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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for CBS
Ravi Romo
28 May 15 21:44:58
#ReadThis: Here’s the case for how Apple could blow up the cable industry http://t.co/8bvYrC2NtQ $AAPL $CMCSA $TWC $CHTR $DTV $CBS $DIS $FOX
Steve Pacheco
28 May 15 19:50:52
Mark McCormack Transformed Sports As First Superagent http://t.co/RlqTA7EEpJ #IBDNews via @IBDinvestors $CBS $NKE
MarketSmith
28 May 15 15:27:56
CBS CEO Said to Meet With Apple to Discuss TV Deal: http://t.co/kJ5CkCsyDN $CBS $AAPL
Top Stocks
28 May 15 15:27:56
CBS CEO Said to Meet With Apple to Discuss TV Deal: http://t.co/DwlvLWLsKr $CBS $AAPL
FinSentS SP500
28 May 15 15:17:14
$CBS:US Apple, CBS Corp discuss TV deal #CBS CORP http://t.co/LExsMdEUQq #SP500
dailystockplays.com
28 May 15 14:38:30
Lizard Bearish http://t.co/AsIX9icgnG $EXPR $BIOC $IDTI $WWAV $DRI $XLNX $BLMN $CAH $ERY $SWKS $CDNS $CBS $SEE $EA $LRCX $BIIB $EXPR $BIOC
Matthew M. Polka
28 May 15 13:34:12
Right, #WeAreBroadcasters...except $CBS #LesMoonves just said they are #Programmers. #Oops. Give back #spectrum and end #retrans then! :-/
Market Int Center
28 May 15 11:03:28
CBS $CBS Trading Near $64.50 Resistance Level ( http://t.co/W8L0YlhDfy )
Matthew M. Polka
28 May 15 09:52:06
#AmericanTelevisionAlliance Reax 2 $CBS CEO’s Disturbing Comments | @ATVAAlliance http://t.co/abgXNfmVty B'casters can't have it both ways!
Charles Bell
28 May 15 09:31:19
RT @TedatACA: "We're programmers. The term 'broadcasting' doesn't mean anything anymore" - Moonves $CBS #codecon http://t.co/jHJ1o54cvS
BreakingStocksNews
28 May 15 09:27:02
$DISCA $CBS $VIAB $DIS $CMCSA $TWX $AAPL $MSFT $YHOO: Media CEOs Dominate Ranks of Top-Paid Executives: http://t.co/xbwboeqWBd
Ted Hearn
28 May 15 09:18:46
"We're programmers. The term 'broadcasting' doesn't mean anything anymore" - Moonves $CBS #codecon http://t.co/jHJ1o54cvS
Brian Stoffel
28 May 15 08:15:27
Doing a little research on executive pay. There's no doubt media CEOs are the most ridiculously paid #ExecutivePay $DISCK $LGF $CBS $VIA
FinSentS SP500
28 May 15 07:20:43
$CBS:US Apple, CBS Corp discuss TV deal #CBS CORP http://t.co/xWdOAlltD0 #SP500
Usman zahid
28 May 15 07:07:33
RT @Bidnessetc: Latest Insider Selling - http://t.co/uCUFPu3OyC $GOOG $GOOGL $AMAT $CBS http://t.co/Q3mMcpWvms
Bidness Etc
28 May 15 07:01:50
Latest Insider Selling - http://t.co/uCUFPu3OyC $GOOG $GOOGL $AMAT $CBS http://t.co/Q3mMcpWvms
Sleek Money
28 May 15 06:50:48
Insider Selling: Joseph A. Califano Sells 5,093 Shares of CBS Stock $CBS http://t.co/PbDiUu4diE
BreakingStocksNews
28 May 15 06:49:08
$CBS: Insider Selling: Joseph A. Califano Sells 5093 Shares of CBS Stock ...: http://t.co/FQOyvcP6Cl
Stocks Creamun
28 May 15 06:15:49
CBS Corporation Class B Common $CBS 62.65 N/A% 4:00pm https://t.co/Pa7hloe5u9
Stocks Creamun
28 May 15 06:15:10
CBS Corporation Class B Common $CBS 62.65 % 4:00pm https://t.co/Pa7hlovGSJ
Buy-Side Otter
28 May 15 05:57:09
@Mazmasta I like $CBS here, nice move in tandem with $VIAB
Breaking News Now
28 May 15 05:33:02
$GOOG $AMAT $CBS: Insider Selling: Google Inc (GOOG), Applied Materials, Inc. (AMAT ...: http://t.co/m9VrAUb25Z
Jason Olive
28 May 15 05:32:19
RT @SeekingAlpha: Today's Market: Companies To Watch For Buyout News http://t.co/ICy6nmqIur $AAPL #APPLE $ALTR $AVGO $AZN $BRCM $CBS $CMCSA…
Fraser Mackie Ltd
28 May 15 05:25:30
RT @SeekingAlpha: Today's Market: Companies To Watch For Buyout News http://t.co/ICy6nmqIur $AAPL #APPLE $ALTR $AVGO $AZN $BRCM $CBS $CMCSA…
Apple News Outlet
28 May 15 05:23:33
RT @SeekingAlpha: Today's Market: Companies To Watch For Buyout News http://t.co/ICy6nmqIur $AAPL #APPLE $ALTR $AVGO $AZN $BRCM $CBS $CMCSA…
Quantpost Service
28 May 15 05:21:21
$CBS $CMCSA News: "Today's Market: Companies To Watch For Buyout News $AAPL …" http://t.co/u7YF94sPwX Analyze: https://t.co/XaQ3FZd2Yp
Seeking Alpha
28 May 15 05:21:19
Today's Market: Companies To Watch For Buyout News http://t.co/ICy6nmqIur $AAPL #APPLE $ALTR $AVGO $AZN $BRCM $CBS $CMCSA $CMCSK $DIA
ProVesting
28 May 15 04:33:03
$AAPL $CBS: Apple Inc. (NASDAQ:AAPL), CBS Corporation (NYSE:CBS) Talk ...: http://t.co/wdu2wYdcL2
finsents
28 May 15 04:14:18
$CBS:US Apple, CBS Corp discuss TV deal #CBS CORP http://t.co/V1KhR4mdZg #SP500
Tad Doughty, CFS
28 May 15 04:11:26
CBS will maybe-proba-likely be part of Apple TVs new service. $CBS $AAPL http://t.co/wI1DdhvI2B
David Mercer
28 May 15 03:47:55
RT @carlquintanilla: "We're programmers. The term 'broadcasting' doesn't mean anything anymore" - Moonves $CBS #codecon http://t.co/0reKTzJ…
bored2tears
28 May 15 02:19:27
Redstone's children absent as frail mogul fêted at 92nd birthday party at Bel Air strip mall. http://t.co/Jnmv2TSDll $CBS $VIAB #media
Penny Stocks Blog
28 May 15 01:51:07
RT @stock_forums: UVXY ProShares Ultra VIX Short-Term Futures ETF Current Price http://t.co/bLbH5A7eqo $UVXY $TIF $GDXJ $CBS #UVXY #pennys…
Stock Forums
28 May 15 01:47:05
UVXY ProShares Ultra VIX Short-Term Futures ETF Current Price http://t.co/bLbH5A7eqo $UVXY $TIF $GDXJ $CBS #UVXY #pennystocks #nasdaq
danrocks
28 May 15 01:44:04
PCLN http://t.co/QnCTfTKjrg Inc. Bid Size http://t.co/qUxdQjgIMo $PCLN $CBS $GOOG $TLT #PCLN #tradeideas #share
Henry Williams
28 May 15 01:39:20
CBS CEO Confirms Talks With Apple Inc. Regarding Apple TV - http://t.co/sjX6bT1tFH - $AAPL $CBS http://t.co/Jm46DI0v3R
BusinessFinanceNews
28 May 15 01:38:38
CBS CEO Confirms Talks With Apple Inc. Regarding Apple TV - http://t.co/fOYRb4cFbL - $AAPL $CBS http://t.co/oxNyDL5uBZ
Lucky Jimmy
28 May 15 01:36:33
CRUS Cirrus Logic, Inc. % Change http://t.co/tSmNOhDlBw $CRUS $ATML $CBS $UNG #CRUS #investing #stock
IH News Desk
28 May 15 01:36:17
CBS CBS Corp. Open http://t.co/c1FL33mmz4 $CBS $EPI $NFLX $JNUG #CBS #stockmarket #finance
Breaking News Now
27 May 15 21:27:02
$NFLX $AMZN $CBS $CMCSA $DTV: TV's 'Golden Age' Won't Last Because You're Not Watching Enough: http://t.co/H9E4pqMQu5
Dakota Financial
27 May 15 20:42:51
Insider Selling: CBS Director Joseph A. Califano Sells 5,093 Shares of Stock $CBS http://t.co/TSlO6Zsmgf
Breaking News Now
27 May 15 20:33:05
$CBS: Insider Selling: CBS Director Joseph A. Califano Sells 5093 Shares ...: http://t.co/SMARsDyVCB
WKRB News
27 May 15 19:54:30
CBS Director Joseph A. Califano Sells 5,093 Shares $CBS http://t.co/6BqgIbgpUQ
Breaking News Now
27 May 15 19:43:04
$CBS: CBS Director Joseph A. Califano Sells 5093 Shares (CBS): http://t.co/myC5fa86Yq
Ticker Report
27 May 15 19:41:44
CBS Director Joseph A. Califano Sells 5,093 Shares $CBS http://t.co/4aFMXjYUk6
FOBManny
27 May 15 17:56:30
#Moonves: #CBS expects deal with #Apple on #TV $AAPL $CBS http://t.co/Mf6YuHpDzd
Super-Hair.Net
27 May 15 17:23:11
Curls to perfection! RT @JBoorstin Getting ready for @CNBCClosingBell on #codecon Les Moonves story $cbs http://t.co/LOXmx3kfgm
Julian March
27 May 15 16:24:17
RT @carlquintanilla: "We're programmers. The term 'broadcasting' doesn't mean anything anymore" - Moonves $CBS #codecon http://t.co/0reKTzJ…
ProVesting
27 May 15 16:22:04
$CMCSA $CBS $CBSA: Broadcasters Shop at Home for Shows: http://t.co/HkOOJFZmmw
Breaking News Now
27 May 15 16:13:04
$CBS: Cbs Corp (CBS) Insider Selling : Joseph A Califano Sells 5093 ...: http://t.co/YqIitTdf6h
				
				
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.

Login or Register

LOG IN