Will Magnificent 7 be a success or a flop at the box office?

Froch vs Abraham has been pushed back. Warren would actually be open to that but Hennesey would ask for to much cash.

 

Barker is only headlining the Warren card because Frank won the purse bids for the fight with Macklin.

However, don't be surprised if this fight gets pulled - I'm not sure either of them really fancy the fight to be honest, despite not exactly having that many other options, especially ££££ wise.

 

Macklin turned down an IBF eliminator to take the fight and Barker has never done anything to show he doesn't want the fight.

its the biggest payday of there careers to.

 

it will flop. if at least the brook, macklin, clev and rhodes fights are happening then i'll probably pay.

 

Explain the maths of the break even point? The only question is 'how many buys does it need to earn more from TV than Sky would have paid for a regular show'? All other revenues are the same.

 

I'd guess advertising would take a hit?

 

Warren makes his money back from the promotion itself. He's old school in that way. He can run a show and make a profit from the gate.

The TV money is how he makes himself and his fighters rich. Sky PPV is a way of making more money that he doesn't need to split with Sky.

 

Perhaps a flop. Nothing worth paying for. You would expect big names and genuine world titles for PPV. This should be spread over a couple of venues and nights on normal Sky.

 

Ringside advertising? I guess a little.

 

That makes no sense at all.

The break even point of any event depends entirely on the balance between costs and revenue. As neither are fixed there can't possibly be a standard 'break even point on PPV'.

If I put an event on PPV, my costs are 100k and I'm getting £10 per sale, then the break even is 10,000. If the costs are 100k and I'm getting £1 per sale, then the break even is 100,000. That is over-simplified obviously, without considering other revenue.

Unless you know what the costs of the promotion are, what the anticipated revenue is, and what the amount of revenue that could have been expected from a 'standard' sky show would have been, then you don't have the faintest idea what the break even is, or any other numbers.

 

You made a statement that you 'understood' the break even point for this event was 100k without any disclaimer at all that you were just pulling a number out of thin air.

Production costs are presumably the same as a non-ppv tv event. And the contractual terms for the boxers are variable and as long as they are based on a realistic projection shouldn't be a problem.

 

nope the tv advertising. advertisers pay the tv station by the amount of GRPs they are generating for them - Gross Rating Points. 100 GRPs is 100% of its target audience. Therefore, if its a non PPV event the show might generate 20 GRPs as more people watch it. If its PPV then they might only generate 5 GRPs - hence there is less advertising revenue, and assumedly this reduction in revenue will also be passed on to Frank Warren.
Therefore, there must be a point where the revenue of the PPV ordering fees becomes more profitable than the lost income from not airing it free and getting increased advertising revenue.
if people are saying 100K is the break-even point that would make sense in that:

(100,000 x PPV ordering fee) + (reduced TV advertising money)
is more than
(0 x PPV ordering fee) + (increased TV advertising money)

but only if the term 'break-even' refers to just the decision to do PPV and not regular showing. Not break even in terms of total promotion costs and revenue.

 

TV advertising revenue goes to the tv company though.

I already covered that.