Comments Thread For: Showtime: Mayweather-Guerrero PPV a Financial Success

[ManOfVictory]

damage control!


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[ssc73]

Is Showtime/CBS guaranteeing the money for Floyd? I know in the past he used to get his own financing for his guarantees, so he was entitled to a lot more of the revenue from the fight. If the network is fronting the guarantees and the deal structure more closely resembles a classic model, then we can pretty easily figure out what the make or break point is for CBS.


So the costs added all up are in the neighborhood of $52 million for CBS/Showtime for this fight.

Revenue
PPV sales: $65 million (based on 1 million buys at $60-$70 per)
Gate: $9.9 million
Closed Circuit: $416, 650
Total: c. $75.4 million

The distributors get around 50% of the PPV revenue, so about $33 million. That leaves $42.4 million for CBS/Show/GBP/Mayweather.

That means everyone lost about $10 million on this promotion (not counting Floyd whose money was guaranteed) if the fight pulled in 1 mil buys. And that's why Fat Dan says the fight needed to do 1.1-1.2 mil to just break even.

Now you know why HBO turned down this ridiculous deal. They probably laughed in Haymon's face when he told them he wanted $30 mil+/fight guaranteed for Floyd to put on glorified sparring matches. Show was probably just desperate to snag him so they agreed to whatever nonsense he wrote on a piece of paper. Now they are desperately pushing for him to fight someone worthy of their investment. Hopefully Floyd doesn't flake on them, he's been known to take 'vacations' and go on faux retirements unexpectedly

This post is a little better thought out..............the minute Marquez landed that RH......Floyd's guaranteed draw dropped through the floor.......now he has to keep it interesting to keep people buying.

But there's a big problem with that. HBO knew it.........

It seems Showtime doesn't care. They have a pretty heavy majority of the future talent from GBP that they are banking on to continue to produce better PPV shows than HBO and their one fight shows..........which I don't much understand. We used to at least get two....

Both networks will survive.......but until you see a top rated GBP figher vs a top rated TR fighter..........Showtime picked the right team for now........just my opinion......


I think Floyd doesn't have a whole lot of competition that can give him serious problems from 140 moving up through 154............maybe as it gets closer to the end of the contract..........but not now. Even Alvarez isn't much better than a glorified sparring session if he only throws 4-5 punch spurts a round and waits on Mayweather to be open.........he'll get picked apart and show his age while everyone is waiting for Mayweather to show his. If I were GBP, I'd try to get him to hold off for one more fight and take Cotto first.......IF....and it is an IF he can get past that......then let him fight Mayweather. Only good things can come if they take that course......he's got to step up his urgency to have any chance. He won't get a decision against Mayweather the way he did vs Trout.......

The really tough fights for Mayweather won't draw. Guys like Trout........very long good jab, high workrate, relentless, etc. Unfortunately no power. So that's one guy that nobody wants to see Floyd fight who could outpoint him.......IF EVERYTHING goes his way......

Anyone hoping for that magic Jones/Tarver-type moment is not going to get it.......not from anyone I can see.........

Amir Khan could really cause him problems with his speed........but even Floyd will crack that chin..........

And with he and Broner appearing to be such good friends, the guys like Alexander, Bradley, and the guys that are still at 140 would need to make some serious strides to have much chance. Which includes Matthyse who has a short time to become a draw. But he couldn't KO Judah or Alexander...

And for WW graduated from 140.....does anyone want to see Bradley or Alexander vs Mayweather??


Nope. And Floyd knows it.......from a draw perspective, he could fight Alvarez twice, Cotto again and Khan......that leaves one more and he's done........untouched......even if Pacquiao gets smart, realizes he's risking nothing and agrees to 40/60 and USADA as his rep recently suggested I don't give him much better a chance than anyone else......but he's going to have to tell Evil Uncle Bob to get bent first......I hope he does it like Cotto did.........we'll see. I'd still like to see it. But before the end of next year...

I don't see Floyd's '0' going anywhere. And unless someone like Mikey Garcia can break through and get Abner Mares in the ring.........Showtime will eventually benefit from having the best fighter in the world while he finishes up........

[ThePrince]

This post is a little better thought out..............the minute Marquez landed that RH......Floyd's guaranteed draw dropped through the floor.......now he has to keep it interesting to keep people buying.

I'm sure the Pacquiao loss hurt both guys in terms of general public interest, but minimally IMO. Just like not having the biggest Mexican draw on the undercard on a major Holiday probably hurt as well. Again, probably not by much though. I think the biggest problem was that Showtime and Floyd were both convinced that he could do the same #s he pulled against Cotto with anyone. Floyd thought he could get HBO to sign a blank check to fight anyone, HBO knew better so they turned it down. SHOW took the bait, and now they are doing damage control while probably panicking behind the scenes.

You can't guarantee a guy $32 million to fight Robert Guerrero, that just makes absolutely no sense. The guarantee should be based on viability of the opponent and measured economic benefit on returns. If Floyd had been given a more reasonable guarantee, say in the neighborhood of $15 million, then Show would be shouting from the rooftops what numbers they pulled in if it's in the 900K-1.1 mil+ range. Remember, Floyd-Marquez did 1+ mil and HBO announced the results a few days after the event. Difference there was Floyd was guaranteed 'only' $10 mil and everyone involved made a healthy profit.

But there's a big problem with that. HBO knew it.........

It seems Showtime doesn't care.

Oh, they definitely care. You can tell by all the belligerent press interviews they and GBP have done. If the fight was a successful as they were hoping and everyone made a big profit, they would've released the #s with huge smiles on their face. The fact that they've done the complete opposite and are now publicly pushing for Canelo a handful of days after the Guerrero fight speaks volumes.

If they lose $10+ million dollars, that's a disaster for the network. And guess where that money will come from? Their boxing budget. Not a great way to try to usurp HBO's position.

Ken Hershman is somewhere right now smoking a cigar and laughing his ass off.

[THE REED]

Is Showtime/CBS guaranteeing the money for Floyd? I know in the past he used to get his own financing for his guarantees, so he was entitled to a lot more of the revenue from the fight. If the network is fronting the guarantees and the deal structure more closely resembles a classic model, then we can pretty easily figure out what the make or break point is for CBS.

Guarantee- $36 million
Cost to produce All Access- $2 million (estimate based on $1.4 million figure for 24/7 in 2007 source: Thomas Hauser 'An Unforgiving Sport')
Cost to produce Mayweather specials: $4 million (based on tvbythenumbers.com estimate for 1 hour drama production cost)
Promotion Fees: $10 million (Source: http://www.nytimes.com/2011/09/17/sp...ydmayweatherjr)

So the costs added all up are in the neighborhood of $52 million for CBS/Showtime for this fight.

Revenue
PPV sales: $65 million (based on 1 million buys at $60-$70 per)
Gate: $9.9 million
Closed Circuit: $416, 650
Total: c. $75.4 million

The distributors get around 50% of the PPV revenue, so about $33 million. That leaves $42.4 million for CBS/Show/GBP/Mayweather.

That means everyone lost about $10 million on this promotion (not counting Floyd whose money was guaranteed) if the fight pulled in 1 mil buys. And that's why Fat Dan says the fight needed to do 1.1-1.2 mil to just break even.

Now you know why HBO turned down this ridiculous deal. They probably laughed in Haymon's face when he told them he wanted $30 mil+/fight guaranteed for Floyd to put on glorified sparring matches. Show was probably just desperate to snag him so they agreed to whatever nonsense he wrote on a piece of paper. Now they are desperately pushing for him to fight someone worthy of their investment. Hopefully Floyd doesn't flake on them, he's been known to take 'vacations' and go on faux retirements unexpectedly

You included zero advertising revenue for any of the promotional televised shows or for the fight itself, also you need to take into account that by the publicity the Mayweather signing news has made, it could increase showtime subscriptions to people who were otherwise on the fence about shobox.

There are too many other revenue ******s and more accurate expense numbers you are not personally privvy to, to just make a quick summary if Sho banked or not.

Also Mayweathers Gaurantee could allso be based on the amount of ppvs tallied, with an upside option of ppv rev share if ppvs exceed anotherhigher number.

You dont have the contracts, none of us really know the true numbers. Good or bad.

[Canelo Phresh]

I'm sure the Pacquiao loss hurt both guys in terms of general public interest, but minimally IMO. Just like not having the biggest Mexican draw on the undercard on a major Holiday probably hurt as well. Again, probably not by much though. I think the biggest problem was that Showtime and Floyd were both convinced that he could do the same #s he pulled against Cotto with anyone. Floyd thought he could get HBO to sign a blank check to fight anyone, HBO knew better so they turned it down. SHOW took the bait, and now they are doing damage control while probably panicking behind the scenes.

You can't guarantee a guy $32 million to fight Robert Guerrero, that just makes absolutely no sense. The guarantee should be based on viability of the opponent and measured economic benefit on returns. If Floyd had been given a more reasonable guarantee, say in the neighborhood of $15 million, then Show would be shouting from the rooftops what numbers they pulled in if it's in the 900K-1.1 mil+ range. Remember, Floyd-Marquez did 1+ mil and HBO announced the results a few days after the event. Difference there was Floyd was guaranteed 'only' $10 mil and everyone involved made a healthy profit.



Oh, they definitely care. You can tell by all the belligerent press interviews they and GBP have done. If the fight was a successful as they were hoping and everyone made a big profit, they would've released the #s with huge smiles on their face. The fact that they've done the complete opposite and are now publicly pushing for Canelo a handful of days after the Guerrero fight speaks volumes.

If they lose $10+ million dollars, that's a disaster for the network. And guess where that money will come from? Their boxing budget. Not a great way to try to usurp HBO's position.

Ken Hershman is somewhere right now smoking a cigar and laughing his ass off.

Man you ghosted out of here when youre lord was ko'd. It took Floyds medium level success ppv to lure you out of hiding huh?

[ThePrince]

You dont have the contracts, none of us really know the true numbers. Good or bad.

I'm aware of that. I'm just working with the info we do have. I really doubt all of those other revenue ******s would make up for the $10 mil+ deficit, but who knows?

Man you ghosted out of here when youre lord was ko'd. It took Floyds medium level success ppv to lure you out of hiding huh?

I stopped posting here long before that, around the time that Pac-Bradley was announced. Got bored with this place. If I wanted to come back just to rag on Floyd's misfortunes, I would've been here during his jail drama.

[whoseyourdaddy]

I dont care about buys but if it is a financial success than this is good for boxing all around. Floyd is the biggest name in the sport so if he fails to draw than boxing fails.

why?? there are new comer boxers with potential to be a great draw.

[Djanxx]

Whatever way you look at it, Floyd Mayweather wins, you guys are funny

[THE REED]

I'm aware of that. I'm just working with the info we do have. I really doubt all of those other revenue ******s would make up for the $10 mil+ deficit, but who knows?





I stopped posting here long before that, around the time that Pac-Bradley was announced. Got bored with this place. If I wanted to come back just to rag on Floyd's misfortunes, I would've been here during his jail drama.

Thats the thing though, when you dont have all the specifics theres no point in guessing, which is all thats being done here.

Another example, you said ‘generally distributers get around 50%‘... everything is negotiable, and when you bring a Mayweather fight to the table, you better believe those numbers are much more negotiable than other fights or events, especially bringing Floyds ppv history of the last 5 years... those distributors stand to make more with a million $70 one night buys, they are much more willing to take a lesser percentage than what may be typical.

Thats just one example, to many x factors for us to really know what they did or did not make.

[Duckweather]

If Showrine have shareholders they can't lie about the numbers.