One Simple Yet VERY Risky Gamble In 2006 Enabled Floyd Mayweather To Make Hundreds Of Millions Of Dollars Today
Floyd Mayweather has been the world's highest paying athlete for at least the last five years each year. Alone in 2014 he earned about $105 million. That was $25 million more than the world's second-most-paid athlete, Cristiano Ronaldo. And perhaps what's most remarkable is that without a single substantial endorsement deal, Floyd won $105 million. Of the $80 million Ronaldo received as the second highest paying athlete in the world, 40 per cent came from endorsements. But what is probably most remarkable about Floyd's rise to absolute financial supremacy in the world of sports is the fact that none of it would ever have happened in 2006 without a very easy, but very risky gamble.
Floyd was portrayed by Bob Arum's promotional company Top Rank Boxing between 1996 and 2006. In boxing you are simply an employee when you are signed with a promoter. A set amount of money is being offered for you to appear at a fight. The promoter puts up all the money and takes all the risks involved in organizing the fight. The promoter also reaps the biggest rewards by taking on the risk. Whatever gains are left over after expense is paid off (including the cost of paying the fighters), will go directly to the hands of Bob Arum. So today Bob Arum is worth $200 million.
To have a promoter is not inherently a bad thing for a combatant. Money in your pocket is assured, with no chance at all. The only thing about which a fighter has to think is the preparation and win. Today the majority of boxers work with a promoter. Manny Pacquiao. Guess who's getting Manny promoted? Arum, Bob.
Back in April 2006, Floyd was offered $8 million by Bob Arum to fight Antonio Margarito. That would have been the previous highest purse of double Floyd's. Instead of accepting, Floyd countered by saying that he wanted to fight Oscar De La Hoya for $20 million. Arum was terrified. Arum didn't think it would pay off that much money for Floyd to fight Oscar, either. So he declined and tried to push the bout against Margarito.
Floyd made the biggest bet here. Floyd had the opportunity to buy himself out of his contract and become a free agent after spending 10 years operating under Top Rank. It was not a deal idea. Floyd had to pay Bob Arum $750,000 for breaking free of Top Rank.
That was an enormous risk. What if he forfeited his next match? What if he got hurt and had never been able to fight again? Floyd's overall net worth at the time didn't break $5 million altogether. For mere mortals, a lot of money, but obviously not a lot for someone who changed his middle name to "Money." So how did this gamble work? Okay, Floyd ended up winning $8 million for fighting Carlos Baldomir in November 2006. The win got enough attention and hype to warrant a battle against Oscar De La Hoya. The war was fought in May 2007. Remember how Floyd wanted $20 million, and thought Bob Arum was crazy? Up to that point, he ended up earning $25 million on what became the highest revenue-producing fight in boxing history.
Floyd has really started raking in substantial money from that point on. In 2013 he received a license from the Nevada Gaming Commission for his own promoter. That allowed him to launch and become his own boss Mayweather Promotions.
Today Floyd puts his own fights on every aspect of it. That means he is fronting all of the money for an event, including the purse of his opponent. Floyd cut him a $10 million check from his own checking account weeks before the fight, when he fought Saul Alvarez in September 2013. Floyd also paid tens of millions of his own money to pay for the space of the event, vendors, food, drinks etc. This is the downside to that. The upside is after the battle was done, Floyd got the lion's share of profits; Floyd walked away with $75 million in the Alvarez battle that meant it.
The same logic with the Manny Pacquiao war is basically real. Floyd will bear much of the cost of organizing the event, and has cut Manny to turn up with a $50 million guaranteed check. Floyd will get 60 per cent of the profits after the night is over. Normally he would get 100 percent, but to get Manny to turn up he had to make some sacrifices. But Floyd is projected to gain $150 – $200 million from this one fight alone, even with "only" 60 per cent of the profit share.
When Floyd ends up receiving $200 million that would add up $610 million in his career earnings. For reference, Floyd's overall career earnings until 2006, when he was still working for Bob Arum, were less than $10 million. And to think that none of this would have been possible had Floyd not had the foresight and guts back in 2006 to buy himself out of his $750,000 deal.
Who, then, is the lesson here? Well, as in any business venture, you can't be an employee if you want to really become really wealthy. You have got to be a proprietor! -Brian Warner, Courtesy of Celebrity Networth
(If you liked this post then please consider subscribing to stay up-to-date with my new posts and sharings.
Floyd was portrayed by Bob Arum's promotional company Top Rank Boxing between 1996 and 2006. In boxing you are simply an employee when you are signed with a promoter. A set amount of money is being offered for you to appear at a fight. The promoter puts up all the money and takes all the risks involved in organizing the fight. The promoter also reaps the biggest rewards by taking on the risk. Whatever gains are left over after expense is paid off (including the cost of paying the fighters), will go directly to the hands of Bob Arum. So today Bob Arum is worth $200 million.
To have a promoter is not inherently a bad thing for a combatant. Money in your pocket is assured, with no chance at all. The only thing about which a fighter has to think is the preparation and win. Today the majority of boxers work with a promoter. Manny Pacquiao. Guess who's getting Manny promoted? Arum, Bob.
Back in April 2006, Floyd was offered $8 million by Bob Arum to fight Antonio Margarito. That would have been the previous highest purse of double Floyd's. Instead of accepting, Floyd countered by saying that he wanted to fight Oscar De La Hoya for $20 million. Arum was terrified. Arum didn't think it would pay off that much money for Floyd to fight Oscar, either. So he declined and tried to push the bout against Margarito.
Floyd made the biggest bet here. Floyd had the opportunity to buy himself out of his contract and become a free agent after spending 10 years operating under Top Rank. It was not a deal idea. Floyd had to pay Bob Arum $750,000 for breaking free of Top Rank.
That was an enormous risk. What if he forfeited his next match? What if he got hurt and had never been able to fight again? Floyd's overall net worth at the time didn't break $5 million altogether. For mere mortals, a lot of money, but obviously not a lot for someone who changed his middle name to "Money." So how did this gamble work? Okay, Floyd ended up winning $8 million for fighting Carlos Baldomir in November 2006. The win got enough attention and hype to warrant a battle against Oscar De La Hoya. The war was fought in May 2007. Remember how Floyd wanted $20 million, and thought Bob Arum was crazy? Up to that point, he ended up earning $25 million on what became the highest revenue-producing fight in boxing history.
Floyd has really started raking in substantial money from that point on. In 2013 he received a license from the Nevada Gaming Commission for his own promoter. That allowed him to launch and become his own boss Mayweather Promotions.
Today Floyd puts his own fights on every aspect of it. That means he is fronting all of the money for an event, including the purse of his opponent. Floyd cut him a $10 million check from his own checking account weeks before the fight, when he fought Saul Alvarez in September 2013. Floyd also paid tens of millions of his own money to pay for the space of the event, vendors, food, drinks etc. This is the downside to that. The upside is after the battle was done, Floyd got the lion's share of profits; Floyd walked away with $75 million in the Alvarez battle that meant it.
The same logic with the Manny Pacquiao war is basically real. Floyd will bear much of the cost of organizing the event, and has cut Manny to turn up with a $50 million guaranteed check. Floyd will get 60 per cent of the profits after the night is over. Normally he would get 100 percent, but to get Manny to turn up he had to make some sacrifices. But Floyd is projected to gain $150 – $200 million from this one fight alone, even with "only" 60 per cent of the profit share.
When Floyd ends up receiving $200 million that would add up $610 million in his career earnings. For reference, Floyd's overall career earnings until 2006, when he was still working for Bob Arum, were less than $10 million. And to think that none of this would have been possible had Floyd not had the foresight and guts back in 2006 to buy himself out of his $750,000 deal.
Who, then, is the lesson here? Well, as in any business venture, you can't be an employee if you want to really become really wealthy. You have got to be a proprietor! -Brian Warner, Courtesy of Celebrity Networth
(If you liked this post then please consider subscribing to stay up-to-date with my new posts and sharings.
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