Merchant Explains HBO Comments and A Look Into Afflictions Future
by MMASuPreMaCy on Jan 28, 2009 1:21 PM EST
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Sherdog clarifies Merchant's comments:
Though Schaefer graciously called the situation a case of miscommunication, Merchant’s comments misled both sports’ masses.
"I know Larry and he is a nice guy and I’m sure he didn’t want to cause any issues," said Schaefer. "The fact is Oscar is now really ticked off, because Oscar didn’t make a penny, and, in fact, paid for his own expenses [to attend the show]."...
Merchant was later informed that Affliction was the actual promoter of the event and not just a sponsor courting De La Hoya as he had earlier ascertained from his conversation with Schaefer.
"… This is hard for someone with my experience to compute. When somebody says ‘$5 million sponsorship,’ I have a different interpretation," said Merchant. "This never even occurred to me that Affliction was the guys behind this and that Golden Boy was just putting its brand on it and was not taking any risk and would make money on the end. This is a whole new financial model from what I’ve known in boxing."
Affliction Day Of Reckoning seems to have left a great impression on De La Hoya, and now it appears that Golden Boy is looking forward to Affliction's 3rd event.
"I actually saw Oscar later on that night and we compared notes," said Schaefer. "He was so excited. He said, ‘The atmosphere, the venue, the fights were all great fights –- it was just amazing. I’m an MMA fan.’"
Schaefer also said preliminary pay-per-view buy numbers look promising.
"When I saw them, I was very, very positively surprised. And so that looks very good," he said. "So, I think at the end of the day, Affliction is going to be able to recuperate most of their expenses."
Schaefer said himself and Binkow met Tuesday to begin initial plans for another event. Affliction Vice-President Tom Atencio said Saturday that the next show could take place in May or June.
More hope for Affliction from MMAPayout regarding the Day of Reckoning Event and PPV buys:
Any chance that the card reaches solvency will be based on their PPV performance. MMAPayout.com has been made aware of rumors/reports from those within Affliction of strong pre-buy numbers that project a higher than generally expected final number, but all figures are way too preliminary at this point have any validity.
...
In our report on the gate last night, we indicated that the buzz on the day of the event was that there were strong pre-sale numbers for the PPV and that using those numbers to project final PPV sales indicated a stronger than expected performance, one that would put Affliction in the ballpark of their break even point. Schaefer’s comments add some credence to that notion, if the numbers come in like they expect. Such an increase would be unexpected.
And Afflictions business side:
An item from the January 26th edition titled "Youth Will Be Served" focused on the success of youth-oriented retailer Buckle. The company posted a 13.5% year-over-year gain in same store sales for the month of December’s, a stunning success in the current environment. For some perspective retail heavyweights Macy’s, Gap, American Eagle, and Abercrombie & Fitch posted declines of 4%, 14%, 17%, and 24% respectively in the same month.
Buckle is one of Affliction’s closest retail partners and was previously featured on the canvas at Affliction’s first MMA event. The article credits Affliction Clothing and MEK Denim as two of the hottest brands that have made the store successful. In 2008 overall sales for Buckle rose 26% to $780 million. While all of that is not Affliction, the point is: they’re selling a lot of t-shirts. More importantly, the company believes that these events help sell those shirts. Large sales spikes have been reported around both of its events.
...
So while Affliction may ultimately decide that its money is better spent outside of live event promotion, that decision will likely not rest entirely on the financial bottom line of the events themselves, but rather their contribution to the company’s overall finances, i.e. its clothing line.
Without understanding this essential difference between the company’s financial calculus and that of its chief competition (Zuffa) it is impossible to accurately and fairly evaluate the success or failure of the company’s promotional efforts.
The FanPosts are solely the subjective opinions of Bloody Elbow readers and do not necessarily reflect the views of Bloody Elbow editors or staff.
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Thanks for getting clarity on this. Love that GIF.
"It's like a flying knuckle sandwich." --Rogan
"And many men have eaten it." -- Goldy
No problem...
That GIF is an MMA instant classic.
by MMASuPreMaCy on Jan 28, 2009 1:46 PM EST up reply actions
Rising sales of $60 t-shirts in the biggest economic downturn since the 30’s is the most perplexing thing I’ve seen in a while. Who the hell are these idiots who keep buying expensive junk they don’t need?
I think they could sell more t-shirts if they cosied up with the UFC though.
“Who the hell are these idiots who keep buying expensive junk they don’t need?:”
Probably the same people that signed on for mortgage loans they knew they couldn’t afford yet did so anyway?
You mean the average American Citizen?
:)
by MMASuPreMaCy on Jan 28, 2009 1:53 PM EST up reply actions
Makes me mad. I’ve had financial responsibility drilled into my head since before I could walk, and I see people at school who can blow through a $10 000 student loan in four months.
No worries.
We are printing money as we speak!
Seriously though, financial responsibility is not something you typically see displayed in the average American consumer. Credit debts is the norm for us. Buy now and pay later.
by MMASuPreMaCy on Jan 28, 2009 1:57 PM EST up reply actions
correct
And Thank you Sup for a good post. Its nice that somebody here besides Smoogy, myself and the sites editors are not Chicken Little-ing on Affliction or just straight up shills for another organization.
Gimme 1 Round!
Affliction needs some shills online
to offset all the people that spew bs about them all time
Gimme 1 Round!
mmmm, you mean shills to post stuff like Supremacy does?
I know, they need this guy!
by iiowyn on Jan 28, 2009 3:01 PM EST up reply actions 2 recs
Why did you post a picture of Zuffa’s head of marketing?
by MMASuPreMaCy on Jan 28, 2009 3:05 PM EST up reply actions
Oh come on, you can do better than that. At least try to make the joke relate to the picture. Like this:
“I didn’t know Joe Silva had that hat.
Joe Silva: Leites is absolutely a legit challenger for Anderson Silva!”
LOL
Too much work and been done already.
by MMASuPreMaCy on Jan 28, 2009 3:21 PM EST up reply actions
Haha…
You leave for one day and now look what I have done.
by MMASuPreMaCy on Jan 28, 2009 9:30 PM EST up reply actions
I never said you weren’t a spirited opponent.
I wouldn’t have it any other way.
by Derek Suboticki on Jan 28, 2009 10:20 PM EST up reply actions
MMA Fans?
Who the hell spends 600+ dollars a year on PPVs?
:)
by MMASuPreMaCy on Jan 28, 2009 1:50 PM EST up reply actions
They really need to have their fights in the octagon. A ring is just associtated with boxing in my mind.
For LIVE viewing and presentation, there is no contest, the RING is just awesome.
Although, you always get those fights where fighter arms get tangled.
Pros and Cons to both a Ring and Cage IMO.
by MMASuPreMaCy on Jan 28, 2009 1:53 PM EST up reply actions
Ring is also better
for strikers and cage for wrestlers. So depends on what kind of fight you wanna see.
Gimme 1 Round!
The ring is actually growing on me.
I also wish UFC would switch to a white cleaner canvas. Especially WEC.
by xFenixKnightx on Jan 28, 2009 3:51 PM EST up reply actions
So they have it completely backwards in Japan huh?
by MMASuPreMaCy on Jan 28, 2009 2:12 PM EST up reply actions
Really makes me wonder if Fedor would be as dominant in a cage because well..we have never seen him in a cage..
Some claim he would be MORE dominant in a cage because it suits his style more.
by MMASuPreMaCy on Jan 28, 2009 2:17 PM EST up reply actions
I agree
For all Fedor’s great striking his prowess is Ground and Pound. And the cage is much better for that.
Good Post
I think Affliction is in much better shape than most think. Although t-shirt sales might slow, they should be ok to lost 1 or 2 million on 4 shows a year.
Thank You Larry Merchant
Like everyone else, I really don’t know Oscar’s financial agreement with Affliction. Seeing the results of your mud sling I’m convinced Affliction needs to be paying you to constantly take verbal jabs at their promotion. Nothing unites the MMA community better than a scotch breathing, boxing curmudgeon picking on an upstart MMA promotion that has had it’s own community divided since it’s inception.
Don’t get me wrong Larry, I like you. I never had that constantly drunk, dimwitted uncle so I chose to adopt you years ago to fill that void. Please, don’t back down now. I’d love to hear more of your deep thoughts and opinions on MMA.
by bignerd on Jan 28, 2009 2:45 PM EST reply actions 6 recs
Yikes…LOL.
Merchant stopped making sense since Tyson retired.
Must have been the emotional trauma of that event.
by MMASuPreMaCy on Jan 28, 2009 3:07 PM EST up reply actions
As a boxing guy… I think people here don’t realize what Oscar brings besides his pretty boy aura. He brings in perhaps one of the most money savvy individuals in the world. Richard Schaefer. Affliction venture into MMA isn’t going to succeed because of Oscar, but because of the Richard Schaefer. His financial know how that has given Oscar alot of power in the media,sponsorships, and with mainstream. Oscar was well off before Schaefer, but now with him, he is beyond rich and closer to the billion
Agreed
Golden Boy knows the recipe for success, and no one can dispute that.
The only question we had was their dedication to MMA.
I think after Affliction 2, some of those questions have been answered, although, there is always a hefty dose of uncertainty due to the “partnership” critiques of MMA fans.
by MMASuPreMaCy on Jan 28, 2009 3:32 PM EST up reply actions
Meltzer says that if the good numbers hold up, they could do 110,000-120,000 buys.
Solid numbers for a promotion with no television. The reality is that Affliction is a novelty act. If they can find the funding to support it, they’ll put on 2 or 3 very good shows per year for fans to enjoy. Anyone looking for them to actually compete with UFC is completely deluding themselves, but I hope they’re able to survive and do a few shows per year.
I think the key is declaring bankruptcy and retaining Fedor’s contract for a new Affliction promotion. Make everyone else renegotiate. WHat’s killing them is burning 500k on fights nobody pays to see. Once you see Affliction for what it is, a series of one-off advertisements that will run 2 or 3 times a year, then it’s easier to take a realistic look at things. Dave also says UFC 93 looks to have done close to 275,000 buys.
by Michael Rome on Jan 28, 2009 4:33 PM EST reply actions 1 recs
That feels like a waste of the talent they have on their roster.
Bolts from the Blue // "Game over." - Jamal Williams
Bloody Elbow // "Every normal man must be tempted at times to spit upon his hands, hoist the black flag, and begin slitting throats." - H.L. Mencken
by Richard Wade on Jan 28, 2009 4:37 PM EST up reply actions
A lot of that talent is making at least 20% more than they would in any other promotion so even if Afflcition declares bnakruptcy and renegotiates fighter contracts, they will stil be making more than they would in another promotion such as the UFC.
They are def overpaying for guys like Lindland. Christ, the guy made 250K or so last fight. What a joke. Nobody is buying a PPV to see Lindland fight.
I’m not sure what that has to do with my comment.
Bolts from the Blue // "Game over." - Jamal Williams
Bloody Elbow // "Every normal man must be tempted at times to spit upon his hands, hoist the black flag, and begin slitting throats." - H.L. Mencken
by Richard Wade on Jan 28, 2009 5:27 PM EST up reply actions
My point was that being a part of t-shirt infomercials instead of actual divisions in a real promotion like the UFC, WEC or DREAM is a waste of talent.
Bolts from the Blue // "Game over." - Jamal Williams
Bloody Elbow // "Every normal man must be tempted at times to spit upon his hands, hoist the black flag, and begin slitting throats." - H.L. Mencken
by Richard Wade on Jan 29, 2009 2:40 PM EST up reply actions 1 recs
Good To Hear
But I don’t understand comments like these:
Anyone looking for them to actually compete with UFC is completely deluding themselves, but I hope they’re able to survive and do a few shows per year.
No one is claiming that they can compete with them now, but it would be something they could build on if they are successful in the future.
When was the last time Strikeforce had an event and when is their next event?
Their scheduling is as cloudy if not more than Afflictions, but not too many people get worked up over it.
If Strikeforce, Affliction or any other org wants to have 3-4 shows a year, that is fine by me.
by MMASuPreMaCy on Jan 28, 2009 4:49 PM EST up reply actions
Yeah, Affliction has never stated “we want to run 12 PPVs a year” or anything like that. If they can establish a niche where they’re doing 3-5 big events a year like DoR, and pulling down PPV numbers in the hundreds of thousands, it seems like it could work.
3-5 is probably a stretch unless they get funding. As it is, I’d expect 2 per year. Their only top act really is Fedor anyway.
by Michael Rome on Jan 28, 2009 5:18 PM EST up reply actions
I hope they get Tito. Not only would Tito vs. Fedor be a very interesting main event, but I think if Tito even gave a solid account of himself in a loss, it could help Affliction establish some lore for MMA (UFC) fans to get behind and lead to more big fights.
Interesting is kind of a weird word. I mean, train wrecks are interesting, so in that way Fedor v Tito may appeal to me.
But in any other way, the top HW in the world fighting a LHW that hasn’t finished anyone not named Ken Shamrock since before 9/11 is a complete and utter sham of a fight.
by Derek Suboticki on Jan 28, 2009 8:49 PM EST up reply actions 1 recs
I see Affliction already having plans for Tito, and Tito seemed very happy with Affliction, so we will see.
by MMASuPreMaCy on Jan 28, 2009 6:15 PM EST up reply actions
MMAPayout
In our report on the gate last night, we indicated that the buzz on the day of the event was that there were strong pre-sale numbers for the PPV and that using those numbers to project final PPV sales indicated a stronger than expected performance, one that would put Affliction in the ballpark of their break even point. Schaefer’s comments add some credence to that notion, if the numbers come in like they expect. Such an increase would be unexpected.
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