It is billed as the richest boxing match ever.
The Las Vegas welterweight championship unification bout May 2 between the world’s ranking richest athlete, Floyd Mayweather Jr., and Filipino politician Manny Pacquiao (11th-richest athlete) will make them even wealthier, to the tune of at least $100 million each.
More than $300 million will flow into the boxers’ camps, from sources such as Tecate, which paid $5.6 million to plaster its name on the event, to the 16,200 patrons who will pay up to $7,500 for ringside seats (or more on the resale market) at the MGM Grand Garden Arena.
The financial home run is the estimated 3 million fans who will fork over $89.95 each and $99.95 for high-definition pay-per-view. That is 40 percent higher than the previous record, also a Mayweather fight.
The fight will be a massive economic blast for Nevada, rippling through the Silver State via tax revenue, hotel bookings, bets, meals, shows, car rentals and even tips for valet parking.
The fans at the live match and thousands of others watching in Las Vegas at nearby closed-circuit events are expected to spend $645 each outside the casinos, a much-needed boost for a region that has suffered from the housing and financial crisis of 2008.
“God knows what this event is going to end up doing,” said Bob Arum of Top Rank, who is Pacquiao’s promoter. “You do the math. We’ve never seen numbers like this. Usually on these events, I am accused of hyperbole. Here, there is no reason for hyperbole.”
The fighters’ camps have been negotiating the event since 2009. At 47-0, Mayweather, 38, ranked by Forbes as the world’s highest-paid athlete at $105 million last year, and Pacquiao, 36, with a 57-5-2 record, are considered the world’s two best fighters, pound-for-pound.
“These fighters, Mayweather and maybe Manny, too, are going to each make for one night more money than the payroll of an entire baseball team makes for a year,” Arum said.
Make that some baseball teams. The New York Yankees and Los Angeles Dodgers’ payrolls are well over $200 million each. The fighters will split around $300 million, with Mayweather getting 60 percent of that gross and Pacquiao the rest. Pacquiao agreed to take a lower percentage to get the undefeated Mayweather to fight him.
The outcome will not affect each fighter’s payday, although Mayweather is a 2-to-1 favorite, according to Las Vegas bookmakers.
After federal income taxes, fees and promoters’ take (Arum estimated he will make $15 million to $20 million for representing Pacquiao), they will each walk away with tens of millions of dollars, at least.
Mayweather’s 2007 fight against Oscar De La Hoya at the MGM Grand earned Mayweather around $25 million and De La Hoya $52 million, which was the highest purse ever for a fighter at the time.
THE FIGHT, BY THE NUMBERS
The pot, split between the fighters: $300 million
The boxers’ estimated total revenue expected for the Floyd Mayweather versus Manny Pacquiao fight on May 2 from live ticket sales, global TV sales, closed-circuit sales, sponsorships, merchandise and pay-per-view sales. The fight follows six years of negotiations.
Total take per boxer
Pacquiao: $120 million
Mayweather: $180 million (world’s highest-paid athlete, according to Forbes)
By comparison, the estimated 2015 payroll for the entire roster of the Washington Nationals is $163,184,473, according to Spotrac.
Live ticket sales: $72 million
Six percent tax ($4 million) goes to Nevada. The former live gate record was $20 million when Oscar De La Hoya fought Mayweather in 2007.
Sponsorship and merchandise
$12 million: Tecate, owned by Heineken, is the big fight sponsor, paying $5.6 million.
$1 million: Merchandise includes men’s and ladies’ T-shirts, hats and fight memorabilia.
Additionally, Top Rank executive vice president Lucia McKelvey secured endorsements in excess of $5 million for Pacquiao. Mayweather has none.
$12 million: U.S. closed-circuit sales
Of that, $4 million is expected just in Las Vegas. Bars and restaurants in Las Vegas MGM alone will have 35,000 seats showing the fight on closed-circuit at $150 a pop.
Pay-per-view sales: U.S. TV sales: $165 million
International TV sales: 35 million (these sales are expected to increase with Britain, Australia and Germany pay-per-view, which are not in yet)
Venue seating at MGM Grand, Las Vegas: 16.200
Some seats could go for as much as $100,000 or more after market.
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