Dan Rafael: 800-900k buys for Mayweather-Maidana

[SeekDaGreat]

Canelo and De La Hoys had to carry this Fraud Mayweather.

[[T][B][E]]

It's not about who guarantees purses; it's about who pays purses... And I suspect that the one who is selling the PPV units is the one who doesn't pay, right?

Bottem line. Showtime don't make a loss on floyds fee's the promoter does. GoldenBoy gets a check from showtime, and GoldenBoy has to make up the rest if any. Period.

[Bigg Rigg]

Bottem line. Showtime don't make a loss on floyds fee's the promoter does. GoldenBoy makes the loss if any and not SHO! Period.

I Thought Showtime lost like $12 million in the RG fight.....

[Vasyl’s dad]

Common misconception. Promoter guarantees purse, not SHO. ": People say SHO guarantees Floyd***39;s 32M purse. Since when...?"

— Stephen Espinoza (@StephenEspinoza)

Floyd Mayweather CBS/Showtime Deal Worth Up to $250 Million
by Robert Littal | Posted on Thursday, February 21st, 2013


So how come it doesn't say, "Floyd Mayweather GBP Deal Worth Up to $250 million"?

[Vasyl’s dad]

Floyd outsmarted them all lol

Perhaps he did. But it comes at the expense of the sport and the other fighters. And that is floyds right to do so, but he can't complain when he doesn't get the respect he feels he deserves.

[lfc19titles]

Bottem line. Showtime don't make a loss on floyds fee's the promoter does. GoldenBoy gets a check from showtime, and GoldenBoy has to make up the rest if any. Period.

Wrong

Gbp and Floyd have confirmed Floyd hires them to promote for a flat fee

Floyd pays his own guarantee, the deal with Showtime put the burden of the guarantee on Showtime

Period.

Amazing how sone media outlets fail to understand this

[Suavecito80]

It is the number I was expecting. Whatever dumb ass said that it would do 1.5 million is a freaking idiot. Considering it was "boycotted" LOL it did good.

[Vasyl’s dad]

Wrong

Gbp and Floyd have confirmed Floyd hires them to promote for a flat fee

Floyd pays his own guarantee, the deal with Showtime put the burden of the guarantee on Showtime

Period.

Amazing how sone media outlets fail to understand this

With the news today that Yuriorkis Gamboa might be going to Mayweather Promotions, many people have been asking a number of questions about this organization. First of all, Mayweather Promotions is a limited liability company (an LLC) in Nevada. Being a LLC in Nevada has a bunch of tax advantages including no personal income tax, no corporate tax, no gift tax, and no unitary tax. There are also liability advantages for being located in Nevada including the fact that officers (C-level, presidents, vice presidents, etc.) cannot be sued as an individual for actions tied to the company, except for outright fraud. There are a bunch of business-friendly privacy laws in Nevada as well. I assume that there is some liability and tax advantages for funneling Mayweather's cash through Mayweather Promotions, and that's why it exists.

Now you may have heard either Scott or many other people say that Mayweather promotions is not a licensed promotional company as can be seen here. In Nevada, you have to go through a licensing procedure before the Nevada State Athletic Commission would recognize a LLC which are listed on the NSAC website. Essentially, there is a bunch of paperwork to fill out and there is a sizable fee to pay to NSAC.

It is not a difficult procedure but once you become a licensed promoter, the company becomes responsible for a ton of logistics related to putting on a fight. The promotional company is responsible for paying officials, drug and steroid testing, primary medical insurance for the fighter, making sure an ambulance is at the arena, paying ticket fees, paying television fees, submitting the appropriate paperwork, scheduling the proper events, getting the proper licenses, hire a ring announcer, make sure the fighters have appropriately stocked dressing rooms, a proper scale for the weigh-in, supplying approved gloves, issuing credentials, and giving officials parking passes. Whew, that's a whole lot of stuff, and it's why Mayweather Promotions does not want to become a licensed promoter.

I would assume that Mayweather Promotions would need to hire a bunch of people to make sure all of these logistical issues are appropriately handled. Basically, they would need to have an actual business and I don't think Floyd has any interest in the logistics of a fight.

Whenever a "Mayweather Promotions" fighter like Jesse Vargas fights, the promoter responsible for these logistics is Golden Boy Promotions. This is why Scott and others frequently call Mayweather Promotions a poster and nothing more.

Hopefully this clarifies all the questions surrounding Mayweather Promotions.

[El Chicano]

I can safely say the rematch would beat that comfortably.

I bought the PPV, but if Maidana is not allowed to wear MX or Reyes gloves (under contract) for the rematch, I ain't buying ***** in September.

[ThePrince]

Common misconception. Promoter guarantees purse, not SHO. ": People say SHO guarantees Floyd***39;s 32M purse. Since when...?"

— Stephen Espinoza (@StephenEspinoza)

The promoter is responsible for the guarantees, but Show provides an advance on that cash since the commission requires the fighter's salaries to be in their account by fight night:

As the exclusive television partner of Mayweather, and the event's distributor, Schaefer said the pay cable network will collect about five percent of the proceeds (a number that varies from show to show). It's a fee that takes into account production costs, advertising and another critical component: cash up front.

"We negotiate with them a fight-night advance," Schaefer said, explaining the initial costs would be too much for him to bear otherwise. "When you're at home and you order the pay-per-view, you're not going to pay Saturday night. But I have to pay Monday morning! You're going to pay your provider when you get your next bill, which might be a month from now. By that time, most fighters have spent the money already."

The Nevada Athletic Commission, by law, requires the promoter to deposit every penny of the fighters' salaries into an account, to be distributed by state officials on the night of the bout. For "The One," including Mayweather's record haul, that cost will be in the $60 million range.

"Monday morning, bright and early, these fighters are going to go to the bank and they're going to cash their check," Schaefer said. "I have to make sure come Monday morning that I have $60 million in my bank account. Otherwise, checks are going to bounce, and my reputation is ruined."

"If you add in all of the various marketing expenses, production expenses, travel, you easily add another $10-15 million on top of that," Espinoza said. "There is a big and immediate cash outlay."

So GBP is technically providing the guarantees but they're getting the money advances from Showtime.