How do Promoters Make Money in Boxing?

Promoters are in charge of paying for anything involved in a match and in setting it up. All financial risks and responsibilities are also set upon them. Nevertheless, a huge profit is brought in to them by the fight in boxing and in promoting it.

Stakeholders are doing everything possible to minimize costs and benefit more from a publicized fight. It is in being great promoters that they get paid a lot of money. Below are the significant ways on how do promoters make money in boxing.

promoters make money in boxing

Collect Money by Selling Tickets

In a boxing fight, it is not only the boxers that are the ones who make money. The promoters are making all the efforts that enable them to get money from it. For instance, the payment is between 500,000 dollars to 2 million dollars, depending on the size of the fight. If the tickets are sold on the secondary market, a portion of the payment also goes down to the pocket of the promoters.

When the event is put in the right place, it can be marketed by the promoter. The excitement and fun of the event are also promoted to the audience by the promoters. This is also the reason why they earn money from it. This is an excellent example of how promoters make money in boxing.

Get a Share from the Purse Money of a Boxer

Another unique way that promoters make money in boxing is by getting a share of the purse money of a boxer. If a boxer already has received his or her money, he or she will now give the promoter a fair share of a maximum of thirty-three point three percent in the United States. The share will not be used to pay for cutmen, trainers, or others. The amount will be solely obtained by a promoter that invests much of his efforts, time, and money in boxing. The sum of money earned varies wildly. A typical boxer will receive less than half of the gross pay after paying a promoter and all his taxes.

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Make Money by Way of Sale of Pay-Per-Views

In the boxing business, a television service provider, the pay-per-view usually purchases the boxing event to be viewed via private telecast. Viewers are thereby allowed to see the recorded broadcast of boxing. 

In the fight that is priced at 49.95 dollars, or 50 dollars where HBO pay-per-view is used, it will never be a party that will be at risk as far as the fight is concerned. It will somehow take the ten percent fee of $5. Now, the cable companies and promoters will wind up with 22.50 dollars.

If a fight sells millions of PPV subscribers, HBO PPV arm will earn 5 million dollars. The promoters will now earn 22,500,000 dollars. This is just strictly a way that promoters make money in boxing.

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