Pick'em Leagues: THE BIG SHOW CASUAL BEST OF THE REST Single Event PvP: FANTASY POOLS Betting Leagues: THE BIG SHOW BEST OF THE REST
  MMA Playground 4.0 is live!     Returning members: check out the patch notes     New members: visit our getting started guide, read the FAQ's and start playing!

UFC's merchandise agreement: good in theory, not on paper

Print  
Posted By Message

MMAcca

Heavyweight Champ

MMAcca Avatar
4



 
 
 


 
 
Posts:8,113
Career:1,782-1,038
Joined:Apr 2007
Camp: Dark Horse
Chips:
798
Mixed martial arts is in the business of overnight money-making -- raking in hundreds of millions in its opening years while many (ethically and legally) still push it away. And the biggest player behind the sport's chart-defying growth: the Ultimate Fighting Championship.

Revitalized in 2001 by Zuffa, LLC, the UFC has emphasized its "strong ownership and depth of management" as the brand enhanced the sport's international and national presence, helped it ride the wave of reality TV, put it near the top of premium and network television ratings and guided it into the arena of merchandising and sponsorship to make it a force to be reckoned with in sports business.



LINK

Post #1   6/26/08 1:36:42AM   

thatfedorsohotrightnow

banned

 
 
 


 
 
Posts:331
Career:142-108
Joined:Feb 2007
Chips:
43
Here is a lawyer's take on the subject. Long read but really shocking.

In exchange for granting Zuffa the Merchandise Rights, a fighter is entitled to (i) ten percent (10%) of gross revenue for sales of Licensed Merchandise completed by Zuffa, and (ii) twenty percent (20%) of gross revenue for royalties and/or license payments received from third parties.

· The Agreement grants Zuffa an exclusive license prohibiting even the sale of autographed photographs!

· The Agreement operates to strip even the fighter himself of the opportunity to profit on his own Identity in the marketplace. Not only are fighters being asked to sign an agreement that grants likeness rights to Zuffa on a worldwide, exclusive basis (to the exclusion, incredibly, of even the fighter himself), the term of the Agreement is forever.

· The term of the Agreement lasts forever, and the Marketing Rights for fighter are held by Zuffa even after a fighter is cut!

· The Agreement requires a fighter to make up to Six (6) appearances per year, and each of the appearances may be required of the fighter for no additional compensation.

· The Agreement contains no audit rights which would provide a mechanism for a fighter to enforce the terms of the Agreement and to verify payments are fair.

· The Agreement enables Zuffa to divert royalty and licensing payments by shifting income that could be classified as a license or royalty fee entitling a fighter to payment, into a payment that is Zuffa’s income alone.

· The Agreement requires a fighter to warrant that all permissions have been obtained to utilize third party marks and copyrights.

· The Agreement does not offer any royalty or license payments for video games and DVDs.

· The Agreement prohibits a fighter from not only using Licensed Marks of Zuffa, but also mere words alone!

· The Agreement, in short, is absurd for fighters, and drastically impacts their marketing and revenue producing ability throughout, and even after their athletic careers.

Link has lots more.
Link

Post #2   6/26/08 2:06:37AM   

xAcidburNx

Standup Guy

xAcidburNx Avatar
 
 
 


 
 
Posts:324
Career:672-426
Joined:Jul 2007
Chips:
21
im pretty sure this is the second time this has been posted. not that i mind but i have already made a rather large post as it was concerning this thread. why the hell was the origional thread deleted in the first place is what i wanna know

Post #3   6/26/08 2:42:35AM   

thatfedorsohotrightnow

banned

 
 
 


 
 
Posts:331
Career:142-108
Joined:Feb 2007
Chips:
43

Posted by xAcidburNx

im pretty sure this is the second time this has been posted. not that i mind but i have already made a rather large post as it was concerning this thread. why the hell was the origional thread deleted in the first place is what i wanna know



I think it had to do with me making a scandalous headline to the news item. That is my best guess but can't say for sure.

Also, what I posted in this thread was the source for the original thread you refered to. This new thread is about an SI article.

Post #4   6/26/08 3:09:07AM   

Figsak

Barred From Forum

Figsak Avatar
 
 
 


 
 
Posts:395
Career:189-106
Joined:Jun 2008
Chips:
44
I told you. Business men infusing themselves into the industry because it's a cash cow simply means squeezing every penny out of the industry till it's sucked dry. Boxing died slowly, this keeps up and we'll see that in fast forward with MMA.

Post #5   6/26/08 8:19:14AM