Originally Posted by Chris F
Because of TV NASCAR is able to take a slice of pie. As do the track owners as was mentioned earlier. Each drivers signs their own deals but in turn must pay NASCAR a flat percentage. 5 years ago it was 2.5%. The track owner also gets a cut at their respective track based on volume of seats and television dollars. Kind like super bowl commercials are worth more. Not sure on their cuts because it is not contracted as firmly.
What the UFC is proposing is nowhere near fair because there is no TV dollars because it is PPV. If they had a sliding scale based on early buys maybe. But a flat fee charge to all companies and all fighters is ludicrous and possibly unenforceable legally. Contract that are to one sided become null and void. In Pro Wrestling's early days Verne Gagne (AWA) made some similar shady contracts. Gagne wanted booking fees as well as a management cut to every wrestlers. Since Wrestlers are Independent contractors we paid all expenses. So by the time those were paid and those "fees" many went broke. This is why so many left for the WWF in the early days. Said all that to say this eventually Gange was sued and all his contract were thrown out because they were no enforceable. Dana and crew have some crafty lawyers, but they are walking on shaky ground with these deals.
2.5 percent would be much more reasonable IMO
that way, a buy getting 5 grand wouldn't lose a sponsor because they didn't have 100K to pay just to sponsor him for 5K a fight