PBC has TONS of money in the bank

[PKing]

The biggest mistake they made was overpaying fighters.

It didn't even make sense. No other promoters/promotion teams were going to pay these guys $500,000 - $1,000,000 to fight a bum. Absolutely ******ed strategy and planning. They want to build name-branded fighters for big fights? They could have done it in a more economically intelligent way. It seems when they scouted fighters out they really couldn't tell:

a) Who was really good or not
b) How good they were in regards to their division
c) Whether or not the fighter was easier to market or not


Absolutely ridiculous.

HBO isn't leaving boxing. Not when they have Canelo (especially Canelo), Golovkin, Sergey Kovalev, and Andre Ward fighting for them.

Canelo isn't a HBO fighter, he's a PPV fighter.

He does ZERO for HBO boxing viewership and subscriptions. That's HBO'S business.

[Humean]

Canelo isn't a HBO fighter, he's a PPV fighter.

He does ZERO for HBO boxing viewership and subscriptions. That's HBO'S business.

HBO PPV. Canelo makes HBO money.

[Motofan]

For an organization with as much money under management as W&R has, the stake in PBC, depending on what rumored figures you want to use, amounts to anywhere from 0.5%-1.5% of assets under management.

No one is going to cut that much staff, if your statement is anything more than just bull****, over less than 2% of the actual business.

That statement would be as dumb as McDonalds having to cut a significant chunk of their staff because the price of pork didn't get low enough to launch the McRib this year, lol

"Investors in the Waddell & Reed fund bankrolling PBC are suing Waddell & Reed for $925 million."

OLATHE, Kan. (CN) — Kansas-based business trusts let a portfolio manager spend $925 million on a "potentially criminal" start-up pro boxing company rather than the stable investments they advertised, shareholders claim in court.

Saket Kapor and two others sued Ivy Investment Management Co. and Waddell & Reed Investment Co. on April 18 in Johnson County Court. They also sued 16 directors of the trusts — but not Ryan Caldwell, the portfolio manager they accuse of spending the money for his own intended benefit.

Ivy Investment and Waddell & Reed are both Delaware business trusts based in Overland Park, Kan. Kapor, Peter Brockett and Hieu Phan filed the lawsuit as a shareholder derivative complaint.

Beginning in April 2013, the plaintiffs say, the trustees let Ryan Caldwell, one of the two portfolio managers of Ivy Asset Strategy Fund and the Waddell & Reed Asset Strategy Fund, spend approximately $925 million on "a start-up and potentially criminal" professional boxing promotion company.

"These purchases had no economic justification, but rather were motivated by Caldwell's personal interest and benefit," the complaint states.

The plaintiffs claim Caldwell knew the companies faced hundreds of millions in short-term losses, but pledged financial support from the funds to entrepreneur Alan Haymon, who is not a party to the case.

"This private stock investment violated the stated terms of the Prospectuses for the Funds, which describe an investment strategy that 'primarily focuses on securities issued by large capitalization companies,' that 'can offer a high probability of return or, alternatively, can provide a high degree of relative safety in uncertain times, with Strong cash flow streams: and 'high sustainable cash flow,'" the complaint states. "Investing nearly a billion dollars of private securities in a start-up boxing promotion company, as high-risk a venture as one could imagine, meets none of these criteria."

The plaintiffs say Caldwell's actions were inappropriate because as a fund manager he should have been making objective investment decisions.

In June 2014, the plaintiffs say, Caldwell resigned from the funds to join one of Haymon's companies. They question whether he actually resigned, or was fired by the trustees for making the investments, and whether he had a quid pro quo agreement with Haymon's company.

"In either case, the trustees have not acted properly," the complaint states.
Haymon's activities have been the subject of several lawsuits recently, according to the complaint. The Courthouse News database shows Haymon as a defendant in four lawsuits since 2013, all involving pro boxing, and another lawsuit in 2005, also involving boxing.

An independent association of State Boxing Commissioners asked the Justice Department to investigate Haymon's business practices, the plaintiffs say.
They say the defendants kept them in the dark.

"The Funds made no meaningful disclosure about their investment in this company, or how this investment was different from, or carried risks that were different from, the disclosed strategies in the Prospectuses," the complaint states. "The Funds also did not disclose Caldwell's personal relationship with Haymon or how that relationship influenced the decision to invest in Haymon's company — or how such a relationship might present a conflict of interest."

The plaintiffs say that whether the defendants knew that Caldwell was investing nearly a billion dollars "into a high-risk start-up that was designed to violate antitrust laws" or not, they should have known the investment was well outside the bounds of the funds' investment strategy.

Roger Hoadley, a vice president and director of communications for Ivy Investment and Waddell & Reed Financial said in an email that the underlying facts of the new lawsuit are similar to two others that were dismissed last year. He said that while the claims are different, they all relate to a single investment in the company's Asset Strategy Funds that represents less than 1 percent of its holdings.

"The suit includes significant factual errors and language that brings question to its overall merit," Hoadley said in the statement. "Lawsuits such as this often arise when the value of a fund has declined. We are continuing to evaluate the pleadings and case strategy and will respond appropriately. Regardless, our commitment to managing fund investors' money and striving to deliver strong results remains unchanged."

Caldwell started a new mutual fund company called Chiron Investment Management, which is a partnership with three former bankers from Goldman Sachs, according to a July 2015 article by The Wall Street Journal. Under Caldwell's watch, The Ivy Asset Strategy Fund delivered average returns of 10 percent over the past decade — third-best among comparable managers, according to the Journal.

Waddell & Reed announced recently that it would lay off 10 percent of its full-time employees, as its first quarter profits this year fell by 44 percent, the Kansas City Star reported.

The plaintiffs seek $925 million in restitution to the funds. They are represented by John Jackson Miller with Swanson Midgley, in Kansas City, Mo. Haymon was named as a defendant in two antitrust complaints in Los Angeles Federal Court in 2015; a 2014 contract complaint in Miami-Dade County; a 2013 summons and complaint in Essex County Superior Court, Newark; and a 2005 contract complaint in Clark County, Las Vegas.

[Eff Pandas]

HBO's gonna have to re-invent themselves, and I don't think defaulting to PPV and 20:1 fights on TV will do it (though, admittedly, I'll be tuning in for every Andre Ward fight, and am on the verge of committing to head out for Alvarez-Khan; have ignored the rest of the HBO schedule so far, and don't see that changing).

You're going way further down the rabbit hole than was my intention with this whole discussion lol. There is no doubt HBO boxing has needed to change as they gotten less money over the years, but I don't think they've done an awful job with what they have. I certainly don't think their investment in boxing has been a bad or improper investment. They've had less money in the last few years then they've probably ever had & they've parlayed that into the P4P top ten basically. HBO does an amazing job at picking talent, promoting that talent & controlling the narrative of their fighters for maximum effect.

[bballchump11]

Well I personally think the move away from free-to-air to HBO was more a symptom rather than the cause of the supposed decline in boxing being mainstream in the US. Besides even if PBC succeeds, and that is looking increasingly less likely, the long term goal is unlikely to be having the top fights on free-to-air, I think that it is very naive to think that although you might get a couple more years of higher quality match-ups on free-to-air which I suppose is a good thing in and of itself.

Will PBC stop fighters from getting brain damaged like Meldrick Taylor?

No the PBC won't prevent fighters from getting brain damaged. That was just an example of me saying how I care for their well being. Too many boxers end up in ****ty conditions when they're done and the promoters never seem to care.

And the PBC is most likely looking for an UFC model. Fight on CBC/NBC/Fox every month and then a ppv a few times a year. That's not ideal, but it's better imo than just having those fights be on subscription TV. I like being able to call my friends and tell them to turn it to channel 4. Or being able to go to a bar and watch Garcia and Guerrero go to war.

[bballchump11]

Waddell & Reed announced recently that it would lay off 10 percent of its full-time employees, as its first quarter profits this year fell by 44 percent, the Kansas City Star reported.

Why aren't you getting it? They're not laying off employees because the PBC made the whole fund's income decline by 44%.

[Eff Pandas]

but it is pretty meaningful if HBO can't work that out for their network without PPV that just shows how far they have fallen.

I can understand this, but I think the bigger picture is it shows how far boxing has fallen too that HBO isn't throwing the money it used to into boxing. I mean the hard truth all these guys dogging or praising these various groups like HBO, PBC, GBP, Showtime & TR are ignoring is its not like anyone is exactly killing it in the boxing business these days. Sure there are certain events that are big & show what boxing is capable of still, but these events are becoming fewer & further apart. Its not a HBO problem, its not a PBC problem or anyone elses problem, its a boxing problem.

[PKing]

HBO PPV. Canelo makes HBO money.

After production and marketing costs, HBO can make a little money on PPV.

I know they lost money on GGG-Lemieux.

[PKing]

Why aren't you getting it? They're not laying off employees because the PBC made the whole fund's income decline by 44%.

These people are too stupid and small-minded to realize anything outside of boxing lol

[elfag]

The only people who constantly make those "Al Haymon is going broke" threads are all Pacquiao/Golovkin fanboys. Doesn't take a genius to figure out why.

PBC isnt haymon's money. he knows what hes doing, that **** can go bust and he still is filthy rich