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In the UK, we have 2 major PPV's right before a potential Khan V Brook fight, with Haye vs Bellew and Klitschko vs Joshua. This means that if the casual fans are unsatisfied with the outcomes of these two PPV's, many won't buy a Khan V Brook fight. (FACT)
Both fighters are coming off significant losses, which doesn't work well for building up this fight. Name me one PPV that has done well where both fighters have come of a loss?
This means that both parties have to be conservative in there estimates of how well the PPV will do. Team Brook are being overly optimistic and believe that a 50-50 split of all the incoming revenue will be both Khan's and Brook's biggest purse.
Do you guys really think that after Old Trafford has been paid, and Sky have taken their cut that, the fight will have made $28 million dollars in *net revenue* to be split between both camps. Khan got paid $13 for his bout with Canelo and there is no way in hell that with a 50/50 split, Khan could make $13 million. (Canelo V Khan generated, £39 Million from PPV buys and Gate alone, excluding sponsors, Mexican and UK TV rights)
The British Pound Sterling has plummeted since Brexit. $13 million dollars is £10.36 million in pounds in today's money. Then take into consideration the UK tax rate. Eddie Hearn can't guarantee Khan that, which is why he wants a percentage split in place, so even if the fight flops on PPV, he isn't contractually obliged to pay out.
Fights only have a purse, if there is a guaranteed pot of money to be split. This occurs in mandatory bouts, or televised bouts where the TV channel has paid a flat fee to buy the telecast rights to a fight. This isn't the case with Khan vs Brook.
Mayweather vs Pacquiao had $200 million from MGM and Tecate, hence the 60-40 split of the guarantee, and then any revenue above that amount was split 60-40.
What is fair is that both fighters are guaranteed that they will make their highest ever career purses.
So Brook got paid £2.6 Million vs Golovkin. He should be guaranteed £2.6 Million. Khan got paid £10.36 Million. He should be guaranteed £10.36 Million. Any revenue after that amount should be split 50-50. That makes perfect sense.
For the Brook V Khan fight to make at a minimum, their highest ever career purses, the fight would need to take in at a minimum the following.
Revenue
-75,000 tickets @ average of £80 = £6,000,000
-700,000 PPV,s @ £25 = £17,500,000
-Sponsors = £1 Million
-US TV rights & International = £1.5 Million
Total Revenue: £26,000,000
Expenses
-Sky TV cut (including TV adverts) - 25% x 17.5 million = £4,375,000
-Venue Hire, Lighting, Ring, Screens, Security = £1,000,000
-Undercard purses = £1,000,000
-Ticketing Agency = £500,000
-Main Event Purses = £12,960,000
-Referees, Judges = £25,000
-Billboard Advertising = £200,000
-Promotors fee (Matchroom) = £2,500,000
Total Expenses: £21,560,000
The fighters would then split the £4,440,000 50/50......
But can they generate the money required to satisfy both fighters. Will the UK market be willing to pay for another PPV, 3 weeks after Klitschko vs Joshua?
Both fighters are coming off significant losses, which doesn't work well for building up this fight. Name me one PPV that has done well where both fighters have come of a loss?
This means that both parties have to be conservative in there estimates of how well the PPV will do. Team Brook are being overly optimistic and believe that a 50-50 split of all the incoming revenue will be both Khan's and Brook's biggest purse.
Do you guys really think that after Old Trafford has been paid, and Sky have taken their cut that, the fight will have made $28 million dollars in *net revenue* to be split between both camps. Khan got paid $13 for his bout with Canelo and there is no way in hell that with a 50/50 split, Khan could make $13 million. (Canelo V Khan generated, £39 Million from PPV buys and Gate alone, excluding sponsors, Mexican and UK TV rights)
The British Pound Sterling has plummeted since Brexit. $13 million dollars is £10.36 million in pounds in today's money. Then take into consideration the UK tax rate. Eddie Hearn can't guarantee Khan that, which is why he wants a percentage split in place, so even if the fight flops on PPV, he isn't contractually obliged to pay out.
Fights only have a purse, if there is a guaranteed pot of money to be split. This occurs in mandatory bouts, or televised bouts where the TV channel has paid a flat fee to buy the telecast rights to a fight. This isn't the case with Khan vs Brook.
Mayweather vs Pacquiao had $200 million from MGM and Tecate, hence the 60-40 split of the guarantee, and then any revenue above that amount was split 60-40.
What is fair is that both fighters are guaranteed that they will make their highest ever career purses.
So Brook got paid £2.6 Million vs Golovkin. He should be guaranteed £2.6 Million. Khan got paid £10.36 Million. He should be guaranteed £10.36 Million. Any revenue after that amount should be split 50-50. That makes perfect sense.
For the Brook V Khan fight to make at a minimum, their highest ever career purses, the fight would need to take in at a minimum the following.
Revenue
-75,000 tickets @ average of £80 = £6,000,000
-700,000 PPV,s @ £25 = £17,500,000
-Sponsors = £1 Million
-US TV rights & International = £1.5 Million
Total Revenue: £26,000,000
Expenses
-Sky TV cut (including TV adverts) - 25% x 17.5 million = £4,375,000
-Venue Hire, Lighting, Ring, Screens, Security = £1,000,000
-Undercard purses = £1,000,000
-Ticketing Agency = £500,000
-Main Event Purses = £12,960,000
-Referees, Judges = £25,000
-Billboard Advertising = £200,000
-Promotors fee (Matchroom) = £2,500,000
Total Expenses: £21,560,000
The fighters would then split the £4,440,000 50/50......
But can they generate the money required to satisfy both fighters. Will the UK market be willing to pay for another PPV, 3 weeks after Klitschko vs Joshua?
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