By In Mixed Martial Arts

The Costs of Control

“Over the weekend, a video surfaced of UFC President Dana White giving a business seminar at Stanford University. In the clip, White discussed why he believed boxing is declining while MMA is on the rise. To him, it’s simple: “[Boxing] has become so greedy. Nobody was ever thinking about the future of the sport. It’s about how much money we can we all put in our pocket right here right now.”

White expounded by posing a hypothetical scenario in which everyone in the room was guaranteed to earn $37 million that year, no matter what: “Guess what you’re gonna do? Not much.” In contrast, the Ultimate Fighting Championship incentivizes its fighters with bonuses, which in turn encourage fighters to perform better. For most fighters, the pay structure is a mixture of a guaranteed fight purse, a bonus for winning and potential bonuses for finishes and performances of the night. This, according to White, is the secret behind the UFC’s success.

Let’s investigate that…”

 

Read more at Sherdog

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