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

Discussion in 'World Boxing Forum' started by bruce_keyes, Mar 14, 2019.



  1. Odo

    Odo Boxing Junkie Full Member

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    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
     
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  2. tealt

    tealt Member Full Member

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    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.
     
  3. bruce_keyes

    bruce_keyes Active Member Full Member

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    Perhaps not, but Amazon didn't throw hundreds of millions of dollars at the website in the first year did they?? thats my whole point.
     
  4. bruce_keyes

    bruce_keyes Active Member Full Member

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    EXACTLY!! that is insane... burning money.. I mean, I get it, every business, big or small, requires some kind of initial capital to get it going.. But I don't think I've heard of any business, especially a streaming platform to throw a $600 million just at the fighters alone... you aren't counting operating costs, employees etc.. that Billon dollar budget was just for the fighters... it's very suspicious, thats what I'm getting at with my post.
     
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  5. Badbot

    Badbot Obsessed with Boxing Full Member

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    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.
     
  6. tealt

    tealt Member Full Member

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    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.
     
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  7. Badbot

    Badbot Obsessed with Boxing Full Member

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

    bruce_keyes Active Member Full Member

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    billionaires become billionaires not because they know something we don't know, but because their parents were wealthy. come on, don't give them that much credit. it's wealth that has been accumulated for generations.
     
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  9. Brighton bomber

    Brighton bomber Obsessed with Boxing Full Member

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    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.
     
  10. Davo

    Davo Boxing Addict Full Member

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    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.
     
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  11. Davo

    Davo Boxing Addict Full Member

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    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.
     
  12. tealt

    tealt Member Full Member

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    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.
     
  13. minemax

    minemax Boxing Addict Full Member

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  14. Vykus

    Vykus ɹoolɟ ǝɥʇ ɯoɹɟ ʍǝᴉʌ ǝɥʇ Full Member

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    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.
     
    Last edited: Mar 15, 2019
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  15. Brighton bomber

    Brighton bomber Obsessed with Boxing Full Member

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    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.
     

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