What is a "site fee" in boxing?

[Sticko]

https://www.espn.com/boxing/story/_...-bout-record-150-million-site-fee-sources-say

This says the site fee for Fury vs. Joshua will be >$150m, with $75m each for the boxers plus expenses including undercard fights. But it doesn't explain what a site fee is.

This makes it sound like the venue owners are paying to put on the entire fight, but that doesn't make sense. Also no venue has been announced as yet but apparently it will be in Saudi Arabia.

I always thought the promoters were responsible for the expenses of putting on a card, including paying their fighters.

 

[CatchnShoot]

The site puts up money for the privilege of hosting the event. They hope that they will recoup from the event. In Covid times 150million is fucking insane.

 

[Sticko]

The site puts up money for the privilege of hosting the event. They hope that they will recoup from the event. In Covid times 150million is fucking insane.

They are not going to make $150m in gate even without covid so how does that make sense? And when you say site, you mean the owners of the arena?

If they sold out an 80,000-seat arena they'd need to charge $1875 per ticket to make $150m. Anyway I assume most of the money in a fight like Fury-Joshua is TV / PPV money, not live gate.

Is this how it works for most fight cards? What is a more normal site fee?

 

[BoxingMMA]

I think the saudis just pay these crazy ass amounts for fights simply for the privilege of hosting them and showing the world they are a sporting capital as well, it’s more of an investment for the future kind of thing. At least that’s what I think, because there’s no way they make that money back.

Also, do they see any of the PPV money?

 

[JayE]

I think the saudis just pay these crazy ass amounts for fights simply for the privilege of hosting them and showing the world they are a sporting capital as well, it’s more of an investment for the future kind of thing. At least that’s what I think, because there’s no way they make that money back.

Also, do they see any of the PPV money?

Yeah, it's basically an advertisement. MBS has some big plans to make KSA a high end tourist destination and there's no better way to show the world that than hosting such a massive bout, regardless of any money lost.

 

[burningspear]

The Saudi's are new money.

 

[jm0b]

They are not going to make $150m in gate even without covid so how does that make sense? And when you say site, you mean the owners of the arena?

If they sold out an 80,000-seat arena they'd need to charge $1875 per ticket to make $150m. Anyway I assume most of the money in a fight like Fury-Joshua is TV / PPV money, not live gate.

Is this how it works for most fight cards? What is a more normal site fee?

Don't forget the sponsorship deals. They'll have a ton of advertising that you can see on TV which will bring in a fair bit of coin.

I'd imagine if they break even they're happy

 

[CatchnShoot]

They are not going to make $150m in gate even without covid so how does that make sense? And when you say site, you mean the owners of the arena?

If they sold out an 80,000-seat arena they'd need to charge $1875 per ticket to make $150m. Anyway I assume most of the money in a fight like Fury-Joshua is TV / PPV money, not live gate.

Is this how it works for most fight cards? What is a more normal site fee?

The thing is, generally, the host doesn’t get the gate either...anything is negotiable, but usually, not.

Ringsidemight be 20k. it’s a strange world.

 

[DaveDave]

I think the saudis just pay these crazy ass amounts for fights simply for the privilege of hosting them and showing the world they are a sporting capital as well, it’s more of an investment for the future kind of thing. At least that’s what I think, because there’s no way they make that money back.

Also, do they see any of the PPV money?

Yeah they're basically paying out all that money 'cos you're meant to go:

"Oh, forget about the torture & the virtual slavery & the live stadium executions & the war crimes & funding terrorism & the horrible things done to Yemenis, look at the sports! Aren't we great?"

 

[Shoemaker]

Yeah they're basically paying out all that money 'cos you're meant to go:

"Oh, forget about the torture & the virtual slavery & the live stadium executions & the war crimes & funding terrorism & the horrible things done to Yemenis, look at the sports! Aren't we great?"

So you're telling me they have sports and live stadium executions?

 

[Kovalev's "Man Bag"]

Yeah they're basically paying out all that money 'cos you're meant to go:

"Oh, forget about the torture & the virtual slavery & the live stadium executions & the war crimes & funding terrorism & the horrible things done to Yemenis, look at the sports! Aren't we great?"

Indeed. Nowadays it's referred to as “sportswashing.”

For those unfamiliar → https://en.wikipedia.org/wiki/Sportswashing

 

[Sticko]

OK, so let's ignore Saudi Arabia for a second. Maybe they're an outlier. Is that how it normally works?

Anthony Joshua vs. Andy Ruiz I was held at Madison Square Garden in NYC.
Tyson Fury vs. Deontay Wilder I was held at the Staples Center in Los Angeles.

According to Wikipedia, MSG is owned by a company called Madison Square Garden Entertainment and they have a capacity of 20,789 for boxing. Is MSGE paying a site fee to have the fight there or are the promoters paying MSGE to have it there? Who gets the gate?

 

[Kowboy On Sherdog]

Didn't they pay Goldberg and the Undertaker a million + just to do a private WWE there... Some people are rich... These guys give zero f**** when it comes to money...

 

[JayE]

OK, so let's ignore Saudi Arabia for a second. Maybe they're an outlier. Is that how it normally works?

Anthony Joshua vs. Andy Ruiz I was held at Madison Square Garden in NYC.
Tyson Fury vs. Deontay Wilder I was held at the Staples Center in Los Angeles.

According to Wikipedia, MSG is owned by a company called Madison Square Garden Entertainment and they have a capacity of 20,789 for boxing. Is MSGE paying a site fee to have the fight there or are the promoters paying MSGE to have it there? Who gets the gate?

Site fees have been particularly relevant in the past for fights in Vegas and Atlantic City, where the massive (and often wealthy) fight crowds that are attracted to the fights also put a lot of money on the tables (plus hotels, extra money to the town in general, etc.). The rationale being that the extra business they do on fight week as a result of the event more than pays for the site fee. In this instance, it's the casinos (like the MGM Grand) putting up the site fee. This is one of a few reasons why Las Vegas is the fight capital of the world.

I think it was Queensland that put up a significant amount of public money to get Pacquiao/Horn held in Brisbane, with the rationale being that fight crowds would boost the local economy in the short term and also showcase Brisbane in the long term. This is another form of a site fee. Now, for other venues like MSG, I'm not entirely sure what the arrangements are (the site fees, if there are any, are certainly not the same as they'd be in a place like Vegas or Atlantic City in the 80s and 90s).