The Sports Business Journal (subscription required) had a piece with boxing’s Golden Boy Promotions CEO Richard Schaefer about the successful events that occurred in Las Vegas during Mexican Independence Day weekend. Schaefer talked about the promotion of his card and the state of boxing rights fees.
As you may recall Canelo Alvarez, Showtime’s newest star, took on Josesito Lopez at the MGM Grand while Julio Ceasar Chavez, Jr. took on Sergio Martinez across town at the Thomas and Mack Center. Schaefer spoke about his company’s show at the MGM Grand in which he stated that the promotion of the fight was aided by the activation through the 11 owned MGM Grand Strip properties. Corona also stepped up with promotion of the fight in 5,000 stores in opposition to Tecate which promoted the JCC-Martinez fight.
Schaefer indicated that the success of both cards should help the value of boxing rights fees. Schaefer acknowledged that the demand for boxing is not in line with the high demand of other sports properties. But, the success of that weekend reflects the fact that boxing is making its way back.
Payout Perspective:
Live sports is one of the big attractions for networks searching for content in the age of the DVR. Boxing shows have been picked up by NBC Sports Network and Fuel to supplement its programming. Additionally, CBS and NBC have indicated it will run boxing back on its respective networks later this year. So, does this mean that we will see an increase on rights fees outside of the HBO/Showtime face off? Time will tell. Most of it will depend on whether boxing can promote good fighters and good fights. One of the biggest turnoffs for many casual boxing fans has been the lack of a Pacquiao-Mayweather fight. On September 15th, fans were able to see one of the better fights of the year with one of the most exciting finishes in JCC-Martinez. Those that were at the MGM Grand got to see a one of Golden Boy’s top stars. We shall see if boxing promoters can cultivate these fighters and be able to work out deals to put on good fights.
The success of September 15th is also based on the Mexican Independence Day weekend. The next big fight weekend is Cinco de Mayo 2013. We should expect at least one big fight that weekend as well. It would be nice to see a non-Mayweather/Pacquiao fight headlining (unless it’s actually Pacquiao taking on Mayweather.
As an aside, where was boxing during the Olympics? It was shown but relegated to non-Network NBC channels.
I’d love to read the SBJ piece. Checking out what Golden Boy has had thus far on Fuel, it’s hard to imagine how it can be a money-making venture for either side.
It didn’t receive much attention at the time but back in early August Oscar De La Hoya tweeted that CBS would be broacasting primetime network boxing in October that would showcase the pro debuts of multiple Olympians. I followed up with some folks and found out that this will not be occuring (nor was it ever agreed to). Not sure what to make of his proclamation but it would certainly be a step in the right direction for boxing to have a network television (or even higher profile basic cable) presence once again.
Also, I really would love to see rights fees go up but I’d be shocked to see it happen. For one thing, HBO Sports just slashed their boxing budget by something like $15 million just a couple of years ago. License fees have noticeably gone down for both HBO and Showtime during the economic downturn and I’d be extremely surprised to see them go up elsewhere (see how much ESPN rights fees for FNF have plummeted in recent years as a small example). I’d love to be very wrong, though.