GGG gets $7.5 equity stake in DAZN parent as part of fight purse

October 5, 2019

ESPN’s Dan Rafael reports the purses for Saturday night’s fight on DAZN for the vacant middleweight title between Gennadiy Golovkin and Sergiy Derevyanchenko.

According to Rafael, GGG will receive $7.5 million in cash and $7.5 million in DAZN parent company equity.  Derevyanchenko will receive a guaranteed payout of $5.2 million but it is being reported as a $4 million purse.

The $7.5 million in equity for GGG is a rather unique way to pay a fighter.  One would have to question whether taking equity in the parent company is better than actual cash…or vice versa.  Certainly, an equity stake could be much more than the cash at the time.  Then again, the actual cash value give the individual the freedom to invest however they wish.  Moreover, the terms as to when GGG could cash out on the equity should be taken into consideration.  Obviously, if it believed that the company could grow, the equity stake could be a valuable commodity.

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