Forbes says Mayweather lost Showtime

[Boxer1590]

@Heroband,
Thank you for bringing some sense to people (like Vilicous86) who do not understand how businesses work; they are there to make a profit not lose money like a government organization.
So many think "oh it's a corporation so they can lose money and not notice it", but that is not how it works. $12 million is a bunch of money to anyone.

Evidently you do not have as immense a grasp on how businesses work as you would like to think. Showtime has made a long-term investment in Mayweather. It is a six-fight deal, not a one-fight deal. Assuming the information in this thread is correct, it is not preposterous that the first fight in a six-fight deal against someone of Robert Guerrero's stature wouldn't generate profits pertaining to such a large long-term investment. However, the Canelo fight will likely be huge, and generate numbers of a much larger magnitude. Should Mayweather be successful in that fight, it will only enhance his popularity and reputation for the next one. Again, it is a long-term investment, which is extremely common in businesses. It is also extremely common to lose money at first in a long-term investment, so this shouldn't be surprising.

[lfc19titles]

I find it hilarious at the fools who think this is nothing big, "you don't understand business"

like the guy who posted above me, what are you smoking?

do you seriously think they signed floyd as a long term investment? are you stupid? floyd is a short term investment which is backfiring

you pay someone millions, you expect a return of some sort, golden boy is the long term investment for showtime, they would want them to be their partners for the next 30 years if they can do so

this will sting, like any investment, if 5 are made, 4 make a profit and 1 makes a loss, you get rid of the loss, simple as that, floyd is on a last chance, all of his next fights must be big, one more flop and showtime will fire his ass, mark my words.

it does not matter if they are making hundreds of millions profit, its the fact they are so far making a loss on the mayweather investment

boxer15 whatever, please educate yourself in how investments work dude, what you just posted was incorrect in so many ways

[THE REED]

Probs why he's been making 6 million dollar bets to make up for the ppv flop

Where did it say Floyd lost money?

[KnockoutKings]

LOL @ people say they didnt promote the fight. They promoted the fight heavily on CBS during MARCH MADDNESS. Floyd was even on there as a guest. They even had a prime time documentary on CBS, along with the All Access stuff.

How can anyone with a straight face say that they didnt promote the fight. It was the opposite.

[racer59]

Evidently you do not have as immense a grasp on how businesses work as you would like to think. Showtime has made a long-term investment in Mayweather. It is a six-fight deal, not a one-fight deal. Assuming the information in this thread is correct, it is not preposterous that the first fight in a six-fight deal against someone of Robert Guerrero's stature wouldn't generate profits pertaining to such a large long-term investment. However, the Canelo fight will likely be huge, and generate numbers of a much larger magnitude. Should Mayweather be successful in that fight, it will only enhance his popularity and reputation for the next one. Again, it is a long-term investment, which is extremely common in businesses. It is also extremely common to lose money at first in a long-term investment, so this shouldn't be surprising.

Where did you get your MBA? University of Phoenix??? This was not an M&A deal here. Long term investments as a result of acquisition MAY result in an early reported loss due to financing of the deal.

This investment was based on projections. You don't provide guarantee's if the projections dont justify it. The fact is, the Guerrero fight missed by a country mile.

[brettWall]

LOL @ people say they didnt promote the fight. They promoted the fight heavily on CBS during MARCH MADDNESS. Floyd was even on there as a guest. They even had a prime time documentary on CBS, along with the All Access stuff.

How can anyone with a straight face say that they didnt promote the fight. It was the opposite.

They promoted the fight HEAVILY which cost them millions of dollars. Reality shows like All Access or a documentary about Floyd don't just appear out of thin air. Production cost is huge.

Strange thing is, All Access is not even seen here in Canada on basic cable. 24/7 is, albeit late.

[brick wall]

Evidently you do not have as immense a grasp on how businesses work as you would like to think. Showtime has made a long-term investment in Mayweather. It is a six-fight deal, not a one-fight deal. Assuming the information in this thread is correct, it is not preposterous that the first fight in a six-fight deal against someone of Robert Guerrero's stature wouldn't generate profits pertaining to such a large long-term investment. However, the Canelo fight will likely be huge, and generate numbers of a much larger magnitude. Should Mayweather be successful in that fight, it will only enhance his popularity and reputation for the next one. Again, it is a long-term investment, which is extremely common in businesses. It is also extremely common to lose money at first in a long-term investment, so this shouldn't be surprising.

you're talking as if the floyd deal stands on its own and separate from their boxing division. cbs have one division and one budget for boxing and the floyd deal is just part of it. showtime has been in boxing for a long time so there no such thing as it's ok to lost money at first because it's not a start-up business in the first place. and although it's a 6-fight deal, it's not a long-term investment. they're treating this deal on a per fight basis. if after 2 fights and they still don't make money, don't be suprised if they cut floyd and his big guarantee. you think they would just continue making floyd fights if they keep on losing money? if floyd didn't agree to fight canelo it's most likely showtime will not accept any other opponent from the gbp stable. this floyd-canelo fight is just very promising in terms of profitability that's why showtime is banking on it. that shows you floyd's ppv pull depends largely on who is he going to fight. floyd on his own can not bring profits to showtime because of his big guarantee. he needs a canelo-type opponent who also commands a large following.

[ThePrince]

I would've loved to be a fly on the wall when Al Haymon tried to get HBO to offer Floyd a $32 million dollar guarantee to fight Robert Guerrero. The execs must've choked on their lattes from laughing so hard.

Showtime made the mistake of being overzealous and letting their emotions get the best of them. They saw an opportunity to steal Floyd away from HBO and in their haste basically gave him a blank check to do whatever he wanted on their dime. Anyone with even the slightest bit of business sense knows that $32 mil guaranteed for a fight with Robert Frickin' Guerrero is tantamount to Corporate suicide.

This isn't Mike Tyson were talking about. You can't just throw Floyd in there with a tomato can and expect to recoup on that kind of ridiculous investment.

Lesson learned for Show hopefully.

[SCtrojansbaby]

Exactly. Mayweather-Canelo will be huge. A $12 million loss isn't that big to a major company like Showtime.

Maybe for Viacom but Showtime losing that much is a very big deal

[Los Zetas]

Evidently you do not have as immense a grasp on how businesses work as you would like to think. Showtime has made a long-term investment in Mayweather. It is a six-fight deal, not a one-fight deal. Assuming the information in this thread is correct, it is not preposterous that the first fight in a six-fight deal against someone of Robert Guerrero's stature wouldn't generate profits pertaining to such a large long-term investment. However, the Canelo fight will likely be huge, and generate numbers of a much larger magnitude. Should Mayweather be successful in that fight, it will only enhance his popularity and reputation for the next one. Again, it is a long-term investment, which is extremely common in businesses. It is also extremely common to lose money at first in a long-term investment, so this shouldn't be surprising.

Who out there for the remaining 4 fights will generate the profits?

So is Mayweather to only make 32 Mil each fight?

How much do you think he will make with Canelo?

Mayweather is a proven PPV star, I would think that Showtime offered him the deal because they felt he would make them a profit from the very first fight.

Investing in a boxer is always risky, especially a 36 year old one. It sounds fairly stupid to go into it assuming a big loss such as 12 million when a fighter can get injured... maybe he will go prison again etc...