Our example is going to be Jake Ellenberger because I can find salary information on him online since he mostly fights stateside. Ellenberger was signed by the UFC after a four-year professional career during which he amassed a 21-4 record. Like most unknown pros, Ellenberger fought like crazy to build a record, including 9 fights in 2005, 7 in 2006, 3 in 2007, and 6 in 2008/2009 prior to signing with the UFC. Upon entering the UFC Jake was offered the standard, non-negotiable starter contract. The UFC can opt-out of the deal if Ellenberger loses or if they have another valid reason. Here it is: Fight 1: $6,000 to show, $6,000 to win Fight 2: $10,000 to show, $10,000 to win Fight 3: $10,000 to show, $10,000 to win Fight 4: $12,000 to show, $12,000 to win Ellenberger lost his first fight via split decision to Carlos Condit. Not only was it a great fight but it was on the televised card. Being on the televised card is important because sponsors pay out more if they know they will get their brand on television. Since Ellenberger wasn't a well-known fighter he was likely earning less than established UFC fighters but he was facing a well-known opponent. Based on recent comments from UFC veteran George Roop, a safe estimate on sponsor payout to Ellenberger is equal to his show money, or $6,000, with a built-in win (post-fight interview) bonus that he didn't achieve. Ellenberger lost his first fight and made the $6,000 he was contractually owed, in addition to our estimated $6,000 sponsor payout. Additionally he was paid $6,000 as a discretionary bonus from the UFC, the bonus being equal to his show money in a loss (but can be significantly higher in a win, to the tune of 100% of show and win money at minimum, or one million as maximum). Since he fought well it is safe to assume the UFC (Dana/Fertittas) kicked-in another bonus, we'll say $10,000, for his efforts. At the end of the night he was paid $28,000 for his UFC debut. Managers in the sport vary in what they charge. For low-level fighters the percentage is higher since the income is lower. For example, some managers charge up to 20-25%, but managers for champions as little as 5%, since 5% of several million is still a lot of money compared to 20-25% of a few thousand. If Ellenberger's manager charged 20%, that's $5,600. We won't factor in Ellenberger's cost of living since it varies wildly from person to person but training expenses are unavoidable. Ellenberger trains out of Reign Training Center in Omaha, NB, and Kings MMA in Lake Forest, CA. I don't know if he was traveling between these two places in 2009. If so it is safe to say training was expensive because of travel costs and lodging, probably to the tune of $2,000/month if he isn't offsetting that by doing classes and private lessons (unlikely during the lead-up to a fight). This includes paying sparring partners, coaches, and for equipment. Might be overestimating. He was three months removed from his fight with Bellator so that's $6,000 for preparatory work. Fighters are put-up in hotels by the UFC for the four-five days prior to the event. In fact I've met a few UFC fighters at the MGM Grand (not just in the lobby/casino floor but in the hallways and elevators for the hotel rooms). From that and from what I've seen on YouTube/Countdown it seems that the UFC will pay for the fighter and three corner men to come to the fight, two hotel rooms, per diem, and travel expenses, plus complimentary tickets for friends and family. Ellenberger and his team may have driven from Omaha to Oklahoma City for the event since it is more or less a straight shot South but we'll assume either way it didn't cost them anything. Other expenses include medical clearance documentation (previously paid by the fighter at about $100/visit, now possibly covered by the UFC's health insurance plan), and getting shorts decorated with sponsor information/walkout clothes/ring banner printing (all likely paid by sponsors). Factoring in his expenses (we're saying $5,600 for his manager, $6,000 for training, $100 for miscellaneous) he's hit for $11,700 of his fight purse. Additionally he needs to pay tax on his earnings. Some fighters set up an LLC to save on that. Supposing he didn't have one at that point he's going to be paying about 16%, or $4,480. He has cleared $11,820 for his first UFC fight minus his living expenses. Ellenberger knocks-out Mike Pyle in his next fight. He was part of the preliminary fights but his efforts get replayed on Spike TV just before the PPV and on the PPV after the main event. He earns $20,000 for showing and winning. His sponsorship payout is much higher this time since his fight was broadcast twice, earning him $20,000. He didn't win the Knockout of the Night bonus but his discretionary bonus for the win we'll assume was $32,000. He's grossed $72,000 for the fight. The expenses we've discussed are 20% for his manager ($14,400), 3.5 months of training ($7,000), and 16% income tax ($11,520). He's netted $36,420. Ellenberger is contracted to fight Ben Saunders at UFC 111 but injuries on the card left him without an opponent. The UFC paid Ellenberger his show and win money anyway, because they do that. He earned $20,000, minus 20% ($4,000) for his manager, $4,000 for two months of training, and 16% for taxes ($3,200), leaving him with $8,800 net. Ellenberger fights one more time in 2010, defeating John Howard at UFC Live. He fought on the main telecast but didn't earn an "of the night" bonus. For his efforts he was paid $24,000 for showing and winning. We'll say his sponsorship payout remained level at $20,000. The TKO victory earns him a discretionary bonus of $32,000. His gross for the fight is $76,000. Four months of training along with managers fees and tax reduce his net earnings to $40,640. For 2010 Ellenberger initially nets $85,860 in 2010 from $168,000 gross. His taxes increase to 25% for moving into a new income bracket, setting him back another $15,120. His net income for 2010 is $70,740. Ellenberger has to sign a new contract for his next fights. This is what the UFC offers him: three fights, $16,000 to show, $16,000 to win for each. He signs. His manager might take less of a percentage now that he's earning. We'll say he drops to 10%. In lieu of training camp expenses, his fight teams each agree to take 5% of his gross pay, for 10% total. Now not only is he a member of the team, he's a representative for the club, and they are attracting new members as a result of his allegiance. Ellenberger is scheduled to fight Jon Fitch at UFC 126 but Fitch is switched-out. He faces Carlos Eduardo Rocha instead but stays on the Pay-Per-View card. He faces Sean Pierson at UFC 129 on the Spike TV preliminary bouts but his fight is rebroadcast during the PPV as well. He finishes the year in the main event against Jake Shields at Battle on the Bayou on television. He wins all three fights and is paid $32,000 for showing and winning at each. We'll say his contract includes a "main event clause" that doubles his payout if he is in the main event of a televised show so he gets an additional $32,000 from that one. All three fights are televised so his sponsors pay him $50,000 for the first two and $50,000 for his main event, for $100,000 total. He earns discretionary bonuses of $32,000 for his split decision win over Rocha, $50,000 for his knockout of Sean Pierson, and $100,000 for his knockout of Jake Shields. Additionally he earns $55,000 as a Knockout of the Night bonus for the Shields fight. His manager takes 10%, his teams 10%, and taxes 25%, leaving him with a net income of $220,000 (from $401,000 gross), not including additional incomes he may have. In a little over two years with the UFC, based on these estimates, Ellenberger has earned $569,000 gross. This is assuming relatively low discretionary bonuses (the UFC has been known to cut cheques in six or seven figures for top performers), high expenses, high taxes, and no outside incomes. Many fighters make appearances at restaurants, bars, etc., not to promote events as part of their contract but as local celebrities. The UFC and their managers take pieces of that as well but word is that recognizable fighters can make $2,500 to $5,000 for an appearance at a 'UFC Party' or autograph signing. Obviously more famous fighters can yield much higher appearance fees. Additionally many fighters own and operate their own gyms and small businesses. Ellenberger's UFC story is atypical in the sense that he's won five of his six fights whereas most fighters hang around by getting just two of every three. He also came into the promotion as a more established professional with over 20 fights whereas some Ultimate Fighter prospects and very young fighters enter the UFC with less than ten (and sometimes none). It seems that the confusion at 170-lbs. (with the champion injured and out of action for a year) will prevent Ellenberger from getting a title shot in the near future (winner of Diaz/Condit is possible). A title shot usually earns a fighter deep six-figures to over $1-million, more if he wins, and even more if he gets a PPV cut. (This post is based on rough estimates based on recent interviews and comments made by fighters in the UFC including Georges St-Pierre, Sean McCorkle, George Roop, Michael Bisping, Nam Phan, and others).
I have no problem with fighter pay, honestly. The UFC isn't the NFL, NBA, MLB, or boxing. It isn't nearly as popular and doesn't have the longevity of either. Manny and Mayweather >> in terms of popularity compared to Anderson Silva and GSP. You get paid if you produce, just like any job.
