How do purse bids work?

Earlier this week K2 and star boxing wen tot a purse bid. K2 put down 501k, star boxing 401k. Does this mean the purse for both fighters (or event) is 902k or 501k? K2 gets it for 501,000 with a predetermined percent automatically going to the champ. Different sanctioning bodies have different rules regarding what percentage the champ gets. It's usually something like a 75-25 split or 60-40. But the winning promoter has X amount of days to pony up the cash and secure the venue, television, etc. If he defaults the next highest bid gets the fight. Don King has defaulted on some of his bids lately but K2 should be able to seal the deal on this one.

Earlier this week K2 and star boxing wen tot a purse bid. K2 put down 501k, star boxing 401k. Does this mean the purse for both fighters (or event) is 902k or 501k? The sanctioning body orders a fight. If the fighters cannot come to terms, then a purse bid is ordered and the promoter who enters the highest bid wins the right to promote the event. 501k will be the purse for the fight. I think 20% goes to the promoter and the fighters split the purse per the rules of the sanctioning body. Usually 70-30.