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9/17/11 5:13 PM
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Floyd Mayweather Jr, the world's second highest paid athlete in 2010 behind Tiger Woods, has a long and hostile relationship with the UFC and MMA.

FMJ
"UFC’s champions can’t handle boxing. That’s why they are in UFC.” Mayweather said back in 2007. “Put one of our guys in UFC and he’d be the champion. Any good fighter, he’d straight knock them out.”

UFC President Dana White replied in kind.
“Boxers couldn’t become mixed martial artists. That’s why they’re boxers. They are one trick ponies. Our guys can do everything. They can box, they can kick box, they can wrestle and do jiu-jitsu. They are much better athletes than boxers ... Floyd Mayweather is one of the best boxers ever ... (then UFC Lightweight champion) Sean Sherk will whoop his ass in under two minutes ... Any day that Mayweather wants to put his money and his ass where his mouth is, I’m ready. If he wants to step up, let’s do it.”

FMJ
“I’ll beat (Sherk) and come home and watch basketball. Why would I go into a sport paying hundreds of thousands when I’m in a sport paying $20 million?”

DFW
“I’m willing to put together a fight for Sean Sherk and Floyd Mayweather with numbers that would make sense for Floyd. And I guarantee you he would not accept it. Floyd Mayweather would never fight in the UFC because he would get his head ripped off.”

If one thing leaps out of the exchange above, it is $20,000,000. And tonight Mayweather is expected to make double that.

A cover story in the New York Times details the unprecedented way 'Money' Mayweather took advantage of the fractured boxing market to make so much money that in 2011 he will likely the world's highest paid athlete.

Tonight, Floyd Mayweather Jr. will be paid far more than any other boxer fighting today, for far more than just his performance in a welterweight title fight against Victor Ortiz.

He earns a percentage of every ticket purchased, every pretzel consumed, every poster sold. He will earn from countries that paid for broadcasting rights and the theaters where the fight is shown.

Mayweather fights under a highly unusual financial structure, exchanging upfront risk for back-end profit while retaining total control. He is even responsible for paying his opponent, in this case a business expense of at least $2 million.

“It’s never been done,” Mayweather, who is 41-0, said about his financial model. “Not in entertainment history. Not in sports history. You see that arena Saturday? It’s all Mayweather money. Want a hot dog? Mayweather money. Want a T-shirt? Mayweather money. I need all that.”

He can pull this off because of the leverage he forged with his success in the ring. Few, if any, other boxers command such widespread attention and generate so much revenue with a single fight.

For most of the first 10 years of his career, Mayweather fought for the promotional company Top Rank Boxing, under a more typical model, with most of his money guaranteed upfront. Their split, in 2006, was far from amicable, marked by lawsuits.

Once freed, Mayweather met with Leonard Ellerbe and Al Haymon, his most trusted advisers, to develop a new plan. They wanted to control every aspect of a promotion, including the promoters, whom Mayweather hires on a contract basis for each fight. He also changed his nickname, from Pretty Boy Floyd to Money Mayweather, part of a philosophical shift.

For his last four fights, Mayweather has hired Golden Boy Promotions, a company started by Oscar De La Hoya but run by Richard Schaefer, a former Swiss banker with no previous boxing background.

To explain the business model, Schaeffer starts with a pie. A little more than half goes to the distributors (Time Warner, DirecTV, etc.). The balance goes to the network, HBO or Showtime, which takes its distribution fees and hands the rest to the promoters.

In this case, Golden Boy has one contract with HBO and another with Mayweather Promotions. But the money, less what distributors and networks take, is under Mayweather’s control; normally the promoter would control it.

That pie is only part of the total revenue, the pay-per-view TV part. To illustrate the other revenue streams, Schaefer pulled a piece of paper from his pocket, a spreadsheet written in 6-point typeface. Drawn out, Schaefer said it would take up two chalkboards, but on the sheet in his pocket, it was boiled down to a formula for how much Mayweather would earn, based on how many people bought the fight and what the other revenue streams brought in.

Those streams include foreign sales for a fight broadcast in 168 territories; closed-circuit revenues (in 2,000 or so bars and restaurants nationwide, in theaters and in rooms at Las Vegas casinos); site revenue (ticket sales, merchandise); and sponsorships. Most boxers would see little, if any, of that money, whereas, Schaefer said: “All revenues here are Mayweather revenues. He gets part of everything.”

Roger Federer does not make money off the sales of strawberries and cream at Wimbledon, nor does Derek Jeter’s contract include the Yankees’ TV contract in Asia. Mayweather has devised an altogether different model for marquee athletes.

But, under this model, the expenses are Mayweather expenses, too, including advertising (radio spots, print ads, TV commercials), publicity (press tours, news conferences), sanctioning fees, legal contracts and insurance. For a fight of this magnitude, Schaefer said the expenses would run about $10 million.

First, Mayweather will write himself a check this week in the neighborhood of $25 million. This is similar, in concept, to the guaranteed money that other fighters receive from their promoters, but the check is much larger. Besides Mayweather, only Manny Pacquiao would command that much. What Mayweather earns in addition depends on the success of the event.

If 1.4 million or 1.5 million fans buy the fight — which is expected — Mayweather will make about $40 million, Schaefer said.

For comparison, consider Pacquiao. For his coming November fight, Top Rank has guaranteed $22 million and a percentage of other revenue for a total of $30 million, said Bob Arum, chairman of Top Rank. If the fight is canceled because of a natural disaster, for example, Pacquiao will still make $22 million, whereas Mayweather would stand to lose much of his total earnings.

Because Mayweather has averaged about 1.5 million pay-per-view buys in his last four fights, and because no natural disaster has wiped out any boxing event in recent memory, he considers his risk quite low. Even Arum, Mayweather’s stated nemesis, conceded “there’s no loss, only profit.” He added: “In the end, it may be less than the guarantee, but it’s all profit.”

Arum and others, however, believe that there is value in promotion and that Mayweather would make even more if he ceded total control. Mayweather disagrees, and even says the formula can be duplicated by other fighters — for a fee, of course.

“That’s going to cost you!” he said.

Read entire article...
 


9/17/11 5:15 PM
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Kirik
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 I never heard of a fighter paying his opponent.
9/17/11 5:21 PM
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EnderTL
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Whether or not it's being abused, it seems really fishy when one of the fighters controls the whole event.
9/17/11 5:24 PM
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SuMBJJ
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Floyd can make $200,000,000 in 18 months.  LOL, fuck fighting Sean Sherk.  DFW isn't in Floyd's tax bracket.  Dana makes what Floyd pays in taxes (or doesn't pay, as it were)
9/17/11 5:26 PM
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Rookie Fighter
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I think tiger woods can still make more or even made way more when he was killing it. Phone Post
9/17/11 5:27 PM
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JeffersonDArcyChoke
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On UFC countdown, the only time a fighter drives a nice car is when Dana let's them park his for the cameras.

In boxing?

The fighters drive the Ferraris up top.

Top UFC guys are lucky to have a tricked out Mustang or Corvette. Phone Post
9/17/11 5:28 PM
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Rookie Fighter
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JeffersonDArcyChoke - On UFC countdown, the only time a fighter drives a nice car is when Dana let's them park his for the cameras.

In boxing?

The fighters drive the Ferraris up top.

Top UFC guys are lucky to have a tricked out Mustang or Corvette. Phone Post
Broke makes money everyone else no so much. Phone Post
9/17/11 5:28 PM
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Rookie Fighter
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Brock* Phone Post
9/17/11 5:37 PM
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Barry_BondsMVP
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he's a smart business man
9/17/11 5:54 PM
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Yougottawanna
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When you see how much the top boxers are making, and compare that to what the top mixed martial artists are making...

And then see the UFC's revenue vs. the revenue of a boxing PPV...

You have to wonder if the UFC is really paying their fighters anything resembling the value the fighters are generating.
9/17/11 5:54 PM
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GTFOOHWTBS
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Edited: 09/17/11 5:55 PM
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Money May...
9/17/11 5:56 PM
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Humphrey
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Edited: 09/17/11 5:56 PM
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lol how is it a conflict of interest when there's no performance based bonus?
9/17/11 6:02 PM
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GTFOOHWTBS
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Also Ortiz can only make $2 million if he loses, but if he were to win his "star power" would be even more. So it's really up to Ortiz on how much he wants to win this fight.
9/17/11 6:03 PM
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FrankGotch
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JeffersonDArcyChoke - On UFC countdown, the only time a fighter drives a nice car is when Dana let's them park his for the cameras. <br><br>In boxing?<br><br>The fighters drive the Ferraris up top. <br><br>Top UFC guys are lucky to have a tricked out Mustang or Corvette. <img src="/images/phone/post_tag.png" alt="Phone Post" border="0" style="vertical-align:middle;"/>


Yeah, and what happens to many of the past Boxing greats? Bankruptcy, notably Tyson and Holyfield. After Mayweather is done, either he'll be a cash cow or he'll be begging for table scraps.

And do you think Mayweather gets ALL that money? I'm surprised he has any room to train with the amount of nuthuggers around him (of course, that's his choice). His posse is not waiting around him on their own dime; he is paying them.
9/17/11 6:03 PM
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Meohfumado
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Him paying his opponents to come take a loss from him is pretty much the same as college football teams who pay lesser ranked programs to come to their building and get their shit pushed in exchange for a payday.
9/17/11 6:32 PM
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Daht
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Bad enough a fighter's manager can also be the promoter.. now the fighter can be all 3 for himself.

This model only works if you are already a ppv giant tho, there is a reason Fedor didn't do this, or any other fighter.

If you want to fight the best, you won't put yourself at risk like this, and a fighter in his league won't settle for 2 mil when he knows Mayweather will get 40+

That Paquaio would want similar money to Mayweather sheds some light on why Mayweather won't take a fight with him, not only would he not easily guaranteed win, but every extra dollar to his opponent is literally money out of his pocket.
9/17/11 6:46 PM
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bakalol
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mayweather will be bankrupt within 5 years.

then he'll finally fight the true P4P #1 boxer (pacquiao) for a final payday
9/17/11 6:55 PM
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12SixElbow
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Yougottawanna - When you see how much the top boxers are making, and compare that to what the top mixed martial artists are making...

And then see the UFC's revenue vs. the revenue of a boxing PPV...

You have to wonder if the UFC is really paying their fighters anything resembling the value the fighters are generating.

 The UFC is, UFC PPV's aren't even touching a million buys lately.
The last time I know a UFC PPV broke 1 million buys was 100 and 101.

Its more like 400K typically.

Compare 400K buys to Floyd selling 1.5 million (2.5 million with De La Hoya) at 70 bucks a sale.
Those are HUGE numbers and huge differences.



9/17/11 6:56 PM
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AWOLfromtheARMY
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He ducks top competition. Bottom line.


Let him make as much money as he wants. He will be broke with in 5 years of retirement. No question about it.



Waits...










For Joey Oddessa to defend this pregnant-girlfriend beating piece of shit.
9/17/11 7:28 PM
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12SixElbow
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stonepony - It's an aging demographic that accounts for those numbers buddy. The reason they sell huge numbers, is because there are so few fights worth watching. UFC puts up big PPV numbers every couple months. With boxing, there are only a few big names remaining, so the numbers are concentrated. Kids aren't dreaming of becoming boxers today, they're learning wreslting and JJ and kick-boxing and wearing GSP's t-shirts. The reality is that the big-name boxers today are not being replaced by new big-name fighters. If FMJ were 10 years old today, he'd be looking forward to an MMA career, not a boxing career.

 *yawn*

You need to realize they are two different sports, and boxing isn't going anywhere.


9/17/11 7:31 PM
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Kirik
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 Boxing and MMA are both awesome. Most MMA fans I know love boxing too, just not as much. Boxing fans are often a little up in arms.
9/17/11 7:34 PM
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Authority Figure
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Stryfe1982 - 
stonepony - 
12SixElbow - 
Yougottawanna - When you see how much the top boxers are making, and compare that to what the top mixed martial artists are making...

And then see the UFC's revenue vs. the revenue of a boxing PPV...

You have to wonder if the UFC is really paying their fighters anything resembling the value the fighters are generating.

 The UFC is, UFC PPV's aren't even touching a million buys lately.
The last time I know a UFC PPV broke 1 million buys was 100 and 101.

Its more like 400K typically.

Compare 400K buys to Floyd selling 1.5 million (2.5 million with De La Hoya) at 70 bucks a sale.
Those are HUGE numbers and huge differences.



It's an aging demographic that accounts for those numbers buddy. The reason they sell huge numbers, is because there are so few fights worth watching. UFC puts up big PPV numbers every couple months. With boxing, there are only a few big names remaining, so the numbers are concentrated. Kids aren't dreaming of becoming boxers today, they're learning wreslting and JJ and kick-boxing and wearing GSP's t-shirts. The reality is that the big-name boxers today are not being replaced by new big-name fighters. If FMJ were 10 years old today, he'd be looking forward to an MMA career, not a boxing career.

MMA fanboys have been saying that shit for the last 10 years or so. When Oscar De La Hoya retired, boxing was supposed to die. Now we got Mayweather and Pacquiao.

Boxing is all around classier then MMA.

Boxers date movie stars and super models
MMA fighters date porn stars and strippers

Audience at a boxing match consist of suits, ties, and designer dresses, A list celebrities

Audience in MMA is a bunch of drunken rednecks, hat thieves, and the JUST BLEED guy

Boxers are classy in their 2 piece suits

MMA fighters got their black toe nail polish, skull tats, and crazy hair styles in crazy colors

Boxing isn't going anywhere buddy. It's been the same song since the beginning of MMA...


I agree. The core boxing audience is also more educated about its sport, so its willing to put up with really technical fights. In fact, the biggest obstacle to boxing growth is the commentators @ HBO and Showtime. They are negative, narcissistic, and old.

Mayweather's model is fantastic. But it only works if no one on his financial team is embezzling money. If even one of them is stealing or is a poor accountant, he's screwed. Floyd is not a generous guy either - so if he's underpaying someone's just going to help themselves to what they think they deserve. If the right people are in place, this is great.

And I agree, in liquid assets, Floyd owns Dana all day. He could buy and sell him with pocket money. He also represents a tremendous threat to the UFC because Floyd destroys the idea that a fighter is an "employee" of a promotion, which is idiotic anyway.

The last interesting point is that MMA fighters aren't anticipating the level of scrutiny that comes with the FOX deal. Most boxers get in some trouble, but in general they put their serious crimes/transgressions behind them in high school or sooner, because they know they are hitting the limelight. We've got a basket load of MMA fighters with recent criminal records, underground fights, etc. And some of them aren't mentally ready for TMZ and People magazine. Imagine how Brock would really do with photographers using high end zooms to get photos of his wife in a bikini or paying employees for inside tips. In this way, Floyd wins as well. He manages his excess and his legal troubles well.
9/17/11 7:48 PM
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12SixElbow
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Glovegate - Not trying to destroy your point but who is in this basket load of fighters with recent criminal records.

I can think of Leben, Rampage and Sonnen (though it's not exactly as bad) and not really any others.

Who am I forgetting?

 Josh Neer, Hermes Franca, Brett Rodgers, Gabe Ruediger, off the top of my head.

Either way, I think Mayweather racked up about 7 arrested between his last fight and now.

9/17/11 8:39 PM
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Meech
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I can't figure out where the 1.5 million people that buy Money's ppv's hide. I know very few people that watch MMA, but I know no one that gives a fuck about boxing.

Tonight, floyd will win a UD. Why pay $50 for what you already know when it's the only fight on the card even being promoted?
9/17/11 8:39 PM
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Meech
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I can't figure out where the 1.5 million people that buy Money's ppv's hide. I know very few people that watch MMA, but I know no one that gives a fuck about boxing.

Tonight, floyd will win a UD. Why pay $50 for what you already know when it's the only fight on the card even being promoted?

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