Fair pay to fighters has become such an important part of mixed martial arts. Especially with the UFC running the sport like a fiefdom, without much resistance, fighters are often dependent on the mercy of UFC contract negotiators and Dana White for whatever bonuses he deems fit. Even with that, the UFC pay structure is not the most transparent. Boxers, on the other hand, are millionaires. But who pays them?
Well, unlike fighters, most of whom don’t really have any real representation, at least at the start of their careers, boxers have promoters. They are often scouted at an early age.
It’s a bit like the NFL but instead of them breaking their bones at March Madness for next to nothing in the hopes of an NFL call, boxers get signed up by promoters, who either seek them out or are sought out themselves. Regardless of how it happens, these guys take care of organizing fights, and events, making television deals, and sponsorships.
They take care of everything for a boxer. In return, boxers agree to sign up for a certain period of time or a certain number of fights for their company. That’s their end of the bargain in the contract, which also stipulates the minimum amount of money they get paid for each fight.
Who decides the purse?
This fight purse is decided by deals between a boxer’s management team and the promoters. Yes, they are different groups of people, working for the same athlete.
Now then, when an event is hosted, say a PPV, other factors come in. Like attendance, fans, merchandise, television and streaming rights, and ads, among other things. And all these different avenues are prepared to pay in millions. Someone like Floyd Mayweather, Canelo Alvarez, Tyson Fury, Anthony Joshua, etc garner a serious amount of viewership and make it worth everyone’s time.
Then there are the ads and endorsements. Boxers aren’t required to wear gear from one single parent company, due to the lack of existence of one. So, once their brands are built, they sign deals with major advertisers, companies that could sell anything from sports apparel to internet services. These companies are again, willing to invest millions to have their brand associated with the boxer.
And last but not least, there’s merchandise. Much like pro wrestlers, boxers have their own customized gear. T-shirts, hats, and memorabilia featuring the boxer’s name or likeness are available in the market for a wide range of fans. While they don’t always rake in the mullah, at least compared to TV deals, they still rake in a serious amount of money.
It’s a well-developed, well-oiled echo system that in itself is a billion-dollar industry. And since the sport doesn’t have one parent company, monopolizing the industry, a trickle-down effect becomes more of a regular free-flowing system of commerce that everyone benefits from.
The lion’s share often goes to the men and women putting their lives on the line. Canelo has admitted to raking in 80% of the revenue from ticket sales and concessions. If someone buys a Coke in the arena he’s fighting in, Canelo gets paid for it. So, to put it in context, everyone pays boxers, even you.
