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Guaranteed money vs pay per view money

The media battle over what Fedor was offered continues. Last week we had the UFC leaked the story that Fedor turned down a 6 fight 30 million dollar deal. Now M-1 is trying to leak their own version of the deal:

According to sources close to the negotiations, the actual offer was not nearly so generous. The numbers being floated there are a little misleading. “The UFC’s offer of $30 million over six fights isn’t a guarantee,” a source close to emelianenko said. ” The number is based on Zuffa’s projections of what Fedor’s take of the PPV money would be, and the numbers they are projecting are based on selling a ton of PPV’s.”

The actual guarantee for Fedor is much more modest. It’s true that if business stays at record levels Fedor could walk away with more money than any fighter in MMA history, but sources say the offer included a guarantee that was less than what Fedor made in Affliction. The contract was also only for three fights, not the reported six. Many in the UFC were uncomfortable even with this, the largest guarantee they have made in their history.

So who’s telling the truth? Perhaps both parties. When the details were shared with Carmichael Dave, the source concentrated on the crazy amount of money Fedor could have made off his cut of amazing PPV sales. But M-1 is concentrating more on the guaranteed money. If you keep up with the salaries disclosed to athletic commissions, you’ll see that the UFC keeps it’s guaranteed pay relatively low even for it’s top stars … Randy makes 250k flat and Chuck makes 500k flat. The big chunk comes from selling pay per views. If M-1 is concerned about Fedor possibly losing or PPV sales not cooking (both legitimate concerns), then they’re not going to be overly thrilled at the prospect of a contract that could swing anywhere between $500,000 and 5 million a fight.