Ring Of Sports Marketing


Dana White’s New Contract Gives Him 9% Of Future Profits

UFC President Dana White will stay on as President once the new ownership group takes over.  White owned 9% of the UFC before it was sold to WME-IMG and other outside investors for $4 billion, which most likely netted him $360 million.  It is not known how much ownership Dana White will retain after the largest acquisition in sports history.

ESPN is reporting that Dana White’s new contract gives him 9% of future profits.  In an interview with CNN last year Lorenzo Fertitta said that the UFC made $600 million in revenue.  Based on some speculation done it is estimated that the UFC makes a $200 million profit a year.  The contract is set to last for five years and given logical estimations will create an annual salary for Dana White in the realm of $18 million.

Ringside Analysis:

Dana White has been the face of the UFC and has turned this company from being illegal and off PPV to being the most valuable company in sports.  Having said that, the other main partner in the duo, Lorenzo Fertitta, was not a passive owner.  Lorenzo was very active and complemented Dana White’s sports savvy with a pure business background.  The casino owner with an MBA from NYU meshed well with the friend from high school who was a huge fight fan and knew the sport that is typically low-brow.  It may be a challenge for Dana White to sustain the upward trajectory given what Lorenzo Fertitta provided.  While it is not clear how involved the new corporate owners will be, the salary is clearly structured to be entirely dependent on how effective White is running the show.

To also put the contract in perspective, it is estimated that current NBA commissioner Adam Silver makes $10 million a year and former NBA commissioner David Stern made $20 million a year.  Before his raise, Roger Goodell made $20 million a year in his first contract as the commissioner of the NFL.  White is among good company when it comes to the heads of sports organizations.

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