MMA Universe

The UFC’s newest sponsor, Respect Your Universe, Inc. (RYU), has signed its first UFC star as it has entered into a deal with welterweight Jon Fitch. The Portland-based brand will sponsor Fitch at UFC 141 in his match with Johny Hendricks.

Via RYU press release:

“We are all very excited to have Jon join the RYU team as our first Mixed Martial Arts athlete,” commented John Wood, President of RYU.  ”Jon embodies the spirit and essence of respect, honor, strength and nature; the pillars of RYU. We look forward to working with Jon and his team in the continuing growth of RYU.”

Recently, RYU announced it was UFC’s newest sponsor as UFC 141 would be its first event with the brand’s presence. The sponsorship deals come in lieu of its first full line of clothing this spring, tagged “Built for Athletes, Suited for Style.”

Payout Perspective:

RYU follows in line of most UFC brands that also sponsor its fighters. We shall see how the RYU brand determines how it picks and chooses its fighters. Fitch is a calculated “get” as he could be a top welterweight depending on how he comes back from his shoulder injury. RYU stresses that it uses recycled and organic material in its clothing. It may fit in with Fitch’s lifestyle considering his vegan diet although that may be assuming too much.

The Portland Business Journal reports that Respect Your Universe, Inc.(RYU) has struck a deal with the UFC to become an official event sponsor. Fans of MMA will begin seeing the name and logo of the clothing company based out of Portland, Oregon beginning at UFC 141.

RYU is a publicly traded company that is led by former Nike executives. The company is focusing its marketing efforts into the growing UFC market.

Via the Portland Business Journal:

…the RYU brand will be visible during and running up to the event (UFC 141), including logo displays, live announcements during bouts, TV promotions and placement on the UFC website.

The ads on UFC.com alone equal tens of millions of impressions, the company said. That’s before you tally the expected million-plus pay-per-view buys, a figure that grows exponentially figuring that as many as eight people are watching per buy.

RYU raised $5.3 million from investors this past summer in preparation for the release of its inaugural full clothing line coming out next spring. Its target is the MMA-inspired premium performance apparel market.

Payout Perspective:

With Nike-pedigreed executives managing this company, we will see if RYU can make an impression in the world of MMA. The sponsorship deal with the UFC should bring the company some notoriety and we will see how that equates to customers. The apparel market in MMA is competitive and there are many brands out there and we will see if the investment in sponsorship gives RYU an edge. Being a publicly traded company, we’ll be able to see how its doing financially as it goes.

Welcome to another edition of Payout Perspective. This week we look at the UFC’s return to Toronto as the UFC made a stop at the Air Canada Center as Jon Jones defended his title against Lyoto Machida.

Jones chokes out Machida

Despite losing the first round, Jon Jones showed resolve to come back and defeat “The Dragon”. Jones used his size to complete a standing guillotine which rendered Machida limp.  Up next for Jones will be the winner of Rashad Evans/Phil Davis in January. At this point, Jones looks like he is gaining confidence and looks real comfortable in the Octagon, something to worry about for those in his division.

Mir snaps Big Nog’s shoulder

Frank Mir broke Tim Sylvia’s arm for his black belt and may have earned another stripe for his kimura on Antonio Rodrigo Noguiera. Big Nog had Mir in trouble but Mir was able to gather himself to reverse Noguiera, grabbed his arm and locked in the kimura. The gruesome replay were shown over and over again with the crowd “ooing” each time the arm seemingly snapped.

Zombie surprises Hominick

It took only seconds for the Chang Sung Jung to defeat Canadian favorite Mark Hominick. A disappointing return for Hominick.

Attendance, Gate and Bonuses

As reported earlier in the week 18,303 fans attended for a gate of $3.9 million Canadian ($3.77 million U.S.).According to F4Wonline.com (subscription required), about 15,000 paid although it was not a sell-out. F4WOnline opined that the disappointing turnout may be due to the UFC coming back too fast.

MMA Junkie reported the bonuses for UFC 140 with each receiving $75,000.

KO of the night: The Korean Zombie
Submission of the night: Frank Mir
Fight of the Night: Jones-Machida

Sponsorships

The Octagon included Xyience, Toyo Tires, Dodge, TapouT, Musclepharm, the UFC’s Ultmate DVD Collection, StubHub, Batteflield 3 had the side pads (including graphics) and was on the mat, Bud Light was present on the ring pads and center.

Bony Acai, Harley Davidson and StubHub were presenting sponsors for UFC 140. The U.S. Marines had its usual “mini-fighter”  matchup for Jones-Machida.

UFC.com Store owned the fighter prep point.

Harley Davidson is taking part in the UFC Hometown Throwdown promotion which had been previously promoted at other events as well as 140. Similar to the WEC version, it asks fans to pick a city in which they would want the UFC to hold an event. The promotion asks for fans to provide an email address in order to take part. The UFC will email the fans when the final cities are chosen.

Mark Hominick wore the CFL’s Hamilton TiCats gear once again.

Jon Jones wore his Form Athletics jacket in the back and during the walkout.

Brian Ebersole is now sponsored by TapouT as one witnessed via the logo shaved into his chest. He also was sponsored by BuyMMACards.com, which replaced MiddleEasy.com on his shorts.

Logistics company and fight sponsor Blue Grace made subtle changes to its logo including a visible web address for people to see.

Notably, EBX, which is a Brazilian investment company, sponsored the Nogueira brothers. We might expect more Brazilian and South American companies jumping into sponsorship with the upcoming card this January and with TUF: Brazil.

No Suffer on Mir this time as he sported a simple Jaco Hybrid Training Black t-shirt in his walkout.

The Korean Zombie did not wear his popular shirt but a white shirt with his Korean sponsors.

UFCstore.com had the Fighter prep point

More info on walkout wear here.

Jon Jones and Frank Mir broke out Xenergy drinks immediately after their win before their post-fight interview.

Not a lot of notable new sponsors here. The Octagon seemed UFC heavy. Perhaps this is due to the anticipated holiday shopping season. The UFC had indicated that new sponsors would not occur until the first quarter of next year.

Post-UFC 140 Headline

The only real headline coming out of this event is what’s next for Jon Jones. While some wish for a Jones-Anderson Silva matchup, its more likely that Jones face Rashad Evans provided he gets past Phil Davis and stays healthy enough to make it to the showdown.

Odds and Ends

- Tito Ortiz is now calling himself “The People’s Champ.” I thought the Rock was “The People’s Champ?” Copyright issues? Of course, I thought that Marshawn Lynch would have copyrighted “Beast Mode” too.

- UFC Countdown show aired on the Fox Regional Sports Networks as early as Sunday before the fight (according to the Direct TV guide) but either I was not paying attention or there was a lack of notice, but I missed the Countdown show when it was on my RSN. It appeared on the Audience Network later in the week and was online so I was able to catch it. Not sure if anyone else had a problem finding it on their RSN.

Buy Rate

Early estimations on the buy rate for UFC 140 by the Wrestling Observer have it at 440,000 buys in the US and 480,000 buys worldwide. This is a positive considering the UFC’s string of sub-400 PPV buys.  It also shows that Jones is beginning to grow as a PPV draw. Jones vs. Rampage did 475,000 buys and it has improved if you take the worldwide buy rate.

MMA Payout had the opportunity to speak with the owners of CageHero, Mark Mastrandrea and Ian Parker as it recently re-branded itself focusing its business to target kids. Once a sponsor of fighters in the octagon, it has a new web site, a new clothing line and its CageHero Kids Team.

“We feel we can be the brand that really brings that innocent image to MMA- help it go mainstream,” said Mastrandrea, “We are re-branding to further target the kids. We feel there is a real need for a new generations Superhero.”

MP: When did Cagehero decide to target kids? What was the basis of your decision? Did you do any market research or look at trends to target a younger demographic?

CH: With the characters we have developed, we knew kids were always the ultimate destination.
We felt the need to educate the decision maker first. The 18-34 Male demo is the target everyone looks too, but we knew the increase in women’s interest-both as participants, and consumers in MMA was important too.  Both parents- the mother and father buy the kids their clothing.  When we looked at the numbers, we also found that the Youth Apparel Market is actually bigger then the Men’s Apparel Market.

MP: How did you find the kids to be in the commercial?

CH: It started with Stevo- the mohawked wrestling YouTube sensation.  When we saw his video on YouTube, it made both of us smile, laugh and really remember the days of Youth Sports. Days later we traveled to see him at a tournament to meet him, and his parents-the family were great people.  We then thought of the concept of the Cagehero Kids Team-  a compilation of the world’s best youth athletes across the world promoting there respective youth combat sports.    We checked out some kids in Vegas, California and then received some help from our friends over at Youth1.com.  In the past 2 days we have received almost 100 emails of new kids applying for the team.

MP: Are you still sponsoring MMA fighters? If so, who. Are they mostly in Bellator? I see that Ben Askren was in the commercial. Is he still sponsored?

CH: As far as the stereotypical MMA Marketing, walking out wearing our logo- Ben Askren is the only fighter in either Bellator/UFC that we will be marketing.  Ben is a great guy who really embodies our brand.  He also deals directly with kids, owning the Askren Brothers Wrestling Academy.  We do some outside signings/appearances with UFC guys, but for the time being we only “sponsor” in Bellator.

MP: How have/will the marketing efforts change as a result of the re-branding?

CH: We will continue to market in MMA-Bellator for now.  We have begun a stronger push with the Kids Marketing with Videos and a number of strategic partnerships with Youth-focused companies.  We are also starting to focus more on a grassroots level with a presence at Youth Wrestling Tournaments and BJJ Competitions.

MP: Are there any concerns that kids may be too young for MMA?

CH: When we started this company, we knew we were investing in the sport of MMA.  We’re passionate about it, and believe that one day it will be the largest sport in the world with acceptance by people of all cultures/ages.  With the UFC on Fox Deal, the recent Bellator-Viacom deal and the constant penetration of new markets- we think it’s only a matter of time.  Like Dana always says “Fighting is our DNA- we get it, we like it.”  Our brand will always have MMA roots.  It directly ties in with our characters as well.
Our Theory:
-In the 80′s the Teenage Mutant Ninja Turtles took over, representing the fictional art of “Ninjitsu”
-In the 90s- the Mighty Morphin Power Rangers, with martial arts/Gymnastics.
We are the new Superhero, with ties to Mixed Martial Arts- the new martial art.

MP: How will you try to bring MMA mainstream?

CH: We are trying to bring MMA Mainstream through the Kid’s Team, the characters and the message.  Some people, even if educated, are ignorant to the sport.  When you align it with Kids, Superheroes and a message like “The Hero Comes From Within”- it definitely puts the sport in a more innocent light.

Our full length script and artwork with our finalized characters is also completed.  We are currently taking it to market and attaching the proper people.

MP: What are the future plans for the brand?

CH:  The future plans for the brand is to further develop the Cagehero Kid’s Team with athletes throughout the world.  We are doing our first Youth Combine with Youth1, Ben Askren and some surprise UFC guests in the upcoming months.  Keeping the same comic book aesthetic.  As far as the Adults, we will continue to market in Bellator, and always keep our eyes open if the opportunity is right to go to the UFC. Our new adult line is more geared towards inspirational lifestyle apparel.  The Big Picture remains the same:  A comic book, a movie.  Become this generations Superhero.

Payout Perspective:

CageHero is a unique brand and based on its designs, it was poised to make an easy transition from the young male target demographic to the kids demographic. This is partly due to the comic book designs and partly due to its positive messaging. Certainly, the way the brand is positioning itself in the market, it seems like the most kid-friendly, parent approved brand to wear as opposed to the more adult-themed shirts from other brands.

The Strikeforce merger with UFC may have muted a portion of its fighters due to the UFC sponsor fee. Although it says that it may make a return, the brand has found another way to market itself within the MMA industry. Through outreach and visibility at youth wrestling and grappling tournaments and continutng its sponsorship of Ben Askren, it is making all the right moves in targeting youth with its new campaign.

CageHero also is participating in a campaign benefiting Clothes4Soul, an organization that facilitates the donations of new clothing to those in need. When you buy one shirt, it will donate one to the organization. Participating in this program helps the CageHero brand in showing that it truly is making a positive impression in the MMA community.

CageHero’s new info:
New Website:  www.cagehero.net
Facebook:   http://www.facebook.com/CAGEHERO
Twitter:  @cagehero

Georges St. Pierre is featured in a commercial with Ray Lewis, Tom Brady, Cam Newton and other athletes for the newest Under Armour ad campaign. The campaign entitled “Footsteps” launched in support of this year’s fall line of clothes.

A link to the commercial is here.

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Payout Perspective:

In this extended version of the UA commercial, GSP is prominently featured. The numerous Primetime and Countdown shows have served as good placement for UA as much of the time viewers watch GSP engaged in some form of workout with Under Armour attire. The new UA commercial is a positive step for GSP as it shows he is on par with the likes of NFL elites like Ray Lewis and Tom Brady when it comes to athlete endorsements. It will be interesting to see if more athletic brands sponsor MMA fighters. Last week, we saw that Anderson Silva will be sponsored by Nike at UFC 134. Jon Jones will have a K-Swiss shoe. We will see if other brands pursue the likes of Cain Velasquez, Jose Aldo, Frankie Edgar or Dominick Cruz. All champions and all marketable figures.

Welcome to another edition of Payout Perspective! This week we look at the much-maligned UFC 133 event in Philadelphia, Pennsylvania. In the main event, Rashad Evans took out Tito Ortiz to cement his spot as the number one contender in the Light Heavyweight division.

Evans knees Ortiz for win

Rashad Evans looked phenomenal and displayed no signs of rust after a 14 month layoff. Tito Ortiz looked good too but Evans was too much for Tito and a knee to the chest ended Tito’s night.  This was a fight that no one really lost. Evans secured his title shot and Ortiz spun his loss as “taking one for the team.”

Belfort takes care of Akiyama

Vitor Belfort made quick work of Yoshihiro Akiyama as he knocked out Akiyama in the first round. An impressive showing coming off of being KO’d by Anderson Silva. Interesting the finish came when Akiyama attempted and missed a front kick similar to that of Silva.

Ebersole KO’s Hallman and speedo

While most thought that Brian Ebersole’s “harrow” would be the quirky story of this match, it was Dennis Hallman wearing a speedo that convinced Dana White to award Ebersol a special KO bonus as well as banning all speedos from UFC competition. When I saw Hallman’s short shorts I immediately thought of what boxer Bernard Hopkins was thinking. As some may know, BHop used to hate MMA until the pubicity came to Philadelphia. He did get off one of the best takes about the sport on the Jim Rome show when he said he would lose to any MMA guy since he had notfought like that since “he was in prison or a kid.”

Ebersole received a “special” bonus as a result of his KO. For better or worse, the short shorts received mainstream notoriety from Deadspin and ESPN’s Page 2 created a list of “Worst Looks in Sports History” in honor of Hallman’s shorts.

Attendance and gate

11,583 were in attendance for a gate of $1.5 million according to MMA Junkie. The number of complimentary tickets were not provided. In comparison, 2009’s UFC 101 was a sellout with 17,411 in attendance for a gate of $3.55 million. The event, held in the same building as UFC 133, featured Anderson Silva vs. Forrest Griffin.

Bonuses

MMA Junkie reports the following bonuses for UFC 133. There were no submissions, so no submissions of the night were awarded. However, White awarded Ebersole a $70,000 bonus for getting Hallman’s speedos off of PPV. Other $70,000 award winners included:

Fight of the Night – Evans vs. Ortiz

KO of the Night – Vito Belfort

PR for UFC 133

Rashad Evans workouts were featured on Yahoo! Sports. Evans and NFLers Maurice Jones-Drew and Larry Fitzgerald were featured in a weekly series on elite athlete workouts.

Many Philadelphia celebrities were in attendance including Charles Barkley and Bernard Hopkins. Interesting that Hopkins was in attendance considering that he had bad mouthed MMA for some time.

White and Ortiz appeared on the Jim Rome Show. Similar to NASCAR, the Rome show has embraced  the sport by having UFC fighters on as well as talking about it on his show.

White gave away tickets for UFC 133 through its #Hunt4UFC twitter contest where White sent out tweets to locations of where to go if fans wanted free tickets.

Sponsorships

SafeAuto Insurance sponsored its usual band of UFC fighters as well as a  contest, “VIP at the UFC.” The brand activation integrated social media into its fan contest. When fans “liked” the SafeAuto Facebook page and filled out a contest form they had the opportunity to win a trip to UFC 133.

Tapout had a similar contest for UFC 133 in which followers either liked the Tapout Facebook page and tweet out “#TapoutTickets” in order to qualify. The winner was announced during the appearance of Skyscrape and Punkass on The MMA Hour last Monday.

According to Bloody Elbow, Rory MacDonald’s fight banner never made it behind him before introductions. A faux pas if you want to keep sponsors. Here it is:

Training Mask made a big splash with the sponsorship of many of the fighters on the card including Rashad Evans. And, it also sponsored the front of Hallman’s shorts. Training Mask put out what seemed to be a tongue in cheek tweet about its sponsorship of Hallman stating that it has no control of what its fighters wear.

Middle Easy sponsored Brian Ebersole. It was interesting to note that at the end of the fight, Joe Rogan referred to Ebersole’s “Bloody Elbow” after pummeling Dennis Hallman. Coincidence?

The fighter fashions are detailed in this post. Notably, Evans sported a white Jaco track suit top with a subtle Jaco logo. Yet, he wore a Tapout shirt post-fight. Nam Phan wore a gi that he took off in the entryway so that his t-shirt sponsor, Throwdown, got the visibility during the walkout.

Conan 3D had the fighter checkpoint sponsorship. Fortunately, no interview with its star this time around.

Harley Davidson, Dodge, Gamefly.com, Xyience, Edge, Boost Mobile and Bud Light had the center of the ring.

Post-UFC 133 Headlines

Evans vs. Jones/Rampage Super Bowl Weekend 2012.  Book it. Nobody get hurt.

Rory MacDonald. Probably the most impressive young fighter out there. It will be interesting to see what fights are ahead of the Canadian.

Tito Ortiz. Although he lost, he put on a good fight and it didn’t look like he was mailing it in. He’s regained respect with the UFC and will likely have a fight or two left with the company.

Despite many alterations to the card, UFC 133 had some entertaining, albeit short fights. If you wanted to see knockouts, UFC 133 gave it to you.

Odds and ends:

Did Shane Victorino help promote UFC 133 by starting a bench-clearing brawl Friday night?

Does everyone have Beats by Dre headphones that Evans wore at weigh-ins and walkout?

Joe Rogan mentioned Diamond MMA, a company specializing in compression shorts that hold cups in place to prevent groin shots, during the fights giving the company some good publicity.

The main card fights ended with almost an hour to spare. This happens when there are 4 KOs during the PPV. This was a night with lots of filler fights. It was a good chance to show the Facebook fights live.

Green Bay Packer linebacker AJ Hawk has signed a deal with MMA brand Clinch Gear. Hawk multiyear deal will have the former Buckeye endorse Clinchgear’s training gear.

Via Clinchgear’s press release:

Hawk will represent Clinch Gear’s growing line of performance training apparel, which includes the world’s leading Performance Training Shorts as well as technical compression and loose-fit Performance Shirts, compression shorts and compression briefs. Clinch Gear will also introduce A.J. Hawk signature products in 2012. The match was made by Conor Sammartin of Priority Sports & Entertainment.

Payout Perspective:

First Chad Ochocinco signed with Tapout and now A.J. Hawk signs with Clinch Gear. Ironically. as I wrote this ESPN was interviewing Clay Mathews about his offseason MMA training. Its interesting to see how much football players enjoy MMA. And as a result, MMA brands are taking advantage of the opportunity to expand its audience through these endorsements.

MMA Payout had the opportunity to get in touch with Chief Operating Officer Marty Furman of Toyo Tires, USA Corp. He talks about its sponsorship with the UFC and Anthony “Showtime” Pettis.

MP: Where are your headquarters? When was Toyo Tires founded? How many employees?

Toyo: Toyo Tires started back in 1945, in Osaka, Japan.  In 1966, we were the first Japanese tire manufacturer to establish a subsidiary in the United States and we sold commercial truck tires out of Southern California. Now, 45 years later, Toyo Tire U.S.A. Corp. offers a complete line of premium tires including ultra-high performance, luxury touring and eco-friendly tires for passenger cars and crossovers as well as highway, all-terrain and mud-terrain tires for light trucks and SUVs. We still sell commercial tires too.

We are headquartered in Cypress, California with more than 75 employees and our tires are sold across the country by independent tire dealers. Toyo Tires also has a state-of-the-art manufacturing plant in Bartow County, Georgia, which means many of our tires are made right here in the United States.

MP: What is your specialization/industry? What demographics are you hoping to target with the UFC sponsorship?

Toyo: Our tagline “Driven to Perform” echoes our focus on performance and quality, from our products to our customer service to our activities beyond tires.  It is an important message in our marketing this year.  Through sponsorships and activities like the UFC we want to reach people who are Driven to Perform in life – at work, at play, with their family and in their community. In fact, very soon Toyo will announce a national sponsorship with one of the leading health based research organizations that is really Driven to Perform by finding new cures and treatments for a disease that affects so many people around the world.  Watch for our announcement on Facebook and Twitter.  These people embrace brands that help them to be their best and when it comes to performance on the road it’s Toyo Tires. We feel it isn’t about being a certain age or being a man or a woman, it’s really a frame of mind and an attitude.  We believe the UFC fans are Driven to Perform.

MP: Why did Toyo Tires leave its sponsorship with the UFC in 2008?

Toyo: In early 2009, due to the difficult economic environment we had to reduce costs like most companies in the U.S..  However, we stayed connected to the UFC by supporting a few individual MMA fighters.

MP: What drove the decision to renew its sponsorship with the UFC in 2011? How long is this sponsorship agreement with the UFC?

Toyo: One of our goals in 2011 is to focus on sports, activities and people that we feel exemplify “Driven to Perform.”  UFC has never been far from the minds of our team so when we had the chance to revisit our sponsorships it was high on the priority list; after all, Driven to Perform could be on the wall of every training gym.  We had maintained a great relationship with the staff there so when we called and said we were ready to talk they listened. Here we are, back as Official Tire of the UFC for 2011.

MP: What are the terms of the sponsorship with the UFC?

Toyo: As Official Tire of the UFC, the Toyo Tires logo will be seen on the sides of The Octagon^™ during six live UFC Pay-Per-View events.  In addition, the Toyo Tires logo is included on the canvas for select UFC^® Fight Night^™ events broadcast on VERSUS^® and Spike TV^®.

MP: How did Toyo Tires come to the decision of sponsoring Anthony Pettis? Did Pettis’ representation seek you out or did you seek out Pettis?

Toyo: We have had a long standing relationship with MMA Inc. and have worked with several of their fighters in the past including Urijah Faber and Mark Munoz. Talking with Mike Roberts we felt Anthony was the perfect fit for Toyo – he is a young star in the making who is Driven to Perform and he also happens to love cars.

Showtime

MP: Do you see Toyo Tires sponsoring other UFC (or Strikeforce) fighters in the future?

Toyo: Definitely. In fact, you caught me on the right day because I am going to let MMAPayout.com in on an exclusive… we just completed a deal to sponsor UFC middleweight Mark Munoz. Munoz will wear Toyo Tires on his fighting shorts when he faces Damien Maia at UFC 131 in Vancouver.  He will also promote our brand through appearances and additional marketing efforts. We look forward to working with him again.

MP: Does Toyo Tires plan other forms of brand activation/promotion with the UFC or Anthony Pettis?

Toyo: Without giving too much away – Yes, we will be doing more with Anthony in the very near future. I encourage fans to keep an eye on the Toyo Tires Facebook page and Twitter account.

MP: You recently launched a social media initiative which includes a Facebook and Twitter page, can you tell us if it will use this to promote the UFC and/or Anthony Pettis?

Toyo: Absolutely! We are promoting all of our activities and partnerships through our Facebook and Twitter pages. It’s all about sharing experiences with our fans.  We are posting pictures from UFC weigh-ins, loading exclusive interviews with our athletes like off-road racer Robby Gordon and congratulating autocross racers who win on Toyos.

In fact, this Saturday we will be tweeting and posting pics from the Official Anthony Pettis After Party at the Palms Hotel and Casino. We are co-presenting it with our friends at FORM Athletics.

MMA fans can also download a cool wallpaper image of Anthony doing his famous kick from www.facebook.com/toyotires. It’s sized for computers and mobile phones.

But in addition to everything we are doing, we want the fans to share too! We want them to share their experiences with their Toyos, post pictures of their cars, talk about the UFC fights – really build a Toyo Tires community. (www.facebook.com/toyotires and www.twitter.com/toyotires)

MP: Has Toyo Tires been able to measure its sponsorship with the UFC so far to determine if it’s receiving a return on its investment? If so, how do you measure the return?

Toyo: The feedback from our dealers and from consumers has been overwhelmingly positive.  We really appreciate the many emails and tweets from fans thanking us for supporting the UFC!

Our dealers are excited that we are involved in a sport that is gaining more and more fans every month. For them, it means more potential customers are seeing the Toyo brand and awareness is growing.

Our employees are also excited. Of course our Sales team receives positive feedback from employees at the dealerships but many of our office employees have their own stories of being at a party, even the dentist, where when they mentioned they work for Toyo Tires people have said, “oh yeah, I’ve seen you on the UFC!” It’s a good feeling for them.

MP: It’s my understanding that Toyo Tires and Form Athletics are working together on promoting Anthony Pettis and Form Athletics is producing his walkout kit for his fight at The Ultimate Fighter Finale. Can you explain how the collaboration came about and how Toyo Tires will be displayed in the kit?

Toyo: We actually met FORM Athletics through MMA Inc. Since then, our marketing teams have collaborated on the fighter gear and the Go Time Twitter promotion which just wrapped up this week. One lucky fan won workout gear signed by Anthony along with a set of Toyo tires. That was our first promotion on Twitter and the response was awesome!

When Pettis walks out this weekend Toyo Tires will be prominently featured on his shorts.  Right now fans can also get an exclusive Pettis/FORM/Toyo Tires t-shirt through MMAWarehouse.com when they purchase $75 or more in FORM gear.

Form Athletics has teamed up with Toyo Tires and MMA Warehouse in promoting Anthony “Showtime” Pettis in preparation for his UFC debut this Saturday against Clay Guida. “Go Time with Showtime” offers weekly prizes to fans that offer well-wishes to Pettis via twitter.

Via FORM Athletics press release:

The promotion, aptly called Go Time with Showtime, offers fans the chance to win weekly prizes and a grand prize package simply by sending a special good luck Tweet to Pettis (@showtimepettis), FORM Athletics (@formathletics) and Toyo Tires (@toyotires).

FORM Athletics and Toyo Tires followers who pledge their twitter support for Pettis will be entered for the chance to win weekly prize packages featuring limited edition Toyo Tires x FORM Athletics x Pettis t-shirts, hats and workout towels. One grand prize winner will be chosen on June 2nd and kitted out with a Go Time with Showtime pack including: Pettis signed FORM Athletics walkout fight shorts x Pettis t-shirt and a set of Toyo Proxes 4 tires. Tweets must include @showtimepettis, @formathletics, @toyotires and #GoTime.

For more information, check here. No purchase is necessary.

In addition, MMA Warehouse is offering fans who spend $50 or more on Form Athletics gear through its web site will receive a limited edition Form Athletics/Toyo Tires t-shirt as a gift while supplies last.

Payout Perspective:

This is a unique way to promote Pettis’ debut as well as his sponsors. Its also a way to bolster the twitter presence of each while pumping up Pettis for his debut. Its a good way to take advantage of social media. For fans, the level of effort to enter is minimal considering all you need to do is have a twitter account and send a message.

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MMA lifestyle apparel brand Affliction Clothing is set to open a 5,000 square foot retail location at its world headquarters in Seal Beach, California. According to a press release, the SoCal location is holding a grand opening June 4th.

This will be the 10th Affliction Clothing store.

Via Affliction’s press release:

Consistent with Affliction’s attention to quality and design, the store will exemplify the Affliction esthetic, offering custom made fixtures with signature rivet detail, unique display pieces, such as a custom Rat Rod car and memorabilia autographed by Affliction’s loyal celebrity following.

Payout Perspective:

The opening of Affliction’s largest store indicates that the MMA apparel industry is growing. In this week’s Sports Business Journal (subscription required but more on this later) there is a featured article about the growth and expansion of the UFC. One of the areas that was cited as needing work was the lifestyle component of the UFC brand. While there can be a debate as to where the design and concepts for clothing should go, Affliction has defined its style and based on its growth, it is hitting the mark with its demographic.

MMA Payout had the opportunity to speak with Mark Mastrandrea about his company Cagehero. Founded in 2010 along with Ian Parker, Cagehero t-shirt designs are not the usual MMA brand of skull and crossbones design.

MP: When was Cagehero established? How long have you been in business? Where are your offices?

CH: Ian Parker and myself, Mark Mastrandrea, founded Cagehero in the spring of 2010.  Cagehero is headquartered in New York City with members in California and Florida.

MP: Where did you get the concept? Inspiration? Are you comic book fans?

CH: Ian and I have been best friends since we were 3 years old.  Ian was a former amateur MMA fighter and comic book fan and I have previous experience with apparel and marketing.  When we came up with the name Cagehero, we conceptualized a brand that would mash together the MMA world and comic book world.

MP: Who does the designs? Who draws the characters, decides on the t-shirt design, etc?

CH: All the characters are conceptualized by myself and Ian.  The characters/designs are done by our in-house design team.

MP: Did you see a niche for your designs in MMA? Did you conduct any market research to see if people would want to purchase your shirts?

CH: In a space where most of the clothing is aesthetically based around skulls, bones, violence and cluttered design, we saw an opening.  We wanted to create a brand with clean designs and a certain level of innocence, a brand that any age could wear.  We wanted to not only stay in our own lane aesthetically, but also message wise. We inspire through our mantra “The Hero comes from within.”

Character driven shirts have been successful in an array of different markets and ages.  If you look at anything for the youth, like Dora the Explorer and Hello Kitty, all the way up to the older age with Anime and Marvel designs.  We’ve found many MMA fighters are big fans of comic books and superheroes as well.  What fighter wouldn’t want to represent a superhero?

MP: I understand that Cung Le was your first MMA sponsored fighter? Did you contact him, or did he contact you?

CH: When it was time to start putting together our Cagehero Roster, Ian reached out to Zinkin Entertainment.  After speaking with DeWayne Zinkin and Bob Cook, we came to the conclusion that Cung Le would be a great ambassador of the brand.  Zinkin and Cook reached out to their client, and Cung asked to speak with Ian before signing.  After hours of telephone conversation between the two, Cung felt at home with the brand and knew it was something to believe in.

MP: Is there a process when you sponsor fighters? How do you select fighters to sponsor?

CH: We always look to sponsor fighters with a certain level of character and charisma.  We don’t want the fighters to just wear the shirt, we want them to believe in the brand and become a part of the Cagehero family.

MP: Which organizations can you find fighters sponsored by Cagehero? Any chance Cagehero ever appears in the UFC?

CH: We predominately sponsor fighters in Strikeforce – Cung Le, Mayhem Miller, Luke Rockhold, Daniel Cormier, Josh Thomson, Miesha Tate, Gian Villante, Lavarr Johnson, Mike Kyle.  We also sponsor Bellator champ Ben Askren, and Brett Weedman.  We recently signed UFC Hall of Famer Chuck Liddell to endorse our brand at UFC events as well.  As far as the move to the UFC… I guess you will have to wait and see!!

MP: What has been the response to your designs? Have you received any suggestions that you have used?

CH: Feedback has been great.  People tell us it is refreshing to a see a different brand that actually stands for something.  We are always open to suggestions from everybody.  Our fighters love to give insight into the characters they wear for their walkout as well.

MP: What is your biggest selling t-shirt?

CH: Our biggest selling shirt is our signature logo shirt “The Glow”.  This has been a hit for people of all ages.  Our Cagehero character shirt “The Fire” has gotten great response too.

MP: How has the business grown since you opened?

CH: We have steadily grown our business since day 1.  Just last weekend at Magic we broke into an additional 22 stores.

MP: What ways do you market Cagehero aside from sponsorship of fighters? Ads? Social media, etc.?

CH: Sponsoring fighters to become ambassadors of our brand, both in and outside the cage, is our primary form of marketing.  We have advertisements in industry magazines/websites, and social media marketing on FB/twitter.  We are currently producing some viral videos and developing a full-feature comic book.  You also could see our brand in the video game EA Sports MMA, as well as MMA Supremacy (releasing this summer)  Over the next 6 months we will be implementing a marketing  program to the youth and comic book world.  Also, a collaboration with a well known Street wear brand.

MP: What are the long-range plans? Any plans of expansion? Other products, etc.?

CH: Our long-term plan is to become the next Marvel.   We want our brand to spread outside of the MMA world, to connect with the comic book world, and also with youth across the world. We are in the process of developing our comic book and are in talks for action figures and our own video game.  We are working hard to create our own world, with in depth stories behind each of the characters.   To get an idea, go to cagehero.net and download our online catalog on the bottom left!

We are rolling out more products as we speak!

Check us on Facebook: CAGEHERO, Twitter: @cagehero, Website:  cagehero.net

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Welcome to another edition of Payout Perspective! This time we look at UFC 127 which took place at the Acer Arena in Sydney, Australia. The main event saw a draw between Jon Fitch and BJ Penn. In the other featured bout, Michael Bisping defeated Jorge Rivera after an illegal knee and a questionable decision to continue the fight.

Fitch-Penn Draw

Although one judge had Jon Fitch beating BJ Penn, the other two judges scored the fight a draw resulting in a majority draw decision. Two judges scored the fight 10-8 for Fitch in the third which caused the draw. While the draw may not be the most questionable call of the night, it was an interesting matchup with both fighters displaying their strengths. At the end, it had BJ bummed, and contemplating retirement and Fitch uncertain of the direction of his career.

Bisping illegal knee drops Rivera, then KOs Rivera

Michael Bisping is a sensitive guy. At least that’s how he started his post-fight interview with Joe Rogan. He certainly displayed this characteristic after his illegal knee put Jorge Rivera on Dream Street. Perhaps the knee was due to the emotion of the trash talk videos Rivera made in ramping up to the matchup. Inexplicably, the ring doctor and ref did not take control and stop the fight. Instead, they asked Rivera if he could continue. What do you think would be the response? Rivera was game enough to hold off Bisping momentarily before the stoppage. After the fight was when the real fireworks began as Bisping spat at Rivera’s corner as well as middle fingering the crowd (or someone in the crowd but the camera panned away). Bisping’s actions caused a mention on ESPN’s Sportsnation.

In recent memory, when most bad blood fights happen (except Rashard-Rampage); the fighters are professional in squashing whatever beef they had after the fight. Bisping looked like he would do the same, but he decided to rub it in. Even Paul Dailey thought the illegal knee was unprofessional. The UFC has decided to punish Bisping for spitting at Rivera’s corner, not for the knee.

All of the bad blood stems from the trash talk and videos made between the two. From a fan perspective, the hype is great and it’s definitely motivation to watch a fight (which frankly did not look too exciting on paper), but as professional fighters they have to know that what’s said to hype the fight can’t be taken personal. Yet, both camps (Alchemist-Wolfslair) are still issuing statements calling out the other.

For Bisping, Vito Belfort and Chael Sonnen (assuming his career is thawed out by the UFC) have already requested to fight him. Does anyone else think it should be Bisping calling out Belfort and/or Sonnen?

Last minute fill-in Ebersole becomes feel good story of UFC 127

Self-proclaimed journeyman Brian Ebersole upset Chris Lytle in his debut in the UFC. It was great to see Ebersole’s raw emotion on two specific occasions: as Ebersole readied himself to enter the Octagon for the first time and at the end of the fight. The cameras caught Ebersole realizing his dream–good TV.  Ebersole was unique as seen with his cartwheel kick, shaved chest and wearing headgear to the ring. Great visibility for Hayabusa-Ebersole’s sponsor.

Bonuses

Fight of the Night honors went to Ebersole and Chris Lytle for their fight.

Former TUF cast member, Kyle Noke won Submission of the Night honors with an early choke out of Chris Camozzi.

Mark Hunt won KO of the night with his second round beat down of Chris Tuchscherer. It was also featured on ESPN’s Sportsnation.

Each fighter earned an additional $75,000 to their pay. (H/t MMA Junkie)

Attendance and Gate

As previously reported, UFC 127 was a success as it set the record for attendance for UFC events outside of North America. 18,136 fans attended for a gate of $3.5 million.

Facebook/ION/PPV

For the first time, the UFC aired its fights over three platforms: Facebook, TV and PPV. The ION broadcast garnered 714,000 viewers according to MMA Junkie. This is down from the 829,000 viewers of ION’s initial broadcast in January. This is a significant downturn from the UFC 126 prelims on Spike TV which garnered an all-time best of 2 million viewers.

Despite the decrease in viewership for UFC 127, fans had the opportunity to watch more fights. The drawback was that you had to switch from your computer, to finding the ION channel (again) and then switching to PPV. Not the most convenient for the casual fan.

Sponsorship Watch

SafeAuto Insurance – This was the first of several times this year where SafeAuto will be on the mat and ring posts for the UFC since it became an official sponsor.  It also sponsored Dennis Siver in his upset victory over George Sotiropoulos.

Lids –The hat store, a new sponsor to the UFC, was presenting sponsor of the Tale of the Tape. Interesting to see it becomes involved in MMA sponsorship.

Gamefly.com, the Netflix of video games, and new shooter game Killzone3 were prominent sponsors with the former having its logo on the center of the ring and the latter on the ring posts.

US Marines sponsored the mini-Fitch and Penn Keys to Victory segment. This is a nice segment that they started at 126. It’s a new way to get sponsor visibility during the PPV.

Dethrone Royalty – Surprisingly, there were a lot of positive comments about Jon Fitch’s walkout shirt which depicted a dog.  It definitely was a nice alternative to the usual fare.

Public Relations for 127

Like other places where MMA is trying to penetrate the market, some local newspapers wrote negative pieces (here and here ) about the sport in general. The Herald Sun had an especially ignorant rant on MMA.  For the UFC’s part, it conducted a PR tour in December. The tour consisted of going out into the community, working out at local gyms and giving interviews to local press. Educating the public on the sport is the key for it to make inroads in new markets.

The UFC contributed to the relief efforts for Tropical Cyclone Yasi which caused widespread flooding in Australia. The UFC held an auction featuring UFC memorabilia with funds going toward flood victims. It also matched the fight purse of James Te Huna, who donated his fight purse to the relief efforts. This was a good move by the UFC in recognizing an opportunity to help the community. It shows that it is more than just flying in, making money and leaving.

In the less serious department, during fight week, the UFC had multiple greet and grin opportunities as UFC fighters visited a rugby team, went surfing at Bondi Beach and the UFC Octagon girls visited the zoo.

Storylines Post-UFC 127

- What now for Fitch and Penn? Is a rematch in the future and does anyone want it? Both sides seemed dejected afterward. Fitch wants a shot at the Shields-GSP winner but that is unlikely. Although Penn wondered about hanging it up, it would be hard to see him going out like this.

- Siver upsets Sotiropoulos. Dennis Siver’s win over George Sotiropoulos in front of his homeland crowd stopped Sotiropoulos’ march to the top of the 155 contender list.

- Zhang wins. A preliminary bout with potential major implications. Tiequan Zhang dropped down to 145 pounds and submitted Jason Reinhardt. Zhang, coming off an upset loss needed a victory here. It’s not too big of a stretch to say that Zhang’s success will make it easier for the UFC to create inroads into China. With the global expansion of the company, it would benefit the UFC if Zhang does well at 145. In his post-fight interview he noted that he doesn’t feel pressure to grow the Chinese market but believes the UFC will be in China.

- Judges do it again. Not only was there questionable scoring made in the main event and sketchy decision-making by the ring doctor and ref in the Bisping-Rivera fight,  the judges got it wrong in the Nick Ring-Riki Fukuda fight. Dana White said as much as he tweeted that Fukuda would receive his win bonus despite the loss.

- Australian crowd. The Aussie crowd showed its knowledge of MMA and was into the fights. The attendance reflects the popularity of the sport down under. It was announced that a possible stadium show in Australia could happen in the future. Australia could be marketed as an annual destination stop for the UFC.

Odds and Ends

- Other than the draw, what received more attention for Jon Fitch: his shirt or his diet?

- Speaking of t-shirts, I thought BJ Penn’s shirt/banner, “Aloha Mate” with Mate upside down was pretty clever. Penn was a fan favorite in Sydney.

- Did you know Kyle Noke was “The Crocodile Hunter” Steve Irwin’s bodyguard?

- Sonnen and Belfort use email and twitter to lobby for a potential matchup with Michael Bisping. Doesn’t anyone use a cell phone to text anymore?

Form Athletics released a video supporting its Fall 2011 clothing line. With its tagline: “Finally a brand you’ll want to wear,” it looks to be more than just t-shirt designs.

The video shows the Form stable including Urijah Faber, Mark Munoz, Jon Jones (shooting pool in the shadows), Chad Mendes, Joseph Benavidez, Scott Jorgenson and Anthony Pettis.

Payout Perspective:

A very cool video inspired by Ocean’s 11. With its recent signings of Jon Jones, Showtime Pettis as well as its focus on being a lifestyle brand, Form is differentiating itself from other MMA brands. It looks like the style is cleaner with fewer huge logos. One sticking point, may be price. A Jon Jones’ hoodie costs $87.99. Will the MMA crowd shell out the money to buy clothes at a higher price point?

Internet retailer MMA Warehouse received a major financial boost when PAG Capital Partners made a major equity investment in the online apparel company Thursday. 

Via PAG Capital Partners press release (h/t Robert Joyner on twitter):

MMA Warehouse, LLC is a leading internet retailer specializing in selling a wide selection of mixed martial arts gear, apparel and accessories. MMA Warehouse sells products directly to consumers all over the world through its flagship website. Mika Casey will continue in his role as Chief Executive Officer and has retained a significant ownership stake in the company.

Established in 2004, MMA Warehouse has grown to become one of the largest mixed martial arts retailers in the world. The company achieved record performance in 2010 by providing its customers excellent service and an extensive selection of high-quality merchandise from the industry’s top brands.

“We are very excited to have completed this transaction as we head into 2011,” said Mika Casey, CEO. “In PAG Capital, we have found a partner that will best position us to capitalize on the strong worldwide growth of the mixed martial arts industry. PAG Capital’s strategic and financial support will enable us to continue to invest in our platform, expand our marketing capabilities, and capitalize on the many organic growth and acquisition opportunities available to us in the industry.”

Alex Fridman, Partner at PAG Capital, said, “MMA Warehouse’s track record of growth, best-in-class platform and excellent customer service makes this a very exciting investment for PAG Capital. Mika Casey and his team have built an industry-leading company and we are committed to support them as they build on their momentum of growth and success.”

Payout Perspective:

According to its web site, PAG Capital focuses on acquiring lower middle market companies with untapped potential and partnering with management to build great businesses.   This is a good indicator of the continued growth of mixed martial arts if an investment firm is willing to provide financial backing for an online retailer of MMA goods. With the ever expanding UFC and Strikeforce, investors foresee a demand from consumers for MMA goods.

It will be interesting to see what MMA Warehouse will do next. How will it expand its business? Is a physical storefront in its long-term planning? Will it acquire other online retailers?

T-Shirt manufacturer Silver Star had to respond to questions about one of its shirts as the design was similar to a Nazi symbol. The controversy came up when Clay Guida wore the shirt during an interview. Although Guida defended Silver Star in stating that the designers did not know of the perceived Nazi affiliation, the company pulled the shirt a year ago due to the Nazi similarities.

Via Cagewriter:

Silver Star has quickly apologized and said the shirt was discontinued a year ago. They said they didn’t realize the association between the design and the Nazis. I’ll buy that, simply because the swastika is the symbol most often associated with the Nazi party. After that, unless you’re addicted to the History Channel, it’s not always easy to associate every symbol.

The symbol in question is the totenkopf.

Payout Perspective:

Silver Star did the right thing by addressing this issue immediately. From a PR standpoint, it pointed out that it realized the issue and its solution was to take the design off the shelves. The unforseen problem was that Guida had the shirt and likely put it on without thinking of it. Since it pulled the t-shirt a year ago, Silver Star could have notified all of its sponsored athletes that they should not wear it due to the Nazi association. Obviously, this task may be asking too much, but Silver Star could have covered its bases it trying to preserve its image.

As Maggie Hendricks points out in her Cagewriter article, the best way to avoid confusion with Nazi imagery is to have fresh t-shirt designs. I agree that t-shirt makers need to come up with creative designs that do not just depict skulls, crossbones, iron crosses or any other symbols of war. Obviously, t-shirt designers make shirts based on its audience. Many manufacturers have designs featuring skulls and other logos showing aggression. While there is a segment of MMA fans that like the designs, makers should check the source of its inspiration for the designs. As in the case of this design, it was politically incorrect. Hendricks points out that other shirt makers, like Cagehero, have unique designs devoid of the war themes.

T-Shirt manufacturer Silver Star had to respond to questions about one of its shirts as the design was similar to a Nazi symbol. The controversy came up when Clay Guida wore the shirt during an interview. Although Guida defended Silver Star in stating that the designers did not know of the perceived Nazi affiliation, the company pulled the shirt a year ago due to the Nazi similarities.

Via Cagewriter:

Silver Star has quickly apologized and said the shirt was discontinued a year ago. They said they didn’t realize the association between the design and the Nazis. I’ll buy that, simply because the swastika is the symbol most often associated with the Nazi party. After that, unless you’re addicted to the History Channel, it’s not always easy to associate every symbol.

The symbol in question is the totenkopf.

Payout Perspective:

Silver Star did the right thing by addressing this issue immediately. From a PR standpoint, it pointed out that it realized the issue and its solution was to take the design off the shelves. The unforseen problem was that Guida had the shirt and likely put it on without thinking of it. Since it pulled the t-shirt a year ago, Silver Star could have notified all of its sponsored athletes that they should not wear it due to the Nazi association. Obviously, this task may be asking too much, but Silver Star could have covered its bases it trying to preserve its image.

As Maggie Hendricks points out in her Cagewriter article, the best way to avoid confusion with Nazi imagery is to have fresh t-shirt designs. I agree that t-shirt makers need to come up with creative designs that do not just depict skulls, crossbones, iron crosses or any other symbols of war. Obviously, t-shirt designers make shirts based on its audience. Many manufacturers have designs featuring skulls and other logos showing aggression. While there is a segment of MMA fans that like the designs, makers should check the source of its inspiration for the designs. As in the case of this design, it was politically incorrect. Hendricks points out that other shirt makers, like Cagehero, have unique designs devoid of the war themes.

Jonathan Snowden of BloodyElbow has written an interesting sponsorship piece that argues the combination of the UFC’s sponsorship policies and the bad economy are hurting the fighters. He also suggests that this confluence of factors has perpetuated the fight camp issue over the last year.

As the UFC continues to record record profits at events around the world, it’s never been harder, in the post Ultimate Fighter world, for a fighter to secure a lucrative sponsorship deal. This is particularly true for fighters outside of the Zuffa empire – and it’s not just a product of an economy staggering and reeling like Zab Judah after a Kosta Tsyzu flurry. It’s part of a calculated campaign by the UFC to hurt its competition. Unfortunately, the primary victims are the men and women trying to make a living in the cage.

 

In many ways, this is just a reality of today’s business climate. While we often think of the UFC as an established monolith, the Fertitta brothers have actually owned the company for less than a decade. It’s still a very young business, run by the hyper-competitive Dana White. He wants the UFC to be associated with MMA the way professional football makes fans immediately think “NFL.” And he’s not afraid to play hardball with sponsors and rival fight promoters to get there.

 

“As the market collapses and the major sponsors keep cutting back, television fighters are losing their leverage. Guys without names are being pushed out of the market entirely,” one agent told Bloody Elbow anonymously for fear of retribution. “Clients outside the UFC are in even worse shape. Apparel companies are walking on eggshells and essentially won’t touch anyone outside of the UFC they don’t already have a deal with. No one wants to get banned.”

Payout Perspective:

I agree with the basic argument that the combination of the UFC’s sponsorship policies and the current economy have hurt the fighters financially. I also concur that this financial instability has helped to perpetuate the fight camp mentality that is currently wreaking havoc with many UFC divisions. However, I feel as though the article from Snowden unduly frames the UFC as the greedy bad guy in this situation.

It should be pointed out that official UFC sponsors are paying millions of dollars every year for a very particular, and often exclusive, set of rights. What other brands are doing through the sponsorship of fighters inside the Octagon is tantamount to ambush marketing. In that sense, the UFC is justified in charging the excess sponsorship fee as a means of curtailing these ambushing strategies, not of punishing or harming the fighters.

Tapout has become synonymous with the UFC by virtue of its long-held official sponsorship (essentially ownership) of the apparel category. Yet, if we were to erase all memory of Tapout from our collective brains and insert them as official sponsor today – given the current UFC sponsorship climate – does anyone really think Tapout would have a snowball’s chance in hell of becoming as strongly associated with the UFC? No, absolutely not, and that’s the concern here. The level of confusion that exists as the result of ambushing may really hinder a brand’s ability to collect ROI/ROO. This, of course, then has some bearing on the ability of the UFC to solicit sponsorships across its official categories.

However, it’s also fair to acknowledge that the UFC has been less than consistent on this front. Bud Light is the UFC’s largest corporate partner and official beer sponsor, but the UFC has in recent years signed both Miller Lite and Mickey’s Malt Liquor to sponsor its TUF program on Spike TV. The same can be said for Xyience and AMP Energy or BSN and MusclePharm.

The Fighter Sponsorship House of Cards

The ability of brand’s to collect an ROI/ROO is also the reason I believe fighter sponsorship is a house of cards waiting to collapse. Yes, fighter sponsorship has played a pivotal role in helping to support fighters in the early years, but there simply isn’t a strong enough return under the current model to justify the investment. It’s not just a case of the economy being tough, either. It’s a case of the sponsorship industry waking up and finally understanding that this 1980′s model of sponsorship of cash for signage is absolutely ridiculous.

Investors have seen the success of the UFC or Tapout and figure they can achieve something similar. Unfortunately, it’s not that easy. ABG’s acquisition of Tapout, Hitman and Silver Star is just the start of what will likely be a great deal of consolidation in the industry over the next few years. Some of these brands will be purchased by larger holding companies in order to gain market share, capitalize on economies of scale, and accumulate negotiation leverage. Many of the others will close up shop because they can’t differentiate their brand from the plethora of competition.

The brands that do survive are going to be the ones that figure out how to differentiate. Here, I do see a role for fighter sponsorship, but it’s likely to be something far closer to the contemporary endorsement agreement that brands have with today’s top athletes. The brand will pay for likeness rights and commitments to advertising, a set number of appearances, and specific social media interaction with the brand. Any sort of fight night signage will probably end up being a throw in or small percentage of the overall deal.

Why? The value in sponsorship comes from the generation of repeated impressions with an audience across a host of different message channels. The fighter’s appearance on a televised card with minuscule logos on his advertising banner or fight shorts simply is not enough to generate material ROI; and if that’s all the fighter is doing for the brand, there’s likely to be very little ROO, either.

The brands that find a way to create an integrated marketing strategy and then incorporate the fighter into that strategy will be most successful at leveraging his abilities to gain traction with the consumer.

Before they enter the octagon at UFC 124, pay attention to the walk out of Georges St. Pierre and Josh Koscheck as they will be wearing t-shirts of their respective sponsors: Affliction and Dethrone.

The GSP shirt is touted as a limited edition Affliction shirt with only 500 made. With a price point of $57.99, its more than buying the PPV (if you purchase the PPV on DirecTV HD – $54.95).

Josh Koscheck’s  Dethrone “walkout t-shirt” is not a limited edition, but comes in all black and all red (pictured) and has a “Kos” logo. Koscheck’s shirt is “reasonably” priced at $27.99.

Payout Perspective:

Similar to replica jerseys in team sports, for fight fans, t-shirts are a practical way to support your favorite fighter. Although many people do not like the huge designs, depictions of destruction, skulls or devils, I expect many fans wearing Affliction and Dethrone gear at the fight on Saturday. As for the two shirts above, I think the price point for GSP’s t-shirt is too expensive for an average MMA fan. Even a $28 Koscheck shirt seems a bit high, but is much more manageable on the wallet.

It would be a nice coup for Dethrone if it could claim to have the UFC Heavyweight Champ and the UFC Welterweight Champ. Possible slogan: “The brand of champions”?

*Note: I realize GSP may be wearing his gi during the walkout, but he should have his shirt on at the end of the match.

Silver Star Casting Company has been making waves recently by sponsoring some of the UFC’s most prominent fighters, but it looks to make a splash of another kind with the debut of its MMA certified fight gloves.

Silver Star Casting Company Debuts Knockout Round of MMA Fight Gloves

 

(IRVINE, CA) – Silver Star Casting Company enters the sports equipment market with the debut of technical MMA fight gloves in February 2010.

 

The lifestyle brand that put a stranglehold on the MMA apparel market with their signature walkout tees for champions such as Anderson Silva, Lyoto Machida, Georges St. Pierre, Rashad Evans, and Wanderlai Silva has taken the next step by entering the sports equipment market, , Silver Star has blended their notorious graphics, edge and tattoo style to create a collection of technical MMA fight gloves. The gloves are specifically designed for MMA training and fighting, and are the first fight gloves to feature full-color, graphic details. Wanderlai Silva broke the gloves in at a recent training session and photo shoot in Las Vegas.

 
With knuckle-tats, skulls and spiderwebs, the Silver Star MMA fight gloves are commission approved and MMA specification and certified. Made with tapered, piped fingers, these traditional style MMA gloves feature an open palm for full mobility and grip with a double wrap-around hook and lock velcro closure. Available in leather or synthetic leather. Sizes range S/M and Large/XL.

 

Payout Perspective:

Silver Star currently offers t-shirts, shorts, headwear, jewelry, accessories, and a women’s line, so the addition of the gloves pushes it a little closer to competing with Tapout in terms of sheer product variety. However, it’s got a ways to go in terms of brand equity within the MMA market. Not to mention that it claims to be paying its fighters more than anyone else in the business, which leads me to question how much of a solid foundation they’ve managed to build.

Bruce Buffer, the long-time ring announcer for the UFC, has officially signed on to be the newest brand ambassador for the Silver Star clothing line:

(IRVINE, CA) – Main “Voice of MMA” for the Ultimate Fighting Championship main events, Bruce Buffer, has inked a deal with Silver Star becoming the heavy-hitting MMA apparel brand’s official ambassador, a deal that includes an upcoming signature Bruce Buffer tee by Silver Star.

 

Buffer, first began at UFC 8 and has announced every show for the UFC since UFC 13, plus K-1 kickboxing events, Abu Dhabi Submission Wrestling Championships, HBO Boxing and many other MMA events internationally. In addition to hosting the popular “IT’S TIME!” life-styles radio show on BufferZone.net, Buffer is also a world-ranked poker player on the professional circuit who has been seen on ESPN’s World Series of Poker Main Event and placed 6th in Season 3 of the World Poker Tour and is a “Pro Player” for Full Tilt Poker. Aside from his love of the UFC and MMA, he is also an avid surfer and works in many areas of sports and entertainment.

 

I wanted to align myself with a brand that’s worn by champions and coveted by fans,” said UFC announcer, Bruce Buffer. “I respect the true spirit of sportsmanship fueling Silver Star and its athletes and I am proud to support the line, which I feel is the finest designed clothing line available to the fans of MMA today and for many years to come. I work with only the best and what they have planned for the future is awesome so I look forward to being an integral part of their ongoing success in their varied lifestyles marketplace.”

 

Buffer’s Silver Star ambassadorship marks the fusion of the most recognized voice (and face) of MMA with the most recognized and sought-after clothing brand in MMA.

 

Bruce is the perfect choice to represent our company,” said Silver Star president and CEO, Luke Burrett. “With Bruce’s charisma and his distinction as the voice of the UFC, his support of Silver Star carries a tremendous amount of weight in the MMA industry.” 

Payout Perspective:

Silver Star continues its assault on MMA with yet another related signing. In the last two months alone the company has picked up the likes of Lyoto Machida, Forrest Griffin, Jon Jones, and even boxing’s Manny Pacquiao. The company is also the main graphic tee sponsor for both fighters in UFC 108’s main event (Rashad Evans and Thiago Silva).

It remains to be seen exactly how involved Buffer will become, aside from his new signature t-shirt, but you can bet on his casual wardrobe now containing a great deal of Silver Star attire.