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Got your PM, so here is my take on this issue:
1. Yes, the language in the Ali Act is somewhat flawed, given that the timeline for disclosure is not specified. You are correct though that in many instances, the amount coming from the network is "fluid" at the time the purse is negotiated with the fighter. There may also be pending site fee negotiations, or overseas broadcast rights deals that would not be finalized at the time the purse is negotiated. The promoter typically makes the offer to the fighter based on the revenues he THINKS he will get, and sometimes the promoter wins, and sometime he loses.
2. Unless Algeri's contract calls for revenue share percentages in lieu of flat fee purses, im not sure the relevance of the "no more 50-50 deals" statement. Most contracts have minimum purse requirements, and only address "percentages" in instances where the promoter loses a purse bid. Technically a provision of services agreement would fall under the disclosure requirements of the Ali Act, but because most promotional companies are not public companies, absent a lawsuit they would have no legal requirement to disclose how much they paid the other promoter for the provision of services. Not to mention the US Justice Dept has shown ZERO interest in enforcing the Act. Bottom line is they probably lie about how much they were paid, and the fighter never knows the true amount their promoter was paid by the other promoter. My feelings on this issue are mixed. On one hand I understand the fighters want / need to know the full revenue picture, but on the other hand if the fighter agrees to fight for 100k, or whatever number, how much the promoter is making is really none of their business. And before you jump down my throat, think about it for a second. Name any other sport, or business, where the owner has to disclose their total income to an employee / contractor prior to setting a wage?
3. Deguardia is right about 1 thing, that there is no money in club shows. I ran them for 12 years straight, and probably spent somewhere between $300k - $500k of my own money during that period. You dont do club shows for the money. You do them for 1 of 3 reasons:
1. You love the sport and want to contribute
2. You have fighters under contract you are trying to develop
3. you have other business interests you are promoting via the shows, such as a law office, medical practice, or whatever.
There is a running joke in the industry that boxing is the only sport where you can guarantee yourself to have a million dollars in the bank. And the way you do that is to start with $5 million and run some shows........
Most novice promoters run 1 or 2 shows, discover the economic realities of the business, and thats the end of it. I do things in life because either im having fun, or im making money. Doing the shows was always fun, and never about the money. When it stopped being fun, I packed it in.........
Edit: and before everyone hops on Haymons ****, remember, as a licensed "manager", he is exempt from the disclosure requirements and does not provide them to his fighters. The disclosures they get would likely only reference the flat-fee the "promoters" of PBC shows are paid by Haymon....
1. Yes, the language in the Ali Act is somewhat flawed, given that the timeline for disclosure is not specified. You are correct though that in many instances, the amount coming from the network is "fluid" at the time the purse is negotiated with the fighter. There may also be pending site fee negotiations, or overseas broadcast rights deals that would not be finalized at the time the purse is negotiated. The promoter typically makes the offer to the fighter based on the revenues he THINKS he will get, and sometimes the promoter wins, and sometime he loses.
2. Unless Algeri's contract calls for revenue share percentages in lieu of flat fee purses, im not sure the relevance of the "no more 50-50 deals" statement. Most contracts have minimum purse requirements, and only address "percentages" in instances where the promoter loses a purse bid. Technically a provision of services agreement would fall under the disclosure requirements of the Ali Act, but because most promotional companies are not public companies, absent a lawsuit they would have no legal requirement to disclose how much they paid the other promoter for the provision of services. Not to mention the US Justice Dept has shown ZERO interest in enforcing the Act. Bottom line is they probably lie about how much they were paid, and the fighter never knows the true amount their promoter was paid by the other promoter. My feelings on this issue are mixed. On one hand I understand the fighters want / need to know the full revenue picture, but on the other hand if the fighter agrees to fight for 100k, or whatever number, how much the promoter is making is really none of their business. And before you jump down my throat, think about it for a second. Name any other sport, or business, where the owner has to disclose their total income to an employee / contractor prior to setting a wage?
3. Deguardia is right about 1 thing, that there is no money in club shows. I ran them for 12 years straight, and probably spent somewhere between $300k - $500k of my own money during that period. You dont do club shows for the money. You do them for 1 of 3 reasons:
1. You love the sport and want to contribute
2. You have fighters under contract you are trying to develop
3. you have other business interests you are promoting via the shows, such as a law office, medical practice, or whatever.
There is a running joke in the industry that boxing is the only sport where you can guarantee yourself to have a million dollars in the bank. And the way you do that is to start with $5 million and run some shows........
Most novice promoters run 1 or 2 shows, discover the economic realities of the business, and thats the end of it. I do things in life because either im having fun, or im making money. Doing the shows was always fun, and never about the money. When it stopped being fun, I packed it in.........
Edit: and before everyone hops on Haymons ****, remember, as a licensed "manager", he is exempt from the disclosure requirements and does not provide them to his fighters. The disclosures they get would likely only reference the flat-fee the "promoters" of PBC shows are paid by Haymon....
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