Every year, over a combined billion people watch marquee sporting
events, like the Super bowl, the NBA Play-Offs and WWE Wrestlemania. The
Super bowl alone attracts more than 160 million people (bigger than
half of the US population), and in certain parts of the spectacle, the
full viewership will have their eyes fixed on the game. So, it should
come as no surprise that some advertisers are willing to spend US$ 3.5
million on a 30-second ad just to reach their audience and grab their
attention.
Highest Paid Athlete vs Brand Ambassador
Although Boxing does not enjoy the level of popularity of other
sporting and entertainment events such as football, soccer, basketball
and professional wrestling, the mega-fight between two of the greatest
boxers of today (and maybe even in history), Floyd Mayweather and Manny
Pacquiao, is touted to draw billions of Dollars, billed by some analysts
as the “biggest payday in sports history”. The massive amount of profit
waiting for the promoters, and the boxers and their entourage is
expected to come from ticket sales, pay-per-view subscriptions, and
product endorsements.
Manny Pacquiao’s career earnings after the fight will reach an
estimated US$ 425 million, paving his way into an elite group of
highest-earning active athletes, which includes Tiger Woods, LeBron
James and Kobe Bryant. Pacquiao receives paychecks not only from his
promoters, but also from his endorsements, such as HP, Sony, Henessy,
Monster Energy and San Miguel Beer. But, while Manny Pacquiao is raking
in millions through endorsements alone (his fighting shorts is estimated
to be worth more than US$ 2.3 million), Floyd Mayweather is
conspicuously devoid of any.
Bad Reputation Means Bad Marketing
Experts say that Mayweather is undoubtedly popular and that people
are excited to watch him, but his reputation and history discourages
sponsors from being associated with him. Mayweather has pleaded guiltily
to domestic violence charges in at least three separate occasions, and
he has served two months in jail for attacking the mothers of his 9- and
10-year old sons in front of them. He was also found guilty of the same
charge in 2001, 2002 and 2003.
Mayweather also has some nasty mic habits, hurling racist and
homophobic comments about other boxers, including Pacquiao. And unlike
other athletes who work hard to re-gain the lost trust and affection of
their fans when they get into trouble, Mayweather has never acknowledged
or apologized for his transgressions.
Despite this, Mayweather is the world’s highest paid athlete, and he
has reached that distinction solely through his in-ring earnings. For
the May 2 mammoth match, Mayweather is to earn an estimated US$ 120
million.
Largest Economic Impact in Boxing History
Floyd Mayweather and Manny Pacquiao weighed in on 1st May 2015 with a strong 12,000 fans watched at the arena. This was the most lucrative weigh-in in the history of boxing.
The entry to the weigh-in at the MGM Grand Garden Arena cost $10, but
the ticket resale online and on the street skyrocketed at $800. This is
just the weigh-in ticket.
The ticket sales for the fight night on 2nd May 2015 at
the ring side is a whooping $141,575 USD per person. The projected
ticket revenue is $74M, exceeds 6 games of 2013 World Series ($62.6) and
Super Bowl XLIX Live Gate ($60M). The expected pay-per-view revenue is
larger than the GDP of 29 countries. If the fight goes the distance to
12th Round, Mayweather and Pacquiao will split approximately
$130,000 per second, on pay-per-view revenue alone. Expected revenue for
the bout will surpass $400M, the largest in boxing history.
Tale of the Tape
Mayweather vs Pacquiao
Age: 38 vs 36
Wins: 47 vs 57
Losses: 0 vs 5
KO: 26 vs 38
Draws: 0 vs 2
Weight: 146 pounds vs 145 pounds
Height: 5’8″ vs 5’6 1/2″
Reach: 72″ vs 67″
Style: Defensive vs Offensive
Sports Celebrity Endorsement: Marketing 101
Sports celebrities are ideal for businesses to linked with to project
relevant aspects of their brand and products. Sports heroes can
personify success, tenacity, resilience, teamwork, innovation, and
determination despite vulnerability. Their performance in their
respective fields, be it on court, on clay, on grass, or inside the ring
or squared-circle impacts the viewers in more ways than any other
media. Spectators feel awe when they experience jaw-dropping surge in
speed, display of power, mind-breaking coordination or calm under
tremendous pressure. Such a sensation could only be transmitted by
sports stars, whose display of skills and mastery rise above and beyond
the confusing web of messages conveyed by myriad companies through
different channels.
Linking one’s brand to a personality should, however, come with
utmost calculation and caution. Even as sports celebrities guard their
reputation in public, they remain to be humans and can at times be
susceptible to the temptations of wealth, popularity and ill-advice.
Want to know about Sports Marketing, Brand Management and Product Endorsement?
Email us at frmdhk@gmail.com
Photo credit: Mark J. Rebilas, USA TODAY Sports
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