Comments Thread For: Lampley Critical of Pay-Per-View Model on New The Fight Game'
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Lol... hyped a lot of mismatches....like they weren't infomercials for subsequent ppvs. Boxin just doesn't generate enough money for the paydays that all powers involved want to make and it's precisely because the sport isolated itself for decades in order to make quick big bucksComment
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Fighters being overpaid for mismatches is the problem. They want pay rises the networks can't afford to fight anyone decent.Comment
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Lampley is right that PPV should only be for 300k+ buy fights. Problem is that means the max rights fee paid by HBO and Showtime has to be around $6 million. As far as I can tell, it's under $4 million. That leaves a LOT of fights that either won't happen or will end up on PPV when they should be on premium cable.Comment
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Most of you don't understand how the PPV business side actually works! All networks have a specific budget for each boxing show. If the promoters & fighters feel the money being offered to fight on prime time TV is not worth it, the promoter can take the fight to PPV if they feel the fight could generate more money on PPV. The networks (HBO, Showtime, etc.) charges a fee to carry the PPV fight on their network. If a network decides the risk is not worth the reward as HBO did with Manny vs Vargas, they can refuse to carry the fight but the promoter can go through with the PPV as did Arum. Example, If a fight sells 300,000 at $60 = $18 million from PPV buys. Add an additional $5-12 million from the gate, another $2-5 million from sponsors. That total comes out around $25-$35 million. Now for the subtractions, fighters guaranteed fees plus PPV upside, Network fee: 7 - 10% of PPV buys, Promoters fee: 20 - 30%, Advertisement, Site fee, Promotional tour, Miscellaneous fees, etc. As you see, there's a lot to consider from all sides. The bottom line is how much money each person can make & is it worth it! When fights are placed on PPV, the promoter fronts the guaranteed purses while the networks only charge a set fee to carry the fight on PPV. When a fight is shown on prime time TV, the network fronts the guaranteed purses.Comment
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Now this is a useful post, thank you.Most of you don't understand how the PPV business side actually works! All networks have a specific budget for each boxing show. If the promoters & fighters feel the money being offered to fight on prime time TV is not worth it, the promoter can take the fight to PPV if they feel the fight could generate more money on PPV. The networks (HBO, Showtime, etc.) charges a fee to carry the PPV fight on their network. If a network decides the risk is not worth the reward as HBO did with Manny vs Vargas, they can refuse to carry the fight but the promoter can go through with the PPV as did Arum. Example, If a fight sells 300,000 at $60 = $18 million from PPV buys. Add an additional $5-12 million from the gate, another $2-5 million from sponsors. That total comes out around $25-$35 million. Now for the subtractions, fighters guaranteed fees plus PPV upside, Network fee: 7 - 10% of PPV buys, Promoters fee: 20 - 30%, Advertisement, Site fee, Promotional tour, Miscellaneous fees, etc. As you see, there's a lot to consider from all sides. The bottom line is how much money each person can make & is it worth it! When fights are placed on PPV, the promoter fronts the guaranteed purses while the networks only charge a set fee to carry the fight on PPV. When a fight is shown on prime time TV, the network fronts the guaranteed purses.Comment
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