Another UKTT victim -Oh he knows that it is common knowledge, he just wants to cling to the "prove it" bullshit because he knows it cannot 100% be proven. Ironically most all of the bullshit he jsut poured out in his algebra equation is erroneous guesses at shit that also cannot be proven.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.
Here is a more accurate break down:
800,000 buys at $50 (Time Warner charges $45 for HD or SD, DirecTV adds $10 for HD, so there's variance)
The provider takes 50% of that.
That leaves about $20 million in PPV.
Up to this point, there isn't much to debate. The rest does take some guesses and estimates.
Assuming the estimates are correct, and the UFC makes 75% of their revenue from PPV sales, then that $20 million would be nearly $27 million in revenue.
We know what Overeem made because it was published due to the lawsuit. He got paid about $2 million. If Lesnar made $3 million (which is probably low since he is reported to be the highest paid fighter), then the main event took $5 million of that $27 million.
The rest of the card had published payouts of $588,000, but there are also bonuses of $225,000. If you factor in what McCorkle said, it's probably safe to assume that this number is at least $1 million. Even if no "locker room bonuses" were given out it would be $813,000.
So now we are looking at somewhere closer to $6 million of the $27 million being paid to fighters. It could be as high as $8 million depending on what Lesnar made and the locker room bonuses. That's somewhere between 22% and 29% being paid to the fighters.
There are some leaps and guesses in there, but that at least gives us a better estimate than Calhoon's numbers.
aarondramp - Here is a more accurate break down:Thank you for a MUCH more realistic break down. There are leaps and guesses in there, but they are reasonable and rational. So how does one argue that ~25% of TOTAL revenue is unfair? Of that revenue one must also figure in the costs of production, rental of arena, payroll for actual Zuffa employees working that event (if they get paid per event as opposed to salary), marketing of the event, etc etc etc....
800,000 buys at $50 (Time Warner charges $45 for HD or SD, DirecTV adds $10 for HD, so there's variance)
The provider takes 50% of that.
That leaves about $20 million in PPV.
Up to this point, there isn't much to debate. The rest does take some guesses and estimates.
Assuming the estimates are correct, and the UFC makes 75% of their revenue from PPV sales, then that $20 million would be nearly $27 million in revenue.
We know what Overeem made because it was published due to the lawsuit. He got paid about $2 million. If Lesnar made $3 million (which is probably low since he is reported to be the highest paid fighter), then the main event took $5 million of that $27 million.
The rest of the card had published payouts of $588,000, but there are also bonuses of $225,000. If you factor in what McCorkle said, it's probably safe to assume that this number is at least $1 million. Even if no "locker room bonuses" were given out it would be $813,000.
So now we are looking at somewhere closer to $6 million of the $27 million being paid to fighters. It could be as high as $8 million depending on what Lesnar made and the locker room bonuses. That's somewhere between 22% and 29% being paid to the fighters.
There are some leaps and guesses in there, but that at least gives us a better estimate than Calhoon's numbers.
Zuffa probably pays out the fighters close to 50% of NET revenue, or more.
LayNprayNINJA -I'm giving him the opportunity to take his own endeavor seriously. My guess is that some other qualification may suddenly appear and somehow the quote I found is insufficient, but I like to be thorough, and I have found that what we sometimes assume largely because it has been repeated so many times is not always correct. Plus, if he is simply being evasive, as you suggest, more hard evidence makes cognitive dissonance more difficult.Another UKTT victim -Oh he knows that it is common knowledge, he just wants to cling to the "prove it" bullshit because he knows it cannot 100% be proven. Ironically most all of the bullshit he jsut poured out in his algebra equation is erroneous guesses at shit that also cannot be proven.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.
^^^^^^ You are too inelligent for this forum imho. :-)
Alistair's contract:
"Pursuant to the terms of Overeem's UFC contract as outlined in the complaint, he is guaranteed a "bout fee" of $264,285 on Dec. 30. Should he defeat Lesnar, Overeem would receive an additional $121,428 "win bonus." Overeem is also in line to receive a $2 pay-per-view bonus per viewer, "for all revenues received by UFC-Zuffa for telecast of the Lesnar fight in the United States, Canada or over the internet in excess of $500,000.""
So at an average of $50/ppv, if they did 800k buys, Alistair alone made $264k + $121k + $1.58 million, for a total of just about $2 million. Brock likely made even more, since it was certainly him and not Alistair bringing in the buys.
Big Pun - I'm not sure why WWE and UFC are even mentioned together. One is an actual sport and one is entertainment. Why not compare Avatar to Strikeforce if we're going to have stupid ass news articles liek this. Hey I know let's do Harry Potter vs. UFC. This article is for window licking retards
WWE and boxing are events that are conducted in similar sized arenas/buildings/locations, that's probably why you get a lot of comparisons. As an outsider looking in, I think a WWE comparison is actually a very good comparison since their business model for several years has been free events leading into PPV. They probably have a lot of similar costs.
Big Pun - I'm not sure why WWE and UFC are even mentioned together. One is an actual sport and one is entertainment. Why not compare Avatar to Strikeforce if we're going to have stupid ass news articles liek this. Hey I know let's do Harry Potter vs. UFC. This article is for window licking retards
If you think UFC has more in common with the NFL than WWE you are licking a window. 
Well at least 2 of those three are real. So there's a good start. I know let's compare it to some Broadway plays!
CroboCop -Calhoon
sold 800,000 ppv x $60 = 48,000,000 ppv sales
i paid $45. and its $55 for HD. so i think averging $50 would be more realistic. that drops your number down by $8,000,000, just for your one little exaggeration
Don't bother. Calhoon was exposed for trying to pretend he did a "fair and balanced" approximation on many levels.
Hence why he dick tucked after copy pasting that nonsense into a few threads.
Calhoon - I'm not sure where he came up with 28% for UFC 141Many of your figures are off...Standard Def UFC PPV's are 45$, while HD are 55$. Neither form of PPV in the US costs 60$, and I'm sure a sizable amount of people are still watching in standard def.
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
Aside from that, you're not factoring in PPV %'s for any of the people on the card. We all know that Overeem and Lesnar both made a few million from the PPV %, and I wouldn't be overly surprised if Nate+Cowboy got a small percentage as well.
^^^ mine are 60 :(...lol
they used to be 50 when i had comcast, but i switched to verizon fios and now the cost just over 60 with taxes. sucks.
Thanks to the people who provided a place to look for ppv provider's #'s
LNP can't always be trusted as he likes to win arguements and I'm just trying to get a grasp on how he came up with 28%. I could care less if I win an arguement over the internet.
So $50 ppv price?
Alistair and Brock get what a $1.5 mill ppv cut each? Does half af that go to the ppv provider too?
How much would we all agree on for misc expense?
How much should I figure for profit from sponsers that Zuffa takes?
How much do you think Budweiser and other companies pay for display adds?
How many movies were advertised during the ppv and what should I add in for those?
What about merchandise sales and videos?
I need to add in $3.1 mill for the gate right?
Let's agree on some good figures for this problem and see what we come up with.
Calhoon - Alistair and Brock get what a $1.5 mill ppv cut each? Does half af that go to the ppv provider too?
LOL
Taken from secondwindconsulting.com
What percent of your revenue should be allocated to payroll?
Posted on December 13, 2008 by Donald Todrin
This is a critical evaluation, which any business owner can figure out and understand. Since payroll tends to be one of the largest line items on your expense side, and is a payable which comes every week or every other week, and it comes with taxes to contribute, sometimes insurance and other additional add-ons and includes vacation pay, sick pay and other credits, it frequently is the Achilles heal of the expense side of the business. The single item that can make or break a business operation.
Since operating profiles of businesses are all different, there is no one correct number that makes or breaks a business operation. In fact the degree of profitability, and other functions of the business will help determine the correct ratio of payroll to gross revenue. Service businesses can absorb higher payroll percentages as they are not manufacturing a product, the payroll is the product.
Your employees productivity is the most important number of all and is the amount of production your employees give the business per hour, measured by the output divided by employee cost, and is a huge variable that can be significantly influenced by management efforts.
The gross percentage of payroll as compared to the gross revenue is the ratio that will really begin to tell you if you are in trouble or on the right path.
15-30% is a great place to be in. I see many service businesses that tip the scale at over 50%. Businesses that tend to run in the 20-30% percent range tends to be successful at least from the payroll point of view.
I see many business owners fooling themselves as they either do not include themselves in the equation or they take no paycheck and thus the payroll numbers are artificially low. Another trick business owners use to fix the numbers is they define their personal revenue as owners draw and thus do not count it in the payroll equation artificially lowering the number.
The ratio is only an indicator. The real issue is what the business owner does about the number. Most have no idea how to reduce their payroll and maintain or increase productivity and there in is the real secret for success, reducing payroll and increasing individual and thus overall productivity.
There are a number of ways to accomplish this but the point of this post is to learn how to identify the red zone, after 30% and then to figure out what to do about it if it is higher. Take the test compute the ratio of your payroll cost, the real cost, including yourself and the taxes and all the add ons, against the gross revenue and if the number is high you must correct this or failure is likely. Too high a payroll is one of the most common reasons businesses fail.
Identify first and then fix…take the test today and then call me for help I can help you fix this issue, easily, quickly and safely.
Looking at it from a business consultants angle shows the disparity between the wants/needs of employees against the wants/needs of the business. A successful business will find the best sweet spot to allow for the most profits which allows a company like the UFC to more aggressively pursue legislation and other money sucking activities.
Calhoon - Thanks to the people who provided a place to look for ppv provider's #'s
LNP can't always be trusted as he likes to win arguements and I'm just trying to get a grasp on how he came up with 28%. I could care less if I win an arguement over the internet.
So $50 ppv price?
Alistair and Brock get what a $1.5 mill ppv cut each? Does half af that go to the ppv provider too?
How much would we all agree on for misc expense?
How much should I figure for profit from sponsers that Zuffa takes?
How much do you think Budweiser and other companies pay for display adds?
How many movies were advertised during the ppv and what should I add in for those?
What about merchandise sales and videos?
I need to add in $3.1 mill for the gate right?
Let's agree on some good figures for this problem and see what we come up with.
If Reem made a $1.5 Million PPV cut, you can easily double Brocks PPV cut. I would put Brock at about $3 million. For all misc expenses (Arena, Arena staff, front of camera staff [Bruce, Joe, Goldie], back room staff like Burt Watson and the doctors, UFC employed security [they have many of their own people doing fighter security] moving the Octagon around, the pyro, the dj all of that. That is probably gonna cost you another 3-5 Million per show. The Arena alone is probably around 1.5 million. Advertisements are not on a per event basis for major sponsors like Bud, they pay them yearly but you could probably add about a million dollars to the total in in ring ads etc. Oh and travel costs, lets not forget those. If I remember correctly, each fighter gets his ticket + 2 for his trainers.
Someone needs to inform Meltzer that the WWE isnt real.
Remember keeping your employees happy has little to do with actual pay. Think about it, on a day to day level your work place happiness and money arn't really tied together unless your making next to nothing. It isnt a motivator, just a DEmotivator if it is do little. Think about your own job, and what makes you happy/unhappy. Its a lot more to do with the social climate and positive motivation. A good empoyee recognition program (that isn't $$ driven) and making your employees feel valued is much more effective than a big bonus. <br /><br /> Check out Dan Pink's video on TED.com about motivation if your not sure what I'm talking about.
orcus - Alistair's contract:
"Pursuant to the terms of Overeem's UFC contract as outlined in the complaint, he is guaranteed a "bout fee" of $264,285 on Dec. 30. Should he defeat Lesnar, Overeem would receive an additional $121,428 "win bonus." Overeem is also in line to receive a $2 pay-per-view bonus per viewer, "for all revenues received by UFC-Zuffa for telecast of the Lesnar fight in the United States, Canada or over the internet in excess of $500,000.""
So at an average of $50/ppv, if they did 800k buys, Alistair alone made $264k + $121k + $1.58 million, for a total of just about $2 million. Brock likely made even more, since it was certainly him and not Alistair bringing in the buys.
You can add in the $1,000,000 signing bonus that Overeem got.
Kirik -From a cost standpoint, you should prorate the signing bonus over the number of bouts covered in the contract. Either way, it does need to get included in some manner.orcus - Alistair's contract:
"Pursuant to the terms of Overeem's UFC contract as outlined in the complaint, he is guaranteed a "bout fee" of $264,285 on Dec. 30. Should he defeat Lesnar, Overeem would receive an additional $121,428 "win bonus." Overeem is also in line to receive a $2 pay-per-view bonus per viewer, "for all revenues received by UFC-Zuffa for telecast of the Lesnar fight in the United States, Canada or over the internet in excess of $500,000.""
So at an average of $50/ppv, if they did 800k buys, Alistair alone made $264k + $121k + $1.58 million, for a total of just about $2 million. Brock likely made even more, since it was certainly him and not Alistair bringing in the buys.
You can add in the $1,000,000 signing bonus that Overeem got.
I'm a bit confused about the math from orcus, though. The ppv cut is on the excess of $500,000 in gross ppv revenue, right? But the formula is per viewer above that excess, as I read it. Seems like a strange formula.