Article on FT is under the payroll but it basically says that the DAZN owner is desperately seeking investment.
Given their start up investment. This stop on sport is a massive hit. No loyalty customers and still probably making losses before this anyway
They invested far too heavy in a niche sport and it's costing them massivly in America. They can still be successful in Europe with the rights they have but boxing isn't the sport to make massive money in America. Hearn has Don Kinged them with the OPM strategy.
i think hearn might have, with his sales platter and his arrogance thinking he would take over even thou they had two more than capable guys already there. Yeh doesn't look good. but there could still be okay, probably means they wont spend as much money. which could mean them working together with other promoters and them not being so arrogant
Online sports group DAZN is racing to secure its financial future, with billionaire owner Len Blavatnik exploring options to raise money for a business hard hit by the pandemic. The London-based company has in recent years spent billions of dollars for the rights to live sporting events, including European football matches and high-profile boxing contests. This was to help build a subscription streaming service dubbed the “Netflix of Sports”. The global suspension of sports fixtures during the pandemic has seen some subscribers pause monthly payments. DAZN has also sought to defer payments it owes to sports leagues, citing the lack of live action. Mr Blavatnik is exploring ways to inject new money into the lossmaking business, according to several people familiar with the talks, with the sale of an equity stake in the business the preferred option. However, an outright sale would also be considered, the people said. Just two years ago, the company was valued at £3bn when it sold a 10 per cent stake to Japanese advertising giant Dentsu for £300m. People familiar with its business said it is currently unlikely to reach a similar valuation. Research group Enders Analysis has estimated DAZN’s financial commitments on securing sports rights total at least £3.7bn. In recent weeks, the group has approached big media companies over a potential investment, including John Malone’s Liberty Global, but as yet has received little interest in a deal, according to people familiar with the talks. The company has sought to challenge established sports broadcasters, from ESPN in the US and Sky in Europe. Among DAZN’s biggest deals are the domestic screening rights for the Bundesliga, Germany’s top-flight football league, and Serie A, Italy’s equivalent. It also has contracts with the promoters behind boxers such as Britain’s Anthony Joshua and Mexico’s Saul ‘Canelo’ Alvarez. But the sporting world has proved to be one of the industries hardest hit by efforts to contain the virus, leading to a crisis at the company. “[This] is the biggest disaster to hit the sports world in 75 years and the biggest challenge our business has ever faced,” Simon Denyer, DAZN’s chief executive, wrote in an email to staff in April. Mr Blavatnik’s Access Industries fully acquired UK-based Perform Group in 2014, an umbrella organisation for a number of businesses, including sports betting services and the Opta statistics group. In 2018, Perform group was rebranded as DAZN group. In 2019, DAZN Group sold its Perform divisionto US fund Vista Equity Partners. The sale of the Perform content business to Vista, which owns Stats, a rival sports statistics group, was seen as an effort to focus on the DAZN sports streaming service but also allowed Mr Blavatnik to recoup some of the money he had invested in the business. The group hired Goldman Sachs last year, seeking to raise $500m, according to people familiar with the terms, but paused that effort at the start of the pandemic. “They are at a crossroads as a business,” said a leading executive at a rival broadcast group said. “If it succeeds, it’ll be a great story. If it fails, then it’ll be a story of a trying to disrupt the [sports broadcasting] industry too soon.” DAZN and Access Industries declined to comment.
Corona virus has been a ***** for most non essential businesses. Especially so for aggressive start ups like dazn
Too many sports subscriptions in place already - hope DAZN go the same way as Eleven Sports UK Hope it is the full Katie Price chest
It's all about timing. Once you get to Neftlix's position you're insulated against events. DAZN are still trying to build the scale necessary to make money and burning major cash to get there. Now all the forecasts aren't worth a damn, their cash flow is screwed, all the economies they're invested in will contract. Just bad timing. I'd prefer the DAZN model to succeed over the combined Sky Sports subscription plus regular PPV one. I'd have thought you'd feel that way too?
DAZN was never going to be a huge success in boxing anyway. Hearn made grandiose predictions and none of them really came to fruition. Huge offers to guys like Wilder, Davis and Broner who all turned them down. At least Hearn can now use coronavirus as an excuse and go back to Sky with his begging bowl out.
I looked at Matchroom boxing accounts the other day......Hearn dont need a begging bowl he is in a powerful position. Matchroom has 60 million in the bank !
Cannot see Sly disappearing anytime soon. We already subscribe to Sky Sports and BT Sports plus we have Premier Sports looking for another £11.99 per month to watch Seria A, La Liga and Jock Cup matches plus they have taken over Boxnation. The last thing we need is another subscription mate.
I feel sorry for DAZN, they fell hook line and sinker for Eddie's sales pitch, even though all of us real Boxing Fans knew a venture to the USA was very unlikely to be successful.
You cant expect Dillian Whyte to fight for 400 grand !!!!! Never had a sniff of a belt but he needs millions a fight
That’s impressive but is that Matchroom boxing or Matchroom Sports? Anyway my point stands. If DAZN cuts ties with the boxing side Hearn will have to go back to Sky with a figurative begging bowl and it will be a minor humiliation because he has previously spoken about DAZN launching in the UK. Don’t think there is any doubt that pre-Covid-19 the Matchroom Boxing business model was to move away from Sky and into a streaming model here.
