WHY MCGREGOR STARTED A PROMOTIONS COMPANY
As the biggest money fight etches closer to us, the more we can see how much of this fight is about the dollar. There’s no legacy to fulfil by this fight happening and seriously with the money it is going to bring in, why wouldn’t either take up this fight.
The press conferences have been an absolute blast; we saw cocky Mayweather come alive and McGregor with a large crowd in Toronto on his side. So far its been truly magnificent to watch so far, never mind how much of a circus you may think it is… This is a huge grab of money for both men and the fact they both have their promotions company means they’ll be bringing in a hell of a lot more.
It wasn’t just a spur of the moment that McGregor decided to form his own promotion firm. If he didn’t it’d be a hell of a lot harder for him to reach the money margin he’s aiming for. I don’t think it’s even ridiculous of me to say its impossible if I’m being honest. Promoters earn a fortune when it comes to PPV. Conor McGregor made a really smart but obvious move.
To simply break it down why McGregor started his promotion company; promoters take a big chunk of the payout for PPV. 10% goes to the distributor (HBO, Sky Sports Box Office, Showtime etc.) 45% then goes to the cable system and the promoter each.
Rumours of Mayweather vs McGregor being priced at $100 means that Showtime will be making $10 per buy whilst Mayweather and McGregor are taking home roughly $22.50 each, every time someone purchases the fight.
Promoters get around 45% of the price tag on a fight whilst fighters are technically not included in the deal. It makes a lot of sense for fighters to start their own promotions company so that they can see a bigger pay check; which in its right is partially theirs.
Of course ticket sales bring in a hell of a lot of revenue but why stop there? McGregor can now earn much more than he would originally from this move.
The actual term pay-per-view is becoming irrelevant as groups of people are watching these events together. You may have seen recent fights being advertised to watch in a cinema, that’s actually a thing now. It’s an attempt to get closer to the idea that everyone who watches it, has to pay for it. Business wise, it works considering watching at home could be pay per many views as buyers will usually invite multiple friends over.
So this should be making more sense by now, fighters see an opportunity to make more money and they do it. For Conor McGregor’s case; being involved in potentially the biggest money fight in the world, that’s 100% the right move he’s taken. Win or lose; he’ll still be seeing some of that sweet, sweet green.
What’s your opinion on boxers becoming promoters? Is it just a money grab or is it the right choice? Let us know in the comments.2 min