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Book Review – In The Red Corner: A Journey Into Cuban Boxing, by John Duncan

19 Wednesday Mar 2014

Posted by matthewjbailey in Book Reviews

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Cuba, Don King, Felix Savón, Fidel Castro, Frank Warren, John Duncan, Kid Chocolate, Mike Tyson, Teófilo Stevenson

Everyone knows the same handful of facts about Cuba.  Cubans make the world’s best cigars.  They drive American cars left over from the 1950s.  Their extravagantly-bearded revolutionary leader Fidel Castro used to make immensely long speeches.  Americans can’t visit Cuba, in spite of their supposedly constitutionally-guaranteed freedom of travel (strictly speaking, they are allowed to visit, but they aren’t allowed to spend any money if they do, so in practice they can’t).  And in amateur boxing, Cubans win everything in sight.

The reason for starting with this list of appalling clichés is that it appears to comprise the sum total of John Duncan’s knowledge of Cuba, and Cuban boxing in particular, prior to embarking on the writing of this book.  This does not stop him abandoning his job as a sports writer at the Guardian and persuading Frank Warren, of all people, to provide financial support for his quixotic attempt to arrange a fight between Cuban heavyweight Felix Savón and Mike Tyson, despite the facts that, firstly, professional boxing is illegal in Cuba, and secondly, a previous attempt at exactly the same thing ended in failure, despite a $10m offer to the Cuban from its rather-better-qualified author, Don King.

Long experience teaches the reader to be wary of any book whose subtitle begins “A Journey Into . . .”, since it more or less guarantees that the book will be much more concerned with the journey, or more specifically the journeyer, than with whatever subject into which it is putatively a journey.  This book is no exception.  In the early stages Duncan agonizes over, among other things, his decision to leave the Guardian and the arrangements he needs to make to let his property in London, topics which are of interest to exactly nobody.  His attempts to arrange meetings with Frank Warren are also related in excessive, and occasionally fawning, detail, emphasizing Duncan’s own inexperience and unsuitability for the job at hand. Self-deprecation done well can be charming: when it is overdone, as here, the reader cannot help but ask why he should not take the author at his own estimation, and give up on him entirely.

Matters improve when Duncan arrives in Cuba.  He does a fair job of sketching how, through a mixture of rum, humour, compassion, and a complete disregard for rules and regulations, Cubans survive poverty, oppression and endless bureaucracy.  More importantly, despite the utter implausibility of his mission, Duncan makes impressive progress in meeting and interviewing boxers and administrators of all levels, all the way up to the likes of Savón himself and fabled national coach Alcides Sagarra.  He is even included (though it is not clear whether he is invited) on the Cuban team’s trip to the World Championships in Hungary in 1997.

But all this says much more about the openness and friendliness of the Cubans than it does about Duncan’s nose for, or grasp of, his story.  So limited is his understanding of boxing and its culture that one wonders whether the reason for his suggestion of a Savón-Tyson bout is that Mike Tyson is the only boxer he has ever heard of.  It is clear to the outsider that his failure to make more progress than he does is down to the fact that he is just not equipped for the task, and the Cubans know it.  He is genuinely amazed to discover that boxing involves skill and strategy, and that boxers are capable of both enjoying it and discussing it in detail.  When Felix Savón holds out a friendly fist for Duncan to “bump”, he pathetically wraps his hand round it.  In the face of this sort of ineptitude, no amount of self-deprecation can suffice.

However, it is not all bad news: and given that the history of Cuban boxing is full of great fighters, great characters, and great fights, how could it be?  Many boxing fans, especially the casual fans at whom the book is apparently aimed, will find much of interest in Duncan’s portraits of a handful of figures from Cuban boxing history, notably Kid Chocolate and Teófilo Stevenson (though these are scarcely revelatory, and were probably more interesting and useful in the days before Wikipedia, Boxrec and the other numerous online sources that were not available when this book was published in 2000).

Better still – much better, in fact – are the lengthy interviews Duncan carries out with less well-known figures in Cuban boxing, where he mostly keeps the focus off himself and on his interviewees.  The embittered Angel Espinosa, retired, divorced, penniless and living with his mother, complains of how the system treats those who serve it loyally: conversely, Joel Casamayor, pining for his 5-year old daughter in Miami, and struggling to get either a break or a fair deal from professional boxing’s often commercially-minded judges (Cuban boxers, unlike Mexicans and Puerto Ricans, almost never draw big crowds), shows the sacrifices and painful uncertainty of a life in exile.  Most affectingly of all, Duncan tracks down the ex-wife of the near-legendary Kid Gavilán.  Gavilán too was mistreated and exploited by the Cuban system, but was eventually given permission to leave at short notice: his wife was not.  He departed, never to return, and after waiting seventeen years in Cuba, she finally and sadly petitioned for divorce.  “Our story is a true love story,” she says, “but Cuba got in the way”.  As so often in boxing, the toughest chins don’t necessarily belong to the boxers.

But these undoubted high points do not compensate for the book’s other flaws.  For one thing, the writing itself is often clumsy.  There is the occasional solecism: Duncan writes “The day of the final [of the 1978 World Championships] built to a crescendo for the Cubans.”   Any competent writer (and his editor) knows that you don’t build to a crescendo: the crescendo is the building.  Elsewhere, Duncan gives a long, tedious account of the process of finding Kid Chocolate’s grave, presumably to give the reader an idea of just how long and tedious a process it was.  It would have been much, much better simply to write “it was a long and tedious process”.  And he writes of Savón: “he has so much bulk around his shoulders and back that it looks as if he has a giant armpit ringed by muscle”.  What does this mean?  Does he have a giant armpit ringed by muscle – just the one?  Or does it just look like that?  But then what does that look like, if it doesn’t look like someone’s muscled back – which is what was supposed to be the subject of the description in the first place?

For another thing, Duncan just doesn’t display enough curiosity.  More than once, he inexplicably fails to follow obviously promising suggestions from his interviewees.  Perhaps he is too self-obsessed, or perhaps talking to the Cubans generally is so easy that he forgets that his job is to ask for more than is straightforwardly offered.  Sagarra suggests, surely absurdly, that Cubans’ proclivity for boxing is related to their love of dancing.  This is passed over without comment.  Casamayor hints that other boxers are keen to join him in Miami and turn pro but don’t because they are afraid of the consequences – but, writes Duncan, “He didn’t elaborate . . . I didn’t push him”.  Why not?

But the biggest problem is the condescension inherent in the very project itself.  Boxing plays a huge part in Cuba’s national history and identity, but from the start Duncan treats the country, its boxing history and even its boxers as something akin to a school summer project.  He appears to think that trumpeting his own lack of qualifications is endearing, when the effect is quite the reverse.

We started with a list of clichés, and we close with another.  There is
undoubtedly a great book to be written on boxing in Cuba.  But, despite its
numerous high points, “In the Red Corner” isn’t it.

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Float Like A . . . ? – Nation Media plc

19 Wednesday Feb 2014

Posted by matthewjbailey in Boxing Business

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Bill Ives, BoxNation, Frank Warren, UK

Nation Media plc, parent company of BoxNation, is about to be floated on the London Stock Exchange (specifically, on AIM, its “international market for smaller growing companies”). It seems that BoxNation subscribers, of whom I am one, are being asked whether they are interested in investing. Should we be? Let’s have a closer look.

BoxNation has three principal shareholders: the family of promoter Frank Warren, an Indian broadcasting company called Zoom Communications Ltd. (of which I have never heard, but which evidently provides certain services to BoxNation), and Bill Ives, owner of Rainham Steel. The current capital raising involves a “Placing” of shares with large investors, expected to raise £5m, and a simultaneous “Offering” to the general public which aims to raise £1.5m-£3.5m. Bill Ives is going to invest another £500,000 as part of the Placing, which will bring the total amount he has invested in the business to (as far as I can tell) £3.8m. Rainham also provides money to BoxNation by way of a loan of ca. £3.5m.

In 2013, the first year for which the business had meaningful numbers, BoxNation had losses of ca. £4.8m on revenues of ca. £9.7m. It is not unusual for a business in this early stage of development to be loss-making, especially in an area as volatile as broadcasting & media. However, it does look as if business was much tougher than anticipated. The offer documents state that since last July BoxNation “has undergone a re-financing which has significantly altered its net asset position”. This appears to be a euphemism for “it went bust and had to be rescued”. At any rate, £500k of debt to Bill Ives was converted into equity and he injected cash of a further £2.8m to settle various liabilities of the company (which it presumably could not settle itself), including amounts outstanding to affiliates of the other major shareholders.

The principal source of revenue for the company is, of course, viewer subscriptions. The company states that “[a]t around 155,000 subscribers the Company is likely to cover fully its current operating and event costs and show positive cash flow. At around 200,000 subscribers the Company is likely to be significantly profitable.”

How are they doing against these targets? Well, according to their own information, they started in January 2012 with about 15,000 subscribers, rising to ca. 50,000 in mid-2012. Then, thanks to a huge marketing effort around Haye-Chisora, one of the biggest all-British fights of the year, numbers briefly touched 150,000 before falling back to about 100,000 by year end. They drifted down from there to about 75,000-80,000 for most of 2013 before rising to ca. 125,000 in late September 2013 for Mayweather-Alvarez and falling again to about 100,000 by the end of last year.

In other words, positive cash flow (155,000 subscribers), never mind profitability (200,000), seems a long way away. So what is the strategy for the business going forward? According to the company, it has three elements:
• to set up an HD version of the channel, in particular to support PPV events
• to license content to other Pay TV platforms and overseas broadcasters
• to improve online and mobile and develop commercial revenue sources such as advertising, sponsorship and gambling

Here are the problems as I see them. Please note that this is just my opinion, not investment advice. It goes without saying that anyone considering buying shares should consult with a financial professional and not rely on something they read on some stranger’s blog. With the disclaimer in place, here goes:

1. First, what are the prospects for growth in the UK? According to BoxNation’s research, in the UK there are 6,989,000 boxing fans of whom 2,729,000 are “very interested in boxing”. BoxNation has a database of 250,000 names, most of whom are existing or past (cancelled) subscribers. However, it is really hard to believe that any of these real boxing fans haven’t already had a look at BoxNation over the last couple of years and made their minds up about becoming subscribers. Could they be persuaded otherwise? Well-marketed, big all-UK events might deliver subscription spikes (as Haye-Chisora did). But if the business plan is to be sustainable Nation Media appears to need long-term subscribers, which occasional big fights clearly don’t deliver, as shown by all the cancellations after the major events last year. What they need is big fights every month, so that each subscription payment is justified as a PPV fee in its own right. Besides Frank Warren, BoxNation works with smaller UK promoters including Ricky Hatton, Frank Maloney and Barry McGuigan (who at least has a potential star in Carl Frampton), which provides regular, good UK-focused content. The channel also has some fighters who can pull in a somewhat bigger crowd – currently, Tyson Fury and Derek Chisora are probably top of the list. But if that hasn’t done the trick already, it’s hard to see how BoxNation will double subscriptions (and so get to profitability) by appealing to the UK market. BoxNation’s big problem in the UK is the stiff competition provided by Sky, which has an exclusive agreement with Matchroom Sports, owned by Frank Warren’s big rival Barry Hearns. There’s an obvious Catch-22 for BoxNation: the bigger Sky is, the greater the exposure it offers fighters, so the more they will want to be on Sky (and with Matchroom) rather than BoxNation, and without the fighters, the harder it is for BoxNation to attract more subscribers and compete with Sky. According to the offering document, “Frank Warren has long considered that Sky was losing interest in boxing”, but not much evidence of this is provided: in fact, as the document grudgingly acknowledges, “Sky and Matchroom recently extended their deal until 2016”. Also, although the document suggests otherwise, the 20 nights a year of non-PPV boxing Sky have contracted to broadcast is actually quite a lot (after all, there are only 52 weekends in the year), and Sky supports it with other programming too (notably their regular boxing news show “Ringside”). What’s more, in my opinion anyway, Sky’s coverage isn’t bad at all: certainly, their recent coverage of the Lee Selby fight, with an undercard including Rees-Buckland, was better than any UK action BoxNation have shown lately. I suspect a lot of those millions of boxing fans identified in the documentation are already getting everything they want or need from Sky.

2. Secondly, how about the ambition to license content to overseas broadcasters and other Pay TV platforms? I’m not sure what other Pay TV platforms they mean (they are already available on Sky and Virgin). As for overseas, well, there are smaller broadcasters who take British fights. But with the best will in the world, I have my doubts about the depth of international demand for the undercard at York Hall, or pictures of Tyson Fury’s moobs.

3. Thirdly, will HD and PPV make a difference? HD strikes me as an absolute minimum requirement rather than a positive. All other sports channels have it. As for PPV, it depends on the fights they get. A lot of the UK PPV fights will end up on Sky: partly because that’s what Sky are good at, and partly because Sky still has its agreement with Matchroom, who have many of the most exciting UK fighters (including both Carl Froch and George Groves, whose rematch in May will certainly be the big event of the year in the UK). There’s also international PPV of course, but this always suffers from being shown at impossible times in the UK. Are people really going to pay to watch a fight that starts at 4am? Of course they can record it and watch it in the morning, but by then they will have seen the result, and the whole purpose of PPV – seeing the action live and exclusively – is undermined.

4. Finally, what about other revenue sources, such as the gambling and advertising they suggest? Well, these might help – but it isn’t clear to me why BoxNation will be able to do this any better than anyone else. After all, there are a million places to place a bet online already. Also, BoxNation announced last year that it had signed an agreement with Media Corp, another AIM-listed company specializing in online gambling, but nothing seems to have come of it yet. And anyway, all these other forms of revenue, whether sponsorship, gambling or advertising will ultimately depend on the number of subscribers the channel has. I might mention in this connection that I have been a subscriber for a while, but I don’t remember BoxNation ever trying to sell me anything other than its programming.

Ultimately, it is inescapable that the prospects for the company depend on finding and keeping new UK subscribers. Quite apart from the points raised above, there are two big problems with this. Firstly, what has primarily driven UK interest in boxing is the popularity of individual British fighters. McGuigan, Eubank, Benn, Hatton, Calzaghe, Bruno & Hamed, to name a few, all caught the public imagination. But there are really no such fighters at present. In the absence of such figures, boxing feels like a mature market, with only limited potential appeal outside a core fan base which isn’t growing much. Secondly, and perhaps more problematically in the long run, boxing is terribly uncertain. No one knows what fights will be made from year to year, or even month to month. Whole years can go by without any big fights being made. Boxing is not like tennis, football, or other big sports, which offer predictable events according to a well-established calendar. For this reason it is doubtful that the sport lends itself to the sort of subscription model BoxNation has chosen – even if BoxNation could get the big fights and the big-name fighters.

According to the offering materials, existing shareholders have invested £12.5m in BoxNation to date. According to morningstar.com, the new capital raising values the existing company at between £11.44m and £14.3m (the exact amount depends how successful the flotation is). In other words, the company’s value has increased either barely or not at all since it was created – exactly what you would expect for a struggling company in a mature or declining market. And given the fact that the company appears to be having difficulty sustaining even half the numbers it needs for profitability, it is hard to believe that even this valuation can be right.

One final note. I like BoxNation. I watch it a fair amount. I even rather like Steve Bunce, who gets more airtime than Kim Jong-Un. BoxNation shows a lot of action, and fighters, we would otherwise never see, from the UK and elsewhere, including both minor and major events. If it ever disappeared, I would miss it. I just don’t see how the numbers stack up.

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