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The economics of sports: How to turn tournaments into a revenue stream

Today, sport is not only about competition and athletic achievements. It is also a major industry that brings together event organizers, sponsors, media companies, the tourism sector, and service providers. Major sporting events can attract investment, generate additional demand for hotels, transportation, and catering services, and create new opportunities for local athletes and businesses.

For Kyrgyzstan, the development of the sports industry is becoming increasingly relevant as the country hosts more international sporting events. One recent example is the Fight Nights 141 & WEF Global tournament. It provides an opportunity to examine how the economics of professional sports work in practice, who benefits financially from staging such competitions, and what is needed to transform individual events into the foundation of a sustainable sports industry.

The key question is whether Kyrgyzstan can transform individual high-cost tournaments into a sustainable sports industry. To explore this issue, Akchabar spoke with professional fighters and tournament organizers to better understand the economics of MMA, who benefits financially from major sporting events, and what it takes to build a viable long-term market around them.

Professional MMA is not only about athletes competing in the cage; it is also a marketplace where the interests of event organizers, fighters, sports clubs, sponsors, media companies, and businesses intersect. However, hosting a tournament in itself does not guarantee commercial success.

A fight may last only a few minutes. Yet behind that brief spectacle are months of preparation, dozens of professionals working behind the scenes, and significant expenses that most spectators never see.

How much do fighters earn? Why are ticket sales often not enough to cover the costs of a tournament? And who actually finances professional MMA in Kyrgyzstan?

According to tournament organizers, Kyrgyz fighters can earn around 2,000 USD simply for stepping into the octagon, with an additional 2,000 USD bonus for a victory. As a result, a single bout can cost organizers roughly 10,000 USD when the fees and related expenses for both fighters are taken into account.

On a major international tournament, fighter payouts alone can reach 100,000 USD. And that figure does not include the cost of arena rental, air travel, accommodation, equipment, production, or broadcasting.

However, earnings vary significantly depending on a fighter’s reputation, ranking, marketability, and negotiating power.

“Fighter pay also depends on their managers. Some managers are tough negotiators, while others simply say, ‘It’s fine, let’s take the fight.’ Unfortunately, that mindset still exists in our sport,” — says professional MMA fighter Kyamran Abbasov.

According to Abbasov, young fighters often accept the terms offered to them simply because they are not yet accustomed to dealing with larger sums of money. At the same time, even a purse worth tens of thousands of dollars does not necessarily reflect a fighter’s true market value. For many athletes, a victory is also an investment in their future.

According to Adilet Ashimov, a fighter’s contract may include a guaranteed payment for participation, as well as a separate bonus for winning the bout.

“If you're paid 1,000 USD for a fight, you receive another 1,000 USD if you win,” — he says.

But at a certain stage of a fighter’s career, the purse for today’s bout becomes less important than the opportunity to secure a more lucrative contract in the future.

“At this stage of my career, I’m no longer focused on the money. Even if I were paid ‘5 and 5’ (a $5,000 show purse plus a $5,000 win bonus), it wouldn’t really change or improve my life,” — Ashimov says.

Meanwhile, the expenses do not stop when there are no fights. Athletes still need to pay for coaches, nutrition, recovery, and training camps. And without a long-term contract, many fighters have to stay in peak condition without knowing when their next bout will take place. Ticket sales rarely cover the cost of a tournament.

Organizing a small professional tournament featuring ten bouts requires a minimum investment of 1.5 million KGS. International competitions come with significantly higher costs. Yet even a sold-out arena does not guarantee that organizers will recover their investment. Revenue from ticket sales alone is often insufficient to cover the full cost of staging a professional event.

“Ticket sales may cover at most 10% of total expenses. And even then, people here are often reluctant to buy tickets. A ticket costs KGS 500, and they still ask, ‘Why is it so expensive?’” — says tournament organizer Ruslan Kydyrmyshev.

He recalls one event that cost approximately 50,000 USD to organize, while ticket sales generated only about 4,000 USD in revenue.

As a result, under such circumstances, ticket sales are not the primary source of revenue but rather just a small component of a tournament’s overall financing structure.

The remaining funding must come from sponsors, commercial partners, and other investors involved in sporting events. In recent years, the government has also begun playing a more active role in financing professional sports.

So where is the business case?

An international tournament generates demand that extends far beyond the sports arena.

For example, for the foreign teams participating in a recent tournament held in Bishkek, the organizers booked 22 hotel rooms. Add to that the costs of air travel, meals, local transportation, technical equipment, and the services of local specialists, and the event’s economic impact extends well beyond the competition itself.

The benefits are not limited to athletes. Hotels, restaurants, transport providers, and a wide range of other businesses also generate income from such events.

There is another important consideration: a tournament’s entertainment value does not necessarily translate into financial success. Even a highly anticipated fight may fail to generate sufficient revenue if the costs of staging the event are too high and commercial agreements are unable to bridge the gap.

Sporting events also generate economic activity through the services used by visiting athletes, officials, and spectators.

Foreign teams may spend money on accommodation, meals, transportation, and the rental of training facilities. At the same time, organizing a tournament creates demand for a wide range of local services, including technical crews, medical personnel, security staff, lighting and sound contractors, and advertising and promotional companies.

A portion of these expenditures becomes revenue for local businesses. Therefore, the economic impact of an event may extend beyond the organizer’s financial results. However, it is important to distinguish between several indicators. The tournament budget refers to the funds allocated for organizing the competition. Revenue of local companies refers to payments received for goods and services provided in connection with the event. Profit is what remains after the relevant costs have been deducted. Finally, the economic impact for the country may include a broader range of effects, but it requires a separate methodology for calculation.

These indicators should not be considered interchangeable. For example, a large tournament budget does not necessarily mean that the same amount of money will remain in Kyrgyzstan: part of the funds may go to foreign contractors, athletes, or service providers.

There is also another market segment: training camps. Kyrgyzstan has the potential to attract foreign fighters for several weeks rather than just for a single evening of competition. This creates sustained demand for sports facilities, coaches, accommodation, and related services.

Unlike a tournament, which lasts for one or several days, training camps can continue for several weeks. During this period, athletes require accommodation, meals, training facilities, recovery services, coaching, and transportation. This creates more sustained demand for local services and allows sports clubs to generate income not only from training their own athletes but also from working with foreign teams. In this area, Kyrgyzstan could explore several formats, including specialized MMA and martial arts camps, inter-club training camps, athlete development programs, and sports training initiatives outside the capital. However, the presence of mountains, natural locations, and sports facilities alone does not automatically make the country a competitive destination. Attracting foreign teams requires appropriate infrastructure, predictable accommodation standards, transport accessibility, quality nutrition, medical support, and the ability to conduct training at a professional level.

If this model is developed systematically, the benefits will extend beyond event organizers. Hotels, restaurants, transport companies, sports clubs, and other service providers will also become part of the value chain and generate income from the growing sports economy.

Turning individual tournaments into a sustainable industry requires more than attracting an international promotion or hosting events featuring well-known athletes. What is needed is an ecosystem in which different stakeholders can generate income on a regular basis.

Finally, the development of the industry depends on the quality of cooperation between event organizers, sports clubs, businesses, and the government. While support for sporting events can contribute to the growth of the sector, its success should not be measured solely by the number of competitions held.

“In the past, we constantly faced budget constraints. Today, the government helps finance national team training and provides facilities for athlete preparation, including access to sports venues. Overall, there is financial support from the state, and this has helped advance professional sports. However, some challenges still require additional funding. For example, athletes and coaches sometimes have to cover their own travel expenses to competitions. It would be beneficial to have more opportunities to support their participation in international tournaments,” — says Emil Toktogonov, Secretary General of the Kyrgyzstan MMA Association.

MMA can develop in Kyrgyzstan along several dimensions simultaneously: as a professional sport, a media product, and part of the service industry. These areas can complement one another, but none of them guarantees commercial success without a systematic approach. Regular tournaments help build an audience and attract sponsors, media promotion increases athletes’ visibility and the commercial value of competitions, while international training camps create demand for hotels, sports facilities, and other services.

At the same time, scaling up the industry will take time. It is important not only to increase the number of tournaments, but also to ensure their regularity, financial sustainability, and genuine demand from spectators, sponsors, and partners.


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