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How does the financial structure of the McGregor vs Mayweather fight breakdown?


How does the financial structure of the McGregor vs Mayweather fight breakdown?

How does the financial structure of the McGregor vs Mayweather fight breakdown?

There are many layers to the financial structure that is the Notorious Conor McGregor vs Floyd ‘Money’ Mayweather.

Many different numbers are being thrown around to guess what the total of the eventual purse will be. The high end of the guessing game tops out at $700 million. It is expected that Mayweather could walk away with upwards of $400 million. While McGregor will have to settle for the measly sum of $100 million.

So how does an event like this generate its revenue.

The most important component is pay per view purchases. The fight is selling for $89 in standard definition and $99 in high definition. And who is going to be willing to shell out the $89 and not part with the extra $10 to see one of the most hyped sporting events in history in high definition?

The guessing game continues with the total of pay per view purchases. Low estimates are around four million. While high end estimates are approaching six million.

And the fight is gaining traction in the press with each passing day. Conor McGregor started out as a 5 to 1 underdog and has closed the gap to a 3 to 1 underdog with most sportsbooks.

Dana White, president of the UFC, threw fuel on the fire by releasing a video of Conor sparring with former boxing world champion Paulie Malignaggi. In the highly edited video released via White’s Instagram, Conor is shown knocking Paulie to the ground with a strong straight left.

So this has figured into the conversation. Those that were saying that Conor never had a chance are now less confident it will be a lop-sided fight.

Conor also convinced Floyd to switch to lighter 8 ounce gloves. This is an advantage for Conor who is used to light 4 ounce gloves in the UFC.

So this is all to say that pay per view buys will determine the lion’s share of the purse.

However, there are several other components that factor into the total revenue generated.

There are ticket sales. And some tickets are going in the 10’s of thousands. Conor even spoke about food and beverage sales at the event. Throw on top of that sponsorship of each fighter and you have yourself a large purse. It is said Burger King paid Mayweather $1 million simply to walk to the ring with the fighter. So anything goes in the sponsorship category.

Then there is merchandising. T-shirts, hats, programs, posters, Conor bobbleheads…you name it.

There is no doubt that when it is all over the promoters will have squeezed every last dime out of the fans pockets. And win or lose both men will likely go home with smiles on their faces.

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