YouTuber Jake Paul has explained why he thinks Social Gloves, which Austin McBroom reportedly owns part of, could go bankrupt after underselling PPV tickets for YouTubers vs TikTokers.
The June 12 YouTubers vs TikTokers bout was a boxing event that turned out to be a lot more memorable than many fans expected. With knockout moments, controversies, and more, they even ended up trending widely on social media.
However, the drama didn’t stop after the event was over, as two weeks later fighters like Vinnie Hacker claimed that they were yet to be paid. Reportedly, the event only made 136,000 PPV sales, falling short of the projected 500,000.
Following this, Austin McBroom was accused of owning part of Social Gloves, the company that organized the event, with internet users digging up records from the United States Patent and Trademark Office directory.
Fellow influencer turned boxer Jake Paul thinks the pay drama and the massive loss in profit could even bankrupt Social Gloves.
“They thought they were gonna sell a certain amount of pay-per-views, and they didn’t sell anywhere near that, and they spent way too much money putting the event on,” Jake explained. “So it probably has to bankrupt the company. It’s harder to sell pay-per-views than people think.”
He went on to suggest that the high ticket prices and the fact that many of these influencers have young audiences were to blame for the lack of sales.
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“To come out and hit their first event ever and charge $60, with an audience that is very technically savvy—there was a ton of illegal streams happening for that fight, like hundreds and thousands of people watching it for free, because these are young 13-year-old kids who are gonna find it on the illegal website,” he explained.
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TikToker Bryce Hall, who lost to Austin McBroom in the headline fight of the night, has claimed that he is in legal talks with Social Gloves over the $5 million he was set to receive, so the pay drama is clearly not over yet.