As hard as it is to believe for many who thought the days of boxing on broadcast were over in the 1970’s, the sport is probably getting more live and taped airtime today than in decades. NBC and CBS, ESPN and FOX, Showtime and HBO and Spike TV have all found their way back in or have enhanced their investment in the sport, which is about to go through another transformative week that will cap with the first of what should be at least two fights between Manny Pacquaio and Floyd Mayweather in Las Vegas next weekend. Add in the 40th anniversary of “Rocky” in 2016 with a new film coming later in the year (“CREED”) and maybe, just maybe boxing is finding its footing yet again.
One of those big reasons is Mayweather.
For those ‘Rocky” fans, the business side of Floyd Mayweather is a lot like the image of Apollo Creed before he takes on “The Italian Stallion.” Pick the venue, but the flowers for the Mayor’s Wife, create the package for your challenger and collect the big pay day in the best suits. Control the brand image. Just don’t lose.
Mayweather is in the middle of a six-fight deal with the Showtime network and will have his biggest payday as part of the co-venture this week.. He has almost 7 million Twitter and Instagram followers, more than 4.5 million likes on Facebook, and a social networking team so that he is in constant contact with his fans. He negotiates all deals for his promoted fighters, receives all revenues generated by his fighters and then pays fighters, other promoters (if it is a co-promotion), and other expenses (operating costs toward the promotion) out of the revenue generated. The result is something that few single sport athletes can achieve; net worth of close to a billion dollars with all aspects of the brand coming back to its owner. It is the rarest of opportunities that comes to an elite boxer who understands the business; even tennis or golf, where success is based on the individual; still have to negotiate a course, the field or the draw. Boxing it’s one on one. Even the UFC, with all its power, is still controlled by Zuffa Inc. Elite MMA athletes can do really well, but when they go to the UFC, like in a team sport, there are certain elements that get negotiated away.
Now of course the issue becomes what happens if Mayweather loses a fight again? Does much of that brand equity built up immediately fly out of the ring or will a rematch bring even more this time around? Some might say the loss could be worse, but because of the longevity of his career and the guaranteed TV money that comes win or lose, the Mayweather gravy train continues on. Besides, who doesn’t like a comeback after a surprising loss?
Is the Mayweather model an anomaly or a new trend in fight sports? Right now there are few others Pacquaio, being one, who can control a good part of the marketing pie, but Mayweather is the one who appears to want, and have total control, something which can be very, very difficult to duplicate should another mega-star come along early and maintain the brand power for such an elongated tome. For sure he has his critics, but it is hard to argue with his success in business or the ring. Apollo would be proud.
