MMA Junkie reports on sponsor Dynamic Fastener’s interesting sponsorship strategy with the UFC. The small company does not pay the sponsor tax although its no-nonsense logo has been on many fighters of late.

The feature talks with Kevin Perz, the head of Dynamic Fastener. Perz is an MMA fan which is the reason why his company sponsors fighters. “We sell tools and fasteners to commercial construction, with an emphasis on people who work with sheet metal,” Perz told MMAJunkie.

Perz revealed that the company pays on average $1,500 per fighter for an event where he sponsors several fighters. He doesn’t target specific fighters, rather he targets mid-card fighters. But notably he paid a premium for his company to sponsor Miesha Tate for $6,500 and offered a $10,000 bonus if she had beaten Ronda Rousey at UFC 168. As a result of his strategy, agents call Perz looking to add his company as a sponsor for their clients.

An interesting note is that with the bulk sponsoring of fighters he has agreed on deals with managers for a “bundle price” on the sponsorship of a stable of fighters from the same manager.

Payout Perspective:

One of the takeaways from the article is that the sponsor tax is not applied to all sponsors. So, why have it? Certainly, the artificial barrier appears to hurt more than help fighters. Perz indicates in the article that the UFC should seek out more sponsors from smaller companies looking to get its name on a UFC broadcast. Perz is a fan of MMA which is the rationale for his commitment to sponsorship in MMA. His strategy of sponsor by volume has allowed his company name to get out there. Now the question is whether it equates to business.

The other point of interest is “bundle pricing” of his sponsorship with an agent’s stable. While this could be a good compromise between sponsor and agent, it may negate the best price for a specific fighter. Of course, a sponsor is better than no sponsor. Yet, one has to wonder if a bulk price for a group of fighters is in an individual fighter’s best interest.