Mitrione talks UFC sponsor tax & revenue loss

Matt Mitrione has come out as one of the more vocal critics of the UFC after leaving the promotion back in March and signing with Bellator.

The UFC doesn’t lose many fighters willingly, but those that leave of their own accord tend to have some very distinct reasons. One of the more recent fighters to find his way outside the promotion is heavyweight Matt Mitrione. Mitrione started his MMA career in the UFC, first as a cast member on TUF 10 with no pro fighting experience whatsoever.

Over the next six years he built a solid, if not quite spectacular career in the heavyweight division, edging his way into the rankings, and generally winning more than he lost. When he chose to fight out his contract and ended on a two fight losing skid, it was pretty clear to most that he wouldn’t be staying around. He ended up with Bellator, and with a commentary position to boot. And since the move he’s had a lot to say about his former employers.

Most recently, in an interview with Inside MMA on AXStv, Mitrione talked about how the change in the sponsorships structure inside the UFC played a big role in his decision to look elsewhere, starting with the sponsorship tax (transcript via MMAFighting.com):

“When they first hit us over the head with the sponsorship tax, the 50 [thousand dollars]. They said that was to prevent other organizations from coming in and not paying out their bills; like Fear the Fighter. They come out, they promise all this money to all these people and they don’t pay but they got 7 or 8 shows worth of exposure…

“Originally it started out with Affliction. The started the organization and built their name off of the UFC’s back. Well that could have easily been handled by just saying ‘we have a non-compete. If you’re going to put your name on anything from our athletes or our organization [then there is a] non-compete for 7 years, can’t create a competing promotion or whatever else.’ That could have been easily handled that way but then they did a $50,000 tax on top of that.

“Well why didn’t they take that tax and put it into an account and let interest accrue on it from all these organizations or companies that want to pay in or advertise, let it gain interest, and then anytime a company like Fear the Fighter or whoever else bails out or flops or doesn’t pay their bills then that fighter can get X amount of money back out of the interest account…That way we are still getting something and we aren’t getting hosed for it. The UFC’s not capitalizing on that, we as fighters are…Instead of padding their pockets why not give it to us because we are the ones who are [giving our] blood, sweat, and tears. We’re your product.”

It’s not exactly a new complaint and it’s not hard to see reasons why the UFC wouldn’t be interested in making a move like that, but it’s an interesting take on the clash between stated goals and end results. In a move that was billed as a protective gesture it’s worth asking if the fighters actually ended up better protected because of it and if so, was the security worth the cost?

Matt Mitrione has come out as one of the more vocal critics of the UFC after leaving the promotion back in March and signing with Bellator.

The UFC doesn’t lose many fighters willingly, but those that leave of their own accord tend to have some very distinct reasons. One of the more recent fighters to find his way outside the promotion is heavyweight Matt Mitrione. Mitrione started his MMA career in the UFC, first as a cast member on TUF 10 with no pro fighting experience whatsoever.

Over the next six years he built a solid, if not quite spectacular career in the heavyweight division, edging his way into the rankings, and generally winning more than he lost. When he chose to fight out his contract and ended on a two fight losing skid, it was pretty clear to most that he wouldn’t be staying around. He ended up with Bellator, and with a commentary position to boot. And since the move he’s had a lot to say about his former employers.

Most recently, in an interview with Inside MMA on AXStv, Mitrione talked about how the change in the sponsorships structure inside the UFC played a big role in his decision to look elsewhere, starting with the sponsorship tax (transcript via MMAFighting.com):

“When they first hit us over the head with the sponsorship tax, the 50 [thousand dollars]. They said that was to prevent other organizations from coming in and not paying out their bills; like Fear the Fighter. They come out, they promise all this money to all these people and they don’t pay but they got 7 or 8 shows worth of exposure…

“Originally it started out with Affliction. The started the organization and built their name off of the UFC’s back. Well that could have easily been handled by just saying ‘we have a non-compete. If you’re going to put your name on anything from our athletes or our organization [then there is a] non-compete for 7 years, can’t create a competing promotion or whatever else.’ That could have been easily handled that way but then they did a $50,000 tax on top of that.

“Well why didn’t they take that tax and put it into an account and let interest accrue on it from all these organizations or companies that want to pay in or advertise, let it gain interest, and then anytime a company like Fear the Fighter or whoever else bails out or flops or doesn’t pay their bills then that fighter can get X amount of money back out of the interest account…That way we are still getting something and we aren’t getting hosed for it. The UFC’s not capitalizing on that, we as fighters are…Instead of padding their pockets why not give it to us because we are the ones who are [giving our] blood, sweat, and tears. We’re your product.”

It’s not exactly a new complaint and it’s not hard to see reasons why the UFC wouldn’t be interested in making a move like that, but it’s an interesting take on the clash between stated goals and end results. In a move that was billed as a protective gesture it’s worth asking if the fighters actually ended up better protected because of it and if so, was the security worth the cost?