In depth look at PBC Business Model

[Beater_of_ass]

Great find and a great read, all I've wanted was some information on this topic because too much was left in the dark. Obviously they were only going to talk about the good things in this article as it's people very closely related to Haymon. However, the fact that he sold people who thought boxing was "dead" on putting on TV is proof he's passionate about the product. Haymon wants to get paid but passion is still the driving force behind it and that I respect.

As boxing fans we should hope for PBC to be a success. Bad analogy but people say Nintendo shouldn't change and be on cellphones or be a software company only making games. This legitimately pisses people off because "that isn't Nintendo." That isn't the point, the point is we want more people good Nintendo games, they are better than most games out there now. But, I don't want to buy a console with a stupid controller to play them, that doesn't mean the games are bad.

Bring that back to boxing, people say they don't like boxing because they never watch it. They'd watch it if it was easily accessible, but they aren't going to give the sport a shot because they don't want to pay for PPV or HBO/Showtime. HBO/Showtime is a DS and NBC is a free to play mobile game, it just needs to be watched by more people and we should be promoting that, not hating on Haymon. And while the matchmaking hasn't been the best, it's still new and there haven't been any major mismatches at least.

[Mitchell Kane]

This says a lot...

He checked with others he respected, including former HBO Sports head Ross Greenburg, all of whom spoke highly of Haymon's capacity to deliver quality fights.

They certanily have plenty of money for this...

Caldwell was there to show NBC that Haymon Boxing had the wherewithal to not only launch the PBC, but sustain it, with the pledge of upward of $425 million from a $40 billion fund that he co-managed for Waddell & Reed, the same fund that had invested about $1.5 billion in Formula One.

and they seem ready for the losses...

As he laid out his plan, which would include not only NBC but other broadly distributed networks, it became clear that Haymon's company might have to bleed upward of $100 million; and perhaps two or three times that much; as it built a brand and an audience, a proof-of-concept phase that would then enable him to cash in on the rights fees that continue to trend upward across sports.

An undervalued call option, with the high risk but high return. They would put about 1 percent of the $40 billion fund into Haymon's venture, prepared to lose all of it.

But I still think there's probably a big flaw with this approach in that it's primarily businessmen with money to spend and looking to get into sports...what sports it doesn't seem to completely matter...and that they don't seem to have many people that know that much about boxing.

[AgainstTheRopes]

This says a lot...



They certanily have plenty of money for this...



and they seem ready for the losses...





But I still think there's probably a big flaw with this approach in that it's primarily businessmen with money to spend and looking to get into sports...what sports it doesn't seem to completely matter...and that they don't seem to have many people that know that much about boxing.

Haymon has a couple former Golden Boy execs on his team including Richard Schaefer but there's just not that many career boxing business savy people out there outside of Bob Arum and Don King

[Mitchell Kane]

Haymon has a couple former Golden Boy execs on his team including Richard Schaefer but there's just not that many career boxing business savy people out there outside of Bob Arum and Don King

Schaefer isn't really a boxing guy, he's a former banker and a businessman.

Binkow was more involved with was brands and sponsors....and probably a Schaefer loyalist, as he left GBP shortly after Schaefer did and then took up with Mayweather Promotions.

[LoadedWraps]

http://www.sportsbusinessdaily.com/J...epth/Main.aspx

Basically PBC has a boatload of money to work with, aiming to rebrand the sport, and eventually secure a large TV deal within 3-5 years.

Fantastic article, thanks for sharing.