http://www.mma-manifesto.com/2012-articles/january/2011-year-in-review-ufc-financials.html Multiple main event cancellations may be to blame but the UFC did a quarter less PPV business in 2011 than in 2010, according to figures released by MMA Manifesto taken from various reports from Dave Meltzer and other sources. The UFC sold 9.2-million PPV's in 2010, their banner year, and only 6.8-million this past year, despite holding an additional PPV event (16 vs 15). In total the UFC held three more events (27 vs 24) in 2011 compared to 2010, including the record-shattering UFC 129 event in Toronto that pulled-in about $8-million more in live gate than any event this past year or in 2010. Despite the drop in revenue the UFC increased (disclosed) fighter salaries from $26.8-million in 2010 to $30.9-million in 2011, a 13% increase. The introduction of new weight classes is a factor as the UFC's roster increased from roughly 250 fighters to 400 with the WEC merger and Strikeforce acquisition. The UFC's roster is expected to grow even larger in 2012 with the introduction of the 125-lbs. flyweight division and the absorption of Strikeforce's entire heavyweight class. The UFC will have 500+ fighters on the payroll Strikeforce included. For the sake of comparison the NBA has roughly 450 players with the average salary in the millions, but NBA players compete up to 100+ times a year whereas non-salaried UFC fighters compete between 2-4 times on average.
If you're curious the UFC grosses 50% of PPV revenue. It is split between the UFC and the PPV providers. 6.8-million buys represents, at roughly $55 a buy ($50 for SD or $60 for HD), $374-million. Cutting half of that out gives them $187-million in PPV revenue before misc. expenses. Other revenue streams include, most importantly, ticket sales ($60-million gross), merchandise (unknown), online video and Fight Club membership sales (unknown), video game and other online application licensing, and advertising/sponsorship revenue. In 2010 Flash Entertainment Inc. purchased a 10% stake of the UFC for $120-million, valuing the company at $1.2-billion.
If the UFC makes about $200-million a year after expenses, paying the fighters $30-million is 15%. Undisclosed pay (the 'locker room bonuses' and ppv revenue sharing for stars) could increase that figure up to $60-million, or 30%. For the sake of comparison most pro leagues operate at about a 50-50 split with the player unions but have significantly larger revenues. The Lakers alone make more money than the UFC. Keep in mind the UFC has only been in the black for about six or seven years.
