By Earl E: The rumors in the boxing wire indicate Top Rank lost $100K when WBO welterweight Champion Terence Crawford (29-0, 20 Kos) won a unanimous decision over WBC Champion Viktor Postol (28-1, 12 Kos) on HBO pay-per-view (PPV) at the MGM Grand in Las Vegas, Nevada. This was an example of economics in play. Merriam-Webster defines economics as “Relating to the process or system by which goods and services are produced, sold, and bought.”
One law in economics is called the law of supply and demand, which Merriam-Webster defines as “The amount of good and services are available for people to buy compared to the amount of goods and services that people want to buy.” PPV is valuable when the market is in equilibrium, that is when the forces of supply and demand are balance. This is the meeting point in which sellers are willing to sell at a certain price and which buyers agree to that price. The problem is this modern boxing era is not in market equilibrium.