How DAZN — once left for dead — retooled and rebounded with boxing’s best schedule
By Mike Coppinger 5h ago
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When the pandemic shoved the collective sporting world into chaos last March, DAZN was arguably the network that most felt COVID’s wrath.
After all, DAZN’s business model relied entirely on subscribers paying a monthly (or yearly) fee. And with live sports halted by the pandemic indefinitely, there was no reason for those monthly subscribers to continue reaching into their wallets.
The subscriber base DAZN built through boxing’s top star, Canelo Alvarez, and other pugilistic programming rapidly declined, sending senior officials at the streaming service into damage control. The move: DAZN became the first major network to stop payments on right fees to sports leagues, including the English Premier League and Major League Baseball.
The fights stopped, too, naturally.
Many wondered if DAZN would ever rebound from the crisis just as the platform was beginning to roll out its global service. Then it went from bad to worse. DAZN attempted to alter the parameters of Canelo’s landmark 10-fight, $350 million deal. Alvarez rebuffed those attempts and a lawsuit was launched.
Over the summer, DAZN quietly underwent a leadership overhaul and the moves have started to pay off handsomely. Gone are the days of nearly eight-figure license fees for solid matchups that don’t truly move the needle (see Jose Ramirez-Maurice Hooker and Mikey Garcia-Jessie Vargas).
In its place, at least so far, appears to be responsible spending on compelling action fights where the result resonates throughout the boxing industry.
DAZN stormed out of the gate with a scintillating scrap between rising star Ryan Garcia and Luke Campbell in January. The social media sensation scored a seventh-round TKO and proved the hype isn’t without merit.
One month later, DAZN delivered a title doubleheader that featured plenty of action in Brian Castano-Patrick Teixiera and Joseph Diaz Jr.-Shavkat Rakhimov.
Most importantly, DAZN emerged from the Canelo lawsuit unscathed and welcomed him back to the fold in December with a victory over Callum Smith. This time, Alvarez was fighting under the Matchroom Sport banner after securing his release from Golden Boy (Eddie Hearn’s Matchroom and Oscar De La Hoya’s GBP are the two promoters who hold exclusive rights deals with DAZN).
Alvarez remained with DAZN for a February tune-up against Avni Yilidirm and will meet Billy Joe Saunders on May 5 in a high-level fight that promises to be a serious subscription driver (already, sources said, DAZN has welcomed back a large swath of the subscribers it lost during the pandemic on the strength of two Canelo fights.) Until then, there are plenty more intriguing matchups on boxing’s best schedule including Saturday’s heavyweight rematch between Dillian Whyte and Alexander Povetkin after the Russian shocked Whyte with a brutal KO last year.
Dillian Whyte will look to rebound from shocking upset loss to Alexander Povetkin this weekend. (Matchroom Boxing)
Once left for dead during the pandemic, DAZN is now thriving under new leadership, and where it was once available in nine markets, it’s now accessible everywhere across the globe. That surely means less funds will be allocated to fights that emanate stateside in the coming years.
“Everyone thought they were done but look, you’re starting something that’s different and you’re starting from scratch; not the easiest thing to do,” said promoter Lou DiBella, who spent 11 years as an HBO Sports executive at a time when the network ruled boxing. “They get hit with the pandemic, so you can see why everyone thought it was a dark future but the guy (DAZN owner and billionaire Len Blavatnik) has a really successful history as a businessman.
“They’ve made adjustments to leadership and were willing to take a good look at things and modify their business plan to what they learned with a real global outlook. … I didn’t think that they were dead, honestly, but it’s clear now with a different emphasis they seem to really have got their legs under them.”
When DAZN rolled out its service stateside in the summer of 2018, it did so with former ESPN President John Skipper at the helm.
Regarded for his charm and dealmaking during his five-year run at the top of ESPN, Skipper was now tasked with building DAZN into a powerhouse. There were obvious obstacles from the start.
DAZN would attempt to compete with legacy networks like ESPN and FOX Sports, only it charged a fee and no one even knew how to pronounce the name (Dah-zin? No, no, I think you mean Da Zone.)
The streaming service was frozen out from buying ad space on practically any network that was seen as a competitor, making it all the more difficult to spread the word. (Remember those Michael Buffer commercials proclaiming PPV is dead?)
The platform, at least in the U.S., relied almost entirely on boxing. The sweet science was a natural entrance point with its inexpensive rights fees compared to the major sports and also, it was readily available.
Eddie Hearn, the charismatic Englishman whose father, Barry, is a longtime staple of the sport, set out for the U.S., with dreams of taking over America.
Many of the deals Skipper constructed proved cumbersome and the criticism grew louder that DAZN desperately needed a true “boxing guy” to provide quality control on the fights it purchased. The fights were too often underwhelming or DAZN paid way above market value for the matchup, or both. And when the fights were good, the streaming service usually overpaid, too. Then the changes came.
Matchroom and DAZN now work much more closely than before, sources said, to ensure that when fights are approved, both sides are happy with it (along with the associated license fee).
Golden Boy, now without the sport’s marquee attraction, has been pressed to make far better fights and has responded with some excellent matchups.
The two men calling the shots at DAZN now: Ed McCarthy and Ed Breeze. McCarthy, a U.K.-based attorney, became the COO last summer. Breeze, formerly an EVP in DAZN’s media rights division, is now Head of Boxing.
Breeze was involved in deals with the World Boxing Super Series, Gennadiy Golovkin, Golden Boy and Matchroom, and in his new role, he leads conversations with Hearn and Golden Boy President Eric Gomez with oversight from McCarthy. Essentially, Breeze is tasked with overseeing matchmaking and the DAZN boxing schedule.
“We just want to make sure that we’re making best use of our money and (our promotional partners are) making best use of what’s available to them,” Breeze said. “It comes with more rigor and attention to make sure everyone is doing what’s best for each other.
“If we are too passive and let them create the agenda too much then it just won’t work for DAZN. I’m looking for a proper partnership that works for everyone. … The biggest learning curve is resetting relationships that need resetting but in a very positive way.”
Eddie Hearn calls DAZN the “future of boxing.” (Nick Potts/PA Images via Getty Images)
DAZN reset plenty more internally, too. Altogether, the moves resulted in greater clarity and the kind of frequent contact with promoters necessary to ensure greater cost control and better programming quality.
Beginning last summer, Skipper took a back seat behind the scenes. He constructed the Alvarez deal along with the Golden Boy Promotions partnership that accompanied it and also was responsible for signing GGG to a six-fight deal worth nine figures.
In February, Kevin Mayer replaced Skipper and is now chairman of the board for DAZN. Mayer was formerly in charge of direct-to-consumer at Disney (ESPN+, Disney+) and was also CEO of TikTok. Skipper remains on the board but stepped down from his role to focus on his new venture, MeadowLark Media.
Simon Denyer, the CEO whose close relationship with Hearn helped shepherd a multi-year deal with Matchroom Sport (along with the rights on a per-fight basis with heavyweight champion Anthony Joshua), departed DAZN in June.
In his place arrived James Rushton in June as acting CEO (he has since risen to co-CEO). There were plenty more changes, too. Joe Markowski, who often took the lead with the media and routinely spoke at news conferences, shifted from Head of North America to a new role in charge of the global platform.
And that’s where much of the emphasis now lies. When DAZN streamed GGG’s title fight with Kamil Szeremeta, it saw a spike in subscribers from Poland, the hometown of the challenger. Same for Bulgaria when their native son Kubrat Pulev challenged heavyweight champion Anthony Joshua in December.
For now at least, the vast majority of DAZN’s boxing programming is centered around the U.S., even as Matchroom’s longtime partnership with U.K., broadcaster Sky Sports is set to expire in July. DAZN has been aggressive in trying to obtain exclusive rights to Hearn’s vast U.K., stable. Of course, boxing is far more popular in the U.K. than in the U.S.
DAZN still boasts the biggest war chest in boxing, and that makes the platform uniquely positioned to attempt to cure many of the longstanding issues facing the sport. We all know the best rarely fight the best in boxing. A leading reason is that losers are unfairly punished in boxing (far lower paydays and less options after a setback) unlike in the UFC where a defeat doesn’t seem to matter nearly as much.
“If you provide entertainment on DAZN, we don’t mind if you lose, it doesn’t matter,” said Breeze. “It shouldn’t affect your career. … We just want to see compelling action. That’s what provides value for money.”
There’s also the issue of the dreaded comeback fight, long a staple of boxing. The way it’s usually set up in the contract: if fighter X loses, he’s guaranteed X amount of money to fight a lower-level opponent to be agreed upon.
“I don’t think any self-respecting fighter likes a soft touch,” Breeze said. “Some of it is financially driven because a budget is a budget and you can’t have massive fight after massive fight after massive fight. Doesn’t mean you can’t have an intriguing one.
“I’m not a fan of doing bad deals that don’t make sense for a TV network. It’s just not a sensible way to deploy your money when there are so many more interesting ways to do it. We encourage intelligible matchmaking.”
Now, it’s up to DAZN, Golden Boy and Matchroom to keep the momentum going. Breeze laments that DAZN has two stars-in-the-making with Ryan Garcia and Devin Haney, yet they’re no closer to fighting each other.
It’s been a good stretch, and it’s about to become stronger with Canelo-Saunders on the horizon and even an intriguing fight between Haney and Jorge Linares on May 21, but regularity reigns supreme.
“DAZN’s schedule has consistently outperformed every other boxing platform in the U.S.,” Hearn said. “It continues to offer the best value for money from any platform and showcase some of the biggest talent in world boxing continuously and consistently.
“The pay-per-view price point of the products that we’re seeing right now in America is a fading model and I’m more confident than ever that DAZN is the future of boxing.”
(Top photo: Ethan Miller/Getty Images)