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HBO Boxing: Should Julio Cesar Chavez Jr. Fight on Cable or Pay-Per-View Case Solution & Answer

Professional boxing was once a popular sport, the stars have been widely known by the general public. Major fights were broadcast on network television. By the 2000s, the landscape has changed dramatically. Boxing has become a niche sport in the United States, some boxers have been known beyond the base of hardcore fans, the best fights were only available on the premium cable or pay per view (PPV) and other sports combat were increasing. This case describes the world of professional boxing, including the roles of fighters, managers, promoters and television. It focuses on a decision ahead of HBO, one of the main drivers of sports economics. In September 2012, Julio Cesar Chavez Jr. has lost a title fight Sergio Martinez, despite a thrilling final. The fight was seen on HBO PPV. Most observers believe that the second leg will take place, and would attract a large audience PPV. However, Martinez has scheduled a fight in his native Argentina before potential rematch. Chavez probably a temporary struggle. HBO had considered that the provisional match Chavez’s cable channel and not on PPV. That would make the fight available to more viewers, we hope to increase the audience of PPV rematch with Martinez, Chavez and ensure a considerable pay-TV rights. However, if the fight was on PPV, Chavez would be able to earn more money based on the sales of PPV (and risking a lower salary, if sales do not meet expectations PPV). If HBO believes it is in the long-term interest of the sport, the fighters and the fight for the HBO cable instead of PPV, how can they convince the promoter of Chavez, and how they can help to convince the proponent Chavez to accept a lower salary in exchange for a greater potential audience and the ability to expand sales to the map for the return match scheduled with Martinez?
by
George Foster,
David Hoyt
Source: Stanford Graduate School of Business
40 pages.
Publication Date: April 1, 2013. Prod #: SPM51-PDF-ENG
HBO Boxing: Julio Cesar Chavez Jr. If fight cable and Pay-Per-View? Case Solution

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