Sponsorship Money and How it will effect fighters.

Over this past week many concerns have arisen over the relationship between sponsors and promoters, especially sponsors affiliated with the UFC.  Unlike other organizations that don't charge sponsors for displaying their brands in the cage.  The UFC has long made companies pay for the right to sponsor fighters. Officially, the UFC has sponsorships with Harley Davidson, Anheiser Bush's Bud Light, Xyience Energy Drink, MetroPCS, Dodge, the U.S. Marines, Ultimate Poker, MusclePharm, Corn Nuts, EA, Tapout, Ubisoft, Ryu, and Edge.  All of these companies pay top dollar to secure a position on a corner or the canvas.  And fighters have been able to court larger companies as well, considering fighters like Anderson Silva, Jon Jones, and Junior Dos Santos have gained the Nike logo.  However most fighters don't have this opportunity, and often they have to look at small companies that are willing to take a chance that exposure will increase these companies profits. The UFC then is hurting fighters by implementing a tax on these sponsors of $100,000 a year.  This in addition to the agreements made between a sponsor and its fighters discourages the investment in future talent that might not be featured on TV.

Having lived the lifestyle of a fighter, I have an insight into what this can do to an athlete.  There is this idea that fighters make a lot of money, but in reality this is a fallacy.  Fighters who are developing receive the lowest wage of around $2000 a fight in in the UFC (possibly lower in other organizations).  This may sound like a significant amount, but a fighter must pay to license himself, pay his coaches, and the gym, and of coarse taxes, while still trying to make a living and provide for their families.  Sponsors thus become crucial income for these athlete.  Not to mention that these fighters use their sponsors in order to market their own brand in achieving their own notoriety in this venue.  Many fighters have launched their own brands and have grown them using these other unrestricted venues.  For example, Dan Henderson grew his brand Clich Gear and Tito Ortiz created Punishment Athletics.

The UFC has also taken a stance into marketing itself to the mainstream audience, controlling which Sponsors allowed in the Octogon.  For example, the UFC dissallowed the Gun Store to sponsor fighters in response to outcry against gun violence in other media.  Another concern is the creation of uniforms this would be great for the UFC because it would add to their growing brand recognition which is a goal for sure, but there is a uniqueness to every fighter and the sponsors that endorse them.  The UFC has made plans to allow a high end athletic company to create these uniforms and that three sponsors will be able to be displayed.  However, what happens when there are conflicting sponsor from competing companies?  We already see that these giant conglomerates are ready to eradicate their competitors (Nike's trademark infringement lawsuit against Venum Fight.)  Will this mean that fighters will choose to fight in smaller leagues or overseas where they can potentially make a larger income from sponsors?  Or will more fighters try to stick it out to gain recognition and more approved sponsors?