? Gate receipts 15,000 * a mean face value of $344 = $5,160,000.
? PPV Revenue $18,387,000 gross – $9,193,500 after broadcaster & distributor share.
? International Television Licencing $1,725,000
? Sponsorship $525,000
Total Estimated Fight Revenue $25,797,000
Fight Revenue After HBO/Distributors Cut of PPV $16,603,500
Less: Undercard $1,125,000
Less: Event Costs (Venue, Security, Insurance, etc) $1,250,000
Split 50-30-20 between Canelo, Khan & Golden Boy Promotions
Probable Gross Pay for Canelo $7,114,250
Probable Gross Pay for Khan $4,268,550 (see below for net pay calculation)
Probable Retained Pre-Tax Earnings for Golden Boy Promotions $2,845,700
The one month old 20,000 capacity T-Mobile Arena will host Canelo vs. Khan. Tickets are priced at $1,500, $1,200, $1,000, $800, $600, $400, $250 and $150 & plenty are still available having gone on sale way back on March 1. Complimentary seats will be in plentiful supply one suspects & even then a complete sell out looks unlikely at this juncture. Best guess currently stands at 15,000 tickets sold plus 2,800 complimentary with the remaining 2,200 seats going empty. That’s gross gate revenue of $5,160,000.
Publicly disclosed PPV buy rates are of little use in attempting to estimate actual revenue earned as they are as a matter of course fabricated & have been since the advent of the PPV era in 1991. The simplest of reviews of the parent company financials of HBO, Showtime Sports & even SkySports Box Office will tell you that. Canelo’s core demographic are first &, to a lesser degree, second generation Mexican immigrants to the United States. So whilst I don’t doubt that somewhere between 1,750,000 & 2,500,000 American residents will be watching Canelo vs. Khan I do not expect any more than 300,000 of them to actually pay for the privilege – that’s between 5 & 8.3 viewers per television set. Of course, I fully expect that the publicly lied about figure will be somewhere between 750,000 & 1,200,000 which will be mindlessly regurgitated by the ever comatose boxing press. 300,000 times $61.29 [projected mean with SD/HD split] (HBO PPV $59.95 SD $65.95 HD) is $18,387,000 with half of that goes to the broadcaster and distributors & half to the promoter/s & fighters. So $9,193,500 after HBO/distributor cut.
International Television Licencing
With SkySports Box Office preferring to cover WWE this week apparently it is left to the ‘uncertainty concerning the company being a ‘going concern” according to their auditors Boxing Channel Media LTD, better known to you & I as BoxNation to take this one to market in the most important market outside of the United States financially. Considering they had a grand total of £1,000.00 in cash in the bank & a net worth of minus £8,615,000.00 at the time of their most recent publicly available financial statements its unlikely they’re gonna be in a position to add substantially to the revenue pot for this bout. Best guess total global non-US TV licencing revenue of $1,725,000 – based almost entirely on the Mexican market.
Again rather type-cast & hamstrung by the A-siders core demographic – & unlike the UK the bulk of sponsorship revenue dollars will come from ethnic specific beer companies, not bookmakers. Best guess $525,000.
Amir Khan Net Pay
From the above calculated Probable Gross Pay for Khan of $4,268,550 he will pay what is likely not 10% but rather a set fee of around $200,000 to his trainer Virgil Hunter; 15% of gross pay to his advisor Al Haymon of $640,282.50 & then be on the hook for income tax of around 40% on the remaining $3,428,267.50 for take home pay of around $2,056,960.50 which is £1,420,459.64.
“People see these big numbers, but don’t realise how it actually works. Standard deductions come to around 40% – and then the taxman’s coming for his 40%. So it’s not that the boxer had it and lost it. Often, they never had it!” Lloyd Honeyghan
This excludes sanctioning fees & the cost of his camp. Anything more than this would involve Golden Boy Promotions over estimating Khan’s global pulling power & paying him more than 30% of the retained pot when they didn’t really need to considering even at 30% his gross pay is 3-4 times higher than it has been in his most recent bouts.
Bare in mind that Golden Boy can justify their chunk based on having funded the extensive, multi-city & indeed multi-national press tour among other event related expenses. Their total marketing spend – excluding the contribution of HBO – likely runs into the $750,000 to $1,125,000 range which would be offset against their 30% take of $2,845,700.
T-Mobile Arena’s first-ever boxing card isn’t until Saturday. But the property where the 20,000-seat building sits will get a taste of the fight game Friday.
The 3 p.m. weigh-in for Saturday’s Canelo Alvarez-Amir Khan fight will be held outdoors at Toshiba Plaza, the three-acre area which leads to T-Mobile. Following the weigh-in, which is free to the public, Golden Boy Promotions is putting on a card beginning at 4 p.m. which will have lightweight Petr Petrov facing Marvin Quintero in the 10-round main event.
Fans who attend the weigh-in can stay for the fights at no charge.