DAZN signs Canelo to richest contract in sports

October 17, 2018

Canelo Alvarez has signed a 5-year, 11 fight deal worth $365 million with new streaming service DAZN according to ESPN.  The deal begins with Alvarez’s December fight against Rocky Fieldinng.

The deal is the richest athlete contract in sports history.  According to the ESPN story, HBO had the right of first negotiation and a “last-look” provision for Alvarez’s December fight and it made an offer for an HBO PPV event but decided not to match DAZN’s offer.

Alvarez fought Gennady Golovkin this past September on PPV.  It was his last fight under his promotional agreement with Golden Boy Boxing.  The event drew 1.1 million viewers for at a suggested PPV price point of $84.95.  DAZN’s streaming service is $9.99 per month and offers boxing as well as Bellator MMA.  It started its service in North America this past September featuring an Anthony Joshua fight.

Payout Perspective:

Perhaps following PBC’s strategy of paying up front in hopes of earning money in the end, DAZN has made a huge investment in Canelo Alvarez.  Arguably, he’s the only PPV draw in boxing since Manny Pacquiao and Floyd Mayweather.  Signing with the streaming service marks another sign of the shift of how consumers watch sports.  The question will be how DAZN will be able to recoup on its investment and how soon.

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