The HBO Budget Crisis and What it Means

[Blue Heffner]

Look at the fights being made...the fact everyone seems to be swindling someone and all these so call "champions" avoid each other. I'm sure most or all the networks are going to end up getting sick of these promoters and matchmakers in boxing.

Budget cuts, revenue not producing...put two solid to good names against each other consistently, the numbers will rise. The budget will then be increased or at least, not cut.

[al-Xander]

You realize that's a good thing for Showtime, right?

Showtime's business is getting monthly subscribers. To do that, they need attractive programming on Showtime. Every time a good fight goes to PPV, it's a lost opportunity, since that fight could have gone on Showtime and been used to draw and retain subscribers.

So from Showtime's perspective, the fewer PPVs, the better it is for the network.

That's not the plan when Schaefer took all his fighters from HBO and join Showtime couple of years ago. It was supposed to be a new beginning for everyone involved, and with Mayweather on board.

It became evident that they knew nothing about the PPV business. The trio, Schaefer/Haymon/Espinoza, started by focusing on making as many PPVs as possible, not to mention putting heavy investment on Mayweather fights.

The Broner/Maidana was initially introduced as a PPV fight, but later put on regular SHO cable. Schaefer by this time had learned how the PPV dynamics work first hand and began to realize it's really not profitable.

Naive as the trio were, they forgot that Mayweather's guarantee alone would impoverish any network.

Strangely, everyone thought it was a viable business model. Even Duva was in awe of the business.

I myself got carried away by the hype and signed up for subsription, which I eventually cancelled because I've noticed there's hardly any regular fights shown. (Probably one event per 2 months or so, which was a disappointment when you're expecting at least 2 Saturday fights out of four/month.)

I don't know how to end this post, but it's clear to me that PPVs for networks is like taking chances on a casino. It's a gamble.

[BennyBlanco]

Somebody must be paying these guys fat purses. Doubt it's coming out of these rent a promoters pockets, and it's clearly not from the gate proceeds.

Everyone knows PBC is paying for network air time, so would it be so strange that they would also be supplementing the Showtime license fees with hedge fund money.

Sure, premium networks don't care about ratings. But why not just do Shobox for 20x less for similar number of viewers?

Simple: variety of programming. Neither HBO nor Showtime makes a penny from people watching their shows. All they care about is whether or not subscribers have paid for that month's programming.

[BennyBlanco]

That's not the plan when Schaefer took all his fighters from HBO and join Showtime couple of years ago. It was supposed to be a new beginning for everyone involved, and with Mayweather on board.
It became evident that they knew nothing about the PPV business. The trio, Schaefer/Haymon/Espinoza, started by focusing on making as many PPVs as possible, not to mention putting heavy investment on Mayweather fights.

Huh? The only PPVs Showtime has been doing have been Mayweather and Canelo PPVs. How is that "making as many PPV fights as possible"? Meanwhile, HBO is trying to put everyone from Lemieux to Kovalev to Ward on PPV.

Seems pretty amazing that people who knew nothing about PPV were able to twice set the all-time PPV record.

I myself got carried away by the hype and signed up for subsription, which I eventually cancelled because I've noticed there's hardly any regular fights shown. (Probably one event per 2 months or so, which was a disappointment when you're expecting at least 2 Saturday fights out of four/month.)

2 Saturday fights a month? 24 fight cards a year? Neither HBO or Showtime have ever done that in their history. And so far in 2016, it looks like HBO and Showtime have the same number of fights scheduled.

I don't know how to end this post, but it's clear to me that PPVs for networks is like taking chances on a casino. It's a gamble.

You don't understand the business. PPVs are not a gamble for the network. They're free programming. All the risk is on the promoter.

[al-Xander]

Huh? The only PPVs Showtime has been doing have been Mayweather and Canelo PPVs. How is that "making as many PPV fights as possible"? Meanwhile, HBO is trying to put everyone from Lemieux to Kovalev to Ward on PPV.

Yeah, the three stooges put all their eggs in one Mayweather PPV basket. Their semi-stars were all fighting in his undercards. There was nothing left for subscribers. People were laughing what's all this Showtime hype was all about when Mayweather wasn't even on Showtime. He's on PPV. LOL.

Seems pretty amazing that people who knew nothing about PPV were able to twice set the all-time PPV record.

And where is Schaefer now? Where is Showtime?

You don't understand the business. PPVs are not a gamble for the network. They're free programming. All the risk is on the promoter.

That's nonsense. The risk is all on the networks. They pay all the bills. Promoters are essentially beggars. You know nothing doe.

[Sugar Adam Ali]

If you compare boxing to what it was in the 80's and 90's, yes it's on decline. Compared to the past five years? It's on the upswing. But who am I to talk? Everything is premature -- I'm just going to sit back and watch how this all plays out.

The last five years have been held up by floyd and manny...

Now they are both pretty much done, and we are down to one legit draw in canelo...

Rewind to a decade ago, and morales, barrera, manny, shane, Oscar, vargas, tito, hopkins, could all headline major fights... Now it's only canelo...

[IMDAZED]

The last five years have been held up by floyd and manny...

Now they are both pretty much done, and we are down to one legit draw in canelo...

Rewind to a decade ago, and morales, barrera, manny, shane, Oscar, vargas, tito, hopkins, could all headline major fights... Now it's only canelo...

No, you totally misread my post.

[atomicsad]

HBO used boxing to draw subscribers. I doubt they will turn them all away now. There are tons of movie channels, nobody is going to stick around for four month old movies.

[Sugar Adam Ali]

No, you totally misread my post.

Sorry my bad,,, it's late for me and I'm drunk,,,

[HeroBando]

The last five years have been held up by floyd and manny...

Now they are both pretty much done, and we are down to one legit draw in canelo...

Rewind to a decade ago, and morales, barrera, manny, shane, Oscar, vargas, tito, hopkins, could all headline major fights... Now it's only canelo...

Most of those guys were no Ppv draws, only Oscar and less so Tito. Pac only did solid number vs Maxican first ballot HOFs, who by themselves couldn't sell a ppv in the US