Saturday, September 17, 2011

Mayweather vs Ortiz: Inside the Economics of Floyd Mayweather Jr

source: Scott Christ | Bad Left Hook

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.