It's not JUST that it gets low tv ratings. It get's low TV ratings despite it being a expensive product. That's the issue. Of course there are many cheap products that don't take much money to produce that have similar TV ratings. Problem is those products operate at a infinitely lower cost then PBC so they can still be profitable. Perfect example is PBC on FoxSports1. Prior to PBC FoxSports1 aired boxing with Golden Boy. It was profitable they had no problems with Golden Boy they simply did not renew because Haymon came with a boat load of money for a time buy deal. Meaning instead of FoxSports1 paying Golden Boy for the rights PBC is paying millions to FoxSports1 and in addition handling all the fighter purses and fight costs. Golden Boy fights were for low end fighters and journey men and filled with raw prospects many of which were making their pro debuts. They were getting a small budget from FoxSports1 something like 15-50K a card for their fighters purses. Very similar to what ESPN Fight Nights operated with. So you are not expecting huge ratings nor do you need huge ratings or big TV advertisement because the cost is so low. PBC on FoxSports1 purses are like 10X then previous Golden Boy cards. Matter of fact they paid Austin Trout more money alone for a one sided mismatch on FoxSports1 then all the fight purses combined in a year on Golden Boy cards. But what **** for their buck did they get in the TV Ratings? NONE. PBC on FoxSports1 gets the EXACT same ratings that Golden Boy did with a smaller fight and promotion budget. That's a terrible business model that can't sustain itself so when the time buy deal ends or Haymon investors run out of money why on earth would FoxSports1 pay for PBC? Right now they don't care because PBC loses money but FoxSports1 already got paid. But once that dynamic switches and PBC wants a network to now pay these fighter purses despite the fact that it produces such low TV Ratings and they lose millions on each fight?
The first half of the year Haymon took all his blue chip fighters OFF Showtime and had them fighting on PBC. The TV ratings were bad and getting worse they are losing millions each card and now all a sudden the second half of the year all his blue chip guys are NO LONGER fighting on PBC. This is not a coincidence this is a domino effect. They are back on Showtime and the names of the fighters on these PBC cards are not his cream of the crop they are his B and C level fighters. Why? Because he's trying to lower his costs he knows the ratings aren't good so if the ratings aren't good why not put cheaper fighters on these cards to limit the amount of money he is burning through and just have Showtime pay for his high end fighters. Early in the year you had guys like Thurman, Broner, Garcia headlining these NBC cards. Now you got guys like Figueroa. On Spike you had guys like Khan headlining these fights now you got guys like Barthelemy. Why isn't Jacobs vs Quillen on NBC or anyone of these other PBC networks? Because the fight is too expensive so they need Showtime to pay for it instead they would be paying out of pocket for that fight and lose millions. Why is Thurman vs Porter not on PBC this winter despite the fact that everyone says the deal is ALREADY done? It's because PBC has lost too much money already this year. They will either wait till next year to air it on PBC or it will end up on Showtime. So Thurman and Porter are both not fighting again this year because PBC can't afford to lose any more money in 2015.
2 things need to happen for PBC either the TV Ratings need to drastically turn around to attract high end advertisement to pay for these expensive fighters or they need to change their business model and how much they pay their fighters. Either fighters going to start taking discounts or you will see PBC become an outlet strictly for 2nd and 3rd tier fighters. Otherwise they will just blow through their investors money in no time and when the time buy is over no network is going to buy PBC because it's a money losing product.
The first half of the year Haymon took all his blue chip fighters OFF Showtime and had them fighting on PBC. The TV ratings were bad and getting worse they are losing millions each card and now all a sudden the second half of the year all his blue chip guys are NO LONGER fighting on PBC. This is not a coincidence this is a domino effect. They are back on Showtime and the names of the fighters on these PBC cards are not his cream of the crop they are his B and C level fighters. Why? Because he's trying to lower his costs he knows the ratings aren't good so if the ratings aren't good why not put cheaper fighters on these cards to limit the amount of money he is burning through and just have Showtime pay for his high end fighters. Early in the year you had guys like Thurman, Broner, Garcia headlining these NBC cards. Now you got guys like Figueroa. On Spike you had guys like Khan headlining these fights now you got guys like Barthelemy. Why isn't Jacobs vs Quillen on NBC or anyone of these other PBC networks? Because the fight is too expensive so they need Showtime to pay for it instead they would be paying out of pocket for that fight and lose millions. Why is Thurman vs Porter not on PBC this winter despite the fact that everyone says the deal is ALREADY done? It's because PBC has lost too much money already this year. They will either wait till next year to air it on PBC or it will end up on Showtime. So Thurman and Porter are both not fighting again this year because PBC can't afford to lose any more money in 2015.
2 things need to happen for PBC either the TV Ratings need to drastically turn around to attract high end advertisement to pay for these expensive fighters or they need to change their business model and how much they pay their fighters. Either fighters going to start taking discounts or you will see PBC become an outlet strictly for 2nd and 3rd tier fighters. Otherwise they will just blow through their investors money in no time and when the time buy is over no network is going to buy PBC because it's a money losing product.
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