Mayweather created Mayweather promotions, so then why is he...
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Look at VEP. Which is a "real" company. More "real" than Mayweather Promotions. Look at the show they put on at the Hard Rock (I believe) last summer. I think Fernando lost money on that one.
As a new promoter, you need to get a "name" fighter to headline your show. But a name fighter wants to be G'd up. Therein lies the economic risk.
Mayweather Promotions operates under the same business model as most of Donald Trump's businesses. You don't really think Trump owns all those buildings, do you?
MP is a pass-through company. A broker of sorts. He "hires" GBP to do all the executional work. The MP set-up is actually pretty smart. The clothing line is horrific.
At some point, Floyd will get his license, and it will be seamless and invisible to the common fan. Meanwhile, his name, logo, experience is already in place. Is that smart or ******?
I do give Floyd credit for this: he isn't cheap with putting on a show. He tried to get Judah on the undercard of the Marquez fight.
DO YOU REMEMBER WHO WAS ON THE UNDERCARD OF THE BALDOMIR FIGHT? I DO.
Also, look at who sings the national anthems...stars. Look at his ring walks: 50 Cent, the O'Jays, etc. Dude spends a little money to give the fans a show....before the bell of course :-)Comment
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he's using golden boy for boxing purposes and the big paydays.... mayweather promotions is to promote himself using other outlets like movie theaters, media shows, etc. .. its all the cherries on top, the trimmings of self marketingComment
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Thing is, when people hear of a boxing promotional company, they think of an actual promoter with fighters in his stable.Comment
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The most important point missed soo far in some of the very good replies is that a Promoter & HBO\ SHOBOX etc ... FRONTS all the required money for the event and the fighter's purse's. When you hear about Guaranteed purse's, someone had to put that money in escrow and then take a percentage of the profit margin outside of the Guaranteed funds being held.
MP and GBP are CO-PROMOTING events where GBP\HBO is fronting the purse Guarantee's and the promotional costs. And in return, GBP\HBO gets a percentage of the gate\PPV\Closed Circuit\Theater etc.... They may have an arrangement of sharing promotional costs but it doesn't change much on paper.
As an example:
Floyd is guaranteed 22 million + PPV% and Mosley guaranteed 7 million + PPV%. GBP\HBO fronts that money {Purse} and puts it into escrow and collects interest until the even occurs. The Promotional costs and other fees equal 1-2 million {Estimate} which is shared by both GBP\HBO and MP.
Rough estimates of revenue generated by the event:
MGMGrand generated revenue $5,000,000
The event PPV sales makes $83,986,000
The event Closed circuit sales makes $3,000,000
The event Theater sales makes $2,999,000
Sponsor generated income makes $2,000,000
So, if you look a the numbers GBP\HBO does quite well working with MP, even though it guaranteed soo much money in purse.
So, with this arrangement MP doesn't lose anything if the event flops - It is GPB\HBO that has put up the funds and stands to lose the most if the event doesn't do well. But since its Floyd ... It always does well enough for GBP\HBO to throw their hats in the ring whenever Floyd fights.
Some of you guys should spend more time getting an education, than spewing BS and nonsense non-stop. If some of you guys think MP is just a front, then you know absolutely NOTHING about boxing promotion and nothing about boxing.Last edited by arraamis; 05-24-2010, 09:28 PM.Comment
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The most important point missed soo far in some of the very good replies is that a Promoter & HBO\ SHOBOX etc ... FRONTS all the required money for the event and the fighter's purse's. When you hear about Guaranteed purse's, someone had to put that money in escrow and then take a percentage of the profit margin outside of the Guaranteed funds being held.
MP and GBP are CO-PROMOTING events where GBP\HBO is fronting the purse Guarantee's and the promotional costs. And in return, GBP\HBO gets a percentage of the gate\PPV\Closed Circuit\Theater etc.... They may have an arrangement of sharing promotional costs but it doesn't change much on paper.
As an example:
Floyd is guaranteed 22 million + PPV% and Mosley guaranteed 7 million + PPV%. GBP\HBO fronts that money {Purse} and puts it into escrow and collects interest until the even occurs. The Promotional costs and other fees equal 1-2 million {Estimate} which is shared by both GBP\HBO and MP.
Rough estimates of revenue generated by the event:
MGMGrand generated revenue $5,000,000
The event PPV sales makes $83,986,000
The event Closed circuit sales makes $3,000,000
The event Theater sales makes $2,999,000
Sponsor generated income makes $2,000,000
So, if you look a the numbers GBP\HBO does quite well working with MP, even though it guaranteed soo much money in purse.
So, with this arrangement MP doesn't lose anything if the event flops - It is GPB\HBO that has put up the funds and stands to lose the most if the event doesn't do well. But since its Floyd ... It always does well enough for GBP\HBO to throw their hats in the ring whenever Floyd fights.
Some of you guys should spend more time getting an education, than spewing BS and nonsense non-stop. If some of you guys think MP is just a front, then you know absolutely NOTHING about boxing promotion and nothing about boxing.Comment
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Guys... y'all have short memories.
Do you remember who promoted the Baldomir fight? (I apologize to Pacquiao fans who didn't follow the sport "way back then").
Do you remember last year when mayweather flew down to Florida to meet with Don King? Well, that was a leverage play to squeeze a better deal from GBP. Floyd uses GBP as a free-agent promoter because GBP has the existing infrastructure and relationships to set up the fights.
And those deals benefit GBP as well (what have been GBP's biggest fights in recent years?). Since Oscar isn't fighting, and there are no more big-budget Hopkins or Barrera fights, what would GBP do with their existing staff and overhead?
It is a symbiotic relationship that works well. The events have been all class, and everybody has made a ton of money.
http://www.********** . com/pag/article.php?aid=18339Comment
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