Tuesday, January 27, 2009

Someone Is Lying

It's either Larry Merchant or Richard Schaefer (CEO of Golden Boy).

The part I like is the list of things Golden Boy does for Affliction:
Golden Boy and Affliction announced a partnership in December to promote MMA shows together and, potentially, a combined boxing/MMA card. Schaefer said Affliction, which manufactures high-end T-shirts that are popular with young MMA fans, would use its network of 22,000 stores to help promote the events.

It in turn, he said, would then cover all expenses, including paying the purses of the fighters and marketing the event. Golden Boy's end of the deal, Schaefer said, would be to run the operational side of things and arrange for licensing, handle the fighters' medicals, book the venues and deal with the relevant state athletic commissions. Affliction Entertainment does not have a promoter's license.

Golden Boy also promised to make De La Hoya available to help market and promote the events.
It sounds like Golden Boy is doing a lot, but really all those things add up to, "Golden Boy will make some calls to their friends in high places to make sure the event happens." Another way to think about it is if you imagine Affliction as a freshman in college who needs to make some money. They really want to sell drugs, but don't have a supplier. To get around this rather large hurdle, they seek out a notable campus dealer and agree to pay him for product. All the dealer is doing is calling his supplier and ordering more. He's a middleman, just like Golden Boy.

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