Via Mohamed Horomtallah: Being an accountant for DAZN USA must be one of the most difficult and stressful jobs.
The streaming app hit the US market in May 2018 with general Eddie Hearn and his army of Matchrooms ready for battle.
He entered like a conqueror with a sword-shaped checkbook and threats to put rival networks out of business, with phrases like “American networks are shaking” and “America’s networks are shaking.” pay per view is dead”.
The plan was to make a hostile takeover and strangle the opponent. Four years later, it was clearly a failure. A very large one.
Hearn’s arrogance and complete ignorance of the local market make him and DAZN look like newcomers.
The first red flag should have been because he failed to attract PBC warriors despite offering larger sums.
They then signed Canelo with a $365 million contract and combined with a $100 million contract with Golovkin.
They never explicitly worded the aforementioned contracts to ensure a good level of objection for both contending parties, nor did they read the fine print.
Canelo is out of contract and back as a free agent, earning twice what he was paid per game, while Golovkin made $15 million more in checks than Steve Rolls!
Meanwhile, the app kept coming up with suspicious moves, such as paying Mikey Garcia 7 million wallets for regular Showtime-style fights, and they couldn’t get Jaime Munguia or Ryan Garcia to face a boxer roots.
Fast-forward to last Saturday night and DAZN’s much-anticipated, much-anticipated fight: Canelo vs. Golovkin, part three!
To make their dream come true, the executives at DAZN had to pay no less than 80 million dong plus PPV allowance (55 for Canelo and 25 for Golovkin) for the two boxers to enter the ring. Canelo didn’t impress, and Golovkin may have fought in a vest because he was just there to pull his last big check.
I’m no accounting expert but all indications are PPV sales are in the 400-500k range, which is a disaster for the app.
For comparison, Canelo vs. Caleb Plant has reached 800,000 PPV purchases in the north.
To add insult to injury, DAZN recently signed Anthony Joshua for $100 million, and he just lost to Oleksandr Usyk, and if Tyson Fury and him fight later this year, maybe Sports BT will sit in the driver’s seat. In other words, AJ’s value is rapidly declining, and it will take Joshua’s miraculous revival to see a profit from him.
That brings us to Canelo, but first, the DAZN board of directors has to ask themselves one question: are we willing to pay Canelo 40-50 million wallets for light bumps, and beyond a Bivol rematch, who can we match him with to excite the fans?
Last time I checked, David Benavidez and Jermall Charlo were at PBC, and both will make over a million purchases against Canelo.
Meanwhile, DAZN is left to the outside looking in and they won’t even have a say on Gervonta Davis vs. Ryan Garcia, if it happens, at least not the first fight.
When all was said and done, Eddie Hearn single-handedly brought DAZN to his knees.
If he had been a little more humble and acted like a business partner instead of a conqueror, things could have been different and DAZN could have had fruitful and mutually beneficial partnerships with other networks. .
Eddie Hearn’s case resembles that of a rich kid whose parents bought him a supercar, and he enlisted professional drivers to warn them that there’s a new sheriff in town. town.
A few years from now, someone at DAZN will sit on a chair and reflect on what happened and ask themselves: was it worth it?