Boxing Great Floyd Mayweather Jr's Greatest Investment – How He Turned $750K Into $400M

Knowing your worth and having the courage to invest in yourself are two critical traits for anyone seeking success in life. Perhaps there is no better example of this than boxing great Floyd “Money" Mayweather, who parlayed a $750,000 investment in himself into a $400 million boxing and promotional empire. 

Mayweather told Forbes the story of how he earned his nickname. It all started in 1996, when Mayweather turned pro after winning a bronze medal in the Olympics. Mayweather, who comes from a family of famous boxers, had sublime boxing skills but lacked the connections and know-how to stage and promote professional prize fights. So, he did what most fighters in his situation did back then..

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He signed a contract with Bob Arum's Top Rank Promotions. Arum was a very well-respected promoter with a proven track record of staging lucrative fights. Through his career, Arum had made numerous fighters wealthy, and Mayweather was no exception. By 1998, Arum had guided Mayweather to a spotless 18-0 record and a world championship.

Arum's career guiding fighters to superstardom included stints managing legends like Muhammad Ali and Oscar De La Hoya. It looked like Mayweather was the next one. By 2005, Arum had featured Mayweather in two high-grossing pay-per-view fights against Arturo Gatti Jr and Zab Judah. According to Forbes, both fights drew over 350,000 views, and the promotions were wildly successful for Top Rank. Forbes also estimates Mayweather earned about $3 million per fight.

It wasn't chump change by any means, but Mayweather wanted more. Arum was paying him well, but Mayweather believed that earning $3 million was small change compared to the money Arum and Top Rank were making off 350,000 pay-per-view buys. Mayweather knew that he, not Arum, was the main draw for any pay-per-view fight and believed he could earn nine figures by managing his career and promoting his fights without Arum.

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There was a clause in Mayweather's Top Rank contract allowing him to become a free agent for $750,000. Mayweather paid the fee and linked up with Al Haymon, a well-known concert promoter, and trainer Leonard Ellerbe, to form Mayweather Promotions. Ellerbe, who was CEO of Mayweather Promotions until 2024, told Forbes, "Floyd wanted to take his career in a new direction. Floyd walked into Top Rank's office, handed them a check, and the rest is history."

Mayweather's instincts proved correct. Even though his first Mayweather Promotions fight only netted 325,000 views, Mayweather still made $8 million. That was more than double what he was earning at Top Rank. Mayweather hit the big time in 2007, when his fight with De La Hoya netted 2.48 million pay-per-view buys and generated $137 million. Mayweather earned $25 million for the fight when his pay-per-view share was calculated.

Mayweather earned at least $25 million for his next ten fights, mostly because Mayweather Promotions was plugged into every possible revenue stream. Mayweather was getting his money off the top instead of waiting until his promoter deducted all the expenses first and paid him last. Then Mayweather signed an eight-fight deal with HBO in 2013 that would pay him a minimum of $32 million per fight. 

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Mayweather's next big payday came in 2013, when he fought Canelo Alvarez. According to Forbes, the Mayweather vs. Alvarez fight netted 2.25 million pay-per-view buys and earned an astonishing $130 million. Mayweather reportedly earned $41.5 million for his work in the ring, plus another $30 million cut of the pay-per-view money. By the time Mayweather retired, he had a 50-0 record, and Forbes estimates his fights generated $871 million in revenue.

Forbes also estimates that Mayweather has personally netted around $420 million in earnings and that roughly 90% of it came to him after the split with Top Rank. He also has a passive income stream because Mayweather Promotions still handles fighters. It all started with Mayweather knowing his worth and investing in himself. Ellerbe told Forbes, "It is the best investment in the history of sports."

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