Floyd made 40 million against Ortiz?

To tjose experts here, are your numbers really the official ones?

Or are those actual "facts"?

Because if you all say so, then we can all shut up and dream about how to get 40 million dollars by suckerpuching fans.

 

Floyd promotes himself under Mayweather Productions.

Pac is promoted by bob arum under top rank

Bob Arum takes about 30% of Pacs Purse

Floyd keeps 100% of his

Theres the reason why.

 

If Floyd isnt promoted by GBP, then why do they have him on the roster of fighters that are under GBP?

http://www.goldenboypromotions.com/fighters/

 

Damn, that was pretty cool!
That was pretty interesting insite.

 

"co-promote"

Co is the operative word.

I'm sure it is just part of the deal. GBP is allowed to use his name in some instances.

 

Yes. True.

But PUgilistic was saying HBO would be getting 20 per cent?

That seems reasonable.

 

In my view, the networks and distributors would be getting around 20% of the proceeds of this fight, otherwise you'd find Showtime being in the game with negotiatinos

 

There. we have it.

Showtime would never give 20 per cent either. That is a ridiculous figure to bargain with. From 50 per cent sharing to 20 per cent. It is not even halfway?

You must be a hell of a negotiator.

 

At 20% no one would broadcast it.

Showtime would love to be in the game, but PBF is loyal to HBO ( or at least that is what he says). HBO has better leverage than Showtime because of their recent track record with PPV (ODLH, PBF, Pac, etc).

 

If you get off my nuts and actually look at what I've said the entire time, I've always prefaced it with "I think" and "Judging on..." and "If we..." not "This is"

20% of $120 million
versus
50% of $5 million

Their costs of broadcasting are still exactly the same and promotional costs come off of the top of the pool of all money before money is split, so ultimately, they're talking about $25 million to broadcast a Floyd Mayweather Jr fight or $2.5 million to broadcast a Hopkins fight.

That's exactly why Showtime and HBO will negotiate beyond what you think is possible and reasonable, because ultimately they don't want to give the competition a chance. It's the sheer volumes that are put through HBO that give Floyd that negotiation right.

You'll find De La Hoya probably implemented this for Floyd Mayweather Jr because it's well known in the industry that he changed the model of PPV revenue share during his career.

 

Let us be clear, is this all conjecture on your part? Or are we to take this as facts?

If you think Gayweather is greedy, HBO and Showtime would be doubly greedy.

Just as I disagree that an Obscure Mexican beer company would pay 15 million dollars for advert in a single fight. If you said Bud or Miller, I might have to agree somehow.

 

Bull****. He made about 12 million after taxes. Still a lot of ****ing cash for a ****ing coward.

 

Sigh, look, I'm sick of this idea that it's all conjecture because I've explained my reasoning absolutely but for this particular example, let me treat you like an academic and give you references.

This "Obscure Mexican beer" company produces 3.09GL of beer per annum, which translated into gallons is 816.3m

Reference: http://en.wikipedia.org/wiki/Cuauhtémoc_Moctezuma_Brewery

Now, for the purposes of this I'm not even going to worry about segmentation or breakdown of Tap Beer vs Pack Beer. Pack Beer has much higher margins for producers than Tap Beer (i.e kegs) but the beer supplier I always use (Keg King) charges $179.99 for a 15.5 gallon keg

$179.99 / 15.5 = $11.61 per gallon on their lowest margin product

Now, typically in a FMCG business such as this, Tecate would expect total distribution, onsale margin to be around the 33-50% range as the alcohol industry has high taxation but for the purposes of this exercise, let's be conservative and say that 66% of that $11.61 doesn't reach Tecate books.

Under this extremely pessimistic estimate of what their likely revenue is you're left with $3.83 a gallon on their lowest margin product (keg beer) - so we're completely removing pack beer from the equation (higher margins, higher price) and we're giving tecate a minimal share of what the product is ultimately sold for (again, pessimistic for a business)

816.3m gallons multiplied by our pessimistic pricing of $3.83 = 3.125b

Obscure company who can't afford $20 million for an advertisement event?

Now, their profits out of that aren't going to be $3 billion, they have taxation, they have cost of goods sold, they have salaries, overheads, etcetera - but out of revenue of $3 billion per year and the fact that they get tax breaks based on sponsorship, advertisements and marketing, do you seriously believe they can't afford to pay $20 million to sponsor an event on this scale?

Now, as for all of this conjecture, I'll let you in on a little secret, working in the event industry as a contract lawyer means I know my **** - while I might not back up every single fact, I'm not here to convince you, I get paid no money to do this, I'm simply shedding light on how huge a Mayweather fight is, in terms of total revenue and why he has a different arrangement to most fighters due to that factor.

 

Those are projections.

The company actually has its annual income returns posted. It does not look like a big company to begin with.

But you know your stuff and if you believe that they would pay half what Pepsi cola would pay for a super big event. Then I believe you.

 

Tecate doesn't have their annual income returns posted because they're not a publicly listed company. They're owned by Heineken breweries which has a massive massive revenue line, so in the scheme of that, you probably won't even see them.

Pepsi Cola during Superbowl probably have marketing costs of upwards $50-$75 million

Now as a bit of a side note on likely expenditure by Tecate

http://www.sportsbusinessdaily.com/Journal/Issues/2011/08/01/Marketing-and-Sponsorship/Tecate.aspx

This here indicates what they've spent on marketing above and beyond the costs of being the sponsor themselves

-----
Tecate has committed to supporting the promotion with more than $800,000 in radio, TV and outdoor advertising in Southern California alone.

So they're throwing $800k into Southern California advertising the fact that they're involved in this promotion alone and you don't believe they're paying upwards of $10 million for their involvement?

None of my figures were outlandish, the only thing I can't confirm is GBP and HBO cuts, but if they're getting more than 40% of the gross PPV revenue combined I'd be highly surprised