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For those that are wondering about the difference in numbers reported to the Nevada State Athletic Commission (NSAC), a large reason is due to the division of the $22 million guarantee between Pacquiao and his promotional company, therefore the bout agreement that's submitted to NSAC would likely only show the $13.5 million that's set aside as Pacquiao's actual purse. Furthermore, as promoter Bob Arum pointed out, under the rules of NSAC, he's only required to provide the commission the amount he's actually paying Pacquiao on the night of the fight, which amounts to the $6 million that NSAC reported. The remainder of the $13.5 million purse ($7.5 million) is paid over a timeframe usually within 30-60 days after the fight. The remaining guarantee to Pacquiao's promotional company ($8.5 million) is also likely paid out during that same 30-60 day timeframe.
So to summarize, on the night of the fight, Pacquiao gets cut a check for $6 million (minus expenses), and then he gets the remainder of his purse guarantee ($7.5 million) and his promotional guarantee ($8.5 million) spread out during a timeframe after the fight, thus totaling the $22 million guarantee ($6 million + $7.5 million + $8.5 million) that was promised to him. It should be noted that prior to Pacquiao, or any other fighter for that matter, receiving his check on the night of the fight, he is deducted a number of expenses, including manager/trainer fees, NSAC drug testing fees, advances, tickets purchased, and other incidentals. Furthermore, because he is a foreign fighter, roughly 30% ($1.8 million) is automatically set aside for the IRS, so that $6 million can quickly be cut in half.
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The purse is not only what the fighters earn. You have to look into PPV sales, gate sales, TV rights, etc to make the case whole.Comment
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You totally skipped out on several key lines in that article. Starting with:
Furthermore, those numbers are simply based on a projection of what the net profits will amount to at the conclusion of the event; a worst case scenario if you will. Obviously, if the event is more profitable above and beyond the projection, then Pacquiao will still be entitled to 72.5% of the remaining profits. That's the reason why his minimum guarantee is an advance against the total net profits, meaning whatever the final net profits turn out to be, his $22 million guarantee ($13.5 million purse and $8.5 million promotional guarantee) is subtracted from the total before his 72.5% is calculated. It's also important to note that this is a co-promotional agreement, and as such, Manny Pacquiao is responsible for a portion of the promotional expenses, which also get deducted from the net profits before his 72.5% is calculated.
And: Keep in mind, the $22 million that Pacquiao was guaranteed prior to the event was an advance against the net profits. In other words, the $22 million that he collects after the fight is subtracted from the 72.5% of the net profits that he's entitled to, so that $25.7 million is quickly reduced to $3.7 million. Those net profits can be reduced even further if Pacquiao has taken any advances prior to the fight, which he's been rumored to do in previous fights.
That's why Arum can only guarantee so little on fight night.Comment
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