But multiple sources say that there is a budget crunch at HBO Sports. The point person in the effort is said to be Barbara Thomas (senior vice president and chief financial officer), who oversees the day-to-day budget numbers and is widely respected throughout HBO.
The same sources say that Inside the NFL was cut for budgetary reasons and that Costas Now could follow suit when its host’s contract expires despite the exemplary nature of Bob Costas’s work.
“But it doesn’t stop there,” says a member of the HBO production team. “They’re looking at three and four-figure expenses that they never thought twice about before. They’re planning to leave both Merchant and Kellerman home when they do [the June 28th telecast of] Pacquiao-Diaz to save airfare and three nights at the hotel.”
The average HBO World Championship Boxing and HBO Pay-Per-View telecast incurs roughly $400,000 in production costs. For Boxing After Dark, the number is closer to $250,000. These numbers are being scrutinized to bring them more in line with Showtime’s lower production costs. Some of the differential relates to production values that are important to HBO and should be maintained. But some of the differential relates to expenses that can be trimmed.
“The guys in charge nickel-and-dime the low-end people on the production team,” says a current HBO employee. “But they spend thousands of dollars more than they need to spend for travel expenses and other perks for themselves. They act like it’s their birthright to stay at the Four Seasons.”
“Look at the number of people in the Showtime sports department and the number of people at HBO Sports,” adds Bob Arum. “HBO spends more money on unnecessary salaries than you can imagine. There are so many places where they have two people doing the same job. Half of the people at HBO Sports could disappear tomorrow and they wouldn’t be missed.”
Boxing - Columns - Thomas Hauser
Boxing - Columns - Thomas Hauser
Both these links cover the current promotional/TV situation in the States and are fascinating reading for any Saddo regular.
The budget crunch has nothing to do with Goldenboy producing the telecast though. At least once a year, either Top rank or Goldenboy will produce it's own PPV and use HBO for distribution.
And it'll now happen a lot more as HBO cut their costs.
Of course the worst aspect of this is that boxing fans are going to be regularly deprived of the thoughts of Max Kellerman and the backlash this will engender towards HBO. I'm not sure HBO have thought through the financial consequences for them of not having Max doing their PPV broadcasts.
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