I.
Last Saturday, boxing played a featured role for three of the
largest North American media companies. Showtime (owned by CBS) presented the
Floyd Mayweather-Conor McGregor pay per view (PPV), which will wind up being
one of the top-two PPVs of all time. ESPN (Disney) made a significant
announcement, entering into a four-year agreement with Top Rank to broadcast a
minimum of 16 fights per year. HBO (for now owned by Time Warner) televised a
live boxing card headlined by Miguel Cotto, who was once one of the biggest
stars in boxing.
The day presented an interesting juxtaposition. From my
perspective it seemed that one of the companies was busy dominating boxing's
present; another announced a bold foray into the future, while the third
remained stuck in the glories of the past. Clearly, HBO didn't win the
"wow factor" of the day. Now, of course, one can always cherry pick
dates and times to present facts in a certain way, and it should be noted that
HBO stands to televise a very successful PPV on Sept. 16 between Saul Alvarez
and Gennady Golovkin. The network also has an impressive junior bantamweight
card on Sept. 9.
Still, one can't avoid the current trajectories of the boxing
business. For decades, HBO was the gold standard of the sport. Featuring the
biggest names and many of the best fights of the past 30 years, HBO was the
dominant force in American boxing. Its overwhelming success in building and
promoting boxing stars essentially forced its competitors out of the PPV
business. In short, HBO was the boxing glamour network.
Recently, change has been afoot in boxing. Floyd Mayweather's migration
to Showtime created an important beachhead for that network. And although HBO
still averages higher boxing ratings than Showtime does, by many measures
Showtime's performance and, perhaps more importantly, its commitment to
boxing have made it a significant player in the sport. It's not that Showtime
is a newbie in the fight game, but now the network has the relationships
(specifically with influential boxing manager Al Haymon) and the corporate
commitment from CBS to provide a truly compelling boxing product.
II.
Top Rank's decision to partner with ESPN wasn't made in vacuum.
Over the years HBO has routinely slashed its boxing budget. According to
multiple sources, HBO's boxing budget in the 1990s was routinely north of $60M. One former executive at HBO said that one year it surpassed $80M. Today,
rumors in the industry place that number closer to $30M. On the surface, that's
a quite a drop, but it's even worse than it appears at first glance.
Let's assume that HBO's budget in 1997, 20 years ago, was $60M, a
nice easy number to play with. Sixty million 1997 dollars would equate to $91M
2017 dollars using an average inflation rate of 2.17% (which was the average
inflation rate in that 20-year period). So in essence, HBO's $30M commitment
today is a third of what it was in the late '90s. That's quite a steep decline.
I must state that the purpose of this piece isn't an anti-HBO
screed. HBO runs a business. A very profitable one. According to Time Warner's
2016 annual report, HBO made $5.89B (yes, billion) for that year including a
profit of over $1.9B. HBO now makes up 20% of revenue for Time Warner.
So it isn't that HBO is some sort of failing enterprise. On the
contrary, it has become one of modern media's true success stories. One must
remember that 25 years ago, there wasn't The Sopranos, Sex in the
City or Game of Thrones. Back then, HBO essentially
was a movie channel that also had live sports, specifically boxing. Without the
existence of much original programming, boxing was a major draw for the network.
In time, HBO achieved such staggering success with its original
programming that boxing played more of a subsidiary role. It should also be
noted that boxing ratings aren't what they were two decades ago (however,
hardly any programming matches its ratings from past generations, when there
were far fewer media and entertainment choices).
Over the last two decades, a gradual downward spiral has occurred
regarding HBO's boxing ratings and its corresponding budget. HBO World
Championship Boxing once routinely topped two and three million viewers per
telecast; now the series doesn't consistently crack one million. It's a
chicken-and-egg scenario. Was the drop in ratings a rejection of the sport by
HBO subscribers or did HBO's reduction in its boxing commitment erode the
quality of its product, leading to poorer ratings? The answers to these
questions are challenging and complex but the realities of HBO Boxing's ratings
and budgets are clear.
In addition to the gradual whittling away of its boxing budget,
other economic headwinds are hurting HBO's commitment to the sport. In October,
2016, AT&T made a successful offer to buy Time Warner. The deal, valued at
the time of the announcement to be over $85B (source: Wall Street
Journal Oct. 22, 2016), is still under regulatory review by
various government agencies. Although both parties hope that the deal can be
formally approved by the end of 2017, there are still some significant hurdles
before the acquisition is finalized.
So what does the acquisition mean for HBO Boxing? Here's more from
Time Warner's 2016 Annual Report in a heading that describes the business risks
of the AT&T-Time Warner acquisition on page 23:
"[P]arties with which the company has business relationships
may delay or defer certain business decisions, seek alternative relationships
with third parties or seek to alter their present relationships with the
Company."
In short, Time Warner realizes that business-as-usual may be
interrupted during the acquisition. Certain business units may not see their budgets
grow as the company waits in limbo. Other important aspects of the company's
operations, such as content acquisition, partnerships, capital expenditures,
marketing and hiring, could also be curtailed during this period.
Thus, as Top Rank needs television dates for its stable of fighters, HBO, for a variety of reasons, might not be its ideal partner at the present time. Who
knows what will happen to HBO Sports if AT&T assumes control of the
company? Do the new owners retain the existing executives at HBO or do they
install new people? Will AT&T believe that boxing helps HBO's position in
the marketplace? Will boxing even be a part of HBO's programming? In this
current climate, Top Rank's search for a safe haven makes perfect sense.
III.
ESPN has had a mercurial presence in boxing over the decades. In
the '80s and '90s, the network partnered with Top Rank on a successful weekly series.
At one point in the '00s, ESPN broadcasted live boxing twice weekly. It has
long been said in the boxing industry that if ESPN wanted to dominate the
sport, it could. But for some reason, the network never wanted to. Over the years,
ESPN faced a similar downward spiral with its Friday Night Fights series,
devoting fewer resources to programming and seeing a precipitous decline in its
ratings.
Despite various ebbs and flows, the network has always kept a toehold in boxing. However, in the latter years
of Friday Night Fights, ESPN essentially quarantined boxing to its Friday night
ghetto. The network didn't do much to publicize the series. Start times were
often juggled and significantly delayed. Rarely was boxing integrated with
SportsCenter or other ESPN programming. In conversations with former ESPN
executives, boxing was seen as difficult to attract advertisers even though its
ratings had been more than respectable.
Over the last few years, ESPN has shown a renewed interest in the
sport. Al Haymon's PBC series flipped the business model of boxing. In the past, ESPN had to
acquire content; now Haymon & Co. were paying ESPN to broadcast fights.
However, that marriage was short-lived. The quality of PBC cards on ESPN lacked
consistency. Eventually Golden Boy Promotions approached ESPN with a new deal
that featured a series of club level fights and access to its bigger
fighters for promotional appearances on the network. Through the first year of their new
agreement, the ESPN/Golden Boy deal seems to be satisfying both parties.
The Top Rank/ESPN pact further grows the network's boxing
programming. Top Rank insists that the deal will include its biggest
fighters, such as Pacquiao, Lomachenko and Crawford. In addition, Top Rank will
be sharing its valuable fight library with ESPN, which will certainly become a
nice plum for ESPN Classic and the new ESPN stand-alone streaming service that
begins in 2018.
The network and its related properties have access to the general sports fan that is unsurpassed in the current media landscape. Highlight and debate shows provide a constant reinforcement of the top sports stories of the day. After ESPN's successful broadcast of the controversial Pacquiao-Horn fight, the network spent dozens of hours in the subsequent days debating the Horn victory. That type of publicity is hard to duplicate in any other media setting.
The network and its related properties have access to the general sports fan that is unsurpassed in the current media landscape. Highlight and debate shows provide a constant reinforcement of the top sports stories of the day. After ESPN's successful broadcast of the controversial Pacquiao-Horn fight, the network spent dozens of hours in the subsequent days debating the Horn victory. That type of publicity is hard to duplicate in any other media setting.
ESPN is clearly the North American sports leader but recent media
trends have shattered its bulletproof position in the Disney empire. More
consumers continue to "cord-cut," giving up their cable packages.
Acquisition costs for sports leagues have become astronomical, cutting into
ESPN's margins. The network executed a significant round of layoffs early in
2017.
IV.
Watching HBO's broadcast of Cotto-Kamegai, it struck me that an
end of an era has occurred in boxing. This isn't to say that HBO Boxing is on
its deathbed or that the network will no longer be a factor in the sport.
However, there exists the very real possibility that HBO will televise fewer
and fewer big fights in the coming years. This is our loss.
No network has a better broadcast than HBO. The network has always
treated boxing, on-air, like a valuable property. Its commentators are well
researched and prepared. HBO broadcasters never thought of boxing as a
moonlighting or secondary gig, a sport to call in the downtime between other
higher-profile endeavors. No, Jim Lampley, Larry Merchant, George Foreman,
Emanuel Steward, Max Kellerman and Roy Jones were always right where they
wanted to be – in the thick of boxing, calling big fights for passionate fans.
And it's not just the on-air talent. HBO Boxing was such an
innovative enterprise. Its advances in the presentation of boxing are too
numerous to list fully, but here are some: the incorporation of punch stats;
the use of translators to describe the conversation in the corners;
the integration of an unofficial scorer – not just to announce the score itself
but why a fight should be scored the way it is; the graphics that demonstrate
where punches are thrown among the head and body. Honestly, there are a dozen
of these innovations that now have become a basic vocabulary for fight fans.
HBO Boxing didn't just televise the sport, it also educated generations of their viewers. On
Saturday's broadcast, HBO incorporated a new statistic – how often a fighter
was advancing vs. retreating. What a fascinating concept, one that has many
implications in how we view fights and their scoring.
In addition, HBO Boxing has the best production values. Its deep
focus and high definition cameras are unmatched to my eyes. Its lighting
makes the presentation look truly cinematic. Camera angles and cuts are
expert.
But there are also simpler pleasures in the HBO broadcast: the way
that Jim Lampley will cut out for 30 seconds here or there just to take in the
fight, the encouragement of differing opinions from its commentators, the real
brotherhood between the HBO announce team. One can tell how deeply all of the
players admire each other. These aspects of boxing will surely be missed if HBO
plays a reduced role in the sport. The other networks may have compelling
fights or boxers, but they don't come close to surpassing HBO's mastery of the
boxing broadcast.
V.
With 16 shows a year from Top Rank and more than a dozen annual
dates from Golden Boy, it might be time for ESPN to make some strategic
investments in boxing. The quality of its production pales in comparison to
HBO's and Showtime's. ESPN Boxing's cameras and lighting don't necessarily do
the sport justice. ESPN's producers and directors make some bizarre camera
angle choices during fights, often showing an overhead view which serves little
purpose.
In addition, the broadcast seems far too casual. ESPN's lead
play-by-play man, Joe Tessitore, only seems emotionally invested in boxing
intermittently. His main gig is calling college football games on Saturday
nights. He doesn't always exhibit enthusiasm for the fights. Perhaps a better
quality product will keep his attention, but maybe it won't.
Teddy Atlas is an institution, and that has both good and bad
ramifications. Atlas has a tremendous perspective on the psychology of
fighters. He's great at communicating strategy and analyzing game plans.
Occasionally, he'll catch something absolutely brilliant when breaking down
video of a fighter, such as a flaw or tendency. In these moments, he is truly
unsurpassed. But he also has been over-indulged for far too long by the ESPN
production crew. He talks incessantly, often over the action. He can be slow to
notice when the tenor of a fight has changed. He falls back on analogies and
clichés. Sometimes they are prescient; at other points they can be trite. He
also doesn't do well with disagreement or countervailing opinions. These are
major shortcomings.
In two of the three broadcasts of the Top Rank/ESPN series, the
network has featured a studio portion of the telecast that involves Stephen A.
Smith. Smith is ratings catnip for ESPN. For good or for bad, he draws viewers
in. However, to this point of the Top Rank series, he's been woefully
underprepared. He didn't recognize the names of any of Jeff Horn's opponents –
including former champions and title challengers. He admitted that he had never
seen Miguel Marriaga fight before. This is unacceptable. Yes, Smith certainly
brings positives to a boxing program but his lack of preparation undermines his
opinions and disservices boxing fans. In no other major sport would a supposed
expert gleefully claim that he hadn't watched an opponent.
For ESPN to succeed in broadcasting boxing, it has to improve. Its
on-air talent must display the enthusiasm and expertise needed for the job.
Hire a researcher for Stephen A. Smith. Bring in an unofficial scorer that can
provide a different opinion from that of Atlas, who often misses action during
fights. Invest in better technical equipment. The sound quality needs to be
better. The production of the show needs to be freshened up. Work with Top Rank
to get better results in these areas; they've been on the front lines of
world-level boxing for 40 years. Ask for help.
More boxing on ESPN is certainly a welcome development. However,
there is no guarantee that the Top Rank deal will succeed. Top Rank must
continually provide top, competitive matches. ESPN executives must have enough expertise
in the sport to provide appropriate quality control. The network needs to find the
best avenues to publicize its boxing content among its myriad platforms. Perhaps
most importantly, the ESPN/Top Rank partnership must become successful
visually, on TV, and not just economically. These are real challenges for both
parties.
ESPN has the resources to broadcast a top boxing product. But is the
will there? Is this a money grab for the network or the beginning of a successful and sustained foray into the top levels of the sport? Color me intrigued.
Adam Abramowitz is the founder and head writer of saturdaynightboxing.com
He's a member of the Transnational Boxing Rankings Board.
Email: saturdaynightboxing@hotmail.com
@snboxing on twitter. SN Boxing on Facebook.
Adam Abramowitz is the founder and head writer of saturdaynightboxing.com
He's a member of the Transnational Boxing Rankings Board.
Email: saturdaynightboxing@hotmail.com
@snboxing on twitter. SN Boxing on Facebook.