Comments Thread For: Canelo: Golovkin is Asking For More Than He Deserves!

[TheCell8]

K2 has confirmed that the offer is for at least $10m; whether it goes beyond $15m is open for debate.

Still, what has Golovkin done in his career to even turn his nose up at $10m? It's still triple the money he's ever seen on a single fight in his life, which was already double what he's come to expect from fighting on HBO (beyond that, if he and his camp were sharp, they'd also angle for the German/Kazakh/Russia TV rights to the fight).

Folks trashed the comment when it was made, but Oscar talking about splitting the take on the event 90/10 was likely about as far as he and the camp were allowed to take the percentage.

Is K2 taking the fight for 10% of everything? Because Alvarez isn't going to give up 45% or 40%, or even 25% for that matter, of his entire event to a guy who's PPV high water-mark was maybe 125k PPV buys.

Open up the books and make the case; Alvarez-Smith[$65], Alvarez-Khan[$60], Alvarez-Lara[$50], Alvarez-Angulo[$50] (ignoring the Mayweather and Cotto fights, as the opponent had significant sway on the draw of the event) averaged together versus Golovkin-Lemieux[$50].

Look at the PPV revenue generated by either fighters and split accordingly; between 20/80 and 15/85, on a percentage basis, is likely all that Golovkin merits.

But they're basing this off interest and potential.

If you evaluate them separately, then Golovkin would only be worth probably a 10% to Canelo.

But there are projections that this PPV could do huge numbers, and obviously Golovkin will have something to do with that as he's clearly not just another Liam Smith type opponent. So they don't want to get short changed when they're also going to be responsible for contributing a great deal to the PPV numbers.

[Robbie Barrett]

Do you have a source on that 25%? My understanding was that Cotto got higher (15m) guarantee in return for lower PPV split. I seriously doubt it was a full 75/25 split across the board.

Since you mentioned it, let's assume this fight does as well as Cotto/Canelo, so:
900k * 70 = 63M, networks take 40% or something like that? Let's even say 50%, so ~$32M for purses + $7M gate + ~$5M promotions (dunno, just guessing) = ~$45m for fighters, in which case the 15M flat becomes a 33/67 split.

Basically the only way Golovkin comes out "ahead" with that 15M guarantee is if the fight does 500K PPVs or less. If it lives up to its expectations and is marketed properly, this fight should easily eclipse a million buys.

If the fight does not sell well, then asking for a PPV split instead of a high guarantee will work against Golovkin - both him and his team understand that and that's a risk they're willing to take.

You think the undercard fighters and GBP will work for free and all the other expenses?

[b00g13man]

So let's throw logic out of the window then. K2 hasn't responded to the rumours (after all, they've got all the time in the world to do that, it's not like they have a PPV card coming up or something...) so the offer that doesn't make sense, is true.

The rumours aren't new. Loeffler has also had time to deny rumours of a Saunders fight, but has no time to deny rumours of the biggest fight available for his fighter? Try again.

[Ray*]

Alvarez vs Cotto II, vs ChavezJr II and vs Ramirez, right now, all bring more money to Alvarez than a Golovkin fight, and that's without much thought.

Golovkin's financial strength has been so drastically overstated on this site (and others) that it's hilarious.

Canelo has too many options from 154 to 168. He doesn't really have any obligation to fight GGG or anyone, I really do think the Cotto rematch can and would happen in September. Or if Chavez makes it close then a rematch would be viable. GGG and his team can sit there and wait till he is 38 which am sure would be to GBP delight.

[koolkc107]

You think the undercard fighters and GBP will work for free and all the other expenses?

Exactly.

In order to make sure this does good buys, they are going to have to stack the undercard and that won't be cheap.

Having a 15M guarantee is appropriate and a decent offer.

Mayweather got 25M vs DLH: Pac got 15M vs DLH.

Canelo is a much bigger star than Golovkin is- both Pac and Floyd were bigger stars in comparison to Oscar than Lil g is in comparison to Kid Cinnamon. The situations really are not comparable as far as stardom goes.

[Scipio2009]

You're still not getting it lol. By conceding 40% in ppv upside he'd give up MUCH less if it only sells 600-800k. Where's the disconnect?

Alvarez isn't going to cut Golovkin in on his Mexico money, the Tecate money, or the site fee for the live event. There are more revenues for Alvarez to consider than simply the US PPV (Alvarez-Smith, as everyone here has used to push a point, only ended up doing $20m on US PPV).

Pay Golovkin's money on the front end (if the number really is $10m-$15m, the money from the live event and the first 500k PPV buys should be more than enough to cover), while Alvarez gets his own money on the back-end (the look of the deal has plenty of moving parts, but you're basically looking at Alvarez's take being the Mexico money plus 80% of the net proceeds on the PPv beyond 500k PPV buys).

Why in the heck would Alvarez even fathom giving Golovkin 40% of anything?

600k PPV buys (@$65 per PPV, generating $40m and clearing $20m), a $10m site fee to host the event, and another $5m cleared from the other non-Mexico revenues (UK/EU TV, merch, event sponsors, etc).

Expensive on the front end, but Alvarez still keeps all of his Mexico money, and whatever little event upside there is, to himself.

[LOCOMEX89]

Alvarez generates 4 or 5 times the money for his fights than Golovkin does for his fights.

why do folks always ignore that simple reality?

True and I agree. You know the boxing public will blame Canelo and his team if this fight doesn't get made.

[HeroBando]

Alvarez isn't going to cut Golovkin in on his Mexico money, the Tecate money, or the site fee for the live event. There are more revenues for Alvarez to consider than simply the US PPV (Alvarez-Smith, as everyone here has used to push a point, only ended up doing $20m on US PPV).

Pay Golovkin's money on the front end (if the number really is $10m-$15m, the money from the live event and the first 500k PPV buys should be more than enough to cover), while Alvarez gets his own money on the back-end (the look of the deal has plenty of moving parts, but you're basically looking at Alvarez's take being the Mexico money plus 80% of the net proceeds on the PPv beyond 500k PPV buys).

Why in the heck would Alvarez even fathom giving Golovkin 40% of anything?

600k PPV buys (@$65 per PPV, generating $40m and clearing $20m), a $10m site fee to host the event, and another $5m cleared from the other non-Mexico revenues (UK/EU TV, merch, event sponsors, etc).

Expensive on the front end, but Alvarez still keeps all of his Mexico money, and whatever little event upside there is, to himself.

OK that's fine, 40% of the HBO ppv should do it. It's huge savings vs the flat fee for GBP. What's the problem?

[HeroBando]

Exactly.

In order to make sure this does good buys, they are going to have to stack the undercard and that won't be cheap.

Having a 15M guarantee is appropriate and a decent offer.

Mayweather got 25M vs DLH: Pac got 15M vs DLH.

Canelo is a much bigger star than Golovkin is- both Pac and Floyd were bigger stars in comparison to Oscar than Lil g is in comparison to Kid Cinnamon. The situations really are not comparable as far as stardom goes.

None of those guys took a flat fee, right? Floyd more than doubled his guarantee in upside vs DLH

Canelo is not that big of a star if he's short of 300k vs no names and can only hit 1m+ vs a Kazakh hypejob.

[koolkc107]

None of those guys took a flat fee, right? Floyd more than doubled his guarantee in upside vs DLH

Canelo is not that big of a star if he's short of 300k vs no names and can only hit 1m+ vs a Kazakh hypejob.

True, none of those guys took a flat fee.

But again, those guys were stars in their own right.

Like it or not, Canelo has a proven PPV record he can bring to the table.

Lil g cannot.

Let's hope the Jacobs fight improves that, but I am guessing it won't.

And after Canelo and Jr get thru, Golovkin may well find himself in an even worse bargaining position.

He should accept the 15 million if Canelo is not offering a split.

The chance for stardom is worth the risk.