When Dana White first spoke about the UFC’s massive $4 billion sale to WME-IMG group, the UFC president said that he would “have to pick up a lot of the stuff” that used to be the responsibility of Lorenzo Fertitta, who will step down as the company’s Chairman and CEO once the deal is complete.
The details behind what White stands to gain financially under the new ownership have been revealed by ESPN’s Darren Rovell.
“White’s new deal is for five years and for nine percent of net profits of the company. The deal also gives White the incentive to further grow the business instead of having a locked-in salary.”
White owned 9% stake in the UFC under the Zuffa era, so if the sale was for 100% of the company as initially reported, Dana’s cash out would be in the ballpark of $360 million.
“Rovell’s article also went on to speculate on White’s future potential earnings, and how they could be comparable to that of NFL commissioner Roger Goodell. Figuring out what the business actually nets after all expenses is an inexact science, but based on a ballpark estimate of what other entertainment businesses net after costs, the UFC bottom line could be in the $200 million range. That would make White’s yearly take to start about $18 million on top of his cash out.
For comparison sake, Goodell averaged $21 million a year in compensation for his first 10 years as commissioner.”
One thing pointed out by BE’s own Iain Kidd is that the 9% profit-share deal isn’t exactly new for Dana.
UFC paid out profits as dividends regularly according to reports from credit agencies. Dana was getting that 9% of profits before sale too.
— Iain Kidd (@iainkidd) July 12, 2016
As always, if you want a great breakdown of UFC finances, check out John Nash’s StoryStream on what we know about the UFC’s revenues, debts, and other pertinent information.
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