This is just a quick calc I threw together to estimate how well Cotto/Canelo needs to do.
Assumptions: I don't know how much advertising + venue cost them. I also don't know exactly how much $$ they will generate from physical tickets. I'm assuming they're pretty close to a wash - +/- 1m.
Also assuming that HBO takes 1/2 of the PPV proceeds
Payout info link
Cotto's share of PPV: He gets 27-30m with 1.5m PPV buys with 10m guaranteed. So for 1.5m PPV buys, he generates between 17-20m. 1.5m*70 (avg ppv price HD/nonHD) = 105m. 17m/105 = 16%.
So Cotto gets approximately 16% of the PPV purse.
Purses are 6.5m for Canelo, 10m for Cotto and let's estimate ~2m for all others. That's 18.5m guaranteed purses. To cover HBO, they need to generate twice as much revenue = 37m. Now we need to factor out the variable cost - Cotto's 16% portion.
To do so, I find the approximate break-even revenue where the costs (purses+hbo) are equal to revenue generated (buys x price), which per my calcs is around $54.5m. In order to generate that amount of revenue, there needs to be 778k PPV buys (54.5/70) or 726k if we assume close to 100% of people will buy HD.
Was just curious. Please discuss.
Assumptions: I don't know how much advertising + venue cost them. I also don't know exactly how much $$ they will generate from physical tickets. I'm assuming they're pretty close to a wash - +/- 1m.
Also assuming that HBO takes 1/2 of the PPV proceeds
Payout info link
Cotto's share of PPV: He gets 27-30m with 1.5m PPV buys with 10m guaranteed. So for 1.5m PPV buys, he generates between 17-20m. 1.5m*70 (avg ppv price HD/nonHD) = 105m. 17m/105 = 16%.
So Cotto gets approximately 16% of the PPV purse.
Purses are 6.5m for Canelo, 10m for Cotto and let's estimate ~2m for all others. That's 18.5m guaranteed purses. To cover HBO, they need to generate twice as much revenue = 37m. Now we need to factor out the variable cost - Cotto's 16% portion.
To do so, I find the approximate break-even revenue where the costs (purses+hbo) are equal to revenue generated (buys x price), which per my calcs is around $54.5m. In order to generate that amount of revenue, there needs to be 778k PPV buys (54.5/70) or 726k if we assume close to 100% of people will buy HD.
Was just curious. Please discuss.
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