Ibai makes €800,000 from La Velada del Año: business or risk?
Ibai Llanos takes in €12.8 million from La Velada del Año after spending €11.9 million. Net profit after taxes comes to €400,000. Business or risk?
English · Original discussion in Spanish · Published
Ibai pockets €800,000 from La Velada del Año: the streaming business in numbers
Spending €11.9 million on a boxing and entertainment event to earn €12.8 million in revenue leaves a margin of €800,000. That is the figure that has come to light from La Velada del Año, the mega-event organized by Ibai Llanos. A 6.7% return on the total outlay which, after a 50% tax rate, leaves around €400,000 clean. The debate is served: is it a success or a disproportionate risk for the content creator's pocket?
The figures behind the €12 million in spending
The most striking line in the budget is the €5 million in technical production. An amount some analysts question, pointing to possible corporate structures to reduce the tax burden by subcontracting to the creator's own companies. The rest of the money is split between stadium infrastructure, fighter fees, logistics and promotion. On the other side of the ledger, the revenue: ticket sales, broadcasting rights and sponsors. Among the latter, InfoJobs stands out, whose presence at an amateur boxing event has surprised more than one person.
A solid business or an economy of scale?
Some argue the real profit lies not in the direct bottom line but in the marketing: Ibai promotes himself and lays the groundwork for future events. From that perspective, the €800,000 net would be almost a bonus. Others, however, see an enormous risk: the creator did not put up the money himself — it was financed by sponsors and ticket sales — but the personal toll and the pressure of organizing an event of that magnitude are not to be underestimated.
As if that were not enough, the shadow of the Spanish tax authority (Hacienda) hangs over the profit. With an effective rate close to 50%, Ibai's final take-home would be around €400,000. An amount that would be a dream for most, but in the context of a €12 million investment it tastes like too little to some and like a lot to others. The unsettling conclusion: a 6.7% return is a typical margin for large companies, but given that this is a one-off event with no clear scalability, the risk seems disproportionate.
Spending €11.9 million on a boxing and entertainment event to earn €12.8 million in revenue leaves a margin of €800,000. That is the figure that has come to light from La Velada del Año, the mega-event organized by Ibai Llanos. A 6.7% return on the total outlay which, after a 50% tax rate, leaves around €400,000 clean. The debate is served: is it a success or a disproportionate risk for the content creator's pocket?
The figures behind the €12 million in spending
The most striking line in the budget is the €5 million in technical production. An amount some analysts question, pointing to possible corporate structures to reduce the tax burden by subcontracting to the creator's own companies. The rest of the money is split between stadium infrastructure, fighter fees, logistics and promotion. On the other side of the ledger, the revenue: ticket sales, broadcasting rights and sponsors. Among the latter, InfoJobs stands out, whose presence at an amateur boxing event has surprised more than one person.
A solid business or an economy of scale?
Some argue the real profit lies not in the direct bottom line but in the marketing: Ibai promotes himself and lays the groundwork for future events. From that perspective, the €800,000 net would be almost a bonus. Others, however, see an enormous risk: the creator did not put up the money himself — it was financed by sponsors and ticket sales — but the personal toll and the pressure of organizing an event of that magnitude are not to be underestimated.
As if that were not enough, the shadow of the Spanish tax authority (Hacienda) hangs over the profit. With an effective rate close to 50%, Ibai's final take-home would be around €400,000. An amount that would be a dream for most, but in the context of a €12 million investment it tastes like too little to some and like a lot to others. The unsettling conclusion: a 6.7% return is a typical margin for large companies, but given that this is a one-off event with no clear scalability, the risk seems disproportionate.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (10 replies).
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