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 There seems to be this miss conception that PPV orgs earn some ridiculous amount of money and have an unfair advantage over all other players. I am bringing this up because of recent comments towards Chuck and the closing down of CEC and EMP following suit shortly after. I am also bringing this up because Mike also believes this, because he made running an org + private gym more expensive than running any other company plus a private gym.
PPV org profits are significantly overestimated. Sure you earn good money from events, but most of that goes back into sign on fees. Lets say you earn 1 million per event (which is a good estimate, i actually earned a bit less than this on average over the past 5 events), over a 10 month period, you had a total of 40 events, so that is 40 million. If you have a roster of 100 fighters, they will receive 2 renews each (2 contracts of 5 fights) over that period of time. So that is 200 contacts. If the average sign on fee is 200k (my minimum sign on fee is 150k, some earn much more than 200k), that means you spent a total of 40 million on the sign on fees. If you calculate any additional fees such as employees, write ups, posters (that some orgs have), that means you could actually make a loss. I also pay for 2 affiliate orgs every month, so i am pretty sure we are just about breaking even. If it was not for my own fighters, plus some of my buddy managers accepting "below market value" salaries, i am pretty sure GAMMA would be making a loss.
YES, i did say we would probably be making a loss. I know for a fact that CEC was struggling with their finances recently as well (we was discussing with Blake about how to structure and improve profits). I expect GAMMA will likely lose money in upcoming months because we had to increase the amount of events due to the larger roster (this means losses via depreciating returns).
High end clothing/nutrition companies earn more money than 80-90% of the orgs out there. If you sell off your 2500 products (which most of those companies do), which costs nothing to produce, you earn 750,000 per month. You can often get good nutrition companies with researched products on auction, so you do not even need to invest in the technology. Also a lot of these companies have lucrative deals with orgs and gyms. My merch partner earns over 25k per event on average and i have a low fee for him, so that is another 100k per month.
Another thing people are forgetting is that the workload of running such a company is NOWHERE near what it is to run an org. It probably takes a good 2-3 hours per week if you are doing a proper job, to run an org. Most other companies takes less than 30 minutes.
If we look at the highest earners in the game's history, you will find very few who earned it due to org profits. Most of them earned their money from laundering fighter / company accounts, selling off assets (including orgs), winning lotteries. I am 3rd of that list but i run an org for 11 years and STILL a large portion from the money i earned was from manager donations / giveaways.
The reality is that running an org is hard work and most time has very little financial rewards.
UPDATED:
This is the all time GAMMA financial breakdown:
Affiliate Costs: $ 33,600,000
Staff Wages : $ 62,205,759.95
Signing Bonuses : $ 323,568,140.00
Signing Bonuses (Direct manager transfers): $ 14,500,000
Event Expenses : $ 2,420,619,178.00
Total Costs: $ 2,853,893,077
Event Revenue : $ 2,913,692,281.51
Profit: $ 60,000,000~
Average profit per month over the 11 year period: 454,545 $
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