Tuesday, March 13, 2012

Rampage Jackson: Does he want out because of the money?

Intro
Recently, Rampage has complained about the money and matchmaking in the UFC while considering pursuing a career in music.  He claims that he has been paid unfairly and wants out.  So, how much does Rampage really make and is he being paid unfairly?

Analysis
Below, I have Rampage's pay for the last 5 fights.  Some of these figures are estimated based on disclosed amounts.
Based on this information, I believe that Rampage makes a $250,000 salary to show, and a $100,000 win bonus.  Where does that place him relative to other fighters?  Well, below I have provided pay figures for the UFC title holders.
Based solely on UFC disclosed amounts, Rampage makes more per win than all the title holders with the exception of GSP.  If you factor in PPV cuts, sponsorships, and other bonuses, Rampage probably makes way more than the estimated $250,000-$350,000 per fight.

Conclusion
Rampage is one of the most well compensated fighters despite his recent losses.  His drawing power and personality makes him unique.  I believe that he is leaving the UFC because his heart is not in fighting, not because of the pay.

Thursday, February 23, 2012

Is Frankie Edgar Underpaid?

Intro
The upcoming UFC 144 features a LW title fight between the constantly under-appreciated champion, Frankie Edgar, and the challenger, Ben Henderson.  Many people did not give Frankie a chance against BJ Penn in his title match, but he proved his critics wrong twice.  Many people did not believe that Frankie could beat Gray Maynard in his title defense, but he proved his critics wrong twice and in convincing KO fashion.  Although his fighting ability is constantly overlooked, how does his pay stack up against the other champions?


Analysis
Based on the data, Frankie receives a significant discount in pay relative to Jon Jones, Anderson Silva, JDS, and GSP.  Frankie has held the title since April 10, 2010 while accumulating 3 successful title defenses.  Jon Jones has held the title since March 17, 2011 while accumulating 2 successful title defenses.  You may argue that Frankie has held the belt longer and defended his belt more, but Jon Jones still receives a higher pay.

Although I do think that Frankie is under-appreciated to a certain extent, I also think that his pay is largely driven by him being in a lower weight class.  Previously, I ran an analysis to compare pay by weight class, and found that fighters in higher weight classes get paid more on average.  If you look at Dominick Cruz, he receives even lower pay than Frankie.

Conclusion
Although Frankie Edgar may be an under-appreciated fighter, I believe that his relatively lower pay is mainly driven by him being in a lower weight class.  Unfortunately for the smaller guys, even superior performance won't allow them to beat the bigger guys in terms of salary and win bonus.  The only way for them to drastically increase their pay is through PPV shares, sponsorships, discretionary pay, and post-fight bonuses.