No 24/7 for Canelo vs. Smith! HBO pinching pennies

Does it even matter what is reported publicly for taxes? If you get paid x you need to declare x. Can't declare y just cuz y is what was reported. Brand gonna end up owing all sorts of interest & penalties that way. But yea sure the numbers reported aren't necessarily what is the end number. Been saying this for years with UFC stuff & no boxing fans were listening til Bob reported Manny only getting $7M a couple years back. Brand made about 150k. Brand's promoter can pay him out of the foreign tv rights that never hit the US. Manny is a good example and slightly different just like Cotto. They can receive their purse like you said 7 mil to Manny on fight night and he can get a check sent to his "promotional company". There are more write offs that way. Then he can get ppv payments over years as they come in. Same with Cotto, Marquez etc who all have promo companies. All that matters about commission report is they have to be paid that amount on fight night. Anything else can wait. Floyd just wanted the bigger check fight night as a status symbol. He even admitted to having to wait to get more of the money.

It's the economy. I know a bunch of people that dropped HBO, Showtime and other movie channels because they are all cutting back on spending in general. Same thing with lots of companies out there, cutting spending back across the board. ================================== ALBERT EDWARDS: A 'tidal wave' is coming that will throw the US into recession A tidal wave is coming to the US economy, according to Albert Edwards, and when it crashes it's going to throw the economy into recession. The Societe Generale economist, and noted perma-bear, believes that the profit recession facing American corporations is going to lead to a collapse in corporate credit. "Despite risk assets enjoying a few weeks in the sun our fail-safe recession indicator has stopped flashing amber and turned to red," wrote Edwards in a note to clients on Thursday. He continued (emphasis added): Whole economy profits never normally fall this deeply without a recession unfolding. And with the US corporate sector up to its eyes in debt, the one asset class to be avoided — even more so than the ridiculously overvalued equity market — is US corporate debt. The economy will surely be swept away by a tidal wave of corporate default. Edwards said that many economic researchers discredit profits as a measure of the business cycle, and it is one of the reasons why they are so bad at predicting recessions. Profits are on the decline for two reasons, according to Edwards. On the one hand, they are dropping because of margin pressure from rising labor costs. But this sort of decrease because of higher wages does not always signal a recession, like in 1986. Additionally, much like the mid-1980s decline, an oil-price crash is disproportionately dragging down profits. The second reason is because companies cannot pass on these increasing wage pressures to consumers through prices. In turn, they decrease spending and hiring, and the most vulnerable cannot make debt payments. http://static6.businessinsider.com/image/5706b91f52bcd063018bb706-1030-534/screen%20shot%202016-04-07%20at%203.25.07%20pm.png Edwards enumerated three reasons why this time around is a recessionary decrease, not a 1986-style aberration. They are: "When the oil price slumped in 1986 the economy was steaming ahead at a 4% pace and so withstood the downturn in business investment." "In 1986 Fed Funds were cut from over 8% to less than 6% at a time when the consumer was re-leveraging, i.e. not debt averse as now." "Finally, companies in 1986 were not up to their necks in debt as they currently are, and their solvency now is far more vulnerable to a profits downturn." So this time will not be a quick, oil-driven recovery. The US is in for a full-blown end to the economic cycle. Edwards did include some advice to investors on how to weather the coming wave, though. "And if I had to pick one asset class to avoid it would be US corporate bonds, for which sky high default rates will shock investors," he wrote. You've been warned.

Should keep the budget very slow for this one because I don't think the numbers are going to be pretty for this one

GOOD!! This is the FIRST PPV i haven't ordered in over ten years!!! **** that coward low life. Isn't that what you said of his last 3 PPV?

No it's just a sh it fight and HBO knows it

GOOD!! This is the FIRST PPV i haven't ordered in over ten years!!! **** that coward low life.The only thing thatd put a smile on my face is hearing the next morning the other guy had bricks in is gloves and canelo got ****ed up badly.

I didn't mean the promoter gets it back. I'm saying the promoter pays or HBO will sometimes pay for 24/7 themselves, but THEY'LL get that money off the top from the PPV revenue so its all the same to them. For a PPV like this my assumption would be that the potential range of buys is low enough that they wouldn't do it, but for bigger fights its something that could be in play. The way it works is that HBO pays for it out of their distribution fee - BUT if the distribution fee is too small to cover the cost of the 24/7, the promoter has to pay for the shortfall. Bottom line: it reduces HBO's profit margin on PPVs. The only way the promoter pays for it is if HBO didn't make any profit on a PPV.

So all HBO is doing to market Canelo vs. Smith is a one-episode "Road To" special. That's a long way from the glory days of 4-episode 24/7 and All Access series...and it confirms that HBO isn't committed to boxing anymore. Not that I really blame them...because that's the natural result of doing PPVs that don't deserve to be PPVs. Here's why: HBO gets a 10% distribution fee on PPV $ - but that 10% is calculated after the cable and satellite take their half, so HBO is really only getting 10% of 50%, or 5%. So if a $60 HBO PPV does 1 million buys, that's $60 million in gross revenue, of which HBO gets $3 million dollars. BUT out of that $3M, HBO has to pay for TV production, satellite/transmission costs, insurance and T&E PLUS the cost of the 24/7 series, which is usually $400K per episode. All of a sudden that $3M is gone. So the only way to preserve a profit margin on low-performing PPVs is to cut back on 24/7s, marketing and everything else. That's why HBO isn't doing a 24/7 on Canelo vs. Smith. There's no money in the PPV, so no way for HBO to pay for the 24/7. HBO's decision to cut its budget for boxing means that we're getting trash programming. Now that HBO won't spend money on 24/7 series and won't spend money getting decent opponents for its "star" boxers ($30K for Brand to spar with Ward??????), what's the point of paying for HBO? HBO has become the home of Mismatches and Club Fighters. Not worth it anymore. why do people saying Brand got 30k? Even Roc Nation said he got paid a lot more than that and that was all that was paid fight night so that the foreign fighter wouldn't be stuck with too much in US taxes

Maybe GB is bracing themselves for a poor buy rate? With BJS on the undercard at a premium, it's going to be a fairly expensive show. Granted BJS & Smith combined are likely making less than Khan did. I still don't know how they'll pay for Canelo/BJS in December if it's off ppv.