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Author Topic: Floyd Mayweather business model  (Read 802 times)
Stefano
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« on: December 28, 2012, 10:59:25 PM »

In order to make the really big money in the world of professional fight promotion, you need to follow the Floyd Mayweather model. The reason Floyd Mayweather is able to take home as much as $40 million from a single nightís work is because he owns 360 degrees of his fight. When Mayweather fights someone, he puts up all the money himself. He pays for the venue, the insurance, the vendors and even his opponentís purse, out of his own pocket. When Mayweather fought Victor Ortiz he spent $10-12 million of his own money before a single punch was thrown. He also put aside $25 million for himself as an appearance fee. The major risk he is taking is that all these expenses occur before the fight happens. If there was a natural disaster like a hurricane, the fight would be canceled and Floyd would be out of luck. On the other hand, when the Ortiz fight did go through as planned, 1.25 million households ordered it on Pay Per View for $60 which generated $75 million worth of revenue. After 60% is taken out for the distributors and another 60% is subtracted for costs, Floyd is left with $12 million. And unlike Georges St-Pierre who shares a small percentage with the UFC, Floyd has no partners, so that money goes 100% into his bank account (after taxes). When you add Mayweatherís $25 million appearance fee and his $12 million PPV bonus, you can start to understand why he makes $85 million a year.


Floydís brilliant business model is also partially to blame for why we have not and likely will not ever see him fight Manny Pacquiao. Pacquiao is like Georges St-Pierre in that he fights for a boxing promotion company, namely Bob Arumís Top Rank Promotions. Pacman commands high appearance fees but at the end of the day he still splits the PPV revenues with Top Rank. Mayweather is not willing to risk his perfect 43-0 record unless he is the sole promoter. That puts Floyd in the driver seat and so far the two sides have not been able to reach a middle ground. Mayweather has offered a flat $50 million fee with no PPV upside. But Pacquiao and Bob Arum are very aware that this fight would be the biggest Pay Per View event in history and could generate as much as $180 million in revenue. If those numbers were accurate, under his own model Floyd would take home $130 million! Arumís team countered with an offer that would pay Floyd $100 million and Pacman $80 million (55% vs 45%). Mayweather turned it down. Who knows if there will ever be a compromise, but you have to think that at some point Mayweather canít keep turning down $100 million! How much is a perfect record (and pride) worth? How much would you give up to go out on top without any losses?
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« Reply #1 on: December 28, 2012, 11:10:58 PM »

Too late, nobody wants to see Pac get knocked out again.  Pac should retire and realise he missed the opportunity to fight Mayweather.
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« Reply #2 on: December 28, 2012, 11:25:37 PM »

Too late, nobody wants to see Pac get knocked out again.  Pac should retire and realise he missed the opportunity to fight Mayweather.

   ^
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« Reply #3 on: December 28, 2012, 11:26:54 PM »

i' rather see maywhether fight the guy that keeps beating paq
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« Reply #4 on: December 28, 2012, 11:57:25 PM »

^^Bit late on that one, Mayweather fought and beat Marquez last year
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« Reply #5 on: December 28, 2012, 11:57:41 PM »

i' rather see maywhether fight the guy that keeps beating paq

You'll see:

Mayweather v. Bradley
Mayweather v. Guerrero
Mayweather v. Cotto II
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« Reply #6 on: December 29, 2012, 01:43:42 AM »

This is who Mayweather needs to fight (and beat) before he retires to be a top 3 all time fighter: Pacquiao, Alvarez, Martinez, and Bradley.
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« Reply #7 on: December 29, 2012, 01:53:18 AM »

You'll see:

Mayweather v. Bradley
Mayweather v. Guerrero
Mayweather v. Cotto II
Mayweather v. Alvarez

FMW won't fight Bradley, because he isn't willing to split money with Arum.  

He'll wipe the floor with the other 3.

Martinez @ 154 is his huckleberry, but he won't touch that fight in a millions years. Personally, I wouldn't, if I was him.  Martinez is a small 160 with an 168 punch, so Ward might be a more natural match up for him, if he is looking for a payday and a big defeat.  

At least we know pretty much now FMW would have toyed with Pac, just he did with Marquez.
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« Reply #8 on: December 29, 2012, 02:19:54 AM »

Can you imagine if baseball was like boxing?  The Yankees would never play the Red Sox, because the Yanks would demand a 60/40 cut, demand steroid testing of Red Sox players, be afraid to have their record blemished, don't want their business model shaken, yada yada.

Instead, baseball fans would get treated to Yankees/Pirates V and Red Sox/Royals VIII.
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« Reply #9 on: December 29, 2012, 02:47:08 AM »

FMW won't fight Bradley, because he isn't willing to split money with Arum.  

He'll wipe the floor with the other 3.

Martinez @ 154 is his huckleberry, but he won't touch that fight in a millions years. Personally, I wouldn't, if I was him.  Martinez is a small 160 with an 168 punch, so Ward might be a more natural match up for him, if he is looking for a payday and a big defeat.  

At least we know pretty much now FMW would have toyed with Pac, just he did with Marquez.

Is Arum the rat who steals Packy money?
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« Reply #10 on: December 29, 2012, 03:22:31 AM »

Is Arum the rat who steals Packy money?

yep....

Too late, nobody wants to see Pac get knocked out again.  Pac should retire and realise he missed the opportunity to fight Mayweather.

very true pac's finished now
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« Reply #11 on: December 29, 2012, 05:47:01 AM »

midgets
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