Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?


How Does Boxing Make Money?

By  +Follow September 20, 2013 9:21AM
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?


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.


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.

Signup for our daily newsletter and get our best articles emailed right to you!

Results for CBS
19 Sep 14 09:59:35
Weekly Media Notes: CBS And Media General Ink Long Term Affiliate Deal http://t.co/UjRIVbMLb7 by Trefis Team $CBS $DIS $VIA
Chris Kelly
19 Sep 14 09:24:03
News flash: You don't like fast-forward http://t.co/83BcM9JfAP $DIS, $CMCSA, $CBS, $FOXA, $TWX, $AMCX, $VIA, $SNI, $MSG, $CRWN
19 Sep 14 09:16:43
News flash: You don't like fast-forward http://t.co/WdccSfVbkv $DIS $CMCSA $CBS $FOXA
XM Capital
19 Sep 14 08:09:26
@alsabogal VIAB weak as well. When $CBS dropped to this level back in May, I sold some Sep 52.5 puts on it for the bounce. Expire today.
19 Sep 14 08:05:10
60m $CBS Check Short Profit Area 56.095 Alert @ 11:04:23 AM #trading #stocks http://t.co/WZwETG8am0 Signals ... http://t.co/WZwETG8am0
XM Capital
19 Sep 14 08:03:28
@alsabogal Great minds think alike. Just bought some $CBS myself. 53.50 stop.
XM Capital
19 Sep 14 07:50:05
Buying some $CBS here 56.11 with a 6+ month time horizon. $53.50 stop. Aiming for mid-60s. http://t.co/iVMnPxzHNU
18 Sep 14 19:21:09
$CBS - The Good Wife' Returns http://t.co/A2zMO4cBQ5
18 Sep 14 15:49:48
$CBS ALERT: New CBS Corporation SEC Filing From our Stock News Alerts App
Tom Staudt
18 Sep 14 13:31:28
Another TV re-brand: TVGN becomes Pop- owned by $CBS No surprise, President Brad Schwartz has re-branded 8 different networks. #Meda
Wayne Yu
18 Sep 14 12:54:53
Think guys are selling $cbs as one of the only ways to short the #nfl
18 Sep 14 11:37:02
$CBS - TVGN (TV Guide Network) to Rebrand as “POP” http://t.co/cXTIknXgN3
18 Sep 14 11:25:02
CBS : TV Guide Network renaming itself POP http://t.co/ETDAvm2CZh $CBS
Paul Ciana
18 Sep 14 10:55:55
$CBS a low risk long here for a bounce? http://t.co/FJYaQQhhos
Equity Clock
18 Sep 14 08:20:22
Technical action by S&P 500 stocks to 11:00 AM: Bullish. Breakouts: $DLTR, $A, $APD, $CMA, $MMC, $BMY, $SHW. Breakdowns:$NEM, $CBS
Market Int Center
18 Sep 14 07:32:36
Potential CBS $CBS Trade Targets 3.89% Return ( http://t.co/yzamunBbPr )
Zero Filter
18 Sep 14 05:26:11
#Yummy #Latinamerica #partnership $WWE $FOXA #cnbcfastmoney #streetsigns #jimcramer #zerohedge #seekingalpha $DIS $CBS $NFLX $AMZN #Brazil
Seeking Alpha
18 Sep 14 05:26:00
Networks Banking On Series Like 'How To Get Away With Murder,' 'Gotham' And 'Flash' To Lure... http://t.co/mGLUAKoUxv $CBS $CMCSA $DIS
18 Sep 14 04:33:11
$CBS looks to sell 1/3 of their 126 owned radio stations according to Reuters article. Radio much like newspapers a failing sector
Ted Hearn
17 Sep 14 18:43:45
Deadline: Is Air Marshal Moonves at #CBS ready to graft #localchoice model onto broadband platform? http://t.co/RCu8gvYWUa $CBS
17 Sep 14 17:28:44
@murphyrosecliff how about that quadruple bottom in $CBS ? Think it can get back above $60?
17 Sep 14 16:12:40
CBS CEO Moonves aims to cut radio holdings in next year. $CBS. http://t.co/WuTGvC4MR7
17 Sep 14 14:50:32
12 Gurus All Hold CBS Corp. $CBS. http://t.co/Y2f295scSy
17 Sep 14 14:31:05
RT @LeonLazaroff: #BroadcastTV isn't fine despite what your #MediaMogul tells you: http://t.co/JCWtFrduKC $CBS $TWX #programmatic
Tech Alerts
17 Sep 14 14:30:01
Nielsen Releasing Mobile App Metrics: Who The Big Winner Will Be http://t.co/eJD6kwE0kX $CBS $NWSA $DIS $NWS $NLSN
The Fly
17 Sep 14 14:19:25
$CBS CBS CEO says online ads not cannibalizing broadcast TV ads: Full Story http://t.co/yj7rvP39qf
Ted Hearn
17 Sep 14 14:15:07
.@JBFlint Air Marshall Moonves means he wants to own lot of stations in same local market. $CBS isn't close to 39% national cap. #cbsfail
Ted Hearn
17 Sep 14 14:10:03
. @JBFlint Don't think Moonves likes joys of war? He glowed when CNBC's David Faber said Moonves "administered" a "beatdown" on TWC $CBS
The Fly
17 Sep 14 13:52:07
$CBS CBS CEO says could offer similar product to HBO Go in Europe: Full Story http://t.co/jWxNSwQRFl
17 Sep 14 13:14:24
CBS introduces new ratings to supplement Nielsen. $CBS. http://t.co/my73VKgL4Q
John Earl Burnett
17 Sep 14 13:06:38
17 Sep 14 13:05:36
#CBS introduces new ratings to supplement Nielsen - $CBS http://t.co/BE8nI875xZ
17 Sep 14 11:37:50
CBS to push Live+7 ratings count. $CBS. http://t.co/WSZF0SuWdl
Market Int Center
17 Sep 14 11:24:57
CBS $CBS Showing Support Near $55.83 ( http://t.co/nqErrnfrcQ )
Andrew Thornton
17 Sep 14 11:08:51
"@MitchellKWarren: Smart Money Report for unusual options activity http://t.co/wbTDTC6ctk $ADHD $CBS $GTAT $PBR $YHOO"
Leon Lazaroff
17 Sep 14 11:01:20
#BroadcastTV isn't fine despite what your #MediaMogul tells you: http://t.co/JCWtFrduKC $CBS $TWX #programmatic
17 Sep 14 10:24:32
CBS to push Live+7 ratings count http://t.co/KCmCVosBoa $CBS
17 Sep 14 10:10:12
$CBS - CBS Corporation (NYSE:CBS) And Rihanna Dispute Over “Thursday Night Football” Program Heats Up - http://t.co/5oJ5E5mUtW
Mitchell Warren
17 Sep 14 09:45:51
Smart Money Report for unusual options activity http://t.co/yYmreda53D $ADHD $CBS $GTAT $PBR $YHOO
17 Sep 14 07:38:39
CBS 56.94 Stock Charts $CBS CBS Corp. Cl B (NYSE) Last Updated: 09/17/2014 09:38:44 CBS Stock Chart - 1 Month http://t.co/88G2qxcMY7
17 Sep 14 07:12:38
Showtime Will Continue To Drive Growth For CBS' Cable Operations. $CBS. http://t.co/Xz88jVVQZg
Al Sabogal
17 Sep 14 06:55:42
bot $CBS - taking a shot on bottoming play http://t.co/IJPcJyQKXe
17 Sep 14 06:10:25
iSENTIUM Alert: Bullish Sentiment on $CBS at 8:08 AM
17 Sep 14 04:17:52
$CBS:US 17Sep Negative News #Sentiment http://t.co/Oe2j91JMp8 #Russell200
17 Sep 14 04:16:05
$CBS:US 17Sep Negative News #Sentiment http://t.co/HKRoSJDLuX #SP500
16 Sep 14 20:40:03
CBS : ESPN's Keith Olbermann calls Phil Simms petitioners morons http://t.co/X9ojMLXDN5 $CBS
16 Sep 14 14:20:02
CBS : Nielsen's top programs for Sept. 8-14 http://t.co/g1D908vjLc $CBS
Seeking Alpha
16 Sep 14 14:12:14
Nielsen Releasing Mobile App Metrics: Who The Big Winner Will Be http://t.co/QL7XfP6iNg $CBS $NWSA $DIS $NWS $NLSN
16 Sep 14 12:26:20
CBS drops Rihanna from 'Thursday Night Football' after rebuke. $CBS. http://t.co/pE4fqHlcc5
Al Sabogal
16 Sep 14 12:18:44
$CBS - this level has been support for almost a year http://t.co/IJPcJyQKXe
By  +Follow September 20, 2013 9:21AM



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.