Where on earth is DAZN getting all this money from for contracts?

How the hell does a guy like Wilder deserve 100 million for 3 fights??? He cant even sell out an arena in his unknown american hamlet.Nobody outside the states has ever heard of him. He doesnt have neither the charisma nor the education to be a global star.DAZN and Eddy are doing a terrible job burning money for fighters who will never be national , let alone international stars

 

It takes a while for endeavors like this to make money. Amazon took awhile to start making money. They still lose money in the overseas market. When it takes off it really takes off. But in sports, its often somebody's pet project. Chelsea loses a lot of money. When you are that rich it becomes a matter of prestige. Sure DAZN will lose money. It gets written off. The hope is that one day it does.

 

They are throwing a **** ton on their streaming service.
And it's not like DAZN just popped up. Yeah, they made their US debut recently, but they have been around for a while.

 

Correct but you are talking about in essence investing in a person. Baseball invests millions of dollars every year in prospects in the hope that a few pay off. With Wilder isn't two of the fights with Joshua? I think those two fights are the hope. But the main point is that people become billionaires for a reason. They know something that we don't or willing to risk something that we won't do or could not do.

 

http://www.sportspromedia.com/news/dazn-2.5bn-media-rights-telefonica-champions-league

Their boxing budget doesn't look all that impressive comparatively.

 

Not strange at all for a streaming service really, what DAZN are basically doing is buying content much like Netflix and Amazon Prime. By securing fighters they secure the content with their future fights. Netflix spent over $12 billion last year on content, Amazon spent over $5 billion. DAZN annual budget for fighters for the Matchroom deal alone is $125 mill that's peanuts compared to what the big streaming platforms are spending on content.

 

This is not correct at all. DAZN's parent company Perform Group's published financial reports don't agree with anything you've said here. The parent company doesn't make enough money to comfortably cover the $100mn their subsiduary DAZN is offering Wilder, let alone Canelo's "record-breaking" deal and Mis-Matchroom's fake billion. They're losing money hand over fist and there's no reason for you to be disputing that.

DAZN are probably doing the same thing PBC did a few years back and trying to buy a monopoly they can then parlay into major cash. Otherwise they're following the Man City model and are spending some corrupt billionarie's personal wealth so he can show off to the other corrupt billionaires at the next convention.

Either way, if this leads to big fights getting made and the boxers are making more money than before it's a great situation for everyone.

 

But Perform Group make less than DAZN's Mis-Matchroom budget alone. Amazon and Netflix have huge revenues to cover their outlay on content. DAZN don't.

 

Jeff Bezos Dad owned a bicycle shop and his mom was a high school student. His step dad was a cuban immigrant who became an engineer. Mark Cuban came from pretty humble upbringings also. Its not like they were handed millions to start a business. Jeff was given like 300,000 to invest in Amazon. Sure that helped but it takes something to become that wealthy. Sure some are born wealthy.

 

https://www.forbes.com/sites/greats...rove-piketty-wrong-about-wealth/#375547896a01

 

If DAZN have 10 million suscribers = 1.2 billion a year.

A rough estimate would be that DAZN currently has 40 million suscribers globally.

Thats 4.8 billion of profit a year on suscriptions alone, not to mention advertising and other revenue streams. Thats pretty damn good growth figures for a very new company.

If Netflix can get 160 million suscribers globally for movies, its not inconceivable DAZN could globally dominate sports and get 200 million suscribers, generating 24 billion in suscription profits alone a year.

 

Perform group are owned by Access Industries though, Perform like DAZN are a fledgling business that will grow. Access Industries owns Time Warner Music group, they have investments in petrochemicals, mining, finance, the entertainment industry etc. They were an investor in Facebook before their IPO and sold their investment in 2015, likely for billions. They purchased a finance company and turned it from a struggling business and sold it for $15 billion. They merged a bunch of separate mining businesses and create a more financially solid looking company that they sold for a profit.

Looking at the history of Access industries wouldn't shock me if they are simply building up DAZN and the Perform Group to simply be sold on later to one of the big streaming services like Amazon and Netflix as that seems to be a pattern in some of their investments. No need to make DAZN profitable if they can simply get enough market share to make it look like a good long term investment for one of the bigger streaming services when they decide to branch out into streaming sports, which Amazon have already started doing.