Mayweather vs. Pacquiao: Networks and cable providers at odds with revenue splitHot
Potentially the most crucial of all open-ended business matters pertaining to the May 2 super fight could be the revenue split between the networks and the program distributors.
According to Nasdaq.com, HBO and Showtime are experiencing great difficulty negotiating an alternative proceeds split with the powerful cable and satellite distributors. The various providers customarily work on a contingency basis of 50% of gross proceeds generated from all PPV revenue.
Because HBO and Showtime failed to negotiate the less traditional terms with the big cable operators before the “Mayweather vs. Pacquiao” fight deal was sealed , it seems unlikely that the networks will be successful in getting their druthers for a more favorable split for their respective fighters.
Due to the rampant popularity of the highly anticipated prizefight, and the fact that the event is less than five weeks away, the cable distributors seem to possess all of the leverage in this scenario.
Since the cable and satellite providers usually deliver the product on fight night, and collect all of the proceeds generated from the PPV event throughout their customers’ ensuing billing cycles, it’s difficult to imagine either HBO or Showtime having much influence in changing the pre-existing business model.
If the distribution companies aren’t willing to offer a more talent-friendly revenue split with the networks, will the customary 50/50 share affect the suggested retail price of the May 2 PPV? And is this factor crucial enough to force a cancellation of the schedule super fight in less than five weeks?
MAYWEATHER VS PACQUIAO