same way that i am claiming that Meltzer seems far off with his calculations?

Calhoon - 
LayNprayNINJA -  Calhoon, I am only trying to point out that you were far from being "fair" and looking at the total expenses/payroll when you did your math. I am not claiming to know more than you about the actual figures. Only pointing out how far off you are.


So you are getting on my case claiming that i am far off much in the same way that i am claiming that Meltzer seems far off with his calculations?



Yes. However, I think it is safe to say, based on your calculations, that Meltzer is more informed, and using more accurate calculations than you are ;-)



The fact that you neglected the "Of the night" bonuses, performance bonuses (which none of us know) and figured that the UFC only pays out 50% on the PPV buys to cover EVERYTHING involved in putting on a show, speaks wonders to your bias (or if not bias, lack of common sense).

  

Attack Dawg -  Dave is stating that 28% of the 3.1 million dollar live gate is going toward talent but the UFC did 800,000 buys at $50 a pop. That's another 40 million!! That's not including sponsorship money that the UFC receives from selling advertisement and charging organizations that want to just sponsor fighters.



If he is claiming the UFC paid out 28% of 43.1 million or roughly 12.1 million to the fighters he's fucking crazy!! Phone Post


 No sir, you MUST subtract the PPV cut the provider takes, which is roughly 50%, the costs of putting on the show itself, marketing the show, paying the Zuffa employees who worked the show, renting the arena, etc etc etc.

LayNprayNINJA - 
Attack Dawg -  Dave is stating that 28% of the 3.1 million dollar live gate is going toward talent but the UFC did 800,000 buys at $50 a pop. That's another 40 million!! That's not including sponsorship money that the UFC receives from selling advertisement and charging organizations that want to just sponsor fighters.

<b>If he is claiming the UFC paid out 28% of 43.1 million or roughly 12.1 million to the fighters he's fucking crazy!!</b> <img alt="Phone Post" border="0" style="vertical-align:middle;" src="/images/phone/droid.png" />

 No sir, you MUST subtract the PPV cut the provider takes, which is roughly 50%, the costs of putting on the show itself, marketing the show, paying the Zuffa employees who worked the show, renting the arena, etc etc etc.

You still have not provided a link to the ppv providers cut.

I figured you would have by now since you claim you can google it.

Did Lorenzo say close to 50% of revenue or close to 50% in profits? Huge difference.

Even if the revenue from an event is $30 million, you've got to consider the tremendous overhead costs of such an event, from rental fees to the arena, insurance, massive marketing and advertising costs, labor costs of setting everything up, etc. etc.

Plus, you didn't calculate PPV percentages coming out of your PPV revenue numbers.

 WWE is a really interesting monetary model, where the guys are paid a salary, but many have to cover all their own expenses on the road...a $150K income can be quickly eaten up with their travel schedule etc.  



It would be really interesting to find out what % of big name pro wrestlers end up wealthy...(obviously the addiction problems in wrestling would likely skew that figure lower as well.) 

Kakkarotto_san - Did Lorenzo say close to 50% of revenue or close to 50% in profits? Huge difference.

Even if the revenue from an event is $30 million, you've got to consider the tremendous overhead costs of such an event, from rental fees to the arena, insurance, massive marketing and advertising costs, labor costs of setting everything up, etc. etc.

Plus, you didn't calculate PPV percentages coming out of your PPV revenue numbers.

He said revenue.

Calhoon - 
LayNprayNINJA - 
Attack Dawg -  Dave is stating that 28% of the 3.1 million dollar live gate is going toward talent but the UFC did 800,000 buys at $50 a pop. That's another 40 million!! That's not including sponsorship money that the UFC receives from selling advertisement and charging organizations that want to just sponsor fighters.



<b>If he is claiming the UFC paid out 28% of 43.1 million or roughly 12.1 million to the fighters he's fucking crazy!!</b> <img alt="Phone Post" border="0" style="vertical-align:middle;" src="/images/phone/droid.png" />


 No sir, you MUST subtract the PPV cut the provider takes, which is roughly 50%, the costs of putting on the show itself, marketing the show, paying the Zuffa employees who worked the show, renting the arena, etc etc etc.


You still have not provided a link to the ppv providers cut.



I figured you would have by now since you claim you can google it.
From here: http://www.boston.com/business/articles/2007/02/28/extreme_fight_on_for_pay_per_view_crown/



Typically, the companies take home about half of those customer retail revenues with cable companies getting the rest.
I'm pretty surprised you didn't know. Not much about the revenue side is common knowledge, but I thought this would have been.

Kirik - 
Calhoon - I'm not sure where he came up with 28% for UFC 141

UFC 141

sold 800,000 ppv x $60 = 48,000,000 ppv sales / 2 for zuffa's cut = $24,000,000 ppv profit is suppose to be 75% of revenue for Zuffa so 24,000,000 / .75 = $32,000,000 total revenue for ufc 141

fighter payout was reported

Alistair Overeem: $385,714.28 (includes $121,428.57 win bonus) def. Brock Lesnar: $400,000

Nate Diaz: $74,000 (includes $37,000 win bonus) def. Donald Cerrone: $30,000

Johny Hendricks: $52,000 (includes $26,000 win bonus) def. Jon Fitch: $60,000

Alexander Gustafsson: $32,000 (includes $16,000 win bonus) def. Vladimir Matyushenko: $40,000

Jim Hettes: $16,000 (includes $8,000 win bonus) def. Nam Phan: $8,000

Ross Pearson: $40,000 (includes $20,000 win bonus) def. Junior Assuncao: $8,000

Danny Castillo: $38,000 (includes $19,000 win bonus) def. Anthony Njokuani: $12,000

Dong Hyun Kim: $82,000 (includes $41,000 win bonus) def. Sean Pierson: $8,000

Jacob Volkmann: $32,000 (includes $16,000 win bonus) def. Efrain Escudero: $10,000

Diego Nunes: $24,000 (includes $12,000 win bonus) def. Manny Gamburyan: $18,000

Added together = $1,321,714.28

McKorkle thinks doubling the reported pay is a fair assesment to what fighters get paid so x 2 = $2,643,428.56 keep in mind thiis has sponsership money added in to which Zuffa does not pay but we will use this number anyway. $2,643,428.56
+ $225,000 fighters bonus'
= $2,868,428 Fighter pay for ufc 141

$2,868,428 fighter payout

/

$32,000,000 total revenue for ufc 141

= 9% of total revenue to the fighters
There is a job waiting for you at ESPN :-)
 


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