logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

How Does Boxing Make Money?

By  +Follow September 20, 2013 9:21AM
Share:
Tickers Mentioned:

This last weekend saw the undefeated Floyd Mayweather defeat Mexican boxer Saul “Canelo” Alvarez in one of the major sports events of the year. While boxing has largely been relegated to the back of public consciousness, running well behind most other major sports in popularity and facing a stern new challenger in the combat sports arena with the continued rise of Mixed Martial Arts (MMA), that didn’t stop Oscar De La Hoya’s Golden Boy Promotions from paying Mayweather a purse of $41.5 million. And that’s before undisclosed payouts based on the pay-per-view numbers that could push Floyd’s payout even higher.

To put that $41.5 million in perspective, one needs only realize that in one night Mayweather made more than double what LeBron James, Kevin Durant, Carmelo Anthony, or Peyton Manning pull down in a year for playing their respective sports. No wonder the Grand Rapids-born fighter is known as “Money.”

So where’s this money coming from?

Gambling?

Good though, but no, not really. This is not to say that there isn’t a lot of money being made off of people betting on boxing, just that it isn’t really what pays for Mayweather’s purse. “Money” isn’t the only one cashing in on his name, casinos like Wynn Resorts, Ltd. (WYNN) , Las Vegas Sands Corp. (LVS) , MGM Resorts International (MGM) , and Caesars Entertainment Corporation (CZR) can expect a healthy boost to their sports book’s income because of this last week’s action. In fact, last weekend ended up being what 30-year Vegas veteran Jimmy Vaccaro called "the perfect storm" between the fight, the Alabama-Texas A&M game on Saturday, and Sunday night's big match-up between the Seattle Seahawks and San Francisco Forty-niners.

"In all my years, I've never seen a schedule that sets up so perfectly for betting," Vaccaro told ESPN (DIS)  the Friday before the fight. "You can't put together a schedule like this. It just happens, and when it does, it's definitely good for business. It's going to be off the charts."

Ticket sales?

Oh, man, that was funny. Ticket sales! No, certainly not. While the fight attracted very healthy attendance, breaking a record by selling over $20 million in tickets to see the fight live at the MGM (with an additional $2.6 million in tickets bought by closed-circuit viewers in Las Vegas), that’s still less than half what Mayweather made off the fight.

Television?

Bingo. It’s not exactly rocket science, but that’s where Floyd’s “Money” really comes from. It’s something he knows and banks on when he's negotiating deals with HBO (TWX) or Showtime (CBS) . His company, Mayweather Promotions, made the following announcement prior to his May fight with Robert “The Ghost” Guerrero:

"Mayweather is the [pay-per-view] king and averages over one million PPV buys per event, which is the highest PPV buy average of any boxer in history. At this record-setting PPV performance level, if all six fights contemplated by this deal occur, it will be the richest individual athlete deal in all of sports."

And the fight with Alvarez appears to have set all new records for pay-per-view receipts. While it doesn’t appear to be on the verge of passing the 2.5 million subscribers who shelled out to watch Mayweather fight Oscar De La Hoya in 2007, it should pass that fight’s record gross of $136.9 million because this most recent fight cost viewers upwards of $75 instead of the $50 they paid to see Mayweather-De La Hoya. With an estimated 2.2 million people purchasing the fight, its estimated to clear $150 million. Which should explain why Floyd Mayweather’s worth $40 million a fight.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for CBS
Tom Loffman
2 Mar 15 19:25:02
Biggest gainers today large caps: $NXPI 17.27% $FSL 11.77% $CXO 4.59% $CBS 4.48% $LUX 4.43% $PBA 4.23% $WDAY 3.87% $SWKS 3.85% $MXIM 3.40%
Jason Aycock
2 Mar 15 17:29:18
Moonves boosts CBS, dismisses merger talk again; shares rise http://t.co/XpGoX64xMf $CBS $TWX $VIA $VIAB
Quantpost Service
2 Mar 15 17:23:58
$CBS $TWX News: "Moonves boosts CBS, dismisses merger talk again; shares rise…" http://t.co/yFEH8lp7Bm Board view: https://t.co/QdbJ640X48
Consumer Stocks
2 Mar 15 17:23:57
Moonves boosts CBS, dismisses merger talk again; shares rise http://t.co/z41K7O5m8w $CBS $TWX $VIA $VIAB
M&A News
2 Mar 15 17:23:57
Moonves boosts CBS, dismisses merger talk again; shares rise http://t.co/ijAXhdoHo9 $CBS $TWX $VIA $VIAB
Stocks On The Move
2 Mar 15 17:23:56
Moonves boosts CBS, dismisses merger talk again; shares rise http://t.co/YbRJVmzwZB $CBS $TWX $VIA $VIAB
SA Breaking News
2 Mar 15 17:23:56
Moonves boosts CBS, dismisses merger talk again; shares rise http://t.co/R8nFbnr4LT $CBS $TWX $VIA $VIAB
MN
2 Mar 15 16:59:47
$CBS - "My COO, Joe Ianniello, said, within four years, we're $100 stock, so numbers better start with $100 before they want to talk to us "
Daniel Ernst
2 Mar 15 16:58:49
RT @mnarayannyc: $CBS "If somebody wanted to merge with us, they'd have to offer an awfully high price" - Moonves @ MS TMT
MN
2 Mar 15 16:58:26
$CBS "If somebody wanted to merge with us, they'd have to offer an awfully high price" - Moonves @ MS TMT
Taylor
2 Mar 15 16:49:26
$CBS nice move today. Looks really good. Should continue.
Nine Stocks
2 Mar 15 16:42:33
MACD(12,26,9) Bull Crossover Stocks (Mar.02): $AVP, $CBS, $CY, $FSL, $FTSM, $HLT, $MRK, $NXPI, $TJX http://t.co/pCvy7f3eZw
12Stocks.com
2 Mar 15 16:02:20
S&P500 #Stocks Performance $GME $CBS $AVP $RCL $HAR $HOT $WYN $SCHW $LLTC $CCL $TIF $PLL $WU $NOV $ZTS more@ http://t.co/RPeaHBHYi0
David Blair
2 Mar 15 14:27:42
$CBS WEEKLY break higher to reverse recent down trend and continue longer term up trend. Points to ponder above. http://t.co/j2KfGyM0PF
Anthony
2 Mar 15 13:33:19
RT @OptionsHawk: $CBS keeps powering higher, +1 from $60 break
Anthony
2 Mar 15 13:32:29
RT @OptionsHawk: $CBS monster day and calls hot into close 1K April 62.5's
Anthony
2 Mar 15 13:32:11
RT @OptionsHawk: @alsabogal I like the post-earnings consolidation and go moves, $CBS was a beauty similar one today, $LNKD looking similar
Market Parse
2 Mar 15 13:30:27
@BrightonWealth Your tweet about $CBS had a sentiment of 5 and was featured on Market Parse. http://t.co/5WyUW5R8WJ
Market Parse
2 Mar 15 13:30:27
@shannonpareil Your tweet about $CBS had a sentiment of 5 and was featured on Market Parse. http://t.co/5WyUW5R8WJ
Market Parse
2 Mar 15 13:30:26
@BrightonWealth $CBS Your tweet has been featured on Market Parse, for iPhone. http://t.co/YHInvBCk4m
Market Parse
2 Mar 15 13:30:26
@shannonpareil $CBS Your tweet has been featured on Market Parse, for iPhone. http://t.co/YHInvBCk4m
American Business TV
2 Mar 15 13:23:39
#ABTV #TOPSTOCKS $GME $CBS $AVP $RCL #Nokia CEO Sees no Change to Business Outlook http://t.co/M4D63nRfnl
Stock Trade Alerts
2 Mar 15 13:19:41
RT @OptionsHawk: @alsabogal I like the post-earnings consolidation and go moves, $CBS was a beauty similar one today, $LNKD looking similar
Al Sabogal
2 Mar 15 13:15:32
@OptionsHawk You mentioned $CBS ~a month ago...has been great!
Joe Kunkle
2 Mar 15 13:14:43
@alsabogal I like the post-earnings consolidation and go moves, $CBS was a beauty similar one today, $LNKD looking similar
StockCharts.com
2 Mar 15 13:12:40
Today's Top 5 Technical Gainers among Large Cap Stocks: $BACHF, $CBS, $HOT, $GME, $GMCR http://t.co/ctFzkw6tom #sccrankings #stockcharts
MomentumpartnersLLC
2 Mar 15 13:00:55
$cbs wow that cahrt and not many meantioned it today
J
2 Mar 15 12:59:53
$CBS sweep of April $62.50 calls bought at $1.72
Dan Hurley
2 Mar 15 12:59:03
Amazes me that mgmt teams are allowed to make comments like "2020 guide may be conservative" and imply Q1 beat to a closed audience $CBS
Joe Kunkle
2 Mar 15 12:58:37
$CBS monster day and calls hot into close 1K April 62.5's
Dan Hurley
2 Mar 15 12:55:14
"Les is more" in full force today $CBS
androsForm
2 Mar 15 12:24:35
$CBS chart http://t.co/faoObO1Ru0 | This boy's got legs! #holding MAR15 $57.5 Cs @ cost 2.30
Shannon Bond
2 Mar 15 11:24:11
RT @RichBTIG: The question for $CBS's Mooves is even if everyone still watching TV, are they ENGAGED with TV & most importantly the ads (2/…
Rich Greenfield
2 Mar 15 11:11:46
The question for $CBS's Mooves is even if everyone still watching TV, are they ENGAGED with TV & most importantly the ads (2/2)
bored2tears
2 Mar 15 11:06:21
"Judge Judy" extends contract, will remain with show through 2019-20 season. http://t.co/UAP4mB2wSm $CBS #media #tv
Cutlass
2 Mar 15 10:57:10
RT @OptionsHawk: $CBS keeps powering higher, +1 from $60 break
Alan Battles
2 Mar 15 10:56:22
$CBS breaking out of flag on weekly chart. Old-line media reinventing itself? Counts quite a bit higher. http://t.co/FbkIVm7olE
Joe Kunkle
2 Mar 15 10:54:34
$CBS keeps powering higher, +1 from $60 break
Tom Staudt
2 Mar 15 10:40:40
Feb TV broadcast roundup: $CMCSA NBC down 59%, $FOX Fox down 25%, $DIS ABC increased 68% & $CBS increased 34% #ratings #TV #Media
Anthony
2 Mar 15 10:06:23
RT @OptionsHawk: $CBS breaking above $60 out of earnings consolidation
Breaking News
2 Mar 15 09:52:02
$VOYA $GE $PG $UNP $BRK.A $CBS $HON $FL $XOM $CVX: This fund hasn't bought a new stock in 80 years: http://t.co/yZZis4zOS6
ProVesting
2 Mar 15 09:47:03
$VOYA $GE $PG $UNP $BRK.A $CBS $HON $FL $XOM $CVX: This fund hasn't bought a new stock in 80 years: http://t.co/GM5NMFUdHd
Issaquah Capital
2 Mar 15 09:43:35
$CBS running away from our entry level.. looking to add on weakness, if it ever comes...
Wholesale MBA
2 Mar 15 09:25:48
RT @StockSignaling: After Hours Volume Leaders: $KO $BAC $FB $AAPL $GE $C $WFC $MSFT $PBR $VRX $F $AIG $ISIS $CBS $JPM http://t.co/DEd0xkdN…
NASDAQ
2 Mar 15 09:01:41
$CBS - The Daytime Emmy® Awards Return...Live Television Broadcast of the 42nd Annual Daytime Emmy® Awards to http://t.co/HO5R76M1uK
Stock Trade Alerts
2 Mar 15 07:52:18
RT @OptionsHawk: $CBS breaking above $60 out of earnings consolidation
Joe Kunkle
2 Mar 15 07:47:51
$CBS breaking above $60 out of earnings consolidation
FinancialJuice
2 Mar 15 07:26:03
BofAML says CBS $CBS could be valued at USD 80/shr #stocks
charles parrino
2 Mar 15 07:25:43
$CBS ‘Could’ Be Valued at $80/Shr in CBS/TWX Combination: BofA 10
Breaking News
2 Mar 15 07:07:05
$ATOS $CBS: Investor's Choice: Atossa Genetics (NASDAQ:ATOS), CBS ...: http://t.co/eKaQ3kVBc8
				
				
By  +Follow September 20, 2013 9:21AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.