Can someone please tell me how paying the fighters work!?

[Teetotaler]

Arum is getting flack cause ab and danny want to get paid more for pac but isnt that the promoters (well in this case the advisers) job?
Also this hbo budget how the hell do they need money to pay fighters?

[OnePunch]

Arum is getting flack cause ab and danny want to get paid more for pac but isnt that the promoters (well in this case the advisers) job?
Also this hbo budget how the hell do they need money to pay fighters?

it has nothing to do with HBO because it would have been on HBO PPV, which actually makes money for HBO instead of them spending it.

Bottom line is AB wanted a guarantee that Arum was not willing to give. A $4 million guarantee with an upside that kicked in around 600k buys would probably have been workable......

[Teetotaler]

it has nothing to do with HBO because it would have been on HBO PPV, which actually makes money for HBO instead of them spending it.

Bottom line is AB wanted a guarantee that Arum was not willing to give. A $4 million guarantee with an upside that kicked in around 600k buys would probably have been workable......

But i mean hbo as a whole. This year they've been on a low budget. Why though? Arent the promoters suppose to pay fighters, sell out the venue etc?

[OnePunch]

But i mean hbo as a whole. This year they've been on a low budget. Why though? Arent the promoters suppose to pay fighters, sell out the venue etc?

yes, promoters pay the fighters and sell the tickets (unless they do a site deal with the arena, and then its the arena who is on the hook for the tickets.

Anyways, HBO has budget issues this year because supposedly Murdoch was trying to execute a takeover of Time Warner, so they moved some resources around and a some of that came from the boxing budget.

And the reason that matters as far as making big fights, is because for the promoter, the VAST majority of the revenue that they are going to use to pay the fighters comes from the broadcast rights fee paid by HBO, Showtime, etc for the rights to air the fight. So naturally if the amount of money that HBO can allocate out for rights fees is reduced, thats less money available to the promoters to get certain fights made, so what happens is some fights get sent to PPV (crawford-postol) or just dont get made at all....

[MasterPlan]

But i mean hbo as a whole. This year they've been on a low budget. Why though? Arent the promoters suppose to pay fighters, sell out the venue etc?

HBO is paying for the production cost, ect. The promoters are paying for the venue and fighters.

[Teetotaler]

yes, promoters pay the fighters and sell the tickets (unless they do a site deal with the arena, and then its the arena who is on the hook for the tickets.

Anyways, HBO has budget issues this year because supposedly Murdoch was trying to execute a takeover of Time Warner, so they moved some resources around and a some of that came from the boxing budget.

And the reason that matters as far as making big fights, is because for the promoter, the VAST majority of the revenue that they are going to use to pay the fighters comes from the broadcast rights fee paid by HBO, Showtime, etc for the rights to air the fight. So naturally if the amount of money that HBO can allocate out for rights fees is reduced, thats less money available to the promoters to get certain fights made, so what happens is some fights get sent to PPV (crawford-postol) or just dont get made at all....

Oh alright. ****in thank you lol does that mean hbo's budget will be better next year?
So for the ab danny situation, they were just pricing themselves out and haymon didnt wanna cough up the money?

[OnePunch]

Oh alright. ****in thank you lol does that mean hbo's budget will be better next year?
So for the ab danny situation, they were just pricing themselves out and haymon didnt wanna cough up the money?

supposedly the HBO budget thing was a 1-year issue, but who really knows? Thier budget has been trending downwards for a long time, but this year was really bad

as for AB and Danny, it wasnt really a Haymon issue. Pacquiao is promoted by Arum, so it was Arum initiating the offers. Of course Haymon relayed those offers to AB and Garcia, but since Arum would have been the lead promoter there would be no reason for Haymon to put up any money, as it wouldnt have been his event. He's not going to subsidize Arums show.....

[deathofaclown]

Yeah, as OnePunch says, it depends on who's event it is too.

Like Hearn was willing to put up £5m to get Danny Garcia to the UK to fight Brook but was told they were waiting on Floyd's next move so turned it down. Same as he was responsible for putting up the money to get Golovkin over as it was his event. The lead promoter will usually put up the money and also take the bigger slice of the pie.

So K2 would have made money last night too from Golovkin's share. This is partly why it's difficult to make fights because if you're the lead promoter and offer a fighter x amount to fight your guy, you have to offer enough money to the point the opponents promoter is happy with their amount too. Everyone wants paying. If they feel they can make more money putting on their own show and paying an opponent, they would rather do that.

Obviously you have to factor in marketing. K2 might have made more money last night if they put on their own show but they were also introducing Golovkin to a new and big market, so that might be worth taking a bit less.

That's why Top Rank stalled on the Vargas contract to fight Brook. I believe Arum felt he could make more money from Vargas using him as a Pacquiao opponent as it's all in house. Vargas purse might have been bigger v Brook, but Arum's cut would have been smaller.

It's business and often complicated.

[OnePunch]

Yeah, as OnePunch says, it depends on who's event it is too.

Like Hearn was willing to put up £5m to get Danny Garcia to the UK to fight Brook but was told they were waiting on Floyd's next move so turned it down. Same as he was responsible for putting up the money to get Golovkin over as it was his event. The lead promoter will usually put up the money and also take the bigger slice of the pie.

So K2 would have made money last night too from Golovkin's share. This is partly why it's difficult to make fights because if you're the lead promoter and offer a fighter x amount to fight your guy, you have to offer enough money to the point the opponents promoter is happy with their amount too. Everyone wants paying. If they feel they can make more money putting on their own show and paying an opponent, they would rather do that.

That's why Top Rank stalled on the Vargas contract to fight Brook. I believe Arum felt he could make more money from Vargas using him as a Pacquiao opponent as it's all in house. Vargas purse might have been bigger v Brook, but Arum's cut would have been smaller.

my understanding is that Brook (Hearn) kept all the UK ppv money, GGG (K2) kept all the HBO money, Hearn also paid GGG (K2) an additional fee (exact amount unknown but rumored to be around $2 million, and the gate was split between Brook (Hearn) and GGG (K2)

It is also rumored that HBO paid a lower rights fee to GGG due to the 5:30 start time

[deathofaclown]

my understanding is that Brook (Hearn) kept all the UK ppv money, GGG (K2) kept all the HBO money, Hearn also paid GGG (K2) an additional fee (exact amount unknown but rumored to be around $2 million, and the gate was split between Brook (Hearn) and GGG (K2)

That may be true. Hearn said in an interview last night that Golovkin/k2 wanted more money to fight Brook than he was getting v Eubank, so it was probably amended to some kind of deal like this. Maybe upped the guaranteed fee or something.

That's a great deal for Golovkin then but then i guess he was a big reason the fight was so big. Brook isn't a PPV fighter without Golovkin so maybe Hearn was willing to give more rope than he usually does otherwise he has no big fight.

I think the point stands though, the lead promoter will usually have to stump up enough money where the opponents promoter is happy with their cut, otherwise they'd rather just put on their own event.