DAZN's problem: They pay out PPV-caliber purses but don't earn PPV revenue

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  • Motorcity Cobra
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    #21
    Originally posted by Sheikh
    DAZN announced a few months ago they would no longer pay large purses and would pay standard market rate from now on but just paid a big sum for Chavez and Mikey Garcia. What happened
    They said they aren't paying large purses for fighters that don't move the needle. That's why Andrade and Farmer have YouTube fighters on their card. Chavez sold tickets and got decent views. The signing of Mikey is to try and lure Pacquiao for a fight. Pac rejected the Mikey on PBC fight that's why Mikey went to DAZN.

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    • Motorcity Cobra
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      #22
      Originally posted by pillowfists98
      Almost 30 million in purses, and only 4 million in gate and 250K PPV buys. Yeah they sure made a lot of money there.
      You think PPV & gate is the only way to make revenue. And that's why you think they lost money.

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      • lieutenant
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        #23
        Originally posted by ShoulderRoll
        Where are you getting that it was $27 million in combined purses?

        NSAC listed Wilder's pay at $3 million and Ortiz' pay at $1 million.
        Read the breaking news story from the ESPN contributor %{contributorName}


        Per the Nevada State Athletic Commission, here are the official contract purses for Saturday night's PBC/Fox PPV card in Las Vegas: Deontay Wilder $3 million (but his guarantee is really about $20 million), Luis Ortiz $1.5 million (but his guarantee is closer to $7 million), Leo Santa Cruz $750k (but he's guaranteed about $2 million), Miguel Flores $100k, Brandon Figueroa $200k, Julio Ceja $50k, Luis Nery $300k, Emmanuel Rodriguez $75k.

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        • yankees7448
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          #24
          Originally posted by ShoulderRoll
          For example, the $30 million per fight or whatever that they give Canelo is a number that worked under the old PPV model. Used by HBO and Showtime for Floyd/Pacquiao fights at the peak of their popularity.

          If a PPV was successful there would be more than enough money to give the boxers that as a guarantee and even to pay them extra due to the upside.

          But DAZN gets their revenue from subscriptions. And while I don't know the official number of subscribers they have I seriously doubt that it's enough to be turning a profit based on how much they spend.

          So there's a question about how sustainable their business approach is.
          Hmmmm, lets say they've invested a billion dollars into the service (probably more due to fighter purses, marketing, building and maintaining the app, servers etc.) I also think the subscription is like 20 bucks a month.

          I think that means they'd need almost 4.2 million people who are willing to pay 20 bucks a month for a whole year to break even. But if they don't substantially increase their investments it might not be a big deal in the long term so long as they can build and sustain their subscriber base. It helps that they are not soley focused on America.

          For them to make a bigger splash in the States they'd have to dramatically lower their price and partner up with another big service with an established presence. For instance, they can pursue a deal with Netflix, Apple or Time Warner to offer discounted bundles much in the same way Disney bundles up Disney+, ESPN+ and Hulu.

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          • RoyJonesJrp4pno1
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            #25
            Originally posted by pillowfists98
            Almost 30 million in purses, and only 4 million in gate and 250K PPV buys. Yeah they sure made a lot of money there.
            Don't argue with an idiot. They will take you down to their level and beat you with experience. Aka just ignore MCC's posts.

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            • pillowfists98
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              #26
              Originally posted by Motorcity Cobra
              You think PPV & gate is the only way to make revenue. And that's why you think they lost money.
              Ok please tell me how much money they raised that was not from PPV or ticket sales. And i'd like some sources please.

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              • juggernaut666
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                #27
                Originally posted by ShoulderRoll
                For example, the $30 million per fight or whatever that they give Canelo is a number that worked under the old PPV model. Used by HBO and Showtime for Floyd/Pacquiao fights at the peak of their popularity.

                If a PPV was successful there would be more than enough money to give the boxers that as a guarantee and even to pay them extra due to the upside.

                But DAZN gets their revenue from subscriptions. And while I don't know the official number of subscribers they have I seriously doubt that it's enough to be turning a profit based on how much they spend.

                So there's a question about how sustainable their business approach is.
                DAZNs problem ? Sounds more like your problem and being a Wilder fan why would you even bring up anything related to business when your as dumb as a stump is a better question ? Aren’t you even just a tad intelligent that you know threads like this won’t ever end well for you ? Lol

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                • Eff Pandas
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                  #28
                  It's not THAT crazy as I've said from day 1. Last I looked into it they were spending about $100M on boxing in the US. They charge $20/mo or $100/yr. So that means they need 1mill yearly signups to break even or they need to maintain a month to month base of 416k subs. Or more likely some combo of that like say 500k yearly signups at $100 + would than need 208k $20 month to month subs to break even.

                  And it's worth noting content crosses borders with DAZN to so while the US boxing ideally would need to make $100M or whatever in the US to break even there are still likely boxing fans in other countries who are paying exclusively or partially to watch this US boxing content.

                  That said I think DAZN has made some garbage moves lately but I still think success is attainable it's more likely a question of if it's long term sustainable or if they wanna go through the trouble of dealing with this clusterf#ck of a sport once/if they secure some bigger sports rights in the coming decade. I kinda get the feeling they may have more long term goals in the UK than in the US cuz it's a market they could takeover super easy & they hired the guy who runs UK boxing already. Don't know if they got a blueprint to move into the UK but I'd be shocked if it's not something scheduled behind the scenes already. Then maybe they just bounce from US boxing.

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                  • ShoulderRoll
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                    #29
                    Originally posted by lieutenant
                    I don't know where Fat Dan got his numbers but PBC would be dumb to be guaranteeing Wilder $20 million.

                    It's one thing to tell him that he would possibly earn $20 million if the PPV upside was there. But to guarantee him that much? Haymon and company would be taking a loss there if true.

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                    • Motorcity Cobra
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                      #30
                      Originally posted by pillowfists98
                      Ok please tell me how much money they raised that was not from PPV or ticket sales. And i'd like some sources please.
                      You think all those sponsors you see are there for free? You think the foreign rights are just given away? You don't think there was a site fee? You don't think they get a cut of revenue produced by the venue from the fight? The fight was on DAZN in some countries. You think PBC just gave them that fight for free?

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