Early Days of UFC
In the early days of UFC, It was intended to be an extravagant spectacle devoid of boundaries. Determine their strength by placing two bruisers in a ring or cage and watching them scrap like fighting cocks, and this is precisely what happened.
Initially, combatants arrived from all facets of MMA. Sumo wrestlers, shoot fighters, karate champions, and kickboxers gathered in the ring for an intense 8-man contest without rules or restrictions. Indeed, I must admit that there were a few regulations. Headbutts, indeed. Kicks and knees to a grounded opponent? No problem. Groin blows were discouraged but not prohibited. The sole regulations were to refrain from biting or eye gouging without any more restrictions. The bouts persisted till they concluded with an infinite number of 5-minute rounds and no interventions from the referee.
The early days of the UFC may be likened to the Wild West rather than a well-organized sport. Unsanctioned fights lacked official approval; regulations were few and ambiguous; equipment and clothes were not standardized; media coverage was predominantly unfavorable, and most importantly, sponsors had short-lived involvement. With the lack of sponsors, profitability was heavily stunted, thus preventing a true evolution of professional MMA.
Zuffa Era
In-step Dana White and co.
As the UFC approached insolvency due to its protracted sanctioning dispute, a savor emerged: Dana White.
Dana contacted Lorenzo Fertitta, a longtime friend and former state athletic commissioner of Nevada. Lorenzo and his elder brother Frank acquired the UFC for a nominal sum of $2 million within a month under the DW presidency of the newly formed parent company Zuffa, LLC.
Following the implementation of regulations governing weight classes and other protective measures, Zuffa ventured into financing a reality show that would showcase a limited number of consistent MMA bouts.
Season 1 of The TUF was an innovative program that launched the sport into the mainstream.
In turn, brand deals continued on an uptrend, and finally, it was recognized as a legitimate sport. To understand the evolution, the UFC’s first sponsorship deal in the early 1990s was $10,000 from Gold’s Gym. That is incomparable to the UFC’s 5,500 per cent increase in revenue between 2004 and 2006, when consistent American television coverage altered the course of its business (total revenue increased from $14 million to $180 million during that period). This signifies a substantial increase in value within and in the vicinity of the octagon, a rising desirability region.
Explosion of MMA-Related Brands
Two cornerstone sponsorship agreements existed during the UFC’s early years. During the inaugural UFC events, Tapout’s sponsorship endeavors established the apparel company’s brand as an icon of the sport. Since its modest beginnings in MMA, Tapout has amassed approximately 75% of the apparel market for the sport.
But a sponsorship explosion was on the horizon.
Not only would mixed martial arts (MMA) expand at the turn of the century (especially after The Ultimate Fighter debuted in 2005), but private/independent clothing sponsorships with combatants would also flourish. This significantly increased the financial gain for combatants such as Brendan Schaub, who claimed to earn six figures annually from private sponsorships.
It was as if everyone had no idea what to wear, and the situation changed in the twinkling of an eye. Jiu-Jitsu gi and unconventional garments such as athletic trousers were discontinued. In their stead, Board, Muay Thai, and Vale Tudo shorts. However, they were not mere trousers. They were now dissimilar. Have been emblazoned. Symbolic in nature. An exceptional case. In that era, a single mom-and-pop shop could sponsor prominent figures in mixed martial arts, including Randy Couture and Tito Ortiz. This is akin to a local small business securing a contract with Tom Brady or LeBron James; it was an eventful period in the sport.
The promotion reached its pinnacle with the participation of prominent sponsors Bud Light and Harley Davidson in 2008, which drew the most distinguished individuals from Madison Avenue. The twin agreements garnered the backing of corporations renowned for participating in sports, particularly the highest-grossing sports, such as the NFL. The brands’ allure extends to a significantly broader demographic than the malt liquor and movie studio ad buys that had previously been prevalent. The UFC was able to leverage its expertise in the 18-34 demographic to increase its mainstream visibility.
While the practice of custom shorts and banners continues in other organizations, it is imminent to cease in the UFC. Reebok approached…
The Reebok Deal
By 2014, the UFC had essentially extricated itself from the precarious financial situation it had previously had. The company’s situation had significantly improved, and Dana White and his team had propelled them to unprecedented legitimacy. Ventures like the television agreement with FOX 2011 enhanced the brand’s mainstream credibility. Merely one issue arose. The vibrant MMA shorts adorned with custom designs and emblems now portrayed a large and dominant company as sloppy and uncouth. The following is the Reebok agreement.
The Reebok agreement can be interpreted as an ongoing endeavor to establish “legitimacy” and promote brand consistency within the production. With time, however, the floodgates began to open, releasing a deluge of discontent from the MMA community regarding the actuality of this agreement.
Certain combatants asserted that they had earned more than $100,000 for what they would now receive between $2,500 and $40,000. People were, as one might expect, outraged. Worse yet, Reebok encountered enormous difficulties during its launch. Notable for butchering the names of MMA legends on the apparel.
Simply put, there is a reason why this agreement is still being discussed today, and its introduction and reception will undoubtedly ensure that it will continue in MMA annals in perpetuity. It’s reported that Reebok disbursed $39,346,500 to combatants throughout their three-month, six-year partnership with the UFC, which concluded in March 2021.
Post-Reebok Era: Venum Returns
In modern-day MMA, every facet of the sport presents some sponsorship and odds that can be found on reputable UK sportsbooks will also be casually found jetting across our TV screens as we watch pre-shows, post-shows, and even live fights. The likes of DraftKings, Betclic, and Roobet have all inked deals with the UFC, as the gambling world is just one example of how potential sponsorship deals in modern-day UFC hold no bounds.
However, perhaps the most famous brand deal in recent years involves a familiar logo.
It was fitting that the UFC’s frequently criticized apparel contract with Reebok was terminated and that the UFC’s iconic serpent logo from its inception be reinstated; Venum was back.
In contrast to Reebok, Venum has primarily specialized in combat sports and martial arts since its establishment in France in 2006. Before the partnership between the UFC and Reebok, Venum sponsored a significant number of combatants.
Future Outlook
The UFC is undeniably a commercial enterprise that demands attention. However, with its increasing prominence in popular culture, more prominent sponsors have emerged, each willing to provide their name inscribed literally and metaphorically within the octagon.
Presently, it appears that every aspect of the UFC is sponsored, a practice that generates enormous amounts of revenue but ultimately diminishes the event’s quality and more closely resembles what has become the norm in sports broadcasts in recent years. This does not pertain to the slogans emblazoned on the octagon’s canvas; rather, it concerns the continuous reference to sponsor names and logos by the commentators and the uninterrupted display of images and logos that occurs during a typical broadcast.
The sheer amount of sponsorship in the UFC has never been higher. As professional MMA continues its global expansion, the No.1 promotion in the world has gone from losing sponsorships to having countless offers on the table. Modelo was recently replaced with Bud Light, Prime Energy joined Monster Energy as a prominent octagon-floor logo, and DraftKings continues to top the betting angles of the sport while many others, such as tire companies, food brands, and much more, assist MMA’s shift to becoming the most popular combat sport in the world.