Floyd made 40 million against Ortiz?

Ban this fool! He's too intelligent for the general forum!

 

Their actual monetary cost is not exponential because you are just seeing the cables but they have to do their promotional matters too. And that is outside of what the actual promoters are doing.

They have to appropriate airtime to promote the fight, have a crew do the 24/7 or whatever they are doing to rpomote, and allocate the precious timeslot to air those. These timeslot are actually expensive. It could run several thousand dollars a minute.

It is these expenses that is also to be considered. Plus when you monopolize the market, and the other competitor offers the same price packaging as well, what's the choice.

Showtime can only offer better non-financial packages like a 24/7 or 360 being shown in a broader coverage like regular free-to-air television like CBS, which in theory and principle increases PPV buys, etc., but the bottomline is still profit.

 

See this is where I know you're talking out your ass. Superbowl advertisement fees for a thirty second slot range $2.5 to $3.5 million since 2008.

There are approximately 60 slots per superbowl to be sold, so you're looking at approximately $180 million generated alone in television revenues.

Sponsorship rights for the entire event would be huge. You've got the host committee who generally need to collect a target amount through sponsorship, that amount would be in the $35-40 million range

You're also not counting the sponsorship each team has which generally receives a bonus during Superbowl nor the sponsorship active at the stadium who have to pay a fee during the event.

Now, how does that relate to Floyd? Tecate have major sponsorship rights, they have commercials throughout the PPV and they have canvas naming rights, they're effectively buying three hours of advertisement for their brand plus all of the lead in promotional material and advertising brandishing their name.

The product itself is absolutely within their desired demographic, boxing attracts 18-45 yr old men, beer attracts 18-45 yr old men so to have name sponsorship rights, they're paying at least $10-$15 million.

We're not counting the other sponsorship rights that come into the fight through Golden Boy promotions, through Mayweather himself who will have product promotion and fees going all over the show each time he fights. That Grant logo on his glove? Grant is paying him money for that.

Any more questions? Or do you want to be schooled further?

 

damn you know your stuff

 

But what you're failing to understand is that 24/7 is a money generating exercise for the network. They're either selling it out into syndication on major networks or they're collecting advertisements while running on their own network. They're not paying for anyone to broadcast 24/7 in the way an infomercial will be and there is every chance they're being paid to make it.

Boxing doesn't do marketing justice, because they're not willing to invest the type of widespread money into it that say UFC does, UFC has all sorts of product placement because they invest a huge amount into their marketing machine - why? Because the fighters are paid $2.5m out of a total $50 million pool.

Why do you think Manny has come from Showtime to HBO for this next fight? Because HBO would have bid aggressively and I can guarantee you, they would not be collecting anywhere near 50% PPV proceeds.

 

Last time I checked the promotor pays for 24/7 not HBO. Also with superstars, HBO has no leverage, they have to compete for the honor of carrying his fight against Showtime.

 

Where did you get that figure from for a start?

 

Kind of covered that above, UFC spend a LOT on their marketing machine and are in a position where they can afford to do it because the fighters don't really have the option of going and doing their own thing.

Mixed Martial Arts has a model where you can only really fight for one of three agencies and you're fighting FOR that agency. They've also got a short history where fighters were making $15k a fight only 10 years ago so $150k seems awesome to them now.

Look at the way experienced fighters during the Ultimate Fighter talk about $50k being a life changing difference for them, the reality is, fighting in MMA gives you **** all because you're fighting for someone, not for yourself.

Floyd as explained above, has a relationship with a promotional company to handle his administration duties, he doesn't really work for that company. That's the difference.

You'll also note that Floyd handles a lot of marketing himself through free services like uStream, Facebook, Social Media, Interviews. He's not buying massive article space in magazines, etc.

 

My memory is not up to date. But I read somewhere that Coca-cola or Pepsi does spend around 30 million or more during the superbowl. And those figures are based on memory-recall. If you actually want to know how much a 30 second slot in Superbowl, I am sure it is not hard to get.

The last figures I read were ages ago, and the expenses paid were ages ago too.

Anyway, that is superbowl, with massive viewership.

A boxing match would just get at most 2 million viewers. Basically, advertisers would not touch those figures. It is so small. You pay 10 million for 2 miilion (generously) to watch it, it comes to like 5 dollars every household.

I don't think they are that stupid.

More people watch "Friends" than that on Free-to-air channel.

To say that a small beer maker would spend probably 1/5 their entire advertisement money on a single fight is as ridiculous as my numbers in the superbowl fees..

It just does not add up. Sometimes commonsense would prevail.

 

Now to clarify something....

Manny Pacquaio is a massive name also, he will have very similar arrangements in place although you have to remember part of a settlement for him is that despite Bob Arrum promoting him, he has to pay Golden Boy due to agreeing to fight for them and then backing out of the agreement.

On a sheer money making nature, Pacquaio leaves all of his affairs to his promotion and management, I honestly believe him when he says "I will fight whoever my promoter puts infront of me next"

Due to that, I think he gets a much smaller take of the proceeds than Floyd will - so even if they got a 50/50 purse, in actual terms, Floyd probably takes home one and a half more than Manny does in their fight.

The biggest problem in making that fight is two promotional bodies who don't like working together.

 

Read the link I posted earlier, Manny works FOR Top Rank, he gets paid by them, he doesn't selected a promotor to co-promote with him like Floyd does, ergo he isn't his own boss.

 

atsch He's a GBP fighter chump...

 

It comes down to demographics, a captive audience who is staring at your logo and has your name thrust in their face consistently throughout the campaign is worth a lot, especially when that demographic is exactly the one you're marketing toward.

I won't bother addressing your Superbowl comments because I know the reality of the situation, I'm sure you could search the facts I've posted above and come up with the same answer I've presented above.

Now coming down to how Tecate affords that type of brand association - simple, due to the way taxation works, marketing budget is counted as part of COGS and comes with a number of tax breaks and tax advantages when accounting principles are applied.

In real terms for Tecate, they're not paying $15 million because if they have a half decent taxation agent, they're getting 60-80% of their marketing budget back in expenses against their taxes.

That's how Coca Cola can place $30 million in sponsorship rights for one event that lasts three hours, $30 million, that's a lot of Cola right? Now think worldwide of all of the different sports and events sponsorships they have.

 

Wrong again, not a surprise - you have a tendency of being wrong 100% of the time.

He actually pays GBP, not the other way around. Schaeffer confirms this.

 

Hmm? wonder if that means they wont go all out in trying to defeat him since he pays his opponents purse.