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

[deathofaclown]

There’s some very wealthy people behind DAZN, some great business minds, they’re not ****** and just throwing money away blindly. I think they know a lot more than a bunch of fartknockers like us lot on boxing forums.

I believe they’re probably using the revenue from other countries where DAZN is big to subsidise their USA venture, because if it pays off, then it’ll have been well worth paying over the odds.

As they said, it’s not meant to be instant, they’re planning 5/10 years ahead. That’s how these ventures work.

It’s called investment. They look at the bigger picture, not just one night of boxing.

[daggum]

dazn has no problems! they are perfect!

[Randall Cunning]

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.

OK Boomer.

[ShoulderRoll]

OK Boomer.

Too much reading for you, huh?

[tritium_arma]

Yes I do have a source.

Dude, some random guy on YouTube is not a legitimate source.

[Randall Cunning]

Too much reading for you, huh?

C'mon man you knew the answer to the thread from the start. How do you attract stars to a startup without overpaying?

[N/A]

It's laughable when some dorks say the offer is too small compared to the pot.
What pot? Who would ever determine how much the pot is?

Pot is the same as it's always been. Domestic broadcast, live gate, foreign rights, sponsorships, delayed broadcast, merchandise, etc.

If it's a 50/50 split, instead of splitting the US PPV profits like before, you split the license fee DAZN pays for the domestic rights.

[Toffee]

It's simple. DAZN aren't paying to lure a fan in for one fight. They're trying to lure them for years. The longer that subscriber stays, the less they will have to spend on them to retain them.

Their measures will be growth and retention. Both increase their revenues and the value of their business. They'll have a limit on their losses but they definitely won't be too worried about short term profitability.

[Motorcity Cobra]

Dude, some random guy on YouTube is not a legitimate source.

Eddie Hearn is the source.

[Eff Pandas]

Does DAZN/Eddie have an option on Mikey's next fight? I read somewhere it was a one fight deal, but that could be wrong

I've read it's one fight with one option. No clue what the option may or may not depend on.

I'd be SUPER surprised if they are paying Mikey $7M just for a Vargas fight. I think there has to be something more compelling around the corner like if they could sign Manny or at least has more upside for Matchroom/DAZN like potentially building up Josh Taylor a lil more.

It's a awful move if it's just Mikey vs Vargas & out.