Jonathan Snowden (author of the new release: The MMA Encyclopedia, buy it) has written a very interesting look at the current state of fighter sponsorships in mixed martial arts. There is so much more at play here than most people realize. The purchase of several large apparel companies, including TapouT, by a single entity (Authentic Brands Group) shifted the sponsorship money dramatically. These kind of shifts combined with the poor economy were hurting the sponsorship dollars that were making their way into fighters’ pockets. The other major factor at play is the UFC’s power plays with sponsors:
An Analysis Of Sponsorship Complexities In The UFC
↵↵It started 18 months ago when the UFC began tightening down on what gear fighters could wear into the cage. Businesses that wanted to sponsor fighters for UFC events had to pay UFC President White first, for some companies amounts up to $100,000 annually. But there was more to it than that. Certain outfits, like Full Tilt Poker, were suddenly sponsoring multiple fighters on every card. It appeared that they were trying to rebrand the entire promotion in their likeness. White couldn’t allow that to happen without the UFC collecting a premium. They had spent too much money and time building their brand. They weren’t about to let anyone come in and splash their own logo all over everything on the cheap. It was going to cost, up to $1 million per quarter for high level sponsors.
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