Al Haymon paying NBC $20millon?!?!?

[PokerRob]

I always thought it was the TV station that paid the promoter (or whatever Al Haymon is) for the TV rights to broadcast the show on their station?

For example; (a 'BASIC' business model)
1. We (the audience) buy products like 'Johnsons Baby Shampoo' because we've seen them advertised on TV stations such as Channel 5
2. Johnsons then pay Channel 5 for being able to advertise on their TV station... The more people who watch the more Johnsons are willing to pay
3. Channel 5 then takes that money (provided by Johnsons) and gives a share of it to the promoter (Mick Hennessey)
4. Mick Hennessey then pays the boxers

So why is Al Haymon offering NBC $20million to be able to show 24 fight dates on their TV channel? Shouldn’t it be NBC paying Al Haymon for the TV rights to his shows?

I can’t see how Al Haymon is going to make any profit if he's paying NBC and his fighters???
Who's paying Al???

Source = http://www.BS.com/kathy-duva-o ... rts--82757

[lefty]

I always thought it was the TV station that paid the promoter (or whatever Al Haymon is) for the TV rights to broadcast the show on their station?

For example; (a 'BASIC' business model)
1. We (the audience) buy products like 'Johnsons Baby Shampoo' because we've seen them advertised on TV stations such as Channel 5
2. Johnsons then pay Channel 5 for being able to advertise on their TV station... The more people who watch the more Johnsons are willing to pay
3. Channel 5 then takes that money (provided by Johnsons) and gives a share of it to the promoter (Mick Hennessey)
4. Mick Hennessey then pays the boxers

So why is Al Haymon offering NBC $20million to be able to show 24 fight dates on their TV channel? Shouldn’t it be NBC paying Al Haymon for the TV rights to his shows?

I can’t see how Al Haymon is going to make any profit if he's paying NBC and his fighters???
Who's paying Al???

Source = http://www.BS.com/kathy-duva-o ... rts--82757

I think the order of that is a little wrong although I see what you're getting at. Personally, i'd say it's more like this

1. channel 5 pays Mick hennessey money for his fighters to be broadcast on channel 5 for which Mick then pays his fighters
2. channel 5 then sells advertising space on their channel for whichever brand is then interested based on the content. The amount the advertiser pays is not just based on how many people that watch but the demographic of the people watching

Regarding Haymon. He's basically paying to get himself on the network. It's a gamble he's taking in the hope that he can appeal to a large audience and also the correct demographic which will bring in the biggest return in advertising fee's for the network (maybe there would be some kind of percentage of advertising revenue worked into the deal) anyway, his end game would be to bring in big ratings and advertising fee's so eventually down the line NBC would pay him a massive amount for his fighters to be on the network. That's my guess anyway.

[ttornado]

(maybe there would be some kind of percentage of advertising revenue worked into the deal) anyway, his end game would be to bring in big ratings and advertising fee's so eventually down the line NBC would pay him a massive amount for his fighters to be on the network. That's my guess anyway.

That seems the crux of the matter, is Haymon buying slots on NBC to which he'll own the advertising rights? It seems backwards to UK TV but sometimes the USA is like that.

[lefty]

(maybe there would be some kind of percentage of advertising revenue worked into the deal) anyway, his end game would be to bring in big ratings and advertising fee's so eventually down the line NBC would pay him a massive amount for his fighters to be on the network. That's my guess anyway.

That seems the crux of the matter, is Haymon buying slots on NBC to which he'll own the advertising rights? It seems backwards to UK TV but sometimes the USA is like that.

Yeah that is a possibility. Do television networks usually do that though? Be payed for content to shown on that channel/s and thus give up the advertising rights? I mean i havent heard of that before but I dont know enough about it to be fair.

[ttornado]

Do television networks usually do that though? Be payed for content to shown on that channel/s and thus give up the advertising rights?

Unless Haymon is making money solely from in-programme product placement, I don't see how this pays off.
What will this mean for UK TV? Will Haymon's fights be split across Sky and allegedly, or will there be a sole contract with one. BTSport seems unlikely to be involved due to their close relationship with ESPN.

[PokerRob]

1. channel 5 pays Mick hennessey money for his fighters to be broadcast on channel 5 for which Mick then pays his fighters
2. channel 5 then sells advertising space on their channel for whichever brand is then interested based on the content. The amount the advertiser pays is not just based on how many people that watch but the demographic of the people watching

Yes I think that sounds more right... I just meant that even on Channel 5, without Box Office and subscription fees, the money the fighters receive ultimately comes from us, the viewer. Tickets sold as well of course.

1. We buy stuff from brands
2. Brands then pay Channel 5
3. Channel 5 then pays promoter
4. Promoter pays boxers

Admittedly, not in this exact order in reality...

And yes, good point, demographics certainly play a part. Also, I wonder if brands who advertise between rounds have to pay more, because people are less likely to switch over due to them being so short???

[tobyh5]

He is buying airtime for his fighters to increase their exposure to the general public in the US as NBC is a free aired station, like ITV in the UK.

What is in the slightest bit hard to understand about this? Advertising revenues, who buys what and how? What the fcuk are people talking about?

Those brands advertise for awareness, they buy time which is what he is doing. Makes his fighters into bigger names for increased future revenue. FFS! This thread has cracked me right up, first the OP then the subsequent posters getting involved and missing the very obvious

[lefty]

He is buying airtime for his fighters to increase their exposure to the general public in the US as NBC is a free aired station, like ITV in the UK.

What is in the slightest bit hard to understand about this? Advertising revenues, who buys what and how? What the fcuk are people talking about?

Those brands advertise for awareness, they buy time which is what he is doing. Makes his fighters into bigger names for increased future revenue. FFS! This thread has cracked me right up, first the OP then the subsequent posters getting involved and missing the very obvious

Sorry mr Branson

[ttornado]

increased future revenue.

This is the unknown, if Haymon isn't going to be using the PPV model where is increased future revenue coming from?
What does an over-the-top network look like? Is this a step towards an online subscription model, which could also compete with UK channels as well as the US networks?

[tobyh5]

He is buying airtime for his fighters to increase their exposure to the general public in the US as NBC is a free aired station, like ITV in the UK.

What is in the slightest bit hard to understand about this? Advertising revenues, who buys what and how? What the fcuk are people talking about?

Those brands advertise for awareness, they buy time which is what he is doing. Makes his fighters into bigger names for increased future revenue. FFS! This thread has cracked me right up, first the OP then the subsequent posters getting involved and missing the very obvious

Sorry mr Branson

Hardly need to be Branson to work it out. Pretty obvious. Buying slots to make money through other avenues through the increased exposure of the fighters. Stupid thread

[Tomasino]

I always thought it was the TV station that paid the promoter (or whatever Al Haymon is) for the TV rights to broadcast the show on their station?

For example; (a 'BASIC' business model)
1. We (the audience) buy products like 'Johnsons Baby Shampoo' because we've seen them advertised on TV stations such as Channel 5
2. Johnsons then pay Channel 5 for being able to advertise on their TV station... The more people who watch the more Johnsons are willing to pay
3. Channel 5 then takes that money (provided by Johnsons) and gives a share of it to the promoter (Mick Hennessey)
4. Mick Hennessey then pays the boxers

So why is Al Haymon offering NBC $20million to be able to show 24 fight dates on their TV channel? Shouldn’t it be NBC paying Al Haymon for the TV rights to his shows?

I can’t see how Al Haymon is going to make any profit if he's paying NBC and his fighters???
Who's paying Al???

Source = http://www.BS.com/kathy-duva-o ... rts--82757

I know I mean what's Al doing? Taking a gamble and trying something new? Wow he's going to end up bust isn't he? $20m, that's going to break his piggy bank...poor Al he is so stupid. Nobody has been talking for decades about how boxing died off when it switched from network to subscription/PPV. Saint Kathy did well with her non profit fights but it's time for silly Al to blow it all up for her now

[lefty]

He is buying airtime for his fighters to increase their exposure to the general public in the US as NBC is a free aired station, like ITV in the UK.

What is in the slightest bit hard to understand about this? Advertising revenues, who buys what and how? What the fcuk are people talking about?

Those brands advertise for awareness, they buy time which is what he is doing. Makes his fighters into bigger names for increased future revenue. FFS! This thread has cracked me right up, first the OP then the subsequent posters getting involved and missing the very obvious

Sorry mr Branson

Hardly need to be Branson to work it out. Pretty obvious. Buying slots to make money through other avenues through the increased exposure of the fighters. Stupid thread

Well considering main events were being paid for their fighters to be shown on the network. It seems a rather expensive way to go about it. Anyway, seeing as you're a fountain of knowledge on this subject matter and clearly of an MBA standard when it comes to your business acumen, what are these other avenues then that Al is going to make money from then?

[domjon]

Yes it's so obvious...we often see boxing promotors spend 50 million dollars on what, trebling the exposure of their already known fighters.

Come on man there are glaring holes in the plan as the facts stand at the moment, nobody really knows what he's up to yet.

[ALI]

Come on man there are glaring holes in the plan as the facts stand at the moment, nobody really knows what he's up to yet.

Agreed - he is signing up so many top level boxers lately, i think he has over 120 signed to him now, whatever his plans are, i hope it will have a posative impact on the sport.

[ttornado]

i hope it will have a posative impact on the sport.

Apart from Lamont Brewster, Haymon's affect on boxers seems to have been positive.
Let's hope Taylor doesn't become the next Brewster.

[Roman7]

He is a snake
Time will show

[PokerRob]

Hardly need to be Branson to work it out. Pretty obvious. Buying slots to make money through other avenues through the increased exposure of the fighters. Stupid thread

Well considering main events were being paid for their fighters to be shown on the network. It seems a rather expensive way to go about it. Anyway, seeing as you're a fountain of knowledge on this subject matter and clearly of an MBA standard when it comes to your business acumen, what are these other avenues then that Al is going to make money from then?

And all of a sudden it goes quiet!!! Lol!!!

[tobyh5]

what are these other avenues then that Al is going to make money from then?

Through endorsements for one, obviously. Increased exposure translates to increased awareness of the fighters which then commands increased value in the endorsement market.

You are taking the piss right? You did already know this didn't you? Please tell me you are not this stupid

[lefty]

what are these other avenues then that Al is going to make money from then?

Through endorsements for one, obviously. Increased exposure translates to increased awareness of the fighters which then commands increased value in the endorsement market.

You are taking the piss right? You did already know this didn't you? Please tell me you are not this stupid

So I'm assuming all the fighters that were on NBC who are Main events fighters are now household names throughout the United States and are commanding 7 figure endorsement deals yeah?