Cathal Pendred retired this week. It’s neither a blow to the UFC, nor its fans. Pendred compiled a 17-4-1 pro MMA record. He went 4-2 in the UFC, with a lucky decision or two and leaving on a two-fight skid. Pendred was a beneficiary of the Conor McGregor tidal wave that pushed the UFC into the Irish market, like a number of English fighters and Michael Bisping a decade ago. His career trajectory pointed toward journeyman, also-ran, gatekeeper, another face in a sea of faces.
Yet, the retirement came as a surprise and got more play than you’d expect for the UFC’s version of a bench player. Despite his middle-aged hairline, Pendred ended his fighting career at 28, i.e., right in the middle of his athletic prime. Given some fortunate matchups and some good luck, there’s no reason to assume Pendred couldn’t have fought a few more years at the UFC level.
So, why now? “I now find that my passion is no longer what it was and I feel that it is time for me to move on,” Pendred said, via social media. “My love of MMA remains with me. I intend to maintain my involvement with the sport, but I no longer wish to compete.”
We should take him at his word here, but one wonders if Pendred would still have that passion to compete if he was making more than $10k to show, as he did for his last reported payout at UFC 189. That purse came in his fifth UFC fight after going 4-0 coming out of the Ultimate Fighter 19. His other reported payout this year came at the McGregor-Siver Fight Night in Boston, where he made $16k in a victory over Sean Spencer.
Being generous, let’s assume Pendred made $20k in his victory over Augusto Montana and another $10k to show in his last fight against Tom Breese. That brings Pendred to $56,000 in purse money for 2015. We know he earned $7,500 combined in Reebok money for his last two fights, bringing his total known pay to $63,500. For argument’s sake, let’s say he did well before the Reebok deal and pulled in $5k for each fight. That brings us to $73,500 for the year.
That $73,500 might sound like a lot of money, but that’s just gross income. Being independent contractors, fighters have expenses just like businesses that cut into their profits. John Cholish and Chad Mendes claim a fight camp costs anywhere between $6,000 and $12,000. (Donald Cerrone says he paid $20,000 just for sparring partners at UFC 182. Joe Warren says anywhere between $10,000 and $30,000.) Taking the low end of that range, that’s $24,000 for four fights, bringing us back to $49,500.
Cholish estimated another $4,000 for flights and hospitality for his team, as the UFC only pays for him and one coach/corner person. Pendred didn’t reveal a number, but said he paid for flights, food, and a house for his camp for his fight in Mexico City. He also described that camp as “very, very costly.” So, let’s take out another $4k for each fight outside of Ireland and assume he had no additional costs for his fight in Dublin. That brings us to $37,500.
Cholish also cites $2,160 in international taxes (on a $8,000 purse). Myles Jury quotes $6,000 in taxes on a $20,000 purse. We’ll be generous and use a tax rate of 25%. Add another 10% for whatever management Pendred uses. (This, again, is generous. Jury estimates 20% being paid for management.) Thirty-five percent of $73,500 is $25,725. That brings us to a rough total of $11,775. By raising the tax rate to 30% and the management fee to 20%, we could Pendred under $1,000 away from breaking even.
Is it any wonder Pendred retired? Is it any wonder we’ve seen other young fighters like Jordan Mein (25) and Frankie Perez (26) retire this year? What about Alan Belcher? He’s been around the UFC forever, but he’s only 31 with 26 pro fights under his belt. You might think it had to do with motivation or injury, but Belcher cited his retirement as a business decision. Brendan Schaub has essentially retired at 32, despite being a known heavyweight. Schaub earned a $32,000 purse in his last fight. He chalks up his decision to having greater earning success outside the Octagon.
And then there are the bonafide stars talking retirement. Miesha Tate, 29 and the UFC’s second-most marketable woman (at least prior to UFC 193), has threatened retirement given the UFC’s decision to rescind her title shot in favor of Holly Holm. Khabib Nurmagomedov, 27 and arguably the best lightweight in the world, apparently left his career futures up to his father and God (he recently decided against retirement) after a rash of significant-but-not-career-threatening injures. Ian McCall, 31 and a perennial top-ten flyweight, may walk away from the sport to concentrate on growing medical marijuana. Aljamain Sterling; 26, ranked seventh at bantamweight, and one of the sport’s brightest young stars; has contemplated going back to school due to lack of activity.
None of these fighters have explicitly invoked money, but would they even be at these crossroads if they were making more? Tate obviously wanted the third Rousey fight (and now the Holm fight) because of financial windfall, but would she be threatening to take her ball home if she made $250,000 instead of $76,000 to beat Sara McMann at UFC 183? Would Khabib Nurmagomedov be so willing to succumb to injuries if he had been banking more per fight? (Nurmagomedov made $64,000 to show and win against Rafael dos Anjos. He made $28,000 at UFC 160.) McCall made $22,300 to show in his last fight. Sterling made $16,000 in his first fight, and likely isn’t making much more now. Again, is it a surprise they’re considering (legal) drug cultivation and an education, respectively?
