The New York Times reported on the unusual need for a central system to be used for the logistical payouts for Manny Pacquiao and Floyd Mayweather with respect to the long-awaited fight coming May 2nd.
The article primarily relies on quotes from Pacquiao promoter Bob Arum with respect to how the gross revenues will be divided between the two fighters and other ancillary entities.
For Pacquiao, he is on the wrong-end of a 60-40 revenue split but should clear over $100 million when all is said and done. Of course, the IRS will take its share from Pacquiao (and Mayweather we assume) right off the top.
Rival networks, HBO and Showtime are co-producing and co-distributing the PPV event. They have dueling shoulder programs on its respective networks and in a unique production agreement, each of the networks’ broadcast teams will participate in the event (including dueling ring announcers). The two sides have created a central accounting system to ensure what one might believe is “integrity” in splitting the revenues from what should be the biggest event in boxing history (at least from a gross profits standpoint).
The central system will distribute the revenue in accordance with the contracts of the two fighters.
All revenue from the fight would be put into the central accounting system. This would include foreign broadcast rights, closed-circuit income, ticket sales, sponsorships, merchandise sales, etc. The estimate of these monies per the NYT is at $130 million. In addition, PPV revenue which could gross $300 million also goes into this pot.
Most of the PPV revenue will go to the fighters minus 15% (7.5% each for HBO and Showtime). You may recall that HBO and Showtime were in vigorous negotiations with the satellite and cable companies regarding the PPV distribution for the event.
A “wrinkle” pointed out by Arum is that the winner of the fight will receive a 51-49 percent split for revenue between $160 million and $180 million. Thus, ideally the winner will receive $10.2 million while the loser gets $9.8 million. The amount over $180 million reverts to the 60-40 split in favor of Mayweather.
Payout Perspective:
Despite the lofty price point for this PPV, it is believed it should break the PPV record. Similarly, the $72 million gate at the MGM will break a record as well. One might assume the same for international rights, closed-circuit money, sponsorships and merchandise. It’s clear that the logistics for splitting up the revenues required a central system (we assume with necessary checks, balances and protocols).
With huge money they need all logistics…..ufc peanut system is easier to handle hahahahaha
Wait!!!! is Manny and Floyd a corporation? an LLC or a partnership?? OMG if they are an LLC according to D they pay far less if not any taxes hahahahahah Is Showtime and HBO an LLC too? oh wait they might be a corporation, in that case the way D cherry picks his bullshit that would mean they will pay far more taxes then an LLC
Bahahahha it makes virtually no difference! only and idiot like D would choose to use this ridiculous argument to try to prove a non existent point about the UFC hahahahaha
I hear tonights fight at newark is stacked with comps and is over produced to try to show the NYS people, who all got comps by the way, that The UFC needs to be in NYS and how great the ufc is. Everyone better have a smile and be on their best behavior lol working for the ufc is like being a citizen of North Korea!
HAHAHAHA!!! Any time Bob Arum is your source of information. You don’t have a source of information.
HAHAHAHA!! Sal still doesn’t know what an LLC or Corporation is. Maybe some day we can explain to this shit for brains how a corporation gets double taxed and the significance of both. This moron thought the UFC was a corporation. Fucking idiot.
I didn’t make an argument retard. You created one, you delusional nut job.
Loaded with comps??? Na, you must be thinking of the PBC show with Garcia that had over a third of the seats comped. PBC cards losing millions. Ad money doesn’t cover a fraction of their massive overhead. UFC doesn’t have to deal with this, they don’t overpay their fighters and they don’t have to secure their advertisers. Boxing in the shitter, just like SAL! HAHAHAHA!!
Also, important to note out of that 300 million, 180 million is going to the ppv distributors. So if the ppv does 300m in revenue, they only get 120m in net from the ppv revenue. The math doesn’t add up for these fighters to make those figures. Bob Arum/Leonard Ellerbe are lying like they always do. Nothing new. These guys better enjoy it, come 2016 there will be no more Floyd Mayweather ppvs which means boxing super fights won’t exist anymore. Then Sal is going to completely self destruct.
$300m from ppv
$130m from foreign broadcast rights, closed-circuit income, ticket sales, sponsorships, merchandise sales, etc
$430m in total revenue.
$503m if they didnt include the $72m gate, which I do think they included in those numbers.
I think its fair to say everyone is getting paid regardless.
Hahaha. The Gayest. He can’t even read.
Did you not see what I just pointed out? They only get 40% of the ppv cut. Comcast/Verizon receive 60% of the cut. So that 300m shrinks to 120m.
You included the exaggerated gate numbers 2x. Boxing fans and promoters have very amusing math.
The revenue is more like probably around 200m and that would be before you payout the taxes, the undercard fighters, licensing, insurance, HBO/Showtime, Arum, Haymon, training camps, etc. When all is said and done, they probably are making around 100m to split between Pacquaio and Mayweather. Those are still very big payouts, but these delusional figures that people believe because Bob Arum and Leonard Ellerbe said so, are ridiculous. These guys are compulsive liars.
http://sports.yahoo.com/news/ufc-fox-15-machida-vs-rockhold-gate-attendance-040103911–mma.html
Bigger gate than any of the PBC cards. Haha.
Small correction Jason, Showtime and HBO are splitting the 7.5% (3.75% each) from PPV not each getting that amount.
hahaha one of the lowest gates in newark ever for the ufc. D sounds like a desperate kid who just found out that batman is fake. MayPac also will have another 100 million in sponsorship world wide for this event. Just mercy alone will do in the area of 20 million
Merch
Hahaha. And again, the lowest gate ever would outdraw any big PBC card’s gate. Hahaha.
Sal is a desperate kid who just found out that batman is fake.
Sal again just throwing out fictitious numbers because he is a boxing welfare paid troll.
72 million dollar gate thats only 3 million more than what ufc 100 got. the dry humping leagues biggest event ever. oh wait its actually 67 million dollars more than what ufc 100 got (5.1 million) BAHAHAHA
amazing sweet science you kick soo much ass. i love you. no one needs to see ass sniffing. its called BJJ and has moves called the rear naked choke. where did the word naked come from? no one’s naked. oh yeah that was just a repressed gay fantasy of dry humpers every where. come on out already guys. BAHAHA
http://www.examiner.com/article/did-anderson-silva-purposely-kiss-chris-weidman-at-ufc-162-weigh-ins
unfuckin believable. its a real picture.
72m gate is a number of fiction. Boxing has 0 ppv buys so far this year and they won’t see one until this fight in May.
Fagbusiness likes his men dry humping standing. Haha. Homo.
Yeah, boxing’s been so great financially that they lost their ppv marketshare to the UFC. 7 out of the last 8 years MMA over boxing in ppv buys/revenue. HAHAHAHA!!
HAHAHAHA!! Fagbusiness so obsessed with homosexuality because he is a homo. He’s calling Silva/Weidman gay? HAHAHA!! Hey fag boy, there have been boxing champions and legends that were openly gay.
Gay Exhibit A:
http://www.chron.com/entertainment/article/Documentary-tells-story-of-gay-boxer-Emile-1920186.php
I mean, boxing legends aren’t even in denial of their homosexuality. HAHAHAHAHAHA!!! Its a gay sport with mostly gay fans. HAHAHAHA!!!