The deal isn't bad per say. Nike supplies NFL and soon NBA. Reebok has NHL. Majestic has MLB.
The issue is the fighter/sponsor relationship. For those with a hard hustle or recognizable name, they can make significant money on the side. This "deal" changes that. It's obviously a work in progress. It's not any different than the Fox Sports deal which IMO hurt the UFC in the U.S.
Not everyone can be Rhonda Rhousey and star in movies, be a premium Reebok athlete,appear in ESPN skin issues or show up in the WWE.