A huge part of the boxing and the
fighting industry as a whole relies on the pay-per-view pricing
model behind it, and for many of the high profile fights, the
betting industry that props itself up on the larger fights too.
A reliance on prior numbers are a driving factor behind sponsors
that bankroll the events, the locations in which the events take
place, and the promoters that push bigger and bigger challenges
for their fighters. But amid the outbreak of COVID-19, we’re
seeing cancellations in all areas of fighting including boxing -
but how can a payment structure that funds hundreds of millions
of dollars in prize funds also be a detriment to the sport?
Pay-Per-View - The model has served as a very strong
indicator to who stars in the sport are - big PPV draws are
really what make an event and a fighter can make their name from
one event, but the fighters also rely on this model for a payday
as with no set salary to speak of and a huge outgoing cost as
they pay their trainers and coaches after the fact, we’re
already seeing some
athletes facing financial struggles. This also extends to
the promotions that organise the events too, however, as whilst
a fighter can be a big PPV draw, a bad fight can also cause the
following event to suffer, but a cancellation is even worse.
Money is put upfront in the hopes that an event performs well
enough that PPV numbers cover the cost and then make a profit,
but as event cancellations are rolling through, any preparations
and money spent for the events is now unable to be recovered.
It will take some time before the financial impact on many
organizations and fighters is fully realised, as it will also
take some time for the numbers to be figured out - but one thing
that can be said for certain is many events that fans were
excited for may not see a return, and lesser known or lower
ranked fighters who may have relied on a consistency in event
bookings may be forced to hang up the gloves.
Betting In Boxing - The two go hand in hand, and is often
a big driving force behind many fights. If there is money to be
found in a fight, it will be booked, and those who want to bet
on the fight are much more likely to either attend live or pay
for the PPV ticket. But as the events dry up, so does the money
- betting companies have been struggling globally as many fall
back on their casino counterparts such as
slot operators who don't subscribe to Gamstop within the UK,
but this can’t last forever and many will be looking forward to
these big events returning - the uncertainty here comes with how
quickly organisers can put fights together again, and whether or
not the audience that would typically bet on these fights are
still able to.
The road to recovery may be a quick one in the sport itself -
but those who rely on it may not be so lucky. The businesses
that rely on the sport such as the locations they’re placed in,
the sponsors, advertising and media that produce video content
to the marquees and
pop-up banners for the location, and the trainers and
coaches who push the training camps forward - only time will
tell if we see any big changes in an effort to help those that
really bring the events to life.
