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Is Premier Boxing Champions (PBC) in Hot Water? A Closer Look! – Breaking Boxing News

Do you think Premier Boxing Champions (PBC) is a BUST?

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AH GFBy Jesse “New School” Wright

Photo Credit @BoxingEgo

He is the most scrutinized man in boxing. To some, he’s a savior who brought boxing front and center on free cable television with his production of Premier Boxing Champions. To others, he’s considered a power broker utilizing unethical business practices to monopolize the market to himself. Whatever stance you take on Al Haymon, there is no question that his business model for PBC is highly questionable at best. It’s been well documented that PBC was not built to be immediately profitable. Whether or not they will be able to turn a profit before they run out of money is the burning question.

Haymon acquired an investment to the tune of an estimated $528 million from Kansas based investment firm Waddell & Reed in order to fund the cable based PBC. Since coming to fruition, PBC has attracted a lot of heat from two other major promotions: Top Rank and Golden Boy. Both filed lawsuits against Haymon accusing him of violating the Ali Act by acting as the promoter and manager for his stable of 200 fighters. Both promotions accused Haymon of taking a loss in order to corner and eventually monopolize the market. Furthermore, Haymon has notoriously paid fighters better than any other manager.

So how sustainable is this business practice? The numbers don’t look promising. Los Angeles Times Reporter Lance Pugmire stated that “A look at 10 major and minor Premier boxing shows staged in California and Nevada last year reveals that promoters paid 19.2 million in purses and state fees those fight cards, while collecting only $3.9 million from fans at the gate, according to the state’s records.” You’ve gotta spend money to make money right? Well, based on a recent post on Reddit PBC may have spent too much too soon. Based on that post, of the $528 million acquired in funding, there’s roughly only $82 million still available.

Up to this point, PBC has not had anywhere near the breakthrough success that would be required to start turning a strong enough profit to pull out of this hole. There hasn’t been enough growth in advertising revenue to cover costs. With the lack of success attracting the targeted market segment needed to drive up ratings, the likelihood of attaining enough commercial contracts to begin turning a profit is very low.

If the numbers are in fact true, then based on the rate of spending and the amount of funds still available, it doesn’t seem likely that PBC will last long enough to see the summer.

Follow Reddit link HERE

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