Mayweather vs Ortiz: Inside the Economics of Floyd Mayweather Jr
by Scott Christ on Sep 16, 2011 10:24 PM EDT
in Boxing News Analysis
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The New York Times has a great piece by Greg Bishop on the economics of Floyd Mayweather Jr and all the streams of revenue that come to him for one of his big fights. As we mentioned just a bit ago, Mayweather is going to make a $25 million guarantee, but Richard Schaefer says that Floyd should leave with around $40 million total.
"It’s never been done," Mayweather, who is 41-0, said about his financial model. "Not in entertainment history. Not in sports history. You see that arena Saturday? It’s all Mayweather money. Want a hot dog? Mayweather money. Want a T-shirt? Mayweather money. I need all that."
... Those streams include foreign sales for a fight broadcast in 168 territories; closed-circuit revenues (in 2,000 or so bars and restaurants nationwide, in theaters and in rooms at Las Vegas casinos); site revenue (ticket sales, merchandise); and sponsorships. Most boxers would see little, if any, of that money, whereas, Schaefer said: "All revenues here are Mayweather revenues. He gets part of everything."
Nobody in boxing -- nobody -- has this sort of control of revenue. Hell, nobody in all of sports. Mayweather is a money machine, and it's more than just his PPV sales, more than just his live gates. He's got his hand in everything. That's unprecedented, and may not happen again any time soon.
So with this information, you might understand more about why Mayweather believes press rival and money rival Manny Pacquiao has a bad contract with Top Rank.
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I'm not a journalist, just an interested fan (with access) wanting to know.
Just this morning (as in first email of the day) I checked in with TR this morning (as a friend)…. and asked, among many other questions, who was the bigger grossing fighter, Manny or Floyd.
My question was. “Worldwide,…with the gate, the PPV, etc….who is the bigger grossing fighter, Floyd or Manny?”
The answer: “Not even close. Floyd global appeal very limited. Manny is second globally only to Tyson”.
I would love to know exactly how that translates into the bottom line but I have little doubt that is the case. The question not asked was how much does Manny actually make.
I’ll leave that to the real journalists….Scott.
"Silence is golden when you can't think of a good answer"
---- Muhammed Ali
The question not asked was how much does Manny actually make.
Probably wouldn’t be the question answered even if you asked, and it certainly wouldn’t be answered if I asked.
The way they both go through money, my cynical side wonders if all of this is a conversation that will sound silly in 10 years.
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"To the town of Agua Fria rode a stranger one fine day..."
by Scott Christ on Sep 17, 2011 2:24 AM EDT up reply actions
Sadly...very true
I read the article in the times and no offense to the writer but the minute he started mentioned the expenses incurred in promotion and the gambling , I knew he was already missing the beat.
First of all, it’s not what you make, it’s what you keep. Gamblers (as a rule) in the long run give back more than they make. And anyone who runs a business knows that just because you write yourself a big check, whether it be first or last, the expenses still have to be paid…and the net is TBD (to be determined) .
Floyd’s pattern of skirmishes with the IRS leads me to conclude that he counts and spends his money first, before he pays all of his obligations. In other words, those ‘expenses’ that the writer seems to take in stride is where the real story begins to end.
I don’t have a clue what Manny’s real situation is now but unless he can get his own profligate habits under control sooner than later, I don’t see how his long term picture can be that much brighter. What he does have however is 365 days, 12 month a year income from endorsement world wide; something that exists in between and may very likely after his days in the ring
"Silence is golden when you can't think of a good answer"
---- Muhammed Ali
Floyd is american and with a wide american audience all over the world years before Manny
Pac first big time hit and starting to be known as a crossover star within America, Latin and the rest of Asia was after his total demolition of DLH. Before that Floyd is already a known HBO PPV star. And after PAC’s flattening of Hatton and destruction of Cotto he started to create buzz in some parts of UK and Puerto Ricans (but up to this day still unclear if he gain them as fans). Manny fighting Clottey of course gave him name recognition as well in some parts of Africa. So to sum it up Manny is more popular than Floyd in other races from different parts of the world (including Americans) but does not equate for sure in PPV sales especially for HBO (where we got our datas for PPV) and TOPRANK records. One example from this is the COTTO fight, its an HBO PPV but there is also a TOP RANK PPV at the same time which is distributed on places that couldn’t reach by HBO (in my own belief) because they are the ones doing it here in the Philippines and Asia perhaps then in the UK it was SKY (if I’m not mistaken) So definitely to measure Manny’s PPV sales HBO is not the ABSOLUTE basis because mostly HBO are only serving the American public or American range of distribution. But if Manny is an American his catapult of being a PPV box office will eclipse Floyd’s PPV easily
Has anyone heard that Chris Rock bit?
About how when when white people get rich, they are just rich for life and their kids are rich. But, when a black guy gets rich its like their is a countdown until he is poor.
Let’s give the devil his due, Floyd makes lots of money. But, he can’t buy the wealth of Pacquiao. If Pacquiao lost every cent he made boxing he could walk into any home in the Phillipines and he treated like a king. If he wanted to be an actor he could feed his family. Pacquiao can’t be broke, as his coach Freddy Roach suggests. He’s not a boxer like anyone else.
Interestingly, Mike Tyson has lost millions of dollars but he has seemed to bounce back to coast on his legendary status.
Hence the comment made regarding global appeal.
Mike has charm and tremendous appeal. Not for everybody but for many that I suspect never even saw him fight.
"Silence is golden when you can't think of a good answer"
---- Muhammed Ali
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