HBO Boxing Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View? Case Solution
This case explains the world of expert boxing, consisting of the functions of fighters, supervisors, promoters, and tv. It concentrates on a choice dealing with HBO, among the essential financial motorists of the sport. In September 2012, Julio Cesar Chavez Jr. lost a title fight to Sergio Martinez in spite of a thrilling last round. The fight was seen on HBO PPV. The majority of observers believed that a rematch would be held, which it would draw in a significant PPV audience. Nevertheless, Martinez prepared a fight in his native Argentina prior to a prospective rematch.
Chavez would likely likewise have an interim fight. HBO thought about the possibility of having the interim Chavez match on their cable channel instead of on PPV. This would make the fight readily available to more audiences, ideally increasing the audience for the PPV rematch with Martinez, and would ensure Chavez a large payment from tv rights. Nevertheless, if the fight performed PPV, Chavez would have the chance to make more cash based upon PPV sales (as well as take the threat of a lower payday if PPV sales did not satisfy expectations).
Expert boxing was as soon as a mainstream sport, whose stars were extensively understood to the public. Significant battles were relayed on network tv. From 2000s, the landscape had actually altered considerably. Boxing had actually ended up being a specific niche sport in the United States, couple of fighters were understood outside the hard-core fan base, leading battles were just readily available on premium cable or pay television (PPV), and other battle sports performed the increase.
If HBO thinks that it remains in the long term interest of the sport, the warriors, and HBO to have the fight on cable instead of PPV, how can they persuade Chavez's promoter, and how can they assist the supporter encourage Chavez to accept a lower prospective payday within exchange for a raised audience and the chance to construct PPV sales for the prepared rematch with Martinez?
Knowing Objective
This case is meant for a course on sports management. It explains a sport in decrease, without a central governing body. Effective promoters, supervisors, and tv executives all play essential functions in identifying fight matches and chances for fighters to advance. Trainees are asked to think about manner ins which the sport can develop, and how a particular occasion can assist establish the sport. It may be utilized to talk about sport governance and advancement, in an extremely fragmented environment.
This is just an excerpt. This case is about Business