How does boxing make money?

[eazy_mas]

I dont think it was dicussed before but I want to know how does the business of boxing goes from the promoter to ad to coach to the fighter.

everything you know about the boxing business put it down.

It intersting I alway been asking after seen Don King in " The Forbes" magazine one how much does his promotion company or GBP worth?

or how much Arum earns every year?

as well is how does the fighters get the money before they even fight? who is paying them?

[Spontaneous]

Whatever company airs your fights is what pays you. They pay you and your promotion depending on how popular the fighter is.

If I run "Spontaneous Promotions" and I have one fighter Joe Blow and he is an up and comer that wants to fight on HBO; I contact HBO and if they agree to my terms, lets say $5 million, for the one fight then we sign the contract.

the $5million gets split with everyone involved in the contract. The Fighter gets the bigger percentage though.

[McNulty]

The promoter pays the fighters after the fight.
Trainer gets 5-10%
Promoter gets 10-30%

[eazy_mas]

Whatever company airs your fights is what pays you. They pay you and your promotion depending on how popular the fighter is.

If I run "Spontaneous Promotions" and I have one fighter Joe Blow and he is an up and comer that wants to fight on HBO; I contact HBO and if they agree to my terms, lets say $5 million, for the one fight then we sign the contract.

the $5million gets split with everyone involved in the contract. The Fighter gets the bigger percentage though.

so promoter basicly contact and negotate with the media like HBO and Showtime.

Boxing wasnt popular like it was in the 60s 70s and 80s. I know that because SRL got $10 mil with Duran fight or Hagler dont remeber and that is long time ago so with today's money it would be like more than 40mil.

But why does the fighter need a promoter as a middle man instead he could contact HBO or Showtime whatever and do it by himself and get more money instead of spliting a percentage

[Spontaneous]

But why does the fighter need a promoter as a middle man instead he could contact HBO or Showtime whatever and do it by himself and get more money instead of spliting a percentage

Most fighters don't have business degrees. Why risk trying something yourself when you can have your promotor, a trusted businessman, do it for you?

[McNulty]

so promoter basicly contact and negotate with the media like HBO and Showtime.

Boxing wasnt popular like it was in the 60s 70s and 80s. I know that because SRL got $10 mil with Duran fight or Hagler dont remeber and that is long time ago so with today's money it would be like more than 40mil.

But why does the fighter need a promoter as a middle man instead he could contact HBO or Showtime whatever and do it by himself and get more money instead of spliting a percentage

Boxing was bigger back then acutally. You need to compare the strength of the dollar and compare it to today. PPV and marketing was in its infancy then thats why it was lower too.

Negotiating is very difficult. Alot of boxers arent educated either.

[eazy_mas]

Boxing was bigger back then acutally. You need to compare the strength of the dollar and compare it to today. PPV and marketing was in its infancy then thats why it was lower too.

Negotiating is very difficult. Alot of boxers arent educated either.

the biggest problem with todays boxers is that they hve not only face the current oppenet but also beat the other era stauts that is what Rocky 6 was about on Mason Dixion side. people alway compare current champion with people of other era.


anyway, what about the Hotel reservation who make them? Is it network or the promoter?

because I know for one thing is that Don King owns MGM Hotel like 33% of it.

[Double]

Networks, sponsors, ticket sales, PPV, etc. all contribute to a fight's revenue. How it is split up is negotiated in the contract. This is why it often takes so long for contracts to get worked out since everyone wants a piece of all the various revenue sources.

[eazy_mas]

Most fighters don't have business degrees. Why risk trying something yourself when you can have your promotor, a trusted businessman, do it for you?

The problem you cant trust them.

It better to get jacked by one source than by two.

[Spontaneous]

Let me create a scenario between two boxers, I will be the promotor for "Spontaneous Promotions":

Joe Blow is my boxer and people wanted to see him and Bob Black duking it out for a long time. Here's how it goes:

Bob Black's promotions visit me in my office or wherever. Joe Blow is my fighter and the WBO welterweight champion. He, by boxing morals, should and would get the location and all the other decisions.

Joe Blow is there with me and says he wants to fight at MSG on October 20th 2007. He says he wants 12 ounce gloves and an 8 X 8 ring. I confirm that this is acceptable and Bob Black's promotions can leave it at that or try and manipulate my fighter into other stipulations. I, as the promotor, will not allow my fighter to speak. I will speak for him and I disagree with Bob Black's ideas and my fighter's decision is best.

We move on to the money. HBO has agreed to pay $10 million to host the fight on HBO PPV. I tell Bob Black's people that my fighter wants 40% of the entire pay because he is the champ. If Bob Black's people agree then that is okay. I agree that me and BB's promotor should get 10% each and the trainers as well. Bob Black gets the remaining 20%.

All the PPV buyrate revenue and arena revenue will factor into the already $10million. The PPV sells 500K and that equals $30,000,000 assuming the PPV will cost around $60.

$30,000,000 awarded on PPV sales alone. MSG fits 20,000 people.
There's 1,000 tickets that cost $1,000. That is $1,000,000 on those tickets alone. The rest cost around $100 to $500 but let me go in between and say $300. $5,700,000

Arena revenue: $6,700,000

$30,000,000 + $6,700,000 + $10,000,000(from HBO) = $46,700,000

Joe Blow 40% = $18,680,000
Bob Black 20% = $9,340,000
Trainers(2) 20%(10% each) = $4,670,000 each
Promotors(2) 20%(10% each) = $4,670,000 each

Boxers put on a classic 12 round war, fans are happy, everyone gets paid, everyone is happy. Another great night of boxing.