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Old 03-11-2010, 10:16 PM   #16
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Default Re: How hbo gets paid for ppv!!!! Enjoy knowledge!!

This is How HBO PPV works, from what I can imagine:

1.) A boxing promoter(s) call HBO while a negotiation is on going and looking rather good. They tell HBO the match up they are planning, if the match-up isn't up to HBO financial standards they shoot it down(this is a big reason why Wlad-Chambers isn't on HBO, Showtime or ESPN.) if it is they move onto the next stage

2.) They ask HBO for dates around a certain time period, probably about 3 or 4 weeks. HBO will tell them available dates for Non-PPV and PPV, and depending on the combined draws of the fighters HBO will force them to either one or the other. Example is After Mayweather blasted Gatti on PPV, he moved up and fought Sharmba Mitchell. Mitchell can't draw flies to shit but Mayweather might bring in at the time 300K free fans so they gave him a date. After the Mitchell fight Mayweather fought Judah on PPV. The numbers worked so HBO amde it a PPV date.

3.) Next, HBO will work out a rate for which they receive for conduction the PPV. I don't know if it is a flat fee or not, it might depend on the fight. This rate is what determines how much money HBO actually makes on a PPV.

4.) The final negotiations are hammered out, the fight happens, and judging by the amount sold HBO receives X amount of dollars, the boxers and promoters receive Y amount, and Z amount is broken up to multiple different people involved with the fight like the arena in which it held might get a tiny sum, the Cable/Satellite provider might get a tiny sum for processing the orders and channel rental, etc.

Also, HBO rarely loses money on a PPV, in fact the process is so scientific I bet the bad day for HBO PPV is making only a few hundred thousand in profit on a PPV.
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Old 03-11-2010, 11:27 PM   #17
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Default Re: How hbo gets paid for ppv!!!! Enjoy knowledge!!

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Originally Posted by bandeedo View Post
i just had hbos business plan explained to me by a guy with fake gold chain and 1970s 13" tv.
now we just need a crackhead or 2 to explain to use how a fighter could be using steroids......oh wait.
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Old 03-13-2010, 05:08 PM   #18
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Default Re: How hbo gets paid for ppv!!!! Enjoy knowledge!!

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Originally Posted by Atlanta View Post
This is How HBO PPV works, from what I can imagine:

1.) A boxing promoter(s) call HBO while a negotiation is on going and looking rather good. They tell HBO the match up they are planning, if the match-up isn't up to HBO financial standards they shoot it down(this is a big reason why Wlad-Chambers isn't on HBO, Showtime or ESPN.) if it is they move onto the next stage

2.) They ask HBO for dates around a certain time period, probably about 3 or 4 weeks. HBO will tell them available dates for Non-PPV and PPV, and depending on the combined draws of the fighters HBO will force them to either one or the other. Example is After Mayweather blasted Gatti on PPV, he moved up and fought Sharmba Mitchell. Mitchell can't draw flies to shit but Mayweather might bring in at the time 300K free fans so they gave him a date. After the Mitchell fight Mayweather fought Judah on PPV. The numbers worked so HBO amde it a PPV date.

3.) Next, HBO will work out a rate for which they receive for conduction the PPV. I don't know if it is a flat fee or not, it might depend on the fight. This rate is what determines how much money HBO actually makes on a PPV.

4.) The final negotiations are hammered out, the fight happens, and judging by the amount sold HBO receives X amount of dollars, the boxers and promoters receive Y amount, and Z amount is broken up to multiple different people involved with the fight like the arena in which it held might get a tiny sum, the Cable/Satellite provider might get a tiny sum for processing the orders and channel rental, etc.

Also, HBO rarely loses money on a PPV, in fact the process is so scientific I bet the bad day for HBO PPV is making only a few hundred thousand in profit on a PPV.

That was good but no HBO PPV loses alot of money on PPV.
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Old 03-13-2010, 05:19 PM   #19
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Default Re: How hbo gets paid for ppv!!!! Enjoy knowledge!!

As a distributer, HBO gets the half the revenue from the ppv sales. HBO will also pay a fee for the right to rebroadcast the fight.
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Old 03-13-2010, 05:22 PM   #20
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Default Re: How hbo gets paid for ppv!!!! Enjoy knowledge!!

Quote:
Originally Posted by bandeedo View Post
i just had hbos business plan explained to me by a guy with fake gold chain and 1970s 13" tv.
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Old 03-13-2010, 05:41 PM   #21
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Default Re: How hbo gets paid for ppv!!!! Enjoy knowledge!!

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Originally Posted by bandeedo View Post
i just had hbos business plan explained to me by a guy with fake gold chain and 1970s 13" tv.
Wow you can check for hallmarks from this video?
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Old 03-13-2010, 06:21 PM   #22
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Default Re: How hbo gets paid for ppv!!!! Enjoy knowledge!!

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Originally Posted by crimson View Post
PPV is actually NOT the preferred way by HBO to broadcast big fights. Unfortunately, fighters and promoters prefer it because they can pocket more money. Nevertheless, PPV hurts boxing because the audience range is smaller.

It is NOT a secret that HBO PPV Boxing is not the profit making machine boxing fans think it is.

Boxing is really dying in America. Slowly. But surely.

Dieing? This isn't even the best fight in the next few months and its getting a 40k in person audience and at least 1.2 million PPV buy.

Boxing isn't what it was 20 or more years ago but it is still thriving.
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Old 03-13-2010, 06:27 PM   #23
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Default Re: How hbo gets paid for ppv!!!! Enjoy knowledge!!

Boxing would be helped more by having this on HBO. The PPV thing puts money in Arum's pocket, but does not help boxing. This fight should not be PPV, not by the standards I follow which is the 1980's standards. By todays standard every fight seems to be PPV.
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Old 03-13-2010, 06:44 PM   #24
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Default Re: How hbo gets paid for ppv!!!! Enjoy knowledge!!

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Originally Posted by MAG1965 View Post
Boxing would be helped more by having this on HBO. The PPV thing puts money in Arum's pocket, but does not help boxing. This fight should not be PPV, not by the standards I follow which is the 1980's standards. By todays standard every fight seems to be PPV.
This fight would cost at very least $20 million to broadcast on HBO, its not feasible.

At the very top echelon, boxing pays better then any other sport. It would be easy to say that the fighters/promoters should take pay cuts, but no one in their right mind would do it when its almost guaranteed profits.

My biggest complaint is that if they do PPV, they should really bolster the undercards, it would 'only' cost them a few extra million to put together really good fights.
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