Posted on | September 18, 2011 | No Comments
I did not tune in to see the fight last night between “Money” Floyd Mayweather Jr. and Victor Ortiz. I did see a summary of the results though. Mayweather is expected to make at least $40 million on this fight. At age 34, he is still unbeaten. Yesterday’s k.o. was a little dubious though. He came out strong in the first 3 quarters and finished Ortiz off in the fourth quarter after getting a head-butt, a hug and a kiss from him. Anyway the real story is that Mayweather is at the top of his game right now and is able to capitalize on his boxing matches!
After making about $115 million in the last four matches he has taken on a lot of risk up front in exchange for a higher payout. For example, Manny Pacquiao has agreed to fight a November for a guaranteed $22 million minimum even if the event is cancelled but the most he can make on the deal is about $30 million. In contrast, Mayweather took on all the expenses (advertising, publicity, legal fees and insurance) which totaled $10 million up front and wrote a $2 million check to Ortiz for his participation. In exchange, he gets a cut of everything from the fight including foreign sales of the broadcast in 168 territories, a cut of the 2,000 closed-circuit viewing from bars and other private venues and sponsorships, ticket sales, merchandise. Add in the projected 1.5 million fans that purchased the fight via pay-per-view TV and Mayweather will earn $40 million. I wasn’t too impressed with him during the interview I heard afterwards but he has definitely put himself in a position to maximize his profits!
Additionally, given that he owns 29 cars I’m sure a significant amount of his money will get spent further stimulating our economy! Keep up the good work Mayweather!
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