Reebok pay is gone. It's now promotion, conduct and outfitting.

[ArtOfDrowning]

But but but but the sport looks so much professional now without sponsors right? No other big sports have sponsors on their uniforms.

 

[Kneeuinthenutz]

I think the current financial situation of the UFC is much worse than we will ever know....

 

[BForrester]

what does nfl have in place ?
basketball ?

just curious

I'd have to look at the specifics, but I believe there are revenue splits in those sports give the players over 50% of the share of revenues...TV, merchandise sales, sponsor dollars, etc.

 

[Kleinschuster]

No, not all of them. For the IRS, the boxes are grouped into three broad categories: behavioral control, financial control, and type of relationship (source). The UFC definitely hits boxes in all three categories. The IRS used to offer a 20-point checklist, which was frequently referenced in court, but has downplayed it more recently. UFC fighters definitely don't meet the criteria to be "probably dealing with an independent contractor," mostly due to the exclusivity of the arrangement. They definitely check multiple of the boxes under "probably an employee." Based on this guide, you'd definitely think they were employees, but again, it's been de-emphasized recently, and there are certainly some major boxes they don't check.

Nice one Mate. So someone has to fight it through? It seems like they (UFC) take advantage of both sides: Control them like an employee but pay and treat them like a self contractor.

 

[Dontfight]

no we don't. the market got way smaller after the reebok deal happened. companies didn't want to sponsor fighters anymore because it wasn't worth it anymore

yeah you bet being seen on TV during an event was the main appeal for sponsors

 

[Ah Man]

Nice one Mate. So someone has to fight it through? It seems like they (UFC) take advantage of both sides: Control them like an employee but pay and treat them like a self contractor.

I'd be inclined to agree. Aside from the matter of pay and the right to unionize, if the UFC wants to exert the amount of control that they do over their fighters, the fighters ought to be entitled to certain benefits, many of which would dramatically affect the uncertainty and financial risk that make being a mixed martial arts fighter, in my opinion, a pretty lousy career track. I tend to think it's the high level of financial (and other) risk and poor job security that make it a particularly unappealing career, moreso than the overall level of pay. Hopefully it goes before a judge and hopefully the judge issues the right decision. This is not, from what I can tell as a non-expert, one of the issues in Cung Le et al v. Zuffa LLC.

If you're up for a lengthy read, someone with more expertise than I have published an article in the Pace Intellectual Property, Sports & Entertainment Law Forum last year making a fairly strong argument that UFC fighters are misclassified: http://digitalcommons.pace.edu/cgi/viewcontent.cgi?article=1062&context=pipself