The promoter will make a fight between two combatants, along with an undercard to support it. He approaches the pay-per-view distributor, like HBO PPV or Showtime PPV (or the new entrant, Epix) with that fight, and the distributor makes the decision as to whether to carry it or not. If the fight gets the green light, the distributor goes to work clearing the fight with the MSO’s (multiple system operators) who control virtually the entire cable universe. These include companies like Time Warner, Cablevision, Comcast. Cox and Charter.
The standard breakdown as far as money is concerned is a 10% fee off the top for the distributor, with 45% each for the cable system and the promoter. So when you see a price tag on a fight, you know that the promoter will get about 45% of that
If a fight sells a million pay-per-view subscribers, HBO’s pay-per-view arm will get $5 million and the promoters will pocket $22,500,000. If that level of revenue, along with the other revenue streams (live gate or casino site fee, merchandising, international rights, etc.) did not meet what the promoter guaranteed the fighters, well, let’s just say that would be an unfortunate occurrence.
The standard breakdown as far as money is concerned is a 10% fee off the top for the distributor, with 45% each for the cable system and the promoter. So when you see a price tag on a fight, you know that the promoter will get about 45% of that
If a fight sells a million pay-per-view subscribers, HBO’s pay-per-view arm will get $5 million and the promoters will pocket $22,500,000. If that level of revenue, along with the other revenue streams (live gate or casino site fee, merchandising, international rights, etc.) did not meet what the promoter guaranteed the fighters, well, let’s just say that would be an unfortunate occurrence.
http://goo.gl/5RcL4w
@boxing - HBO distributes the PPV but doesn't underwrite. That's on the respective promoters to take risk and win/lose money.
— Bruce Trampler (@BruceTrampler) January 2, 2016
Comment