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Michael K. Ozanian, 09.24.10, 12:00 PM EDT
Forbes Magazine dated October 11, 2010
Floyd Mayweather Jr. makes millions backing his own bouts. Can he turn it into a billion?
Floyd Mayweather Jr. is not short on hubris. Sit ringside in his Las Vegas gym, ask him what it was like to meet President *****. "You should ask him what it was like to meet me," he says. Ask about his fights, you get this: "When Floyd Mayweather fights it's the Super Bowl. I move the economy." Ask about his business: "God has blessed me to be recession-proof."
If only the American consumer were so confident. But Mayweather, 33, has his reasons. He is the best pound-for-pound fighter of his generation (with six world championships in five weight divisions), undefeated (41--0) and the biggest draw in boxing. Through his 14-year career he's earned an estimated $200 million from purses and pay-per-view revenue (boxing is his only significant source of income).
Yahoo! BuzzThe biggest reason Mayweather's exuberance is hardly irrational: He promotes his own fights and reaps the rewards of ownership, retaining millions of dollars more per bout than he would otherwise. Long term he plans to turn this capital into a sports-and-entertainment powerhouse with equity stakes in teams, live event promotions, as well as film and television. If it works, he's got a chance--a long-shot chance, to be sure--to end up on The Forbes 400. "If I knew at the beginning of my career what I know now," he says, "I would probably already be a billionaire."
Far-fetched? Maybe. But Mayweather has yet to peak as a boxer or a businessman. He plans to fight for five more years, and FORBES estimates he racked up $65 million in earnings during the past 12 months, second among all athletes (Tiger Woods earned $100 million). Dallas Cowboys owner Jerry Jones has offered to guarantee $25 million if Mayweather fights WBO World Welterweight Champion Manny Pacquiao at his new stadium (the two sides have yet to agree on terms for drug testing). "Mayweather is the only fighter for which I would put up that kind of money," says Jones. With PPV revenue, experts say, a Mayweather-Pacquiao fight could gross a record $250 million. Mayweather's take? In excess of $50 million, since he need not pay a promoter the traditional 25% cut. If his career trajectory continues, he'll soon surpass onetime rival Oscar De La Hoya's $300 million in lifetime earnings from boxing. Not a bad nest egg for retirement--if he hangs on to it.
Given the sport's history of fighters who raked in millions and ended up broke (Mike Tyson comes to mind), Mayweather is hardly a sure thing. A recent arrest amid domestic violence accusations and an expletive-filled rant on YouTube are less-than-textbook additions to his résumé. Still, since forming Mayweather Promotions in 2007 the champ is proving a savvy dealmaker. Stints on Dancing with the Stars and WrestleMania increased his exposure--and marketing value--helping attract big-name sponsors like AT&T ( T - news - people ), Cerveza Tecate, DeWalt Tools, Quaker State, StubHub and Southwest Airlines ( LUV - news - people ) to his fights.
He understood the potential of reality television before any other athlete. In 2007 HBO aired 24/7, a four-episode series that went inside the lives and preparations of Mayweather and De La Hoya before their WBC super welterweight title bout at the MGM Grand in Las Vegas that May (Mayweather won a split decision). It was a huge (for cable) hit, turning the fight into the most lucrative in boxing history, with a live gate of $19 million and a record 2.4 million household PPV buys, which generated $120 million. Since then HBO has replicated the 24/7 series with eight other fights and another featuring Nascar champion Jimmie Johnson. "Mayweather is a marketing genius," says Richard Schaefer, chief executive of Golden Boy Promotions, Oscar De La Hoya's boxing company.
The mainstream fame means even lower-wattage opponents can generate lucrative fights for Mayweather. His victory over Shane Mosley this May was the second-highest-rated nonheavyweight pay-per-view bout in history, selling 1.4 million views with $78 million in revenue. Mayweather also got $22.5 million in prize money and netted $40 million in total from the fight.
Yet Mayweather, who grew up poor in Grand Rapids, Mich., sees boxing as the start of something bigger. Mark Cuban, the billionaire owner of the Dallas Mavericks, says Mayweather is a hungry business student. They've talked at length about investing together, including a possible stake in the Mavs or a baseball team. "I don't think people realize just how focused he is on being more successful outside the ring than he is inside," he says.
The biggest lesson Mayweather has learned: "All money is not good money," he says. "I get people every day where someone is offering me $100 million for a deal. If Nike ( NKE - news - people ) were to come to me right now and offer me a five-year deal for $100 million, I'd say no thank you. Give me 1% or 2% ownership."
Michael K. Ozanian, 09.24.10, 12:00 PM EDT
Forbes Magazine dated October 11, 2010
Floyd Mayweather Jr. makes millions backing his own bouts. Can he turn it into a billion?
Floyd Mayweather Jr. is not short on hubris. Sit ringside in his Las Vegas gym, ask him what it was like to meet President *****. "You should ask him what it was like to meet me," he says. Ask about his fights, you get this: "When Floyd Mayweather fights it's the Super Bowl. I move the economy." Ask about his business: "God has blessed me to be recession-proof."
If only the American consumer were so confident. But Mayweather, 33, has his reasons. He is the best pound-for-pound fighter of his generation (with six world championships in five weight divisions), undefeated (41--0) and the biggest draw in boxing. Through his 14-year career he's earned an estimated $200 million from purses and pay-per-view revenue (boxing is his only significant source of income).
Yahoo! BuzzThe biggest reason Mayweather's exuberance is hardly irrational: He promotes his own fights and reaps the rewards of ownership, retaining millions of dollars more per bout than he would otherwise. Long term he plans to turn this capital into a sports-and-entertainment powerhouse with equity stakes in teams, live event promotions, as well as film and television. If it works, he's got a chance--a long-shot chance, to be sure--to end up on The Forbes 400. "If I knew at the beginning of my career what I know now," he says, "I would probably already be a billionaire."
Far-fetched? Maybe. But Mayweather has yet to peak as a boxer or a businessman. He plans to fight for five more years, and FORBES estimates he racked up $65 million in earnings during the past 12 months, second among all athletes (Tiger Woods earned $100 million). Dallas Cowboys owner Jerry Jones has offered to guarantee $25 million if Mayweather fights WBO World Welterweight Champion Manny Pacquiao at his new stadium (the two sides have yet to agree on terms for drug testing). "Mayweather is the only fighter for which I would put up that kind of money," says Jones. With PPV revenue, experts say, a Mayweather-Pacquiao fight could gross a record $250 million. Mayweather's take? In excess of $50 million, since he need not pay a promoter the traditional 25% cut. If his career trajectory continues, he'll soon surpass onetime rival Oscar De La Hoya's $300 million in lifetime earnings from boxing. Not a bad nest egg for retirement--if he hangs on to it.
Given the sport's history of fighters who raked in millions and ended up broke (Mike Tyson comes to mind), Mayweather is hardly a sure thing. A recent arrest amid domestic violence accusations and an expletive-filled rant on YouTube are less-than-textbook additions to his résumé. Still, since forming Mayweather Promotions in 2007 the champ is proving a savvy dealmaker. Stints on Dancing with the Stars and WrestleMania increased his exposure--and marketing value--helping attract big-name sponsors like AT&T ( T - news - people ), Cerveza Tecate, DeWalt Tools, Quaker State, StubHub and Southwest Airlines ( LUV - news - people ) to his fights.
He understood the potential of reality television before any other athlete. In 2007 HBO aired 24/7, a four-episode series that went inside the lives and preparations of Mayweather and De La Hoya before their WBC super welterweight title bout at the MGM Grand in Las Vegas that May (Mayweather won a split decision). It was a huge (for cable) hit, turning the fight into the most lucrative in boxing history, with a live gate of $19 million and a record 2.4 million household PPV buys, which generated $120 million. Since then HBO has replicated the 24/7 series with eight other fights and another featuring Nascar champion Jimmie Johnson. "Mayweather is a marketing genius," says Richard Schaefer, chief executive of Golden Boy Promotions, Oscar De La Hoya's boxing company.
The mainstream fame means even lower-wattage opponents can generate lucrative fights for Mayweather. His victory over Shane Mosley this May was the second-highest-rated nonheavyweight pay-per-view bout in history, selling 1.4 million views with $78 million in revenue. Mayweather also got $22.5 million in prize money and netted $40 million in total from the fight.
Yet Mayweather, who grew up poor in Grand Rapids, Mich., sees boxing as the start of something bigger. Mark Cuban, the billionaire owner of the Dallas Mavericks, says Mayweather is a hungry business student. They've talked at length about investing together, including a possible stake in the Mavs or a baseball team. "I don't think people realize just how focused he is on being more successful outside the ring than he is inside," he says.
The biggest lesson Mayweather has learned: "All money is not good money," he says. "I get people every day where someone is offering me $100 million for a deal. If Nike ( NKE - news - people ) were to come to me right now and offer me a five-year deal for $100 million, I'd say no thank you. Give me 1% or 2% ownership."
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