Waddell investment down to the last 82M? OUT of (521M)

[PKing]

BigDunny can't be serious with his arguments. They aren't very logical.

This is sad.

[PKing]

I also said the $100 million deal may not be that similar to what the UFC gets in it's next contract, and that's not because I think $100 million is too high of an estimate.

The point is, people keep referring to that $100 million as though that number (which is likely very out-dated by now) has much bearing on what networks currently value the UFC at...much less what they might value the PBC at.

We won't really know what the UFC is worth to FOX, or perhaps to ABC/ESPN, until we see what the results are of their next round of negotiations...but the #'s may well not be very similar to current deal.

I believe it's called a starting point and the most similar entity to boxing there is.

[Mitchell Kane]

Yeah, seems like they're paying for it.

Sounds good. Was just asking cuz Rafael didn't seem to know when he was asked during his chat.

Homer (DC)

Do you think "Showtime on CBS by PBC" mean that the network paid for the event instead of it being a time-buy? That'd be consistent with the money rumors...

Dan Rafael, King Fight Freak (4:01 PM)

My belief is that both are contributing money toward making an expensive fight.

[IMDAZED]

Sounds good. Was just asking cuz Rafael didn't seem to know when he was asked during his chat.

Homer (DC)

Do you think "Showtime on CBS by PBC" mean that the network paid for the event instead of it being a time-buy? That'd be consistent with the money rumors...

Dan Rafael, King Fight Freak (4:01 PM)

My belief is that both are contributing money toward making an expensive fight.

Even if he were right, that would be awesome.

[Rath]

if PBC fails, what would the PBC supporter says then?

if PBC succeed what would the PBC hater says then?

we will know soon.

i might have an idea what dazed will do.

same as what he [posted when he learned Pac applied for Toradol

and what he posted and or not posted when he learned about Floyd IV infusion.

it will somehow be similar to that.

[bigdunny1]

Steve Kim from Undisputed Champion Networkd posted this

http://ucnlive.com/well-this-is-inte...5UjNVc.twitter

Well, this is interesting…
by Steve Kim | Feb 01, 2016


premier-boxing-champions


A few days ago, there was something rather interesting posted on the Reddit message boards regarding the financial health of Premier Boxing Champions, which states that, after an initially being funded with just over $521 million (yes, you read that correctly), they were down to their last $82 million.


You can read the posting here.


This was certainly a topic of conversation around the boxing water cooler over the weekend and, throughout the industry, it went viral. Just how accurate this information is is debatable but it does add to the growing speculation that the PBC, which has failed to gain a real foothold with the masses or attract sponsors, was hemorrhaging money at an alarming pace.


The question you hear often is: How exactly do you burn through that much money so fast?


Well, network time is not cheap and with time-buys at CBS, NBC, FOX and ESPN, among others, that alone will eat up a significant portion of the funding. Then you have the fighters who, for the most part, will thank Al (Haymon) for paying them exorbitantly, time and time again, and then marketing and advertising campaigns on various platforms. You also have a full-time staff to pay.


And hey, private jets aren’t FREEEEEEEEEEEEEEEEEEEEEEE!


The PBC flies the friendly skies in class; you gotta give ’em that.


Now, you have ongoing lawsuits with Golden Boy Promotions and Top Rank Promotions. Battling Bert Fields and David Morroso isn’t cheap either (yeah, discovery should be really interesting).


And there are changes taking place internally with the PBC as it enters its second year of existence. Word is that Leon Margules of Warriors Boxing is out as one of the “sham” promoters. He’s telling anyone and everyone that asks that this is simply untrue but you have to wonder if he’s just playing a game of semantics. The reality is most – if not all – of Warriors Boxing clients have contracts with Haymon, so, in many ways, he’ll still be there with a credential around his neck sitting ringside, getting a piece of the action from his boxers. But let’s see if Warriors Boxing is winning any seven-figure purse bids like they did last year on behalf of the PBC and if they’ll be the promoter of record for fights with boxers who have no association with Warriors Boxing like they did last year.


On Sunday night, another Bounce TV card took place and, in the past, this was something Warriors Boxing would “promote” but, this time, Marshall Kauffman’s King’s Promotions handled things. This raised a few eyebrows in the boxing business.


Then you have the case of Leija Battah, who, not too long ago, had an alliance with Golden Boy to be the local promoter in Texas. Last year, they were wooed by Haymon to do their shows in the “Lone Star State” and had reserved over a dozen dates (most of them for the Tuesday night cards on FS1) for the first half of 2016. Well, don’t look for that to happen as Leija Battah is pulling away from the PBC. Sources say that Haymon attempted to change the terms on what was once a favorable deal for them.


Word is there is a tightening of the belt across the board. One small example: Last week for the card in Los Angeles featuring Danny Garcia-Robert Guerrero at the Staples Center, those who were assigned driver duty throughout the week were not given hotel rooms like they did in the past. One sources says, for the last card they did in Texas, a per diem was not given out to the staffers working the promotion.


As you look at the PBC schedule, it’s rather sparse as there are just two shows on the docket after Sunday night’s card from Florida. Last year, they inundated the various networks with a full roster of fights while they flooded the market. In the foreseeable future, there are no dates scheduled for NBC, ESPN, Spike, FOX and NBC Sports Network. There are rumors circulating that NBC may have not renewed the option for a second go-round with the PBC. In recent months, you’ve seen more and more of the prime PBC product (like Danny Jacobs-Peter Quillin and Deontay Wilder) appear on Showtime, which still pays a license fee.


On March 12, an attractive welterweight fight between WBA titlist Keith Thurman and Shawn Porter takes place from the Mohegan Sun that will be broadcast by CBS. What’s interesting is that this fight is not being branded as a PBC fight but “Showtime Championship Boxing on CBS.” In other words, Showtime paid for this bout, will be paying for the production of the telecast and most likely using its broadcasters. This suggest to many that the PBC is struggling financially and needs a boost and it’s also fueling speculation – which perhaps will be found in the process of discovery – that CBS was an investor in the PBC.


Perhaps this is an ancillary issue but Waddell & Reed, whose war chest is financing this venture, has declined in value every quarter recently. Again, I don’t know if this has any meaning or not. After all, I write about boxing, not for the Wall St. Journal.


Many now speculate that the PBC will die a quick death (or at least that’s what they hope). Nobody really knows except Haymon and he continues to play judge and jury while also collecting a fee from all his clients. Some are calling this a “smash-and-grab”; no matter what happens to the PBC, Haymon walks away richer for it.


This much is known: This has been an costly venture thus far.


Hey, it costs money to create a monopoly.

[PKing]

By that article, PBC should be out of business by April.

If it isn't, then everyone is wrong.

From what it seems, all the time buys across all networks are set through 2017.

[bigdunny1]

Just Tweeted out by Dan Rafael

Dan Rafael

Interesting story about Waddell & Reed (which invested $500Mish in PBC) & its massive earnings losses in the 4th Q: http://www.kansascity.com/news/busin...e57890703.html


Here is the story Dan linked

Earnings drop 22 percent at Waddell & Reed Financial, president to retire

CEO promises a cost cutting effort and major upgrade to help advisers

President Michael Avery to retire in June after 35 years at Overland Park-based company


By Mark Davis

mdavis@kcstar.com

Personal Finance

February 2, 2016 8:32 AM


Waddell & Reed Financial Inc. reported a 22 percent drop in its fourth quarter earnings and the retirement of its president.

Separately, the Overland Park-based company said Michael Avery, its president who joined mutual fund group in 1981, will retire at the end of June. Avery also has been co-manager of the company’s asset strategy funds. Other co-managers will continue to lead the funds after Avery retires.

In the fourth quarter, Waddell said it earned $62.9 million, or 76 cents a share, compared with $80.9 million, or 97 cents a share, a year earlier. Revenues of $361 million were down 9 percent from a year ago.

Chief executive Hank Herrmann said the company has struggled with customer withdrawals and a volatile stock market. He also promised cost cutting to help boost earnings.

“In addition to market challenges, we have had to manage increased redemption pressure and weaker sales in some of our key strategies due in part to under performance in these funds. In light of lower levels of assets under management, we are evaluating operating expenses to align our cost structure with revenues,” Herrmann said in the announcement.

Waddell & Reed managed $104 billion at the end of 2015, down 2 percent from the end of September. The company’s asset strategy and high yield income funds have seen large declines in the amount of money they manage.

A year ago, Waddell & Reed managed $123.65 billion.

Herrmann said that, in addition to cost cutting, the company will provide a “major upgrade” to is adviser sales channels. Unlike most fund groups, Waddell & Reed employs its own brokers.

For all of 2015, earnings totaled $245.5 million, down 21.6 percent from 2014.
Mark Davis: 816-234-4372, on Twitter @mdkcstar


But I'm sure NONE of this has ANYTHING to do with scheduled PBC shows dropping off a cliff. They bought all this time on networks they just are refusing to use it for no reason has nothing to do with these financial reports. PBC shows being shipped to Showtime has nothing to do with these financial reports either. Stories that NBC might be pulling out no big deal either LMAO

[IMDAZED]

By that article, PBC should be out of business by April.

If it isn't, then everyone is wrong.

From what it seems, all the time buys across all networks are set through 2017.

Wait till the next earnings release comes out. Should be an interesting spin put out by reddit guy and the rest of the guys on here.

[PKing]

Wait till the next earnings release comes out. Should be an interesting spin put out by reddit guy and the rest of the guys on here.

Weird how the anti-PBC crowd cites Waddell & Reeds problems in the market while the entire market is having serious problems.

It's not only in the US, it's world-wide financial issues.

If these same people don't think HBO Boxing will be effected by this situation, they don't have a clue.