Purse bids; How do they work?

Get yo mamma's purse out, and do what you gotta do with her money!

There is usually a minimum amount that can be put on the purse bid. Any promoter that is registered is able to bid. The winner is usually allowed to choose quite a few things from venue, to who is the A side of the promotion, the ring size, gloves and so on, but it's not always all them things because at the end of the day the other fighter still has to choose whether to comply so if they say they want to choose the gloves, it's up to them both to come to an agreement even if the other party won the purse bids.

Here's a good post from Yahoo.

 

Anybody can win and most organisations have a spilt ranging from around 75-25 to 60-40 ( I think), the winner gets to host it

 

60/40 it his British title

 

Voluntary challenger can get a split of whatever (90-10), but mandatory split is 60-40 miniumum

 

Sorry for what may be a stupid question but I'm trying to understand the process...

So if a promoter (******) wins the purse bid at say £1 million and it is agreed that his fighter gets say £700k and the opponent (A boxer of Hearns) gets 300k, then does ****** pay both the fighters out of the £1 mill?

Then having chosen the venue does does ****** get all the income after whatever it costs for venue hire + any deals he negotiates for ring/glove sponsorship etc?

So is the £1 million the stake for all/any the revenue made by the fight?

How else would the opposing promoter (Hearn) make money out of this fight?

Thanks,

 

I guess the ******* are to avoid liable from a certain promoter?