Floyd Mayweather’s Entrepreneurial Risk

Floyd Mayweather just fought one of–if not them–most hyped fights in boxing. Whether you supported Mayweather or Pacquiao, you have to respect Floyd Mayweather’s calculated risk taking. It was as if he wasn’t boxing but was playing a chess match. This excerpt below shows even more about Floyd and how he’s so calculated not just in the ring but in business.

At this point, Floyd made the ultimate gamble. After spending 10 years working under Top rank, Floyd had the right to buy himself out of his contract to become a free agent. It wasn’t a cheap proposition. In order to break free of Top Rank, Floyd had to pay Bob Arum$750,000.

It was a huge risk. What if he lost his next match? What if he got hurt and couldn’t ever fight again? At the time, Floyd’s total net worth didn’t quite crack $5 million. A lot of money for mere mortals, but clearly not a lot for someone who changed his middle name to “Money.”

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So how did this gamble work out? Well, in November 2006, Floyd ended up earning $8 million to fight Carlos Baldomir. The win drummed up enough attention and hype to warrant a fight against Oscar De La Hoya. That fight took place in May 2007. Remember how Floyd wanted $20 million and Bob Arum thought he was crazy? He ended up earning $25 million on what became the highest revenue-producing fight in boxing history up to that point.

From that point on, Floyd really started raking in serious money. In 2013, he got his own promoter’s license from the Nevada Gaming Commission. That allowed him to launch Mayweather Promotions and become his own boss.

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So what’s the lesson here? Well, as with any business venture, if you want to get really really really rich, you can’t be an employee. You need to be an owner!

Read more: http://www.celebritynetworth.com/articles/entertainment-articles/one-simple-yet-very-risky-gamble-in-2006-enabled-floyd-mayweather-to-make-hundreds-of-millions-of-dollars-today/