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Hearn: Boxers' Purses Completely Out Of Control; Part My Fault, DAZN's Fault

Discussion in 'Boxing Discussion' started by MMALOPEZ, May 22, 2020.

  1. MMALOPEZ Gold Belt

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    Eddie Hearn accepts partial responsibility for the purse surge in boxing over the past two years.

    The British promoter also anticipates that trend will end while operating in a global economy damaged badly by the COVID-19 pandemic. Hearn’s Matchroom Boxing USA and DAZN, one of Matchroom’s broadcast partners, reportedly committed an approximate $10 million in purses to Mikey Garcia ($7 million) and Jessie Vargas ($3 million) for the last pre-pandemic main event DAZN streamed February 29 from Frisco, Texas.

    Hearn defended driving up purses during a recent appearance on Chris Mannix’s Sports Illustrated boxing podcast because it was a necessary sacrifice for DAZN as the fledgling streaming service aggressively attempted to make an immediate impact in boxing, particularly in the United States. That approach enabled DAZN to sign such established boxers as Canelo Alvarez, Anthony Joshua, Gennadiy Golovkin, Daniel Jacobs, Demetrius Andrade, Garcia and Vargas to contracts.

    “Well, I know that Bob [Arum] has made it quite clear publicly that that is his intention, really, is to bring purses down,” Hearn said. “And I have to say, Chris, purses have got – I mean, you know the business – they’ve got completely out of control. And listen, part of it’s my fault and DAZN’s fault. They’ve had to come in, they’ve had to make some noise. Bob blamed me [recently]. The other day I was on the phone to him, and he said, ‘Well, it’s all your fault anyway. And before you, it was Al [Haymon].’ And, you know.


    https://www.boxingscene.com/hearn-b...out-control-part-my-fault-dazns-fault--149028
     
  2. Mr2urbo Brown Belt

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    Jessie Vargas got the same pay as Maidana when he fought Floyd??

    That was out of control
     
  3. PUO3 You are a can. Staff Member Senior Moderator

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    Id be willing to bet that DAZN will be out of business by the end of 2021.
     
  4. svmVR2097 Brown Belt

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    The pandemic certainly doesn’t help. But they have some pretty valuable exclusive content besides boxing and mma, just most of it is outside the US, which I believe they charge the most money for the product in(I could be wrong)
     
  5. aries Silver Belt

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    I doubt it. My friend works there and he said they expect to make losses for years like any dot.com start up. They have deep pockets.
     
  6. defjaam Kubrat Pulev Belt

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    Hearns a greedy cunt, don't believe much what comes out of his mouth.
     
  7. JayE Red Belt

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    You always have to be a tad skeptical when the promoters start talking about purses being out of control. There is obviously plenty to be said about DAZN's approach not being sustainable and the difficulty for streaming services to break into the top echelons of boxing, but if networks or streaming services are willing to throw out that much money for events, I'd much rather see the fighters get it than Hearn or other promoters. Hearn isn't saying this for the sake of the networks shelling out too much, he's saying this because he wants his promotional company to get a bigger % of the money the networks/services are shelling out.
     
  8. seau45 Brown Belt

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    They only get half anyway after everyone takes their cut, and then taxes
     
  9. Mr2urbo Brown Belt

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    This

    I like Jessie Vargas but who in thee hell pays him 3 mill?

    If they really had the money spend like that youd think they upgrade the production and lighting on their boxing shows
     
  10. PUO3 You are a can. Staff Member Senior Moderator

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    Theyve already eaten well into those pockets regardless of the depth.
    No mathematician but the subscription costs dont look like much in comparison to their purses. That doesnt include operating costs and so on.

    Really, really just looks absurdly unsustainable. Hope Im wrong.
     
  11. svmVR2097 Brown Belt

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    If they had the subscription numbers that Netflix had those purses wouldn’t matter too much.
     
  12. PHATV FREE @RR!!! Platinum Member

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    Shame, but you are probably right and would likely win that bet. I'm still in and trying to support them even the last couple months while watching replays (I did get in early @$9.99/month) and loved what we've seen but the contract numbers had me scratching my head every time trying to to the math of what they would need to generate to survive---even before this, to be honest.
     
  13. PHATV FREE @RR!!! Platinum Member

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    Even deep pockets will pull the ripcord at some point based on data/analytics.
     
  14. MMALOPEZ Gold Belt

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    I’m starting to think that they need to get out of some of their bigger deals. That Canelo deal it’s atrocious and the Matchroom deal, Christ. So I do think Bellator is going to be casualty. And probably be replaced by a smaller show, like what ESPN does with PFL (500k) per show. Instead of 33 mil. For 10 exclusive shows. They are overpaying for everybody, 1 million to Devin Heaney who is going to be a star but he is not worth it at This moment, the GGG another mistake. That’s why they fired the old president of the USA branch
     
  15. cocksure Silver Belt

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    Netflix wallows in dept, regardless of subscription numbers. Crazy.
     
  16. Athenry04 Black Belt

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    DAZN are looking to expand into several other territories, so if they can ride this out, they should be able to start selling subs in places like New Zealand, Australia and elsewhere. I reckon they need to get back up and running soon though, as even profitable companies can't survive forever without income. I'm still worried about Weatherspoons, so DAZN will absolutely taking a kicking right now.
     
  17. cocksure Silver Belt

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    Fuck him, another disgusting, greedy, clawing relic.

     
  18. Athenry04 Black Belt

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    Oh yeah, he's a fucker mate, I just like cheap ale. But point is, if Weatherspoons is feeling the pinch, and they on every high st, then DAZN must be feeling it.
     
  19. eternaldarkness Black Belt

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    Sounds like a tax right off, to me.
     
  20. Bobo Balde White Belt

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    Sports streaming group DAZN seeks cash to help secure future
    Group owned by Len Blavatnik faces upheaval as pandemic shuts down sports

    Online sports group DAZN is racing to secure its financial future, with billionaire owner Len Blavatnik exploring options to raise money for a business hard hit by the pandemic.

    The London-based company has in recent years spent billions of dollars for the rights to live sporting events, including European football matches and high-profile boxing contests. This was to help build a subscription streaming service dubbed the “Netflix of Sports”.

    The global suspension of sports fixtures during the pandemic has seen some subscribers pause monthly payments. DAZN has also sought to defer payments it owes to sports leagues, citing the lack of live action.

    Mr Blavatnik is exploring ways to inject new money into the lossmaking business, according to several people familiar with the talks, with the sale of an equity stake in the business the preferred option. However, an outright sale would also be considered, the people said.

    Just two years ago, the company was valued at £3bn when it sold a 10 per cent stake to Japanese advertising giant Dentsu for £300m. People familiar with its business said it is currently unlikely to reach a similar valuation.

    Research group Enders Analysis has estimated DAZN’s financial commitments on securing sports rights total at least £3.7bn.

    In recent weeks, the group has approached big media companies over a potential investment, including John Malone’s Liberty Global, but as yet has received little interest in a deal, according to people familiar with the talks.

    The company has sought to challenge established sports broadcasters, from ESPN in the US and Sky in Europe. Among DAZN’s biggest deals are the domestic screening rights for the Bundesliga, Germany’s top-flight football league, and Serie A, Italy’s equivalent. It also has contracts with the promoters behind boxers such as Britain’s Anthony Joshua and Mexico’s Saul ‘Canelo’ Alvarez.

    "[This] is the biggest disaster to hit the sports world in 75 years and the biggest challenge our business has ever faced" - Simon Denyer

    But the sporting world has proved to be one of the industries hardest hit by efforts to contain the virus, leading to a crisis at the company.

    “[This] is the biggest disaster to hit the sports world in 75 years and the biggest challenge our business has ever faced,” Simon Denyer, DAZN’s chief executive, wrote in an email to staff in April.

    Mr Blavatnik’s Access Industries fully acquired UK-based Perform Group in 2014, an umbrella organisation for a number of businesses, including sports betting services and the Opta statistics group. In 2018, Perform group was rebranded as DAZN group.

    In 2019, DAZN Group sold its Perform division to US fund Vista Equity Partners.

    The sale of the Perform content business to Vista, which owns Stats, a rival sports statistics group, was seen as an effort to focus on the DAZN sports streaming service but also allowed Mr Blavatnik to recoup some of the money he had invested in the business.

    The group hired Goldman Sachs last year, seeking to raise $500m, according to people familiar with the terms, but paused that effort at the start of the pandemic.

    “They are at a crossroads as a business,” said a leading executive at a rival broadcast group said. “If it succeeds, it’ll be a great story. If it fails, then it’ll be a story of a trying to disrupt the [sports broadcasting] industry too soon.”

    DAZN and Access Industries declined to comment.

    Additional reporting Henry Foy in Moscow and Arash Massoudi in London

    https://www.ft.com/content/9052379a-78eb-4825-a0f6-f3dba6299940
     

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