The fight business - The ins and outs of the international combat sports scene
Key topics:
Ancient roots, modern empire: Combat sports have evolved from ancient traditions into a global, multi-billion-dollar industry encompassing boxing, MMA, and more.
Fighter pay vs profits: Despite massive revenues from PPV, media rights, and sponsorships, fighter compensation remains a contentious issue — especially in the UFC.
Spectacle meets strategy: Fighters are now brands, leveraging social media and self-promotion to boost earnings, with influencer boxing adding new layers of entertainment.
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By Connor Killian
From ancient Rome and before, people have loved watching fights. At the peak of the Cold War, boxing was the biggest fight in town – but towards the nineties its popularity declined. Many observers opined that brutality was no longer on people’s menu… crowds became too urbane and sophisticated to revel in the brutality of boxing. Critics pointed to the damaged physiques and mental states of former champions, and the empire built by Don King was notorious for often veering out of respectability and into shady deals and shakier practices. But today – fighting has made a comeback and the fight business, encompassing disciplines such as boxing, mixed martial arts (MMA), and other combat sports, has evolved into a multi-billion-dollar global industry.
Combat sports have ancient roots, with various forms of wrestling, boxing, and martial arts dating back thousands of years. Boxing has been a recognised sport since the early 18th century, but it was not until the 20th century that it became a lucrative global enterprise, thanks to figures like Muhammad Ali, Sugar Ray Leonard, and Mike Tyson. The UFC and other MMA organisations emerged much later in the 1990s, and MMA has now grown into one of the world’s most popular sports. Alongside these giants is the Extreme Fighting Championship (EFC), a South African-based MMA organisation that has expanded rapidly in Africa and beyond.
The modern fight business is not merely a sporting endeavour. It has become a multimedia and marketing juggernaut, with revenues coming from broadcasting rights, ticket sales, merchandise, sponsorships, and pay-per-view (PPV) events. The fight business, in its current form, offers more than athletic competition; it provides a blend of entertainment, promotion, and spectacle, with personalities and storylines playing significant roles in driving fan engagement.
At the core of the fight business are the promoters, organisations, and governing bodies that manage the events, negotiate contracts, and oversee the fighters. Prominent organizations include: Boxing is unique in that it does not have a single governing body like the UFC for MMA. Instead, various sanctioning bodies oversee world titles, including the World Boxing Association (WBA), the World Boxing Council (WBC), the International Boxing Federation (IBF), and the World Boxing Organization (WBO). Promoters such as Top Rank, Golden Boy Promotions, and Matchroom Boxing play a crucial role in setting up fights, particularly those involving high-profile fighters like Canelo Álvarez and Tyson Fury.
The UFC is the dominant force in MMA, running an expansive operation that signs fighters to exclusive contracts, arranges events, and holds promotional activities globally. While other organisations like Bellator and ONE Championship exist, none have achieved the UFC’s level of market dominance. The UFC operates under a centralised model, where the organisation holds tremendous control over matchmaking, promotion, and the fighters’ earnings, paying out bonuses and discretionary earnings in addition to fixed contracts. As Africa’s premier MMA organisation, EFC has adopted a similar model to the UFC, promoting local and international fighters and building a fan base across the continent. While the EFC may not have the global reach of the UFC, it has tapped into a growing market in Africa and works with broadcasters, sponsors, and digital platforms to promote the sport. The organisation focuses on scouting African talent and developing a unique brand that blends combat sports with African identity and culture.
Other combat sports, such as kickboxing (promoted by organisations like Glory and K-1) and professional wrestling (World Wrestling Entertainment, WWE), also have their distinct operational models. Kickboxing follows a structure similar to MMA, with a centralised promotion handling fighters and events, while professional wrestling is primarily entertainment-driven, with scripted outcomes designed to engage an audience on a dramatic and emotional level.
How The Money Is Made
he fight business generates revenue through a diverse range of streams, making it one of the most profitable sectors in the sports world. These streams include: Pay-per-view: PPV remains one of the most significant sources of revenue for high-profile boxing and UFC events. Fans pay to access these exclusive fights, often spending upwards of $50 to $100 per event. The PPV model has proven to be incredibly lucrative for organisations, particularly for mega-fights such as Floyd Mayweather Jr. vs. Conor McGregor, which generated over $400 million in PPV buys alone.
Broadcasting and media rights: Another critical revenue stream comes from broadcasting rights. Large TV networks and streaming services bid for the rights to air live events, often offering multi-million-dollar contracts to secure the content. For example, ESPN holds exclusive broadcasting rights for UFC events in the United States, while DAZN, an over-the-top streaming service, has made significant investments in boxing. With streaming platforms like ESPN+ and DAZN growing in prominence, these media rights have become even more valuable.
Sponsorships and advertising: Sponsorship deals are vital to the business model of combat sports. Companies from various sectors, such as energy drinks, sportswear, and consumer electronics, sponsor fighters and events in exchange for brand visibility. The UFC, for instance, has partnerships with companies like Reebok (now Venom) and Monster Energy, while boxing promoters often strike sponsorship deals with big brands for title fights. In addition to corporate sponsorships, advertising revenues from televised events and digital platforms help bolster the bottom line.
Ticket sales: For live events, ticket sales play a crucial role in generating revenue, especially for major events held in massive arenas such as the MGM Grand in Las Vegas or Madison Square Garden in New York. Sold-out stadiums for high-profile events like heavyweight boxing championships or UFC title fights can generate millions in gate receipts alone.
Merchandise: Branded merchandise, including apparel, memorabilia, and training gear, also contributes significantly to the fight industry’s revenue. Fans are often eager to buy fighter-specific merchandise, helping to fuel further growth for the athletes and organisations alike.
One of the most controversial aspects of the fight business is fighter compensation. While the industry generates billions in revenue, many fighters, particularly in MMA, have raised concerns about the fairness of their earnings relative to the organisations’ profits. In boxing, top-tier fighters command enormous purses. Boxers such as Floyd Mayweather Jr. and Manny Pacquiao have earned hundreds of millions of dollars in a single fight due to a combination of PPV revenue shares, sponsorships, and guaranteed fight purses. However, the disparity between top- and lower-level fighters is vast, with journeymen boxers often earning far less for their bouts. The UFC, in particular, has faced criticism for its fighter pay structure. The organisation offers exclusive contracts with guaranteed fight purses, but the base pay is often much lower than what top boxers earn. For instance, a UFC fighter might make $50,000 to $100,000 for a main event fight, while the organisation earns millions from PPV and ticket sales. The UFC defends its pay structure by pointing to bonuses and performance incentives that fighters can earn, but dissatisfaction has led to occasional high-profile disputes, with fighters like Francis Ngannou publicly advocating for better pay and more control over their careers.
In the fight business, fighters are not just athletes — they are personal brands. Fighters like Conor McGregor, Tyson Fury, and Ronda Rousey have transcended the sport itself, becoming global icons through strategic self-promotion, social media presence, and endorsement deals. This ability to market oneself is crucial for fighters looking to maximise their earnings potential, as their star power can directly influence their negotiating leverage with promoters.
McGregor, for instance, has parlayed his success in the UFC into business ventures, including his whiskey brand, Proper No. Twelve, and various sponsorship deals. His brash persona and media-savvy approach have made him one of the most recognisable names in combat sports, earning him massive paydays both inside and outside the Octagon.
The fight business is evolving rapidly, with technological advancements, changes in viewer habits, and increasing global interest shaping its future. Streaming platforms like DAZN and ESPN+ are leading the charge in making combat sports more accessible to a global audience, while social media and direct-to-consumer marketing allow fighters to connect with fans more directly.
Additionally, the rise of influencer-driven boxing events, such as the bouts featuring YouTubers Jake and Logan Paul, has introduced a new dynamic to the fight business. These events, while criticised by purists, have drawn massive audiences and generated substantial revenue, indicating that non-traditional matchups may become a permanent fixture in the industry. As the fight business continues to grow, the balance between athlete compensation, promotional control, and fan engagement will be critical in determining its future trajectory. However, one thing is certain: combat sports are here to stay as a dominant force in global entertainment, blending athleticism, drama, and spectacle in a way few other industries can match.