Any fan of boxing will be familiar with promoters who are commonly seen in interviews or weigh-ins with their fighters. Therefore, the names of Don King, Frank Warren and Eddie Hearn are likely to be names that you have heard. Of course, there are other promoters but they do have a role to play and as the name suggests, they are there to set up and then promote them. Along with this, they will also pay for everything that is involved in a boxing match and so, they take on the financial risk. As a result, they are going to want to make back that money as well as some more, so how do Boxing promoters make money?
They Make Money By Selling Tickets
Boxers are not the only ones that make money when it comes to boxing. The promoters take on all the financial risk when setting up the fight so it is natural for them to make a profit on the money they have committed.
So, the amount they earn on ticket sales will depend on the size of the fight and the fighter they are promoting. For big box office fights where matches take place in huge arenas, they can pick up millions of pounds and this is the reason why you’ll often see promoters doing interviews as a way of putting their big fights in the spotlight.
They’ll Take a Percentage of Purse Money
Purse money is the money that a boxer will earn for fighting but not all of that will go directly to the boxer. They will need to pay their manager a percentage, as well as sparring partners and their trainer. As an example, in the US, a promoter can only be paid a maximum of 33.3% of the purse which for the big fights could be a considerable amount of money. This share will go directly to the promoter and will not be used to cover any costs associated with the boxer as they will cover this.
As we know, many of the big-name fights will take place in large arenas in many popular cities around the world but they will also take place on Pay-Per-View Channels. This is much like selling even more tickets, albeit at a lower cost. However, when you consider that boxing is a worldwide sport, this means that the audience becomes a lot wider. As a result, Pay-Per-View sales could run into the millions and that can generate a lot of money for promoters. When you consider that Pay-Per-View can cost anything from £20 up to anything beyond £40, then just a million sales will generate a lot of money. The TV company will take a small percentage and then the rest of the sale money will be shared between cable companies and the promoter which can amount to a large sum of money.
If you thought that promoters were just there to keep their boxers in check then there is more than meets the eye. As their title suggests, they promote fights and in the modern world we live in, they have the scope to generate a lot of money from a whole range of avenues.
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In the UK a promoter cannot manage his fighter and does not take a percentage of the boxers purse. This is broken down by, 10% to the trainer, he then pays gym fees and other bills, then the manager is entitled to 25% of what remains. Most smaller promoters without big TV deals will expect the fighter to sell a minimum of 150 tickets, this should be enough to pay for his nopponent and leave himself a fair wage. Most fair managers will not take their percentage until the boxer is earning decent money, for example, an unknown amateur turning pro as a prospect and expected to win more than lose, will box 4 x 3 minutes, he will be paid between £1000 and £1500 for this, some will get less and some will get more. From this he has to pay the head trainer his 10% and he should be paying his gym fees monthly/weekly, this should be his only deductions