How does boxing make money?

[Spontaneous]

I also forgot that sponsors pay ALOT of money to advertise...so that can be factored into the revenue.

[Crazy Dude]

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.

I'm not expert on these things but your example doesn't look right to me. Why would HBO put up money and then not receive any of the PPV income? And aren't the trainer and the promoter getting paid out of the boxer’s purse? I doubt any trainer is getting 4.6 mill for a fight.

[Spontaneous]

I'm not expert on these things but your example doesn't look right to me. Why would HBO put up money and then not receive any of the PPV income? And aren't the trainer and the promoter getting paid out of the boxer’s purse? I doubt any trainer is getting 4.6 mill for a fight.

Yeah, but like I said, the sponsors and all that will add into the revenue I posted so HBO will get their money...

[eazy_mas]

I'm not expert on these things but your example doesn't look right to me. Why would HBO put up money and then not receive any of the PPV income? And aren't the trainer and the promoter getting paid out of the boxer’s purse? I doubt any trainer is getting 4.6 mill for a fight.

You are right on the point there.

But we are see what looks okay. You forgot another factor on you equation is the boxing organazation fee. Baldomir didnt pay his fee any only have to keep one belt after winning Zab

[eazy_mas]

How did Oscar open his own promotional company that is pretty big and competiting with others big promotional company very fast.

Roy Jones has a promotional company before Oscar and did have the same money or publicitiy in his promotion

[Crazy Dude]

eazy_mas, you'd probably be interested in this article :
The ABC’s of pay-per-view

[brently1979]

How did Oscar open his own promotional company that is pretty big and competiting with others big promotional company very fast.

Roy Jones has a promotional company before Oscar and did have the same money or publicitiy in his promotion

Oscar is a smart guy, he employed an investment banker as his CEO for starters. Oscar had a lot more power in the boxing World than Roy Jones Jnr. Oscar did start out doing smaller cards believe it or not. But, he was even smarter to sign the likes of Bhop, Barrera and Mosley and make them partners. So they can recruit fighters from their areas. He was able to get companies which hadn't sponsored boxing to start sponsoring his fights and his promotions. Notice that bud has sponsored a big fight in a while. Plus he was able to promote the most marketable fighter on the planet...himself, which didn't hurt.

Great thread by the way dude.

[eazy_mas]

Oscar is a smart guy, he employed an investment banker as his CEO for starters. Oscar had a lot more power in the boxing World than Roy Jones Jnr. Oscar did start out doing smaller cards believe it or not. But, he was even smarter to sign the likes of Bhop, Barrera and Mosley and make them partners. So they can recruit fighters from their areas. He was able to get companies which hadn't sponsored boxing to start sponsoring his fights and his promotions. Notice that bud has sponsored a big fight in a while. Plus he was able to promote the most marketable fighter on the planet...himself, which didn't hurt.

Great thread by the way dude.

intersting thought on him but how much is it going to worth his company?

and I think letting Hopkins, Mosely, Barrera to be partner is good stratgey for business but there is a downside on that. remeber that they are just starting in a few years time each one want his own thing going on e****ally a person like Hopkins is very hard to deal with.

both guys are smart businessman as well as Jin Mosely. People see ducking a fighter as ducking him for fear but promoters and business man see it as not losing money.

here is something intersting on the ******** side of the issue. How do this ******** give there ratio and rating. I know is based on the fighter but who puts them in the end is it the casion or ******** company or is there some independent organization doing it.

another factor is the ABC -titles which i mean the WBC,WBO...etc. some fighter used to promote one belt more then other. For example Mayweather Jr rate the WBC very highly but other see them the same. and there rating system of the fighters and fee to pay to enter to get there title.

For example now Mosely got a new title which is the WBC interm and at SMW Kessler got the WBA superbelt and Mundine got the WBA crown which makes thing complex. Is there anyway these organization work together to form one world title all together and pay higher fee but there belt is not abandon because I dont think the wanna lose the money coming from there. and how do these organization choose the president?

[guru]

i've never understood how some guys got paid so much.... like chris byrd, he was getting tons of money and i know he wasnt sellling out venues or getting high ratings, how could king pay him so much?

[eazy_mas]

i've never understood how some guys got paid so much.... like chris byrd, he was getting tons of money and i know he wasnt sellling out venues or getting high ratings, how could king pay him so much?

probably from promotional thing where advertisment pay them and Byrd is a abit of a name in HW division.

or maybe Don King has a good side

who know but i think it promotional reason and if a fight is held in MGM grand it part of King have some influnce because he hold some big percentage of stock in the MGM.

could be the Casino and place of venture take some percentage of the money but as Don King's influnce on MGM he could make it less goes to the place of venue and more to his pocket