HBO grabs Mayweather-Cotto
February 19, 2012
ESPN reports that HBO has secured the rights to the Floyd Mayweather-Miguel Cotto fight on May 5th. Despite a challenge from rival Showtime, HBO PPV will have the fight.
The rights acquisition was the first major move by former Showtime sports head Ken Hersman after Ross Greenburg left the post amidst the premium channel’s first loss of a Manny Pacquiao fight to Showtime. The fight will likely include its standard 24/7 lead-up to the big fight as well as additional marketing and cross-promotional opportunities with Time Warner’s other properties.
Payout Perspective:
It appears that HBO has stepped up its game since losing the Pacquiao-Mosley fight. Despite whether or not you like Floyd Mayweather, he is a boxing draw and made for promotional shows like HBO’s well-done “24/7” series. Showtime had an exceptional show last night but it was overshadowed by the Haye-Chisora brawl (more on this later). Unfortunately for Showtime, its first big fight in 2012, Victor Ortiz-Andre Berto, was put off due to an injury to Berto. As for Mayweather-Cotto, you can expect some definite hype based upon the success of Cotto since his loss to Manny Pacquiao and Floyd Mayweather being Floyd Mayweather. Certainly, 24/7 will be much more attractive considering Mayweather going to jail, Manny Pacquiao and his recent comments about Jeremy Lin.
When will boxing return to network television?
February 15, 2012
Will boxing ever make it back to network TV? Kevin Iole of Yahoo! Sports reports on the possibility of boxing returning to network TV.
Showtime sports head Stephen Espinoza is optimistic about seeing boxing back in the mainstream and even opined that it may happen this year.
Via Yahoo! Sports:
“There’s a decent chance of it, maybe even a good chance of it happening, in fact,” Espinoza said. “Boxing, for all of its challenges, still has a very loyal fan base, especially in the Latino and African-American demographics. Boxing has shown that, at its highest level, boxing can capture the mainstream sports, and non-sports, population.
Payout Perspective:
We saw the return of boxing, albeit just 30 minute fight promos, to CBS with Showtime’s 360 series which promoted the Mosley-Pacquiao fight. With the new use of partnerships (i.e., Showtime-CBS) and the seeming trend for live sports as key programming, boxing could make it back to over the air television. If you think about it, snowboarding, skateboarding and even poker have been on network television in the past year yet we haven’t seen a big fight in quite some time.
Yesterday, we looked at whether boxing should change its business model. Showing fights on network television to promote the sport and its fighters could build and sustain a following. While promoters remain optimistic, nothing has been set. NBC Sports Network’s quarterly show is a good step in the right direction but promoters realize that the big money remains in PPV and the two premium cable channels.
Can boxing business make a comeback?
February 14, 2012
Kevin Iole of Yahoo! Sports posted an article on the need for HBO and Showtime to rethink its boxing business model. Iole points out that both networks are overpaying for license fees for its fights and a rethinking its business models may help the business.
Unlike the UFC pay issue, Iole points out that some fighters are being overpaid and not producing for their paycheck.
Via Yahoo! Sports:
The problem from a fan’s perspective, of course, is that far too often the boxers earn exorbitant purses for fighting ordinary, at best, competition. And that gives them less incentive to take on a stiffer fight in the future.
Iole points to HBO’s acquisition of the rematch between lightweights Lamont Peterson and Amir Khan. While its expected that most tickets for the Mandalay Bay will be comped, both fighters will make over $1 million.
The challenge is putting on compelling fights that fans will want to see. Iole believes making the fights are difficult due to the fighter paydays. Both HBO and Showtime are looking into ways to market boxing and present compelling television.
Iole suggests the following:
Only pay the fighters who are willing to take tough bouts; who perform when they get those big matches; who sell tickets on a regular basis.
Then, whatever money they save in salary, they can pour back into the sport by developing support programming that will actually help fans identify with the athletes and want to watch them compete.
Payout Perspective:
Its interesting that Iole’s suggestion is similar (not the same) to the UFC model. I don’t think I see this happening considering Showtime’s renewed interest in boxing and its hope to supplant HBO for big fights. One of the things that boxing needs to do is to introduce fighters to the public; present compelling stories so that viewers are drawn to watching their fights. NBC Sports Network is attempting to do this with its quarterly Fight Nights. We will see if Spike TV does something similar for its boxing programming (if it comes to fruition).
The other, of course, is to make the fights people want to see. (e.g., Mayweather-Pacquiao). Obviously, the promoters are the other factor in this equation which is a definite roadblock to a retooling of the boxing business model.
With HBO and Showtime actively competing for big events and offering top dollar plus the added benefit of utilizing the full force of its network partners for marketing and promotion, boxing could make a comeback. We’ll have to wait and see on how each will proceed.
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.
