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Marketing and Sponsorship

UFC's Reebok Kit Deal Critical To Making Product More Appealing For Future TV Deal

UFC’s kit deal with Reebok was “done, quite simply, to provide a better look for television so that the product is more appealing to TV networks when the UFC's current deal with Fox” expires in ’18, according to Kevin Iole of YAHOO SPORTS. But the decision to “eliminate all logos but Reebok's from fighter gear during UFC events ... dramatically impacts the fighters.” Champions “will make $40,000 per fight for wearing Reebok, while title challengers will get $30,000.” Fighters with five or fewer bouts in a Zuffa-owned promotion “will make $2,500, while those with 21 or more such fights will get $20,000.” This is “all in addition to their pay.” Many fighters have said that “they will lose money on the deal.” But fighter Joe Lauzon said of the deal, “I don't have to pay a manager (a commission), I don't have to worry about the banner, I don't have to chase the money, any of that stuff. What am I going to lose, a couple thousand bucks, and I know for sure the money is going to be there and I don't have to try to track it down and I can focus fully on training? Hey, sign me up.” Iole noted fighters are “allowed to keep their current sponsors, but they can't wear them during any UFC fight-related appearance.” However, many companies that have been sponsoring UFC fighters are “walking away completely or cutting back.” Iole noted there is “one other source of income for the fighters in this deal: the sale of their branded merchandise,” and there are “two separate kits that Reebok will sell.” Popular fighters “won't have trouble selling merchandise and will get royalty checks.” But it is "unlikely the vast majority" of fighters "will make anything significant” from royalties (SPORTS.YAHOO.com, 6/30).

LEAVING ITS MARK: On Long Island, Mark La Monica notes the new Reebok fight kit “features a large UFC logo diagonally across the chest, the Reebok logo on the shirt and shorts.” There are three kits -- “the country kit, the universal kit and the champions kit.” The country kit “features the fighter's home country on the sleeve with a unique logo based off the flag.” The champions kit “includes the UFC logo across the chest in a dark gray against the black background of the shirt.” It also “includes a gold octagon on the right sleeve to signify the fighter's title.” UFC President Dana White said, “No more labels hanging off the back of their shorts, and the banner that hangs down behind them when they fought, I couldn't wait for all that to go away.” Fighter Chris Weidman said, “It legitimizes the sport in a big way” (NEWSDAY, 7/1). FOXSPORTS.com’s Damon Martin noted UFC and Reebok “worked in tandem with fighters to design the new kit to work for style and functionality inside the Octagon.” White said that “no matter what anybody says or thinks about the new fight kits from the outside, he was most concerned about what the fighters had to say about the uniforms.” He added, “It’s been nothing but positive” (FOXSPORTS.com, 6/30). Meanwhile, YAHOO SPORTS’ Ryan McKinnell noted when the sponsor “misspells your name on merchandise on the day it's officially unveiled, well, you can understand that more than a few people could get upset.” Especially when it comes to “stars like 'Giblert Melendez,' 'Marcio' Lyoto Machida and UFC hall of famer Mark Hughes" (SPORTS.YAHOO.com, 6/30).

WALK THIS WAY: FOOTWEAR NEWS’ Peter Verry noted there currently is “no sneaker in the kit." But Reebok execs said that the company "has combat-training footwear on the way.” Reebok VP/Combat Training Division Todd Krinsky said, “Mixed martial arts is barefoot, they’re grappling, but there’s a big part of functional fitness within combat training. We’re creating product that doesn’t exist in the marketplace.” Verry noted the brand’s combat-training footwear “will be released” in ‘16. For now, Krinsky confirmed that UFC fighters “will be walking into the octagon wearing the ZPump Fusion.” Fighter Connor McGregor said that the shoes “have been vital to his training” (FOOTWEARNEWS.com, 6/30).

LOOKING FOR MARKET SHARE: THE STREET’s Brian Sozzi wrote the UFC deal is “important part" of Reebok's strategy to "stay relevant in a crowded market.” Reebok Brand President Matt O'Toole said, “We have totally focused the company on emerging sports, such as the sport of CrossFit, and obstacle training through our Reebok Spartan Race. We are connecting with a consumer that is dedicated to a fit and healthy life.” Fighter Ronda Rousey said, “All of my wardrobe malfunctions occurred with Lululemon stuff. This is the first time I have been able to have women's MMA clothing and I don't have to worry about trying to make something else work in a situation it wasn't made for.” Sozzi noted better-fitting apparel for female workout enthusiasts by Reebok “could help it gain sales from consumers who have been flocking to Nike and Under Armour.” One item in particular, a UFC-inspired fitness bra, “could be a hot seller to the female workout crowd” (THESTREET.com, 6/30).

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