Comments Thread For: Showtime Sports VP Explains Mayweather/SHO Deal

[Deevel916]

**** so you confirming TV channels aren't getting much money for PPV fights? I feel like some figures are being missed. Anyone confirm or deny this is a solid if brief estimation of potential profits & losses for PPV cards?

Cable providers get 50% of the ppv revenue.

[Fetta]

Im pretty sure everyone came out on the positive side of the deal. So good for everyone involved, which didnt include me

[Cinci Champ]

Revenue 150M

Cable/Satellite Providers Share
150M/2 = 75M

Remaining Money
75M

Mayweather's guaranteed purse 41.5M

Remaining money
33.5M

Alverez guranteed purse 5M

Remaining Money
28.5M

As you can see we are quickly running out of money for Showtime.

Now Mayweather and Alvarez still get their share of the PPV revenue first. Howe much was that we dont really know. But it has been widely reported that Mayweather made in total about 75M in total PPV share and Purse. That leaves no money for Showtime.

u are forgetting about gate and sponsors and the end of the day mayweather made tons of money showtime made tons of money and as fans go if they would said he would fight canelo, pac, guerrero, maidaina, berto even the haters would of taken that in a heart beat and anyone who says different changes their opinion on cue to be able to bash mayweather. people need to give it up already

[GTTofAK]

Cable providers get 50% of the ppv revenue.

While I'm sure that Showtime has other ways of gaining and recovering revenue if you do a simple back of the envelope ignoring all other expenses the total amount revenue a fight has to generate given the expense of the fighter purse for network to make a profit

B = Break Even
N% = Network Take
P = Fighter Purse

B = P/N%

For the Alvarez fight if Showtime broke even then

B = 170.3 (ppv + gate)
P = 45.5

170.3= 45.5/N%

N% = 45.5/170.3 = 26.7%

Sorry I dont think that showtime pocketed 26.7% of the total revenue. As has been said the industry norm is around 8% of the PPV only. Include Showtimes expenses and this gets even worse.

[bigdunny1]

Big picture I think Showtime rolled the dice and were willing to overspend and even lose money to steal Mayweather away from HBO. Their boxing department got a huge shot in the arm because of it and for a time were able to compete with HBO because of Mayweather and Golden Boy. HBO can still claim victory after losing Mayweather because they still got Mayweather's most relevant fight to air on HBO (Pacquaio) they would never of paid the kind of money Showtime did for fights against Berto, Guerrerro and Maidana that were going to lose money. So really all HBO lost was the Mayweather vs Canelo fight. But they stole Canelo back and Showtime is now in shambles after Haymon took his fighters to PBC. What should keep Showtime up at night is if Mayweather comes back and fights next year for another network against a better opponent then Berto they look ****** for losing all that money on the Berto fight.

[GTTofAK]

u are forgetting about gate and sponsors and the end of the day mayweather made tons of money showtime made tons of money and as fans go if they would said he would fight canelo, pac, guerrero, maidaina, berto even the haters would of taken that in a heart beat and anyone who says different changes their opinion on cue to be able to bash mayweather. people need to give it up already

I'm not forgetting it I'm discounting it. The sponsors contributed about 13M to the May/Pac fight with the lions share going to the promoters. Alvarez will be much less. It is simply not enough potential money for showtime to make up the difference.

I now like most Floyd fans you are ****** and cant understand the concept of magnitude. You will grasp at straws like the peanuts form the sponsors and pray that its enough. Sorry its not.

[Eff Pandas]

Cable providers get 50% of the ppv revenue.

I didn't dispute that figure. I was asking if the figures submitted are a complete estimation of all the figures in play.

[Chuckguy]

Who cares? The deal is over floydie hopefully never comes back and let's move the heck on

[elfag]

Everything is speculation because we will never get the full details.

Overall, I am sure showtime did fine, especially considering the canelo and pac fights.

The 30 million guarantee seems too high for the smaller fights, whether that was true or not who knows.

Also whether or not the cable company got half of every PPV revenue, is speculation.

[wasporbee]

Pretty good but you are forgetting the HBO split in the Pac fight and that showtime sucks hind tit in PPV share. TMT gets their shier of PPV revenue first. If their isn't enough left after fighter purses to cover everyones split of PPV revenue Showtime eats it.

I did not forget the HBO split. I split total revenue by 60% for Mayweather/Showtime's side before getting to Showtime's portion.

There is a lot more money in these fights in the gate, sponsorships, international sales, etc. but my assumption is that Showtime only gets PPV revenue and only had to guarantee Mayweather's $32 million.