The fee has come under fire this week from players, coaches and agents who believe that the fee will strongly discourage NFL teams from signing any UFL players.
The UFL season ends Nov. 27 with the championship game. A year ago, 43 UFL players were signed after the season and finished the year on an NFL roster. Last year, the fee was waived, costing NFL teams very little to get a UFL player.
UFL players officially are under contract until Feb. 1, precluding them from playing in the NFL, without the consent of the commissioner and a fee being charged.
While many players displayed their outrage over the fee -- some said they were not aware of and were in fact lied to -- Cuban is a proponent of it.
"The transfer fee is a brilliant idea,'' Cuban told FanHouse Friday afternoon. "If a player is good enough, what (NFL) team wouldn't pay $150K to get better? Could you imagine a team saying to its quarterback, 'Yeah we need a left tackle to protect you, and we found a great guy in the UFL, but $150K is too much to spend to protect you.' Really?''
Cuban: NFL Stoppage Would be 'Huge Plus' for UFL
The UFL believes the fee will help stabilize the league financially and help cover operating costs. The UFL has been credited for helping develop young players that aren't quite ready for the NFL directly from college, or serving as a comeback league for NFL veterans trying to return.
Most players in the UFL – besides quarterbacks -- are playing for approximately $50,000 in a three-month season, trying to use it as a stepping stone to the NFL. If that option dries up – because of the fee – the belief is that fewer quality players will be in the UFL next season.
"I don't expect it (the fee) to be a problem. Either a guy can play, or he can't play,'' Cuban said. "If he can, he is probably worth a lot more to the NFL team. The quality of play in the UFL is very, very good. So the NFL is getting good players at a very reasonable cost.''
Cuban, owner of the Dallas Mavericks in the National Basketball Association, believes the UFL should consider raising the fee to $250,000 instead of dropping it as players have asked. He has faced a similar fee when his Mavericks signed a player who was previously under contract outside the United States.
"It's no different than what basketball teams in Europe do when players want to move to the NBA,'' he said. "The UFL keeps players with more than three years of experience playing and improving their skills, and gives the NFL teams a chance to add more skilled players if they need them. So the NFL is getting good players at a reasonable cost. It's a win-win for both the NFL and UFL.''