Free Agency Hasn’t Changed the MMA Landscape Much
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Pettis is the latest in a long line of UFC fighters who have recently opted to look at their options from MMA organizations like the Professional Fighters League, One Championship and Bellator MMA. Ever since another former UFC lightweight champion, Benson Henderson, signed with Bellator in 2016, more and more fighters have been testing the free agent waters when their contract is up. Welterweight standout Rory MacDonald and light heavyweight contender Ryan Bader followed Henderson to Bellator not long after “Smooth” made the jump, and in 2018, One Championship managed to secure the services of former UFC flyweight and lightweight champions Demetrious Johnson and Eddie Alvarez. While many of the fighters making the switch are older and past their primes, Pettis and the rest of the aforementioned athletes point to offers being made that entice those who can still compete with the best.
With free agency at an all-time high, one could make a couple of assumptions regarding the industry. More competition from promotions vying to retain or sign new talent should lead to an increase in overall fighter pay. Notable names switching brands should lead to higher viewership and revenue for organizations outside the UFC, given that viewers would be more likely to watch fighters they know on other shows rather than unknown athletes. One could also assume that more and more elite talent would be leaving the UFC for greener pastures, and the Endeavor-backed organization may have actually felt pressure in negotiations to keep its biggest stars.
In terms of fighter pay, as documented in the UFC antitrust case, fighter wage levels are indeed rising in the UFC and most likely other promotions, as well. There has been a steady increase in pay per bout year over year since 2013, and while a majority of that increase may be weighted towards the champions at the top, it has benefited lesser-known fighters. A cause for concern, however, is that in the case of the UFC, the company is actively trying to cap its wage share at 20 percent. This means that if the UFC has a bad year financially, fighters may get cut or have to renegotiate for less money. Given what little we know about the financials of One Championship and Bellator, it could mean the same for other promotions’ contracted athletes, as well.
As for brands outside the UFC gaining viewership and revenue, that seems to be somewhat hazy. Bellator’s ratings have been declining at a pretty steady rate, with a sharper drop off starting in 2018 despite having arguably the best roster outside the UFC. With that being said, the Dazn deal Bellator signed back in 2018 may explain the dip in ratings and makes it hard to gauge just how well viewership is doing. Meanwhile, Bellator revenues have continued to grow. In terms of One Championship and the PFL, we don’t have enough data due to the former being largely available in North America through the One app, and the PFL’s ratings have remained mostly the same, even after signing a couple of UFC veterans and inking a deal with ESPN for the 2019 season.
One thing that has remained fairly constant during the free agency shift is the UFC’s retaining most of its elite talent. Aside from the former champions and contenders mentioned at the beginning of the article, Cristiane Justino is the only other notable name that has moved on from the UFC, and that was partially due to UFC President Dana White and Justino’s tumultuous relationship. Another bit of information that came out during the UFC antitrust hearings in July is that UFC contracts tend to not only be restrictive compared to other promotions but even within the company itself. The higher you’re ranked as a fighter, the longer your contract term. Plus, almost all contracts have champion and tolling provisions that allow the UFC to unilaterally extend athletes’ contracts if they hold a title, get injured or retire, protecting itself from its most valuable fighters leaving to fight for another company.
Overall, it’s hard to register the exact impact of increased free agency in the MMA industry. While it seems that fighters now have more options than before, the overall landscape hasn’t changed much for fighters since free agency ramped up three years ago. Exactly how the sport’s free agency will look five years from now is anybody’s guess, but one can assume that as long as there is a possibility for a contracted fighter to make more money elsewhere, it will remain an important factor for years to come.
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