Execs from both Showtime and HBO said that the Floyd Mayweather Jr.-Manny Pacquiao bout, which still lacks a signed contract, "will benefit from a rush of on-air spots, social-media promos and media messages over the next two weeks," according to R. Thomas Umstead of MULTICHANNEL NEWS. Neither net "would disclose revenue splits," but promoters "typically keep 55% to 65% of the revenues generated from PPV buys." However, sources said that the promoter’s percentage for this fight "is much higher." HBO Sports VP & GM Tammy Ross said that with previous fights, operators "could choose from different levels of marketing efforts." But this time, HBO and Showtime "allowed affiliates to choose their own marketing plans." Showtime Sports Exec VP & GM Stephen Espinoza said, "It wasn’t as quick a process as it normally is, but we knew we would get agreements with operators. Many of the operators began implementing their marketing plans and even taking orders before they had a deal in place." Ross added that distributors are "encouraged to push subscribers to order early to avoid any possible delays in processing a significant number of last-minute buys the night of the fight." Both Espinoza and Ross "stopped short of projecting how many buys the fight will generate." Espinoza said that the industry "has no historical comparisons on fights that have generated a 'meaningful' number of buys this early prior to the event" (MULTICHANNEL NEWS, 4/20 issue). Umstead notes with "a record $89 suggested retail price set by HBO and Showtime," Mayweather-Pacquiao is "the most expensive ever for consumers, costing upwards of $25 more than any previous event." Yet so far, the price "doesn’t seem to be affecting early buys." Espinoza said that some operators are already experiencing purchases "at numbers comparable to those that usually come in two or three days before other huge PPV fights, a phenomenon also confirmed by several distributors" (MULTICHANNEL.com, 4/21).
PREMIER LEAGUE: SPORTSBUSINESS JOURNAL's Bill King examines the development of "Premier Boxing Champions," noting manager Al Haymon’s concept "might have to bleed upward" of $100M. And it could be "two or three times that much" as it builds a brand and an audience "during a proof-of-concept phase that would then enable him to cash in on the rights fees that continue to trend upward across sports." The "PBC" in only four telecasts across NBC, CBS and Spike "produced the three most watched boxing telecasts of the last 12 months." Haymon's attorney, Mike Ring, said, "An entire world of boxing has been built on short money. What can I get out of this fight and what can I get for a couple of weeks after that? And no one ever looked past it. Because when you look past it, it’s daunting. It’s a daunting investment. But when you get past short to medium to long money, it gets exciting. Real exciting." Kings notes "PBC" is "collecting some rights fees" and "paying for some air time." The main reason the deal "had to be structured similarly to a time-buy is that it was the most logical way for the PBC to create sponsorship and advertising inventory across so many networks." "PBC" believes this will be a "key differentiator for it as it navigates the sponsorship and advertising landscape that eventually will determine whether it survives" (SPORTSBUSINESS JOURNAL, 4/20 issue).
WITH THIS RING: MULTICHANNEL NEWS' Umstead writes with "PBC," boxing "isn’t just getting up off the mat -- it’s getting increased exposure in front of a huge" TV audience. Even boxing’s "ring-sports competitors are impressed by PBC’s aggressive TV strategy and the sport’s subsequent resurgence." UFC President Dana White said that the investment made by Haymon and the nets "will pay dividends with regards to boxing’s future health." Meanwhile, premium channel execs "aren’t worried that boxing’s return to broadcast TV will be a major hit to their fighting franchises." HBO Sports President Ken Hershman said that the net "isn’t suffering from lack of quality fighters." Umstead notes Showtime "is also running on all cylinders with its spring and summer boxing lineups." Still, sources said that it "remains to be seen whether the sport has enough stamina to go the distance and re-establish itself as one of the biggest draws" on TV (MULTICHANNEL NEWS, 4/20 issue).
