Economics for Haymon-NBC Deal

Yeah, I don't like Haymon but good fights are good fights, can't complain. I wonder whether he'll keep this up though or will we be getting good fights initially and then **** from then on.

 

This would be my uneducated guess.

 

Like I posted earlier, the reason why boxing went away from network tv in it's "heyday" was because they could not make enough money through advertising to pay for increasing fighter purses. This is why premium cable channels and PPV came in to play. If Haymon's fighters can get used to a fighter pay scale like the UFC has, then this could all work out. But with guys commanding million dollar paydays, I fail to see a positive outcome.

 

Haymon is very wealthy. He's been around for decades even before boxing

 

this could also destroy boxing by becoming a business show instead of foremost a sport. mandatory challengers to belt holders will be disregarded as what happened in the past ie. floyd throwing his belt when pac became mandatory which is contrary to the sport's traditions and rules. new people to boxing are trying to cash out on the sport but disregarding the boxing authorities.

 

The only feasible way for it to make sense economically is if Haymon used this as a steppingstone to create the next boxing superstar, I'd assume he'd need several boxers from different weight classes to flourish. He'd make his money back from ppv events. Also perhaps he'd be capable of getting Floyd to return for his 50th and last fight on NBC, that'd be the Superbowl of boxing. Moreover, Haymon is pretty much monopolizing the boxing landscape right now. Expect Top Rank's and Golden Boy's potential stars to jump ship as soon as their contracts expire. HBO and Showtime will be forced to overpay for quality fights and for non quality fights as well e.g. Garcia vs Salka.
And the ultimate goal would be securing high ratings during this two year contract with NBC. When the contract is up NBC and every other network will bid to pay Haymon this time around.

 

Some business moves aren't designed with making money in the short-term.

Have you ever heard of the term "speculate to accumulate"?

In this sense, investing some money into the grass roots of a set of fighters and building household names brings future income.

It might be the difference between someone being a top-end PPV fighter and a run of the mill undercard fighter.

He manages so many of the boxers that boxing's financial interests align with his.

 

I doubt the money came from Haymons own pockets. There are articles that point to several groups that are affiliated with Haymon. He has others investing into it.

 

NBC pays Haymon for his service.

His service is to provide fighters which he exclusively "manages."

Haymon keeps a % of the NBC money and then pays his fighters for their service.


Pretty freakin' easy to figure out... People in this thread saying stuff like; "who are the secret investors???" "how will the fighters get paid?" "CIA needs to investigate Haymon some more," and "there isn't possibly enough money to go around!" are just dumb, really. No way to sugarcoat it.

 

floyd's money.

 

So NBC is investing in a "time buy" on their own network and essentially assuming no risk by making a risky investment in that time buy? Ok

 

? Um wasnt it Haymon who bought air time from NBC?

 

pretty much this. if it was delahoya leading the charge hed have my full support but i just worry about haymon :huh

 

Dan Rafael posted in his chat a few weeks back who some of the investors were one of them owns an MLS (Soccer) Team.