PACQUIAO WATCH: The PPV myth
By Edwin G. Espejo
PhilBoxing.com
Wed, 17 Oct 2007
As soon as Manny Pacquiao disposed Marco Antonio Barrera, some scribes immediately worked their math and suggested that the Filipino southpaw earned something like $7 million or a staggering P308 million for his 12-round effort.
The line goes like this: $2 million in fight purse, a possible $3 million share of the pay per view (PPV) sales and $2 million for Philippine TV rights.
Nothing is farther from the truth however than that second guessing.
My unimpeachable source said Manny ended up with far less than the quoted amount.
How come?
There is a mistaken perception that Manny's fight purse was exclusive of the pay per view proceeds that went Manny's way. The truth is, only the purse was guaranteed which was reported at $2 million. And that purse was to be taken from the PPV proceeds after Home Box Office (HBO) got its share and of course less the cut of the two promoters of the Pacquiao-Barrera fight, Golden Boy Promotions and Top Rank.
Yes, that's the way a PPV card works. The more buys, the more it is good for the main draw and the promoters and HBO.
Now that the PPV buys and the ticket sales are out, it is easy to estimate a gross receipt of $19.5 million for the said card. At 350,000 buys and at the cost of $49.95 per buy, the PPV part of the fight is a little less than $16.5 million and a declared $3 million for the ticket sales to add up to the total ? give or take a hundred thousand or two for the sponsors whose logos were printed in the ring mat and the neutral corners.
Of the PPV sales, my source said HBO took something like $29.95 per. That left the promoters with $7 million. Plus the ticket sales of $3 million, the promoters have $10 million at their behest to give to their respective boxers.
The line further goes like this: Manny was entitled to 57 per cent of his share in the PPV (43 per cent goes to Barrera) but that is after deducting the purses of other boxers in the undercard and the share of Bob Arum of Top Rank.
At the very least, Manny got $3.5 million from Bob Arum. How much Oscar de la Hoya gave Barrera is a matter between them.
Take away 35 per cent of Manny's $3.5 million gross pay for Mr. Taxman in the US and the 10 per cent share of his trainer Freddie Roach, he only has something $1.925 million left as net take home pay. Less again the training expenses and the cost of bringing a large entourage, you will get a fairly good estimate of what is left of him. Add that to the sale of Philippine TV rights which is Manny's alone and that's it. But remember, Manny still has to pay the Bureau of Internal Revenue here.
So the next time you get to see Manny, please don't tell him he earned P308 million for the Barrera fight or you will get a cold stare from him.
Click here to view a list of other articles written by Edwin G. Espejo.
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