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Mousasi Leaves M-1 Global Management

February 12th, 2010

Loretta Hunt over at Sherdog is reporting that Gegard Mousasi has split with his management team, M-1 Global, and has already secured new representation.

“After careful consideration, I have decided that it is in my best interest to part ways with M-1 Global,” Mousasi wrote in the e-mail. “During the time I spent under their wing, M-1 Global, as a promoter and management company, allowed me to achieve many great things. I appreciate all they have done for me.”

 

M-1 Global, based out of Holland and Russia, had guided the Armenian-Dutch fighter’s career to two championship titles in the last few years.

 

The company also represents Fedor Emelianenko, the world’s No. 1-ranked heavyweight, who has publicly stated that he has an ownership stake in the organization, as well.

 

“The business relationship with M-1 Global is over,” said company representative Apy Echteld. “It was a business decision, but not a personal one and there are no hard feelings.”

 

Echteld said he would continue to work with Mousasi apart from M-1, although Echteld will be staying with the organization. Echteld added that Emelianenko had expressed his hopes to train with Mousasi again in the future.

Payout Perspective:

The rumor flying around for the better part of the last 9 months is that the UFC offered Gegard a contract, but M-1 turned it down in favor of a Strikeforce contract of lesser value (ostensibly as a favor to Strikeforce). However, Joe Silva of the UFC denied even offering Mousasi a contract last summer following the collapse of Affliction’s promotional unit. Mousasi’s split from M-1 is bound to re-ignite those rumors.

The Armenian claims to already have found representation, but refuses to disclose whom it might be. Fans hoping to see him in the UFC may have to wait as he’s got fights remaining on his Strikeforce contract, in addition to plans with the Japanese promotion Dream and its light heavyweight grand prix this year.

MMAPayout M-1 Global, MMA Payout, agent

MMAPayout.com’s 2009 Best in Business Awards

January 18th, 2010

FIGHTER OF THE YEAR – GEORGES ST-PIERRE

St-Pierre had an incredible 2009 both in and outside of the Octagon. The UFC’s welterweight champion improved his record to 19-2 and established himself as a top sporting attraction with convincing victories over BJ Penn and Thiago Alves at UFC 94 and UFC 100, respectively. He also broke barriers for the sport of mixed martial arts by signing ground-breaking endorsement deals with the likes of Gatorade and Under Armour.

The native of Saint-Isidore, Quebec was again voted Rogers Sportsnet’s Canadian Athlete of the Year, in addition to placing second behind Sidney Crosby in the Canadian Press version of the poll.

PROMOTER OF THE YEAR – ZUFFA

Another year, another record broken. Zuffa’s Ultimate Fighting Championship smashed its previous mark for PPV sales in 2009 with nearly 8 million units sold. The organization also broke its record for live gate revenue with over $42 million generated from 20 events.

It was a year in which the company encountered immense success with its first champion vs. champion bout at UFC 94 between Georges St-Pierre and BJ Penn. Zuffa then continued to build momentum with the release of its UFC Undisputed video game in May and UFC magazine in July. However, the key to the year was the success of the UFC 100 weekend: a potent combination of unprecedented media coverage, a fan expo held parallel to the fight, and, of course, the title defenses of the UFC’s two most prominent fighters in Brock Lesnar and Georges St-Pierre.

The year may not have been without its challenges, but in the face of adversity Zuffa emerged from the year in a great position to repeat its success with not just the UFC but also the WEC. Indeed, with the UFC staring at a star-studded line-up of fights and a WEC PPV featuring Urijah Faber and Jose Aldo in Spring 2010, Zuffa will likely find itself right back here next year.

MANAGER OF THE YEAR – Shari Spencer

Last year Spencer made headlines with her less-is-more philosophy to MMA that saw her build the St-Pierre brand image with careful sponsorship selection that painted St-Pierre as a clean, strong, and reliable entity to which sponsors could associate their own brands. In 2009, her approach paid off as St-Pierre has become a top draw and marketable commodity for the UFC - evidenced by the major endorsement deals he inked with Gatorade and Under Armour.

Spencer will now look to do the same for Frankie Edgar in 2010 as the young lightweight from New Jersey is set to challenge for BJ Penn’s title in April.

INDUSTRY PROFESSIONAL OF THE YEAR – MARC RATNER

Marc Ratner serves as the UFC’s VP of Government and Regulatory Affairs, and is the driving force behind the UFC’s effort to get MMA regulated in all 50 states. In 2009 alone he helped to open up Massachusetts, Tennessee, Michigan, and the City of Vancouver for MMA.

Ratner is easily one of the most well-respected individuals in the sport because of the way he chooses to do business on a daily basis. With a gentle disposition and calm demeanor, Ratner is engaging to all. However, he has also become one of the sport’s greatest proponents and defenders.

In 2010, you can expect New York and Ontario to be his two major priorities, but with a well of experience under his belt it’s only a matter of time before he locks down MSG and the ACC as viable venues for the UFC and the rest of MMA. 

HONORABLE MENTIONS

BJ Penn:

Penn rebounded extremely well following his loss to Georges St-Pierre in their blockbuster fight that began the year. The UFC lightweight champion defended his belt twice – both in convincing fashion – against Kenny Florian and Diego Sanchez at UFC 101 and UFC 107, respectively.

The Prodigy earned every bit of his nickname not just with his performances, but also in the way he has slowly developed into the draw that everyone in MMA hoped he’d become. He currently leads the MMAPayout.com Power Rankings with money generated for his three outstanding headline performances in 2009.

Strikeforce:

Scott Coker’s vision is quickly becoming a reality as the veteran promoter landed his organization a network television deal, signed the best heavyweight fighter on the planet, agreed to a fighter-sharing alliance with Japanese promotion Dream, and formed a collaborative agreement with Electronic Arts that will showcase Strikeforce fighters in EA’s up-coming MMA game. Not bad.

Expect more from Strikeforce in 2010 as the promotion is planning to hold some 20 events and a very important return to CBS in April. Coker has also signed sports marketing guru Matt Levine to help develop a marketing strategy that will elevate the brand in the New Year.

Ed Soares:

The manager’s stable of fighters includes Anderson Silva, Lyoto Machida, Jose Aldo, Antonio Rodrigo, Antonio Rogerio, and Junior dos Santos – it’s quite possible that by the end of the year Soares fighters will own 50% of Zuffa’s divisional hardware. Impressive.

Soares isn’t on the honorable mention list just because of the success of his fighters – he also happens to be one of the hardest working professionals in the sport. He signed his clients to numerous sponsorship deals in 2009 including a slew of agreements with breakout clothing company Silver Star. Soares also runs his own clothing company, Sinister.

Charles “Mask” Lewis:

The co-founder of clothing company TapouT regrettably passed away earlier this year, only having seen half of his life-long dream realized: MMA’s ascension as a legitimate and popular sport. While his brand has risen to the top of the MMA clothing ladder – generating an estimated $180-200 million in 2009 – Lewis’ spirit and determination will remain with the entire MMA industry as it pursues worldwide acceptance and popularity.

MMAPayout MMA Payout, MMAPayout.com, Strikeforce, Tapout, Zuffa, agent, opinion and analysis, regulation, sponsorships

Madison Avenue Sports & Entertainment Jumps into MMA Agency

December 15th, 2009

Tripp Mickle of the Sports Business Journal reports on Madison Avenue Sports & Entertainment’s latest acquisition of MMA agency, Maxum Royalty:

Madison Avenue Sports & Entertainment, the agency started by former NHL executive Ed Horne and defense attorney Joe Tacopina, made its first acquisition two weeks ago, buying a mixed martial arts agency that represents six fighters.

 

The acquisition of New York-based agency Maxum Royalty was a mix of cash and equity. Under terms of the deal, Maxum founder Jim Barry becomes a partner in Madison Avenue Sports and will work with agency partner Stuart Kudman, a transactional attorney, on the agency’s mixed martial arts business.

 

“The growth of that sport is nothing short of phenomenal,” Horne said. “This is a sport we see real opportunity in.”

 

Tacopina added, “It’s the wild west. It’s chaos, and chaos breeds opportunity for guys who are organized and can be trailblazers. This (acquisition) gave us entree into the business.”

 

Maxum represents six fighters headlined by lightweight Vitor “Shaolin” Ribeiro. Ribeiro signed a multifight contract with Strikeforce and will be on a card with former football star Herschel Walker at the BankAtlantic Center on Jan. 30.

 

Barry said that he chose to sell the business to Madison Avenue Sports because of the “brand credibility,” resources and support the agency offered. He will work out of the agency’s New York office on Madison Avenue.

Payout Perspective:

The opportunity that Tacopina speaks of is the combination of the growth in the industry and the fact that most fighters are still only represented by their trainers, or other former fighters, that have very little business experience. At some point there may be a need for individuals with the ability to bridge the gap between the MMA world and the business world.

MMAPayout MMA Payout, agent

Spencer on UA-GSP Deal, Frankie Edgar, MMA Business

November 5th, 2009

MMAPayout.com had the pleasure of sitting down with Shari Spencer, President of GSP Enterprises, earlier today to talk about George St-Pierre’s latest endorsement with apparel maker Under Armour.

KP: Looking at this deal between UA and GSP – there are so many sides to it: the GSP side, the Under Armour side, and the sport side – but I’d like to start with Georges. What does this deal mean for Georges in terms of his commitment, responsibilities, and the affect it will have on his lifestyle?

SS: Georges will be featured in Under Armour’s upcoming marketing campaigns representing their underwear and other specific products.  His responsibilities are typical for this type of endorsement, i.e. service days for photo shoots, personal appearances, etc.  As far as the effect on his lifestyle, I think you’ll see him sporting the UA logo a lot more during training.

KP: The Under Armour image fits perfectly with MMA in terms of being that aggressive, “we must protect this house” type of apparel maker, and for the longest time there has been this under-served, clean-cut and professional clothing market within the MMA industry. How might that affect the rest of the MMA clothing business?

SS: I personally think there’s room for both. We still have a deal with Affliction, and that is our fashion apparel brand. Under Armour is our performance or athletic apparel brand. To some degree, UA is already in the space through its athletic apparel for wrestlers – fighters are wearing their apparel as rash guards – even if UA is not calling them rash guards.  Initially, they will be using Georges as the face of their underwear brand – I’m crossing my fingers that he’ll sell more underwear for them than David Beckham did for Emporio Armani.  

KP: Are you managing any other fighters right now, and what sort of impact might this deal have on their future?

SS: I just signed a second fighter, Frankie Edgar. He’s been flying under the radar, so to speak, but people started to take notice of him when he beat Sean Sherk.  He’s an exciting fighter who shows a lot of heart when he fights, but more importantly, he’s just a great kid.  I went out and met with him and his father-in-law, who has been advising him business-wise, and getting to know him as a person was what convinced me to respond to his request for help. 

Under Armour has a roster of athletes that it endorses, and it’s my understanding that they are starting with Georges in MMA and then going to evaluate from there where they sign other fighters.

KP: GSP is a pretty unique entity in terms of being French-Canadian, a P4P type fighter, and he’s got that GQ look. How does Frankie compare, and how will you go about marketing him?

SS:  I’ve always recognized Georges’ potential to reach an audience outside the sport or those that might not be huge fans.  Georges’ fanbase tends to skew a bit more female (not surprisingly), and he’s the fighter that many guys say they can get their wives or girlfriends to watch alongside them.  As a result, there’s been a very deliberate strategy not to associate too heavily with fight-related brands, so that the public would see him as an athlete first and a fighter second.

I think that for Frankie he will reach a different demographic. I think that he’s more of a “guy’s guy” and he will resonate with a different group. Frankie’s already a family man with one child and another on the way, and so he can’t (well, at least he shouldn’t) be a ladies’ man. Frankie doesn’t have a French accent; he’s got a New Jersey accent. So, I’ll market him much differently.

Frankie is going to resonate with the guy next door.  He’s everybody’s neighbour, and he’s got a very altruistic side to him that I don’t think has really been exposed. He’s done a lot of community work, a lot of giving back, and so my approach with him will be more “the lightweight fighter with a heavyweight heart”, with the obvious double-meaning on the word ‘heart’ – the heart he shows when he leaves it all in the Octagon, and the heart he shows by giving back to society. 

Frankie’s a professional athlete with a champion’s heart and he’s a true gentleman – like Georges, I think he can also make great strides in representing this sport and hopefully changing the opinion of some of the lawmakers in the state of New York.

KP: When I first heard about the agreement, I thought: a.) it was a major, mainstream endorsement of the sport, but b.) it also suggested that UA believes in the viability and profitability of MMA in the long-term – that they can make money in this industry. That’s a pretty big notch on MMA’s belt.

What’s your take?

SS: I agree on both counts.  I believe that the explosive growth that the sport has experienced has caused most brands to sit up and take notice – MMA is growing too fast and resonating too well with that target demo of males 18-35 that they can’t ignore it.  Yet I’ve frankly been a bit surprised at the continued reluctance to pull the trigger.  So when a brand such as Under Armour, known for their high-quality products and cutting-edge approach steps up, I think it can only be a positive endorsement for the whole sport of MMA, not just Georges.  I also think it exposes the sport to a broader audience and hopefully paves the way for endorsement opportunities for other fighters with more mainstream brands.

KP: Even CAA, I suppose, jumping in to help represent Georges.

SS: That’s right, he was their first MMA fighter.  But even with CAA, there was an education process, frankly on both sides, of what the relationship would look like. CAA didn’t have experience representing fighters, so they had to get comfortable with representing an athlete in this sport, then get comfortable with Georges, and finally get comfortable with me.  Over time a trust level and partnership has been established, and in a nutshell, they’ve given us accelerated access to mainstream opportunities while we’ve been educating them on the nuances of this sport.  It’s been a great relationship so far, and while the endorsement deals still do not rival those of the major sports and challenges still lie ahead, I can’t think of anyone I’d rather be making this journey with.

KP: You mention the sort of learning curve that CAA experienced, and I feel there’s still a lot more work to be done. I’ve had the opportunity to speak with a few high-level people from ESPN over the last few weeks, and the feeling that I get is their concern is not primarily based on the viability of the sport in the long-term, but rather, will they alienate some of their current audience just to bring in a new audience? They’re just not sure whether there’s a brand fit.

SS: Together (CAA/myself) we’re still approaching brands directly, as well as ad buyers and the agencies that represent brands and decide that this guy should be your brand ambassador, and introducing them to Georges and try to help them understand MMA.  Marketing Georges is the easy part – he has a great look, he backs it up with his performance, he’s got character, he’s charming -he’s got all those things.  Our biggest challenge has been selling the sport and that continues to be an education process.

So while the UFC is progressing in their efforts to obtain sanctioning in all the Provinces of Canada and all the States here in the U.S., we’re having similar conversations with brand managers and ad agencies – it’s just a constant job of educating.  And, if you were to look at me, I’m about as corporate as they come – I’m a former CFO (and still dress like one) and I speak more of the same language.  I also pull from my experience as president of the Intermountain Section of the US Tennis Association and the governance of that sport in this country.  Add to that my obvious gender, and I’m probably the last person you’d expect to be representing a guy who makes his living fighting in a cage.  That anomaly, combined with the CAA partnership and arguably the most marketable athlete in the sport, and yet it’s still a challenge to present MMA in a way that they’ll understand the sport and want to affiliate with it.

KP: Right. Yeah, and so when I saw that UA was coming on board, I thought, “man, if there had to be an apparel maker to jump into MMA, they would be my first choice.” There is no conflict of brand image with UA, because the sort of aggression that MMA represents is right in line with their target market.

SS: I do tend to think that UA tends to appeal to a younger target demo, and that perhaps the other athletic apparel brands are a bit more established and conservative. UA seems to be more progressive and cutting edge in their branding. So, I do think it’s a good fit and it’s a logical choice.

This is pure speculation on my part, but it wouldn’t surprise me if this deal weren’t some sort of pre-emptive strike.   I can just imagine UA executives sitting around the board room contemplating, something like, “OK, we’re all [UA, Nike, Adidas] looking at it [MMA], and we’re all probably going to get involved eventually, so let’s just be the first one and let’s throw the first punch. And, if we’re going to do it, who are we going to do it with?”

In my opinion, the “safest” way for a brand to enter an admittedly rebellious sport is with the most traditional guy – the guy that wears the gi, the guy that wears the suit to press conference, and the guy that doesn’t do the trash talking.  So from that perspective, endorsing Georges is probably the safest way to dip your toes in the MMA water, so to speak, because he’s got one of the cleanest images of any of the fighters.

KP: Absolutely.

Well, thank-you for your time. I’ll let you get back to work.

SS: No problem. You’re very welcome! 

MMAPayout Apparel, MMA Payout, agent, marketing

Where Go Hendo?

October 24th, 2009

So MMAJunkie reported that Dana White claimed negotiations with Dan Henderson had reached a standstill due to Henderson’s wanting to be the highest paid fighter in the UFC:

“We’re at a stalemate right now,” White said. “The money that [Henderson] is asking for would make him by far the highest-paid guy in the UFC.”

White initially told Yahoo! Sports less than a week ago that his negotiations with Henderson had failed and that “Hollywood” was close to signing with Strikeforce. Henderson then refuted those claims with several media outlets, insisting his contact with Strikeforce had simply been introductory in nature.

Loretta Hunt of Sherdog.com then reported that Henderson’s camp denied that Henderson was demanding that kind of money during negotiations:

Aaron Crecy, Henderson’s business partner and manager who has been privy to all offers circulated between the two parties, reiterated similar sentiments regarding White’s contract claims.

“Contracts are confidential, so that statement’s impossible to prove or disprove,” said Crecy. “However, we have done our due diligence. We certainly don’t believe that to be the case. Dan understands and we have a certain belief on where he stands in the hierarchy. Certainly there are champions and former UFC champions that deserve to be paid more than Dan.”

Payout Perspective:

MMAPayout has discussed why Dan Henderson’s negotiating tactics were unlikely to lead to a lucrative new contract with UFC, despite his being at least temporarily the hottest free agent in Mixed Martial Arts.

Now we’re receiving seemingly contradictory reports relating to the contract negotiations themselves: Dana White makes the claim that Henderson wants to be “by far” the highest paid fighter in UFC, and Henderson’s camp dismisses it as the absurdity it would seem to be.

I’m not certain that the claims are entirely inconsistent.  What we’re hearing is that the sticking point in the negotiations is Henderson’s demand for a seven figure signing bonus, as Henderson seems to believe (reasonably) that this is his last chance to make big money in the business.

I believe it’s possible that Henderson is requesting the largest signing bonus in UFC, which, in combination with his base pay, could from one perspective make him the highest paid fighter in UFC.  This point of view, however, discounts the millions of dollars made by fighters whose contracts are structured to provide them shares of ppv revenue (providing the ppv reaches a certain number of buys).

Even if Henderson were to be given a share of ppv revenue, he’s never proven to be a huge draw, and I’d say it’s impossible that, if granted, his demands would make him UFC’s highest paid fighter.  I’m not even going to research this one, I’ll tell you who it is in 2009 (and probably going forward into the future): Brock Lesnar.

Unfortunately by stating early in negotiations that he had no desire to work for Strikeforce, Henderson gave away all leverage in his negotiations with UFC, and Dana White seems to believe Henderson will eventually come around and will agree to what the UFC is offering him, with maybe a small concession from the promotional juggernaut to let Dan save face.

And I’d bet more money than I’d be willing to place — with even odds – on Lyoto Machida at UFC 104 that Dana White is 100% correct.

MMAPayout MMA Payout, Strikeforce, UFC, agent, contracts, opinion and analysis