How does Al Haymon make a profit??

[shinobi108]

If this guy has the ability to bid $3.1imillion on a fight's where there's likely not going to be a high return on investment. How can his business continue as an ongoing organisation if he's not generating a profit?

[AgainstTheRopes]

Its a valuable part of a long-term plan. A lot of his shows might operate at a loss for years before he sees a return.

[Sugar Adam Ali]

He gets a percentage of the money like 5 or 8% from his fighters deals...

The network deals aren't profitable yet, but they are banking on landing a TV dealmthat will bankroll it similar to ufc's deal with fox.. I think ufc gets in the neighborhood of 100+ mil a year from the deal which includes the foxsports and fx cards..

Haymon is looking for a deal like that because he can spend 50-60 mil on fighters, 25-30 mil on production costs, pocket the rest, plus have ticket sales, ring/arena sponsors, international TV money from UK, Canada, Mexico, etc

That's what the plan is

[AgainstTheRopes]

He gets a percentage of the money like 5 or 8% from his fighters deals...

The network deals aren't profitable yet, but they are banking on landing a TV dealmthat will bankroll it similar to ufc's deal with fox.. I think ufc gets in the neighborhood of 100+ mil a year from the deal which includes the foxsports and fx cards..

Haymon is looking for a deal like that because he can spend 50-60 mil on fighters, 25-30 mil on production costs, pocket the rest, plus have ticket sales, ring/arena sponsors, international TV money from UK, Canada, Mexico, etc

That's what the plan is

Pretty much this except now that he's the one paying the fighters, taking a cut from their pay doesn't really mean much.

[Sugar Adam Ali]

Al Haymon is also connected with a private equity group that basically gave him 100 million to bankroll the current TV deals... Eventually he will have to land the TV deal to be successful, but the equity group believes in him and willing to burn the money to build something major that ten years from now will be worth a lot more than 100 mil...
Similar to early investors in Facebook before it became huge

[Tay Roc]

5-10% of 150+ fighter purses.

[Weebler I]

The network deals aren't profitable yet

This is the short answer...he doesn't (at least in terms of this venture)

Right now, he's in the business of spending investor's money just like he before when he indirectly used to spend Sho's and before that, HBO's.

but the equity group believes in him and willing to burn the money to build something major that ten years from now will be worth a lot more than 100 mil...

might be...and might not, in which case the investor's really will have burned their money just like HBO did all those years, and are now forced to work with a smaller budget

[boliodogs]

He manages or advises about 200 hundred boxers and I assume they all pay him.

[Dr Rumack]

Not every deal or fight will be profitable. But what Haymon has done in recent years is massively increase his negotiating power by gaining control over a large number of the recognisable fighters in the sport. That gives him a mild 'network effect' with fighters and a lot of supplier power with boxing producers on the TV networks.

You have to differentiate between the position building moves Haymon has made and the profit seeking moves. To date much of what he's done has been about building his castle and dominating the boxing landscape. But naturally at some point it all has to reap dividends.

No one knows how long Haymon can apparently spend a lot more on cards or production than anyone else because no one knows how well financed he is, nor the kind of returns that he's generating as things stand. That piece of the picture is missing.

But eventually the power moves and position building has to stop and the profits have to roll in. The NBC/PBC thing is presumably where that's supposed to happen.

[Rath]

are all haymons accountant in here already?