Is showtime losing money on Floyd?

[flipbjefrox]

The man that put on Pacquiao - Rios/Algieri and soon to be Vargas talking **** about Mayweathers competition?

That event actually made money. Those fights were PPV reliant. So what's your point? 1 million ppv but you didn't even break even or 400k ppv but everyone involved in the event made money?

[OnePunch]

losses of $8 million a show seem a bit excessive to me, based on the numbers. Remember, Showtime is not the promoter, they are only buying the broadcast rights. Paying the opponent and all other related costs would be on Floyd as the lead promoter.

So basically Showtime has to cover $32 million, plus their production costs, and probably a million for the re-broadcast rights, assuming those are not included in the $32 mil. Also my sources tell me Floyds "upside" is basically 50% of all ppv revenue over and above the $32 million, so for purposes of the 2 Maidana fights, upside wont factor in if the events didnt turn a profit for Showtime

Maidana Fight 1: 900,000 buys @ $70 = $63 million, less 45% to cable distributors = $34,650,000. Its conceivable that production costs and re-broadcast rights could add another 3-4 million when you include the cost of "All Access". So it would be in the neighborhood of 34,650,000 in revenue vs 35 or 36 million in expenses. That would be a loss of somewhere between 350,000 to 1,350,000, give or take a little. I cant see how that number could go up to $8 million.

Granted, I dont work for Showtime and dont have access to their books, but they would actually have to try really really hard to lose $8 million on any event that did 900,000 buys or better.......

[big_james10]

Arum said this in this site.



Can somebody enlighten me on this.

It is a lie that Fat Dan Rafael or some other lazy blogger claimed with no source. All the haters jumped on it because of their hatred for Maywather. Espinoza said it was a lie, but of course no one on this site will believe him because he actually said something positive about Mayweather.

Arum will probably use this as an excuse to not make a Mayweather/Pacquaio fight. He has to come up with something to justify Pacquaio/Vargas.

[big_james10]

losses of $8 million a show seem a bit excessive to me, based on the numbers. Remember, Showtime is not the promoter, they are only buying the broadcast rights. Paying the opponent and all other related costs would be on Floyd as the lead promoter.

So basically Showtime has to cover $32 million, plus their production costs, and probably a million for the re-broadcast rights, assuming those are not included in the $32 mil. Also my sources tell me Floyds "upside" is basically 50% of all ppv revenue over and above the $32 million, so for purposes of the 2 Maidana fights, upside wont factor in if the events didnt turn a profit for Showtime

Maidana Fight 1: 900,000 buys @ $70 = $63 million, less 45% to cable distributors = $34,650,000. Its conceivable that production costs and re-broadcast rights could add another 3-4 million when you include the cost of "All Access". So it would be in the neighborhood of 34,650,000 in revenue vs 35 or 36 million in expenses. That would be a loss of somewhere between 350,000 to 1,350,000, give or take a little. I cant see how that number could go up to $8 million.

Granted, I dont work for Showtime and dont have access to their books, but they would actually have to try really really hard to lose $8 million on any event that did 900,000 buys or better.......

You and every one who believes this line of garbage is full of ****. Showtime and HBO do not pay a fighter's guarantee when they appear on PPV. The promoter pays it. Mayweather didn't show a pic of a check on twitter for $38 million from Showtime after he fought Alvarez. He showed a pic of a $38 million check from Golden Boy Promotions -- the promoter of the fight. The guarantee is based on the PPV revenue and the other expected revenue sources. Showtime's contract with Mayweather guarantees him a certain amount of money per fight and it has nothing to do with the amount of money the promoter guarantees him. I am sure Showtime's contact with Mayweather pays him several million per fight, but I am damn sure it isn't $32 million per fight.

Showtime hasn't lost a dime on Mayweather. Stephen Espinoza said that and I would believe him when it comes to activities at Showtime before I would believe a talking head like Stephen A. Smith, who cites no source, or a snake with an agenda like Bob Arum.

[OnePunch]

You and every one who believes this line of garbage is full of ****. Showtime and HBO do not pay a fighter's guarantee when they appear on PPV. The promoter pays it. Mayweather didn't show a pic of a check on twitter for $38 million from Showtime after he fought Alvarez. He showed a pic of a $38 million check from Golden Boy Promotions -- the promoter of the fight. The guarantee is based on the PPV revenue and the other expected revenue sources. Showtime's contract with Mayweather guarantees him a certain amount of money per fight and it has nothing to do with the amount of money the promoter guarantees him. I am sure Showtime's contact with Mayweather pays him several million per fight, but I am damn sure it isn't $32 million per fight.

Showtime hasn't lost a dime on Mayweather. Stephen Espinoza said that and I would believe him when it comes to activities at Showtime before I would believe a talking head like Stephen A. Smith, who cites no source, or a snake with an agenda like Bob Arum.

YOU are the one who is full of sh**. Showtime is not a promoter. Fight purses are paid out by the lead promoter of the event, NOT by the media buyer. Ever seen a fighter purse check from HBO or Showtime? NOPE. Showtime/HBO pay the money to the lead promoter, who then allocates it out to the individual fighters. Golden Boy was hired by Mayweather to act as the lead promoter, which was why they were the ones writing checks.

[GettinMoney]

HBO fanboys stay mad.

[kej718]

His deal with showtime was for $200-$250 mil
The average price of a PPV is what $70 (lets make it $62)
$62 * 2.2 million = $132 mil (The Canelo fight alone generated $137 million in pay-per-view sales)
So lets say Floy did about 4 mil total in those 4 fights (low estimate)
$62 * $4 mil = is about $250 mil already with 2 fights left so how are they losing money? (This is not including the gate)
His guarantees alone for the 4 fights total $138,000,000.00

What percentage of the PPV does showtime take?

[Sugar Adam Ali]

His deal with showtime was for $200-$250 mil
The average price of a PPV is what $70 (lets make it $62)
$62 * 2.2 million = $132 mil (The Canelo fight alone generated $137 million in pay-per-view sales)
So lets say Floy did about 4 mil total in those 4 fights (low estimate)
$62 * $4 mil = is about $250 mil already with 2 fights left so how are they losing money? (This is not including the gate)
His guarantees alone for the 4 fights total $138,000,000.00

What percentage of the PPV does showtime take?

Usually the TV/cable/satellite providers take a large portion, sometimes up to 50% of the gross.. So Comcast, direct tv, etc are getting a huge cut, and in return they distribute and help market the fight.. Those little ads on your TV guide, or the quick little infomercials about a fight on the preview channel are all provided by the distributor, and depending how much hype they give it, they collect a percentage of the PPv gross..
The content provider like showtimr and hbo divvy up the rest and each fight is unique.. Floyd fight might have different cuts than a cotto-serg fight, or chavez jr, etc... So unless your in the loop it's hard telling who is getting what in terms of the PPv money