Boxing Promoters and Time Warner Forge Pay-TV Deal

Time Warner Sports joined forces today with boxing promoters Bob Arum and Dan Duva to form a pay-per-view network, TVKO, that will begin monthly shows on April 19 with the Evander Holyfield-George Foreman heavyweight title bout.

The deal, finalized on Tuesday, gives TVKO exclusive rights to any pay-per-view telecasts involving promotions by either Arum’s Top Rank Inc. or Duva’s Main Events. The deal, however, does not preclude TVKO from also showing fights of other promoters.

“This hasn’t been the easiest thing to put together,” Arum said, “but we’re here today. This is historical in that it aligns a sport that’s been much maligned with one of the biggest, most powerful companies in the world. It’s taken boxing out of the sweaty, smoke-filled back rooms and given it instant respectability.”

Under terms of the agreement, neither Arum nor Duva will have any equity in TVKO. They will share in any profits and will put up collateral from those profits to help defray any losses.

Time Warner Sports President Seth Abraham said TVKO plans a monthly show, with two fights per show, as well as certain “mega-fights,” such as Holyfield’s defense of his undisputed heavyweight title against Foreman. The cost to pay-per-view subscribers for the regular monthly shows will be under $20. The Holyfield-Foreman fight will cost $35 and up, Duva said.

Time Warner Sports was formed last summer by Time Warner Inc., the parent company of HBO. HBO’s contract with Don King for the rights to Mike Tyson fights ended with Tyson’s victory over Alex Stewart on Dec. 8 in Atlantic City. After the fight, King made a deal with HBO competitor Showtime.