Comments Thread For: Hearn on Canelo-DAZN: The Whole Game is About To Change

[kafkod]

I don't think its risky at all.

Canelo is getting $365M for 11 fights which will start in Dec. 2018 & go until Sept 2023 potentially.

Thats 58 months. So basically Canelo needs to steer an average of 629,941 subscribers to DAZN per month during the duration of his deal for DAZN to break even.

58mos x $9.99 = $579.42 x 629,941 people = $365M

... very likely like that... but whatever...

It's really a great deal for Canelo and GBP.
I think the people running DAZN know what they're doing but based on your calculations there is still some level of risk.

You are assuming that the 629, 941 "Canelo" subscribers will keep their subscriptions paid up for 5 years but the truth of the matter they only need to subscribe for the 11 months that Canelo will be fighting.

Granted, some of them will keep the subscription paid up because there may be other content they are interested in.

If they just use DAZN for Canelo then on the month of the fight there should be at least 3.32M subscribers to break even.

Imo, DAZN know that they are overpaying Canelo by a considerable amount, but have decided it will be worth it in the long run.

Getting the biggest PPV star in US boxing on board so soon after launch is going to do wonders for their "brand" in the States.

And it will underline what their CEO said at the launch announcement - the days of expensive PPVs for big fights in the US will soon to be over - DAZN is the future.

[Jubei]

So if its a 11 fight contract that means Canelo will do the December mismatch vs Fielding and then only have 2 fights on the usual May/September dates.. are there any high profile opponents at all in the near future except another fight vs GGG who is way too old at this time. Canelo himself just said that he wants to leave the sport when he gets close to 35 years because at that age fighters are way past prime. Thats the only reason he had such close fights vs GGG, waited him out until he slowed down and was past prime.

[Marvlus Marv]

Still not digging this Dazone handle. It looks stupid written down and sounds even worse when said. But you can't deny Eddie H. Sometimes I wonder if he actually sleeps.

[kafkod]

Eddie is there because it was announced at the Fielding v Canelo presser.

Those Matchroom believers are beyond thick. If I'm Eddie of course I'm going to be happy. He just got the best pitch point he could've asked for, even if he wasn't responsible for the move.

It's simple to understand from a marketing/business view.

DAZN isn't available in the UK, so the info we've been getting about it over here has been sketchy. A lot of UK fans - myself included - misunderstood what Hearn said about it on IFL and we were under the impression that Matchroom had exclusive rights to promote all boxing on DAZN in the US, which turns out not be the case.

The exclusivity deal Hearn was talking about only runs one way -In the US, DAZN have exclusive rights to all his shows, but he doesn't have exclusive rights to DAZN.

[techliam]

It looks even more risky seeing it broken down like that!

Canelo doesn't fight every month, of course. If he sticks with his usual 2 fights per year schedule, then based on your numbers, he needs to attract 3,779,646 subscribers - who wouldn't have subscribed otherwise - per fight, for his next 11 fights, for DAZN to break even on their investment.

That seems seems like a hell of a big ask to me. He averaged $35million for his last 3 fights because one was against Chavez Jr and the other 2 were risky fights against GGG.

Yes but also take into account peak-time advertising revenue, which will bring in a considerable amount.

A deal like this is indicitave of a wider agenda than simply profiteering out of 1 asset

[SeGoodland]

A couple of losses and the deal will crumble. Meanwhile AJ will be wishing he signed with DAZN instead of Matchroom.

DAZN aren't promotors, they are a streaming service and his fights ARE streamed on DAZN whilst being signed to Matchroom.

[Ray*]

Yes but also take into account peak-time advertising revenue, which will bring in a considerable amount.

A deal like this is indicitave of a wider agenda than simply profiteering out of 1 asset

I really don't/can't see how they are going to make a profit from this deal with Canelo, but like you pointed out its more of a wider agenda.

[SeGoodland]

How much AJ getting from DAZN? Guy probably thinking of switching to GBP

So Joshua signed a three fight contract extension with Matchroom for £100m ($131m) which will start in November.

Not sure what he gets from DAZN but with the $1 BILLION deal that Matchroom/DAZN made, I'm sure he will make a bit of extras.

That being said, 3 fights for $131m, if you scale that to 11 fights, that would be $480m.

I think he's doing just fine with Matchroom

[Stinger1]

So It Turns Out Eddie Hearn Approached Eric Gomez and Golden Boy...



According to Hearn he was the one who reached out to Eric Gomez to talk to GBP about coming to DAZN. He also goes on to say the deal negotiated between John Skipper and Eric Gomez. So much for Oscar going round Hearn straight to DAZN then...

[kafkod]

Yes but also take into account peak-time advertising revenue, which will bring in a considerable amount.

A deal like this is indicitave of a wider agenda than simply profiteering out of 1 asset

True. Having a big name like Canelo on board so soon after launch will have many benefits for DAZN, on top of the subscription money from fans who want to watch his fights.