Because Everything Isn't Exclusive, All The Time!

March 19, 2006

EXCLUSIVE:
Arum To Declare War On HBO With Boxing Series On Comcast
Written by Nat Gottlieb & William Trillo
Bob Arum's defiant move to go head-to-head June 10 with an HBO show now appears part of a larger plan to compete with the cable network.
 
Arum is in the middle of working a deal with Comcast, the nation's largest cable TV provider (70 million subscribers), which is in the process of launching a new, Thursday night boxing series on it's Outdoor Life Network.
 
Boxing2006/Pound4Pound.com has learned that the deal will give Arum the majority of the shows on the new boxing series, with pay-per-view down the road.
 
Initially, it looked like Arum was going ahead with his Miguel Cotto-Paul Malinaggi fight on pay-per-view against HBO's PPP Antonio Tarver-Bernard Hopkins bout because he was mad HBO had reneged on a promise to hold that date for him. Now, it looks like it is just the opening salvo in an Arum-HBO war. 
 
Boxing2006/Pound4Pound.com has learned the license fees for the new OLN series will be $250,000, and for some special fights roughly double. That figure is competitive with HBO's series showcasing young prospects, "Boxing After Dark," but out of the ballpark with the network's "World Championship Boxing," which offers up to $5 million for license fees.
 
But OLN could spell real trouble for Showtime's "ShoBox" series, which has a licensing fee of only $50,000.
 
ShoBox profited in the past couple years when HBO let B.A.D. morph into another version of World Championship Boxing, bypassing the young talent which made the show so popular when it debuted in 1996.
 
But this year, HBO president Ross Greenburg has rolled up his sleeves, offering more free (to subscribers) shows, and boosting B.A.D. from five shows a year to a monthly show, with the emphasis again on young boxers.
 
If Arum's move is try and hurt HBO, or gain some leverage in fight negotiations with the network, it could backfire. Anything that cuts into Showtime viewers is good for HBO. Creating new viewers is also good for HBO (AND boxing), because fans invariably find their way to HBO, as do most promoters.
 
Arum is also making a questionable move on his Cotto-Malignaggi PPV price. Although no price will be released until a press conference in New York on Wednesday, Boxing2006/Pound4Pound.com has learned it will be $39.95, just $10 cheaper than Tarver-Hopkins.  Malignaggi, while highly regarded by many boxing insiders as a future star, does not have much PPV power, if any.
 
How long will Arum be able to lose money by putting fighters on the new series instead of HBO's B.A.D is a major question. Another to be answered is how deep are Comcast's pockets when it comes to a sport that is not flourishing, mainly because of the moribund heavyweight division.
 
What is initially puzzling, is that with boxing widely perceived in major decline, why would Comcast want in? Answer, Comcast is trying to make OLN a rival for ESPN. Also, boxing is attractive because anyone can try to get in the game since there are no long-term league contracts etc.
 


 
But Arum should take note: ESPN tried to put its muscle into an expansion of their Friday Night Boxing series by joining with Main Events on a pay-per-view venture in 2004. The deal called for a ten-month partnership that had Main Events penciled in to promote seven regular Friday Night Fights telecasts, three fight cards on "special" dates, and two pay-per-view shows. ESPN pulled back on PPV after luke warm results.
 
Another risk is trying to find viewers for the Thursday night slot OLN plans on. 
 
As for the Cotto-Malignaggi card, Arum is pulling out all the stops on his undercard. Besides the main event, his undercard will include Irish middleweight John Duddy, who is wildly popular in New York.
 
Last year when Cotto fought on June 10 -- which is the weekend of the Puerto Rican Day Parade -- the fight drew about 8,500 at Madison Square Garden. But, according to a Garden source, Duddy did 1,500 of that figure with his Irish fans.
 
Now, Duddy is even more popular, selling out regularly in 5,000-seat venues, which should boost the live gate to around 14,000 or more. And Arum has more on this card, which features everything but clowns and tightrope walkers.
 
Arum had hoped to add Kevin Kelly vs. Carolos Famoso Hernandez to the card, but Hernandez wanted more money than Top Rank was prepared to pay, especially in the Netherworld of PPV he has created. However, it is almost definite Arum will sign Manny Pacquiao's brother Bobby to fight Kelly, Boxing2006/Pound4Pound.com has learned. Is this Arum's way of paving a future co-promotional deal with Manny's new company? Who knows, but Arum is a great chess player.
 
Notre Dame defensive back Tommy Zbikowski will be making his heavyweight boxing debut against an opponent (sacrificial lamb) to be announced.
 
And more. Julio Cesar Chavez Jr. (24-0-1), son of the legend, will also be on the undercard. So will be Puerto Rican Olympian and red-hot prospect, Juan Manuel Lopez (10-0, 9 KOs), who in a newspaper poll on the island was named most popular athlete, with Cotto finishing fourth.
 
While the live gate figures to be a major success, industry sources say at best it will do only 50,000 buyers on pay-per-view, roughly half of a break-even proposition.
 
At 74, Arum is still going strong. But one wonders if his anger toward HBO, which fails to give in to his every whim, and at Golden Boy's Oscar De La Hoya, whose company is joined at the hip with HBO, will be worth the ultimate price he might pay.

 

Stay tuned to Boxing2006.com & Pound4Pound.com as we will bring you any updates on these comments as we get them.
 

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