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 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
ProVesting
19 Dec 14 12:09:02
$CBS: Did Mark Cuban Really Finalize A Game-Changing Trade At The ... http://t.co/usyTeI5lkg http://t.co/mkA05XE3iY
Lauren Holmes
19 Dec 14 12:06:35
$CBS and $VIAB will be seriously affected by $NFLX going forward. Check our analysis here http://t.co/VrsGMCgPOC
Mariano Lehmann
19 Dec 14 11:31:21
Would you like great research on stocks $LH $CBS $THG $DO #NASDAQ http://t.co/NDemYMcQIp
Tyson Gerard
19 Dec 14 11:25:41
Regretting your investment in $ARG $PLCM $CBS $GOOG #financial http://t.co/arFcAtapeJ
Nathalie Garnett
19 Dec 14 10:51:53
Latest information on #stocks like $TE $CBS $JBL $BLOX I suggest http://t.co/CnPSKdHjNc
Thomas Rice
19 Dec 14 08:36:57
Not going to roll the $CBS calls. Going to let it get called. They should be unless something really unexpected happens.
Jutta Mcfall
19 Dec 14 08:14:48
Are you hanging on to $KSU $CBS $WAT $QLYS #financialnews http://t.co/N6lpHR1rFY
Wyatt Research
19 Dec 14 07:34:17
How To Invest In Today’s TV Industry http://t.co/6zSYiUT0mA $SNE $GOOGL $WWE $TWX $CBS $STRZA $DISCA $AMCX $NFLX $OUTR $AMZN $FB $CHTR $DIS
Kelly Orta
19 Dec 14 07:15:10
Shoud you sell or hold stocks like $MU $CBS $SPLS $SSO #Research http://t.co/wvKWZr86jg
Alistair Perreault
19 Dec 14 07:08:11
#Stocks you might want to hold onto $BMY $CBS $ANSS $LGND #Research http://t.co/EVUywF99h5
Fish4Bucks
19 Dec 14 06:46:57
60m $CBS Upper Trendline Pressure 55.000 #futures #stocks 09:46:16 AM http://t.co/lSMcM5bjRW Signals based ... http://t.co/lSMcM5bjRW
Asha Carvalho
19 Dec 14 06:33:34
Avoid mistakes like $MKL $CBS $ROVI $BLOX #Stock http://t.co/NfLGm4hiT8
Arnulfo Bearden
19 Dec 14 06:13:33
5 Stocks you should be watching $CCI $UTHR $CBS $S #financial http://t.co/QD77xZnUgL
Tressie Clayworth
19 Dec 14 04:10:23
Get #Pennystock Research on $WDAY $CBS $TEG $QLYS #personalfinance http://t.co/RydsyVYKAo
bored2tears
19 Dec 14 02:54:03
Tim Goodman: Colbert will continue to thrive after "Report." http://t.co/vZiOk8xEHq $CBS #media #PopCulture #tv
Latoyia Martin
19 Dec 14 01:58:58
Couple of Stocks you should Watch $PNC $PCP $CBS $YOD #moneymanagement http://t.co/RkBIAfM9tV
Keila Forte
19 Dec 14 01:36:12
#Stocks you migh want to Sell $CBS $MYL $MBI $NUAN Must have http://t.co/1o4aEU2V7W
Latoyia Martin
19 Dec 14 00:39:07
Are you putting your money in $SIRO $TRW $CBS $BWP Must see http://t.co/cK9KHLEpZv
Asha Carvalho
19 Dec 14 00:35:39
Whats going on with $CBS $CSCO $WCN $FB #StockMarket http://t.co/E0pVna7CwG
Hae Forman
19 Dec 14 00:28:40
Are you putting your money in $D $HOLX $CBS $S #financialnews http://t.co/gfj5TVJEPP
Alistair Zhang
19 Dec 14 00:28:39
Sick and Tired of losing money on $CBS $JBL $GES $CI #wealthmanagement http://t.co/R4FvCVJDw9
DailyStockPicks
19 Dec 14 00:13:08
$ECIG 400% upside buyout target of $0.50. $200M revenue expected in 2015 $CBS $CTRP $TPH traders read: http://t.co/xi3978GuDs
Tempie Ramey
18 Dec 14 23:57:53
Should you buy, sell or hold $CBS $WAT $AMZN $S #equity http://t.co/ZSdsvxe8n0
Louella Ivy
18 Dec 14 23:41:38
Looking for more info on $SNV $SLXP $CBS $GRPN #investing http://t.co/WKnROfaQJo
Necole Diaz
18 Dec 14 23:13:51
Are you considering selling $TE $CBS $ABT $CBM Check out http://t.co/4AT1cZGSvu
Nixon Domville
18 Dec 14 20:19:27
Regretting your investment in $CBS $DIS $GRPN $GRPN #personalfinance http://t.co/tfn0jhIMde
Lawanda Mcgill
18 Dec 14 19:57:19
#Stock Watchlist you should be looking at $DEI $CBS $WYNN $SLW Visit http://t.co/OKoejylUsK
Mark Trader
18 Dec 14 18:55:26
http://t.co/FOdvsRfk32 has 6 pro traders in their chat room. real-time trade alerts, and offer a 14-day trial. $AMX $CRM $EMC $AMAT $CBS
Lu Askew
18 Dec 14 18:47:35
#Stocks you migh want to Sell $CBS $SCCO $TECH $RAX #Stock http://t.co/Wn8R2jvpbC
chartguy89
18 Dec 14 18:32:26
CBS +2.44% Stock Charts $CBS CBS Corp. Cl B (NYSE) Last Updated: 12/18/2014 20:32:27 CBS Stock Chart - 1 Month http://t.co/RIyMzUQ2NY
Horacio Beebe
18 Dec 14 17:43:20
Looking for research on $DOV $CBS $DOW $SLW #liquidity http://t.co/2uiGebCMth
$Stocknewsalerts
18 Dec 14 17:17:41
$CBS ALERT: New CBS Corporation SEC Filing From our Stock News Alerts App
Milagro Galloway
18 Dec 14 17:00:15
Great #Pennystock #research $RKT $SO $CBS $QLYS #Research http://t.co/CSNnQc0Sr8
Mauro Atwood
18 Dec 14 14:26:34
Would you like great research on stocks $CBS $DPZ $GRA $QLYS #Research http://t.co/RByxMdOAQR
Fish4Bucks
18 Dec 14 12:40:12
60m $CBS Upper Trendline Pressure 54.430 #futures #stocks 03:40:03 PM http://t.co/lSMcM5bjRW Signals based ... http://t.co/lSMcM5bjRW
Dannette Sizemore
18 Dec 14 12:31:16
Couple of Stocks you should Watch $BOKF $BMRN $CBS $RT View now http://t.co/UZj4YEJUhB
Market Realist
18 Dec 14 12:06:55
Highlights of Maverick Capital's 3Q14 positions $CBS $BABA $FOXA $BIDU http://t.co/SQQJbKvV67
Shaquita Foy
18 Dec 14 12:06:38
Avoid mistakes like $DE $LLY $CBS $GRPN #wealthmanagement http://t.co/ozyTXUWiI6
Mark Trader
18 Dec 14 11:57:33
http://t.co/FOdvsRfk32 has 6 pro traders in their chat room. real-time trade alerts, and offer a 14-day trial. $AMX $CRM $EMC $AMAT $CBS
Selling_Options
18 Dec 14 11:52:05
$6,700 - Win- $CAT $YHOO $M $UNG $HTZ $SINA $VLO $HD $CBS $CRM $SDRL $PETM $GMRC $GLD $QIHU $PEP $NFLX $TSLA Lose- $MCD $RAX $AAPL $BBY $USO
TraderMinute
18 Dec 14 10:53:01
If $CBS can break & hold above $55 think it could head to $58 or $59
Trefis.com
18 Dec 14 10:26:17
News Corp Benefits as Higher Demand For E-books And Harlequin Acquisition Will Driv... http://t.co/OUCkMDq4qr by Trefis Team $NWS $NWSA $CBS
Tom Silver
18 Dec 14 09:50:10
RBC Top 30 Global Ideas for 2015: $AMZN, $DOL, $H+M, $YUM, $CBS, $APH, $MRVL, and $MGA, Bargain Shopping in Resources: $SU, $MPC, $BG, $AGU
BlockTradeAlert
18 Dec 14 08:30:34
BLOCK TRADE: $CBS 530,000 shares @ $54.05 [11:30:34]
Alex Rose
18 Dec 14 06:56:24
Exited short $CBS Dec 19 $52 puts for 5c and gain of 1,700%.
sonyvalentine
18 Dec 14 06:18:08
RT @Instaya: Are American #Media $CMCSK $DIS $NWS $CBS #Hollywood and #technology companies $MSFT $GOOG $AAPL $NFLX #SiliconValley afraid …
sonyvalentine
18 Dec 14 06:10:31
RT @attivacapital: Sony Stock Is a Bargain according to Barron's http://t.co/azKgz59109 $sne $aapl $dis $via $msft $goog $nflx $ssnlf $cmcs…
Instaya
18 Dec 14 05:45:20
RT @attivacapital: Sony Stock Is a Bargain according to Barron's http://t.co/azKgz59109 $sne $aapl $dis $via $msft $goog $nflx $ssnlf $cmcs…
Attiva Capital
18 Dec 14 05:38:00
Sony Stock Is a Bargain according to Barron's http://t.co/azKgz59109 $sne $aapl $dis $via $msft $goog $nflx $ssnlf $cmcsk nws $cbs
Ashleigh Neuman
17 Dec 14 18:28:34
Would you like great research on stocks $QEP $AMCX $CBS $CSIQ I suggest http://t.co/RH7gyL3BnO
				
				
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.