Tweet
The most audacious Al Haymon court argument yet: the TV networks are the promoters, don’t look at me
The battle of “experts” becomes a circus
What has been most interesting is the battle of “experts”, with Haymon using long-time ally Kerry Davis (formerly of HBO) and Golden Boy relying upon Gary Shaw.
Kerry Davis in his words:
“First, Mr. Shaw is incorrect in broadly asserting that boxing promoters take significant financial risk. While some promoters are willing and able to take financial risks, the business model pursued by many promoters is to first secure television license fees and sometimes site fees that cover most or all of their expenses in promoting a fight card. In this respect, many of these companies operate more as “packagers” than as actual promoters.”
The number of boxing promoters who have spectacularly failed is voluminous. There is a proverbial graveyard full of them. Ask athletic commissions how many promoters come and go, especially in California. The risk associated with making money as a fight promoter is ultrahazardous. Why do you think, historically speaking, old time promoters were stable? They were stable because of organized crime laundering money. The underlying fundamentals of risk have always been tremendous in promoting fight sports. It’s one of the most risky business endeavors you could possibly undertake.
Al Haymon is the perfect example of this. He’s burned through tens of millions, if not hundreds of millions of dollars in hedge fund cash and has floundered. His entire business model with PBC would look so much different if he relied upon the standard pay TV business model that Golden Boy & Bob Arum have been navigating. After losing tons of cash, Haymon’s business model is starting to shift into what a “normal” high-end promoter model looks like in the modern era rather than his audacious attempt to flood every broadcast channel with prepaid programming.
“Third, Mr. Shaw is incorrect in asserting that it is the exclusive province of the boxing promoter to deal with television networks in connection with televised boxing events. While I was at HBO, several prominent managers dealt directly with HBO on behalf of their star fighters. Mr. Haymon, who also dealt directly with HBO, was not at all unusual. Negotiating with a television network on behalf of a boxer does not make one a promoter.”
If Al Haymon is not a promoter, then HBO is a promoter. And promoters are required to be licensed in each state with athletic commission and abide by the provisions in the Ali Act.
“Fourth, Mr. Shaw is incorrect in asserting that the PBC series and its creators somehow have an unfair advantage over existing industry stakeholders like HBO, Showtime, Top Rank, and Golden Boy, or that the PBC series’ business model is somehow bad for the boxing industry. The PBC series certainly has made the boxing business more competitive, which may be uncomfortable for those who were content with existing arrangements. But if Haymon Sports succeeds in growing the audience for professional boxing by broadcasting fights on network television, broadly speaking that should help, not hurt, other industry players.”
Kerry Davis’ argument is undermined by the fact that Haymon’s side supposedly waived exclusivity clauses. If PBC contracts had exclusivity clauses, that would automatically stifle competition for other promoters.
What has been most interesting is the battle of “experts”, with Haymon using long-time ally Kerry Davis (formerly of HBO) and Golden Boy relying upon Gary Shaw.
Kerry Davis in his words:
“First, Mr. Shaw is incorrect in broadly asserting that boxing promoters take significant financial risk. While some promoters are willing and able to take financial risks, the business model pursued by many promoters is to first secure television license fees and sometimes site fees that cover most or all of their expenses in promoting a fight card. In this respect, many of these companies operate more as “packagers” than as actual promoters.”
The number of boxing promoters who have spectacularly failed is voluminous. There is a proverbial graveyard full of them. Ask athletic commissions how many promoters come and go, especially in California. The risk associated with making money as a fight promoter is ultrahazardous. Why do you think, historically speaking, old time promoters were stable? They were stable because of organized crime laundering money. The underlying fundamentals of risk have always been tremendous in promoting fight sports. It’s one of the most risky business endeavors you could possibly undertake.
Al Haymon is the perfect example of this. He’s burned through tens of millions, if not hundreds of millions of dollars in hedge fund cash and has floundered. His entire business model with PBC would look so much different if he relied upon the standard pay TV business model that Golden Boy & Bob Arum have been navigating. After losing tons of cash, Haymon’s business model is starting to shift into what a “normal” high-end promoter model looks like in the modern era rather than his audacious attempt to flood every broadcast channel with prepaid programming.
“Third, Mr. Shaw is incorrect in asserting that it is the exclusive province of the boxing promoter to deal with television networks in connection with televised boxing events. While I was at HBO, several prominent managers dealt directly with HBO on behalf of their star fighters. Mr. Haymon, who also dealt directly with HBO, was not at all unusual. Negotiating with a television network on behalf of a boxer does not make one a promoter.”
If Al Haymon is not a promoter, then HBO is a promoter. And promoters are required to be licensed in each state with athletic commission and abide by the provisions in the Ali Act.
“Fourth, Mr. Shaw is incorrect in asserting that the PBC series and its creators somehow have an unfair advantage over existing industry stakeholders like HBO, Showtime, Top Rank, and Golden Boy, or that the PBC series’ business model is somehow bad for the boxing industry. The PBC series certainly has made the boxing business more competitive, which may be uncomfortable for those who were content with existing arrangements. But if Haymon Sports succeeds in growing the audience for professional boxing by broadcasting fights on network television, broadly speaking that should help, not hurt, other industry players.”
Kerry Davis’ argument is undermined by the fact that Haymon’s side supposedly waived exclusivity clauses. If PBC contracts had exclusivity clauses, that would automatically stifle competition for other promoters.
There are other legal issues brewing for Al Haymon’s PBC
The real legal action remains in Kansas with the shareholder derivative lawsuit against the hedge fund financing Haymon. If that lawsuit survives the motion to dismiss on November 10th, then the war begins with discovery and deposition on information regarding the financing of Al Haymon. That is the nuclear bomb.
The real legal action remains in Kansas with the shareholder derivative lawsuit against the hedge fund financing Haymon. If that lawsuit survives the motion to dismiss on November 10th, then the war begins with discovery and deposition on information regarding the financing of Al Haymon. That is the nuclear bomb.
Comment