Mayweather fights Cotto on Cinco de Mayo
February 1, 2012
Bad Left Hook reports that Floyd Mayweather will take on Miguel Cotto on May 5th in Las Vegas. Apparently, the negotiations with Manny Pacquiao broke down as the once dreamed of Superfight may never happen.
Its rumored that Pacquiao will take on Timothy Bradley in June. Prior to Bradley, Cotto was a candidate for Pacquiao but the parties broke off talks after they could not agree on a fight weight.
The May 5th fight was contingent on Mayweather receiving a license from the Nevada State Athletic Commission. Surprisingly (sarcasm), the NSAC granted Mayweather a conditional one day license provided he stay out of trouble.
We last reported that Mayweather called Pacquiao an offered him a flat fee of $40 million to fight on May 5th. Bob Arum countered with $45 million flat to Floyd. An obvious return sling of mud for the initial perceived low-ball offer. Finally, the Pacquiao camp stated they offered Mayweather $50 million plus a 55-45 split on PPV revenue to the winner.
Payout Perspective:
Instead of one major superfight with an extremely huge potential payday, we get two good fights with good, not great paydays (relatively speaking). Neither of the fights will garner the mainstream appeal and attention that Pacquiao-Mayweather would receive but Mayweather-Cotto should be an interesting matchup. Also, the fights will not garner the amount of money Pac Man-Money would have drawn.
HBO seeks to use device to track boxing statistics
January 31, 2012
Bad Left Hook reports (via Boxing Scene) that HBO is seeking permission from the WBC at this Saturday’s event to use new technology that will enable the tracking of statistics of a boxer during a fight. The device is a 1 inch by 1 inch sensor which will be in the wrist of the boxing glove.
The proposed use of the technology would occur on the undercard of fights at the Top Rank event Saturday at the Alamodome in San Antonio, Texas. HBO will show the main card which features Julio Cesar Chavez, Jr. versus Marco Antonio Rubio.
Via Bad Left Hook:
The amount of data that would be available after this device becomes fully adopted will be staggering. We could figure out what a fighter’s average punch speed is for each type of punch that he throws. We would be able to tell if a fighter is slowing down by looking as his average punch speed over his past couple of fights. If a boxer got knocked out by a punch, we could figure out the amount of force necessary to knock that boxer out, and which fighters in the division are capable of producing that kind of power.
Payout Perspective:
This is the next step in not only boxing, but all of sports: detailed statistics. With emerging technology, there is the ability to become more accurate in tracking sports. A device like this would definitely refine boxing statistics. It could also be used by boxers to scout upcoming opponents as well as market boxers and fights. Hopefully, the WBC will allow the technology and we will se how accurate and useful it will be.
Mayweather offers Pacquiao $40 million to fight
January 27, 2012
BoxingScene.com reports that Floyd Mayweather offered Manny Pacquiao a $40 million flat fee to fight on May 5th. The offer would mean that Mayweather would keep any PPV, gate and any other fight revenue from the long-awaited matchup.
The proposal was offered in a phone call Mayweather made to Pacquiao last week. Its unlikely that Pacquiao would take this offer although the $40 million would be the most he would make for one fight in his career.
With this proposal, its assumed that Mayweather’s take from this proposed fight would greatly exceed $40 million. For example, Mayweather’s business model from his last fight includes multiple revenue streams including foreign sales for the fight broadcast, closed-circuit revenues, site revenue and sponsorships. It was estimated that Mayweather made $40 million from the Ortiz fight. Mayweather did front $10 million in marketing costs to promote the Ortiz fight under the Mayweather Promotions banner. Its not clear, but unlikely, that Mayweather asked Pacquiao to put up money for promotional costs.
Payout Perspective:
And the saga continues in the struggle to make this fight. While the $40 million is the most Pacquiao will ever make in one fight, not receiving a portion of the PPV revenue, or any other streams of revenue, would greatly reduce, and shortchange Pacquiao’s earning potential. Its likely that the revenue for the PPV alone would be astounding considering the long wait for this fight. While Mayweather may carry the promotion of this fight domestically, its Pacquiao that would help international sales. This would include the many Filipino fight fans that would come to Vegas (the likely spot) for the fight.
Its hard to imagine Pacquiao fighting under a Mayweather Promotions only banner. Mayweather has said that he will not take a 50-50 split so we will have to wait and see if this fight will ever happen.
NBC Sports Network Fight Night debuts Saturday night
January 21, 2012
The Sports Business Journal reports on the return to the ring of NBC on the rebranded NBC Sports Network formerly known as Versus. Saturday night is the debut of “NBC Sports Network Fight Night,” which will appear quarterly in 2012 on the network.
NBCSN will work with Main Events as its promotional company to produce quality fights. It already has had an obstacle to overcome as its original main event was scrapped due to fighter injury. Main Events replaced the main event with a match between two unknown, but unbeaten heavyweights.
The pledge by Main Events is that it will put on competitive fights and will work with other promoters to achieve this goal.
According to boxing sources, rights fees will average $150,000 per show which, according to the SBJ, wil “fill a middle-class void that exists between ESPN and the premium cable networks.”
With the Comcast-NBC merger, past hurdles in developing fighters and having them move on to HBO, Showtime and PPV are no longer. Main Events CEO Kathy Duva told Sports Business Journal that if fighters leave for premium cable, Comcast still wins. Also, if fighters become PPV stars, Comcast wins too.
The two hour program will debut Saturday night at 6pmPT/9pmET. It will air from the old ECW Arena in Philadelphia.
GoDaddy.com has signed on as a sponsor for the show.
Payout Perspective:
It will be interesting to see how this show will be received. The Fight Night follows NBCSN’s strategy of live programming being central to its sports network. Its an interesting concept by Main Events and addresses a problem that is common in the boxing industry. As we’ve seen with Mayweather-Pacquiao, the problems of promoters working with each other prohibits good match-ups. We’ll see how the show will present compelling storylines and promote fighters.
HBO-Showtime in bidding war for boxing in 2012
January 9, 2012
The Sports Business Journal reported about the possibility of Showtime surpassing HBO Boxing for marquee fights and fighters. The article underscores the change at the top of each network’s sports divisions as a possible reason.
SBJ (subscription required) points to the Andre Berto-Victor Ortiz rematch, which many believe was the Fight of the Year for 2011, as evidence that Showitme is making a move on HBO. Also, changes at the top of each network’s sport division may be the reason for the sudden competition for boxing rights. Ross Greenburg left HBO last year and was replaced by Showtime head Ken Hershman. Hersman, as some recall, butted heads with Dana White regarding negotiations with Strikeforce. This may have been one of the reasons that Showtime and Zuffa were able to strike a new deal for Strikeforce late last year. Showtime replaced Hershman with Golden Boy’s former attorney Stephen Espinoza.
Espinoza’s quickly moved on the Berto-Ortiz rematch as Showtime paid only $100,000 more than HBO: $2.2 million.
The article also indicates that HBO’s budget “will be about $35 million this year, about half of what it spent as recently as five years ago.” On the other hand, Showtime will increase its budget to at least $28 million.
Payout Perspective:
This will be an intriguing year for boxing fans as we may see a shift of key fights moving from HBO to Showtime. Last year, we saw that Showtime take the Pacquiao-Mosley fight only for HBO to step up an regain Pacquiao for Marquez as well as Miguel Cotto-Antonio Margarito. The SBJ points out that this is the first time in 20 years that there has been an authentic fight for US television rights.
The newfound bidding war in boxing can only help the sport and perhaps revitalize tv interest in the fight game. We’ve recently seen NBC Sports and Spike TV announce plans to feature boxing in its programming. The only question is how promoters plan to market their fighters. Right now, only a few boxers stand out and the rest are not known to the casual viewers.
Pacquiao’s State Street Produce commercial
January 7, 2012
Bad Left Hook provides us with Manny Pacquiao’s commercial for his sponsor, State Street Produce. The message is positive but the commercial is questionable.
Here it is:
Payout Perspective:
It would be interesting to hear from someone in the advertising/marketing industry to tell us your thoughts about the commercial. The actual message by Pacquiao is clear as to why he wants to be associated with the brand. But the concept seems to be lacking. He’s in an open ship container with a heavy bag and then he runs to another and needs help to unlock it. And then, he’s interviewed with sunglasses on. I really think the last 5 seconds of the video (with Pacquiao and all the kids and Pacquiao giving the tag line) is all you needed.
By the way, if you want your MMA tie-in, one of the kids helping Pacquiao opening the container in the video is wearing a jiu jitsu gi.
There hav been questions about whether Pacquiao’s brand has peaked. State Street Produce is one of the bigger deals Pacquiao has and it will be interesting how successful it will do. As most know, the HP tablet, one of Pacquiao’s other major endorsements, has flopped. Its not all Pacquiao’s fault there, but one wonders about his draw as an actual pitchman for products. He seems to have an engaging personality and not afraid to be a showman (e.g., his singing, movie career) so it should follow that he’d be a good person to represent a brand.
Spike to air Top Rank Boxing?
January 6, 2012
Ring.tv is reporting that Top Rank Boxing and Spike TV is working on a weekly boxing program for the channel. Top Rank is seeking a better platform for its fighters as it currently is seen on Fox Sports.
The proposed show is slated for 36 shows beginning March 9th. Late last year, NBC Sports Network announced a quarterly boxing program for its network.
Via Bad Left Hook:
Most likely this would be a series similar to Top Rank Live, which currently airs on FSN and Fox Deportes, as I wouldn’t expect Spike to be going in deep on money to produce big fights. At its best, Top Rank Live produces some very good shows with lower-weight fighters in action bouts, and gives looks at prospects like Mercito Gesta or Diego Magdaleno.
Payout Perspective:
This is an interesting move for Spike as it will have the UFC library and boxing this year with Bellator coming up next year. We will see how many boxing fans are out there that will tune in to watch. More importantly, how many casual fans are out there. For Top Rank, its a good step forward for exposure for its fighters as boxing is shuffled around in the schedule (similar to Bellator) on Fox Sports in favor of regional sports.
AT&T signs on as sponsor for Top Rank
December 19, 2011
The Sports Business Journal reports that Top Rank Boxing has signed AT&T as a sponsor to a six month deal that will include some of its marquee fights in 2012. The deal includes the anticipated “Super Fight” between Manny Pacquiao and Floyd Mayweather, Jr. in May.
The details of the pact include Pacquiao’s May fight as well as two to three premium cable tv fights which AT&T need not choose until two weeks prior to the fight. Additionally, the two companies agreed to a list of fighters that AT&T would find acceptable to sponsor.
Financial terms of the sponsorship were not disclosed although its believed that the deal could be worth in excess of $1 million due to Pacquiao and the rise in value of sponsorships for his fights.
Sponsorship would include logo placement on the ring mat and broadcast area. According to the Sports Business Journal, “It would also include arena and local activation rights, to use video and images in advertising and promotional materials and fight tickets.”
Payout Perspective:
The sponsorship deal appears to hedge the potential for a Pacquiao-Mayweather fight in 2012 although both camps still seem at an impasse. The deal boosts Top Rank’s sponsorship profile and allows AT&T the flexibility to pick and choose when it wants to involve its brand in a particular fight. Perhaps AT&T had the extra money as the deal was reported the same day it dropped its bid to purchase T-Mobile.
NBC Sports announces boxing programming in 2012
November 23, 2011
Boxing will be a new addition to NBC Sports programming in 2012. NBC Sports Network (now known as Versus until 2012) will debut NBC Sports Network Fight Night on Saturday night January 21, 2012 from Philadelphia.
The Fight Nights will be produced on a quarterly basis with fight nights in January, March, June and December in 2012.
Via NBC Sports Network press release:
NBC Sports Group will work with Main Events (Promotions) and Hall-of-Fame matchmaker J Russell Peltz on a multi-promoter strategy for NBC Sports Network Fight Night designed to produce the best quality fights. It is a strategy in which any promoter can participate to get their boxers involved in these programs.
“This is a unique approach to have multiple promoters competing to put fights on NBC Sports Network,” said Jon Miller, President, programming, NBC Sports and NBC Sports Network. “That, coupled with the legendary matchmaker J Russell Peltz serving as our quality control expert, ensures that boxing fans will enjoy exciting and competitive matches.”
(H/t: Bad Left Hook and Boxing Insider)
Payout Perspective:
It was once rumored that the UFC would land with NBC/Versus. It looks like NBC Sports has chosen boxing to bolster its sports content for 2012. This will be interesting to see how it will compete with HBO, Showtime and ESPN offerings of boxing programming. The multi-promoter approach will be another interesting component of its Fight Nights. How much will NBC Sports Network be able to promote these fighters for a casual audience to tune in? Will NBC Sports invest programming to market the fighters prior to the Fight Nights? We will see how successful these programs will be for the NBC Sports Network and whether it will expand in the future.
Payout Perspective: Pacquiao-Marquez III
November 14, 2011
Welcome to a special edition of Payout Perspective in which we cover Saturday night’s fight between Juan Manuel Marquez versus Manny Pacquiao held in Las Vegas at the MGM Grand.
Pacquiao wins decision over Marquez
Unlike his past several fights, Pacquiao was not Superman as we can safely say that Marquez is Pacquiao’s kryptonite. Despite the loss, Marquez is the only boxer that can arguably claim he can hang with Pacquiao in three fights. While the judges’ decisions may have betrayed him, Marquez made a good showing. We now see that for all of Pacquiao’s popularity and wins, the strategy of fighting in upper weight divisions while maintaining his speed worked. But when facing a good counterpuncher, it presents problems.
The silver lining in this is that Floyd Mayweather, likely an attention grab during the trilogy’s pre-fight hype, announced he wanted Pacquiao on May 5th. What he saw Saturday probably affirmed his decision to fight Pacquiao next year.
As of today, it seems that the posturing for the fight has begun. The LA Times reports that Bob Arum has stated that Pacquiao would rather have a 4th Marquez fight before fighting Mayweather. Frankly, I think every business owner on the Las Vegas strip turned its stomach with this news as its likely that a Mayweather-Pacquiao matchup would be a boon for businesses across the Las Vegas strip. It would also mean a $100 million payday for the fighters.
Payouts
Speaking of payouts, USA Today reports Pacquiao earned $22 million Saturday night plus a share of the PPV revenue which is estimated at $30 million. Marquez receives $5 million plus another $5 from the PPV revenue.
Attendance – UPDATED 11/15
UPDATE: Pacquiao vs Marquez: Attendance: 16,389; Tickets Sold: 15,498; Comps: 891; Live Gate: $11.648 Million. It’s 9th all time in Nevada
Attendance was16,368 according to a tweet of Dan Rafael of ESPN. As indicated in the NY Times, the Pacquiao fight was a sellout within two weeks although ticket prices averaged $1,000.
Promotion of the Fight
For the second time, Time Warner utilized its networks to promote its HBO PPVs. This time around Piers Morgan of CNN interviewed Manny Pacquiao. The network also ran HBO’s 24/7 series which aired its usual 4 week series up until fight night.
The Audience Network ran Pacquiao-Marquez I and II which were the best vehicles to promote this trilogy in my opinion.
Manny made his usual appearance on Jimmy Kimmel. This time he sang a duet with Kimmel. He also did his share of interviews for the fight including one on the Jim Rome Show. Although he’s a very nice guy, Pacquiao’s interviews are lost in translation as one can tell that he’s trying to be honest while trying to follow some media training. He comes off as a genuinely nice guy but he doesn’t really answer any questions.
The promotion of the fight included the traditional press tour. It also included this gem with Pacquiao interviewing Marquez.
Via Top Rank (H/t Bad Left Hook)
Sponsors
MGM Grand, AT&T, Smart and Tecate were primary sponsors.
As most big fights, Tecate offered its $25 rebate when purchasing Tecate beer. The rebate is offered only in certain areas.
Telecommunications companies must have seen this fight with the belief that many people from the Philippines and Mexico use its services to communicate with people in the United States and vice versa. Juan Manuel Marquez wore a Cablecom hat to the ring and Smart, a leading Philippines wireless services provider, was a primary sponsor.
Pacquiao’s fight night sponsors included Motolite, LBC, Cafe Puro, Uno, Ricoa, Phoenix Petroleums and a Nike-sponsored ring robe.
Its obvious that both fighters’ in-ring endorsements are based on the draw they receive from their countries. This rings true especially with Pacquiao as we see a lot of mainstream Filipino sponsors. Most of these sponsors (Motolite, Cafe Puro, Ricoa) have been with Pacquiao for a while.
Odds and ends
-What was Jalen Rose doing as an emcee to the weigh-ins?
-One of the better Face-Offs with Max Kellerman was played post-fight to hype the Cotto-Margarito fight. It was heated discussion and much animosity between the two. What HBO intended for these things. An interesting plug for the iPad during the Faceoff as well as Cotto used the iPad to show that Margarito may have had loaded wraps during their last fight. Really a great promo vehicle for the iPad as the photo was clear and Cotto easily used the feature to magnify the picture. Its indirect marketing at its best.
