Planning on having some friends over on May 2 to watch the highly anticipated bout between Floyd Mayweather and Manny Pacquiao?
You may want to invite a few more people to pitch in.
According to Joe Flint of the Wall Street Journal, it will cost $99 to watch the fight in high-definition on pay-per-view and $89 for standard-definition. Both prices would be a record high for a boxing match, topping the previous marks of $74.95 for high-definition and $64.95 for standard.
In a break from previous practice, most of the money will be going to HBO and Showtime, the two pay networks that control the two boxers’ television rights. Flint explains:
Initially, pay TV distributors were asked to give up as much as 70% of the revenue instead of the usual 50% to 55%. That offer was quickly rejected.
The tentative agreement now being hammered out will be less favorable to the distributors than the standard deal but not as drastic as the first offer, people with knowledge of the terms said. The final split will also be determined by the amount of marketing and promotions the various cable operators put into the fight. If certain incentives are met, the distributors have the potential to get 40% of the pay-per-view revenue.
At those price points, the fight could generate around $300 million in pay-per-view revenue, which would destroy the record of $152 million set by Mayweather’s fight against Canelo Alvarez in September 2013. Promoters are expecting around 3 million pay-per-view buys, which also would top the record of 2.48 million held by the fight between Mayweather and Oscar de la Hoya in May 2007.
Under the terms of the bout, Mayweather will get 60 percent of all revenue generated by the fight, while Pacquiao will get 40 percent.