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.

Canelo-GGG II draws approximately 1.1M PPV buys

September 25, 2018

Canelo-GGG II on September 15th drew approximately 1.1 million PPV buys per a report by ESPN which probed multiple industry sources regarding the buy rate.  The report would mean that the rematch fell short of the original fight between the two.

With a suggested retail price of $84.95, the event generated at least $94 million in the United States for the HBO PPV telecast.  The first fight between the two drew 1.3 million buys.  The rematch generated more revenue since the price point was higher.

Golden Boy, the promoters for the event, stated they would not release its official buy rate information but indicated between the gate, PPV buys and digital sales, it did better than their first bout.  The live gate at the T-Mobile Arena drew 423,473,500 from the sale of 16,732 tickets.

Payout Perspective:

The ESPN report notes that streaming PPV increased since the last fight so that may attribute to the low PPV rate.  Regardless of being 1.1 or 1.3, the fight produced and will likely garner a trilogy.

Canelo-GGG II purses: Canelo $5M, GGG $4M

September 14, 2018

The Nevada Athletic Commission have disclosed the purses for this Saturday’s long-awaited rematch between Canelo Alvarez and Gennady Golovkin.

Canelo will make a disclosed $5 million to show while GGG is guaranteed $4million.  It is anticipated that both will make much more than the disclosed amounts based on contractual agreements which likely includes a cut of the PPV buys.

Corrected. I had the payouts from last year.  Here are the undercard payouts per Kevin Iole


Notably, Chocolatito Gonzales makes his return and will make $200,000 to face Moises Fuentes.  Jaime Muniga will make $250,000 to defend his WBO Super Welterweight Title.

Payout Perspective:

The reported payouts for the main event are almost the same from their last fight.  The reported guarantees show that negotiations for the rematch helped a little but its not a 50-50 split.  Perhaps GGG made up for it the non-disclosed payouts but we may not know until the PPV buys are all tabulated.

State appeals court overturns $8.5 million judgment against Canelo

September 14, 2018

A state appeal court in Miami has overturned a trial court ruling which found in favor of Canelo Alvarez’s former manager and ordered the boxer pay $8.5 million.  The Florida District Court of Appeals for Miami-Dade County set aside the judgment.

The appellate court decision filed two days prior to Alvarez’s big showdown against Gennady Golovkin in Vegas stated that the jury verdict awarding promoter Felix “Tutico” Zabala Jr of All Star Boxing $8.5 million was unjust enrichment, speculative and not supported by substantial competent evidence.  While the judgment was vacated, it did state that Alvarez have to compensate Zabala and ruled that the trial court determine the judgment.

Zabala brought the lawsuit against Alvarez and Golden Boy Promotions stating that Canelo signed a 4 year promotional deal and that Golden Boy took the fighter from the promotion.  Golden Boy was dismissed from the lawsuit prior to the trial which took place in June 2016.  A jury awarded the $8.5 million judgment plus 4.75% annual interest.  Alvarez filed an appeal.

H/t: Dan Rafael

Payout Perspective:

Interesting timing of the decision considering Canelo fights on Saturday.  Dependent on the trial court rendering a decision on the judgment, All Star Boxing may appeal the latest decision as the court has taken the decision out of the hands of the jury and installed its own ruling.  There are times when a court believes that he the judgment does not match the evidence, but that would seemingly undercut the rationale behind having a jury as a trier of fact.

GGG-Canelo 2 will be available in movie theaters

August 29, 2018

Gennady Golovkin and Canelo Alvarez are set for their rematch on September 15th and not only will you have the choice of purchasing the event in PPV, you can also attend the card at your local movie theatre.

Dan Rafael of ESPN reports that the fight will be available in more than 450 movie theaters across the country.  Golden Boy Promotions and Fathom Events made the announcement this week.

The price point is usually around $20 for the event.  Fathom Events has collaborated with promotions in the past to show Boxing PPVs.

Looking back at the first fight between the two, Fathom really put together an interesting trailer.

For the rematch, Fathom does it again.

Payout Perspective:

Expect this event to do as well as their first fight.  Fueled by the animosity due to Canelo’s suspension, we can see these two go toe-to-toe for another 12 rounds.

Golden Boy inks deal to air fights on Facebook Watch

July 6, 2018

Earlier this week Golden Boy Promotions and Facebook announced a deal in which fights will be streamed on the social media platform in another move toward sports content online.

According to ESPN, the deal will have a minimum of five fight cards and will be free on the Facebook Watch page in the U.S. and globally on the Golden Boy Promotions’ Facebook Watch page.

Oscar De La Hoya praised the deal as it brings his fighters to “the intersection of live sports mega-casting and ultimate fan engagement.”

Main Events Promotions will also work with Golden Boy in putting together events on the series.

The first card takes place on August 11th.

Payout Perspective:

The deal is another notch for Facebook Watch as it carries Professional Fighters’ League Prelim matches on its channel.  The prize jewel of the platform is its Wednesday afternoon MLB games in which it is the only telecast for the game (not even regional telecasts air the game).  The Golden Boy deal will aid the content for Facebook.  It will be interesting to see if this spreads the Golden Boy stable thin as it has an existing agreement with ESPN.  The content will help with brand visibility as the fights will be free for anyone with wifi use and a Facebook account.

Chuck-Tito sign with Golden Boy MMA for fight

July 2, 2018

Chuck Liddell and Tito Ortiz have signed promotional agreements with Oscar De La Hoya’s Golden Boy Promotions to fight 12 years after their last match in the UFC in December 2006.

ESPN reports the signed deal via De La Hoya.  There is no date, location or timetable for the fight according to the story.  But, the signing of the two former UFC stars indicates that a fight may be happening.

This past May, De La Hoya met with Liddell to discuss a possible comeback for the fighter.

Payout Perspective:

This announcement seemingly jumpstarts De La Hoya’s foray into the world of MMA promotion.  While Liddell-Ortiz was a great rivalry 20 years ago, will it have a realistic competitiveness in present day?  Both are way past their prime and there could be legitimate health concerns for both fighters.  It is a spectacle, but is it the right one?  People do like nostalgia, but I’m not sure this fight is the right one.  We will see if this fight goes forward and what kind of business it does.

De La Hoya looking to start MMA promotion

May 6, 2018

Oscar De La Hoya may be competing with Dana White soon as he revealed plans that he may promote mixed martial arts in the future.

De La Hoya met with Chuck Liddell last week to discuss the possibility of fighting in a new promotion spearheaded by the former Olympian.  De La Hoya and Liddell spoke with TMZ about the possibility.  The two floated the idea that Liddell will face Tito Ortiz as a comeback fight.

Liddell last fought in June 2010, a loss to Rich Franklin at UFC 115.

Payout Perspective:

It’s clear that White is getting into the boxing business.  But, De La Hoya’s announcement that he’s interested is certainly something to keep an eye on in 2018.  It would take a financial backing to do something like this.  I don’t think that a Liddell-Ortiz fight will sustain a promotion.  It would also take a television and sponsorship deal for this undertaking to be successful.

Canelo agrees to NAC suspension for drug test failure

April 18, 2018

At Wednesday’s Nevada Athletic Commission disciplinary hearing, Canelo Alvarez entered into an Adjudication Agreement agreeing to a six month suspension of his boxing license for failing two drug tests with the presence of the banned substance Clenbuterol.

MMA Payout has obtained a copy of the Adjudication Agreement from the NAC via public records request:

Saul Alvarez – Adjudication Agreement – Signed by JASONCRUZ206 on Scribd

Payout Perspective:

The six-month suspension seems fair considering Alvarez denies wrongdoing but decided not to defend his claims.  The suspension, convenient or not, allows Alvarez to return to the ring in September right around the time of Mexican Independence Day weekend – a traditional boxing PPV date.  The Agreement includes a paragraph citing that Alvarez denies intentionally taking Clenbuterol and another indicating he believes the cause was due to contaminated meat.  Regardless, this gives Alvarez the spring off to get ready for September.  Will there still be bad blood between Alvarez and the commission if/when he’s allowed to concern?  Or, will Golden Boy put it past them when their fighter comes back (and decides the venue of the event) considering the amount of money they’ll make when Canelo finally gets in the ring with GGG.

Canelo withdraws from May 5th rematch with GGG

April 3, 2018

Golden Boy Promotions announced today that Canelo Alvarez has withdrawn from the fight against Gennady Golovkin.  Alvarez was temporarily suspended by the Nevada Athletic Commission due to failing a pair of drug tests for the banned substance clenbuterol.

An April 18th hearing was schedule to determine the fate of the rematch between Alvarez and GGG.  The NAC sought to suspend Alvarez for 1 year due to the failed tests.

Alvarez and his promoters made the withdrawal official via conference call with the media on Tuesday.  Alvarez maintained his innocence that he is a clean fighter that does not use PEDs.

Their first fight drew $27 million in live-gate earnings and an estimated 1.3 million PPV buys.  Despite the belief that the NAC would not derail a rematch which drew so well this past September, the NAC took the test failures seriously.

Alvarez claims that the failed tests were due to tainted meat he consumed while training in Mexico.

GGG wants to fight on May 5th and a replacement for Alvarez is taking place.  The event on May 5th is likely to be moved from the T-Mobile Arena to the MGM Grand which is a smaller venue.

Alvarez’s one-year suspension with the NAC will date back to his first positive test on February 17.

Payout Perspective:

This is a shocking development and a blow for boxing fans as many had anticipated this rematch.  Withdrawing from the fight is interesting as it ensures that Canelo will not fight in Vegas until 2019.  We will see if this strains ties between Golden Boy and the NAC if/when Golden Boy decides to promote fights.  While Vegas is the de facto place for big fights, the commission’s stance to file an official Complaint against Alvarez may have the promotion look to New York or another venue for events.  HBO PPV is also a loser here as any replacement for Canelo will not draw as many buys as a the Canelo-GGG II PPV would have produced.

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