Thomas Labros
A1 Economics
May 5th, 2015
Mrs. Straub
Mayweather Vs. Pacquiao Packing an Economic Punch
This weekend the so called “fight of the century” took place in Las Vegas, Nevada. The city had a dramatic increase in hotel rooms sold and ended up with every hotel and motel in and around the area with 95-100% capacity. This is Ridiculous! This Fight is bringing in an enormous amount of Revenue to the City. Because both of These boxers were competing for the world title, and the fight was long overdue it drew so much attention to the city. That night alone not including boxing tickets, the city was estimated to make an increase of about 150 million dollars. This is an insane boost for the Economy.
This event is a tremendous help for Las Vegas looking at it as an opportunity for Economic Growth. There are so many things that Las Vegas can do with the money that they made while hosting this fight, they can create jobs, help the community and etc.I think that we will be seeing some very positive effects in sin city after the fight has been all said and done.
If you look at the prices of boxing tickets, the tickets after sale price were starting at $6k and ending somewhere around $350k. This is an insane amount of money for one seat, and of course all of this money is being spent and is letting the economy thrive and raising the GDP Per Capita for Las Vegas. Then Pay-Per View was streaming the fight live for 89.95. and the Opportunity Cost for that was they lost the opportunity to be doing something else because they needed so many cameras and workers there to cover all of the action.
It's weird to think how two people fighting each other can have such a large impact on one city, let alone the world! Even for a minimum ticket to be priced at around $6000 to watch people punch one another is crazy, but then the inflation of the ticket price to over a quarter million is unbelievable. I wonder what the actual increase in GDP per capita was in Las Vegas after the fight.
ReplyDeleteIt's interesting to see how much interest is in this fight alone and people know it so they can really charge a hefty price. I can't believe how expensive each ticket is, or how much it is to just watch it on TV. The people running the fight have a monopoly on the cost because no other fight is able to create so much interest in it.
ReplyDeleteThat's crazy how much revenue that it generated. It was the richest fight in history, with a purse of $300 million, causing Floyd Mayweather to be the highest paid athlete, which is insane. The amount of money that he earned is minimal compared to how much they both generated though, which is crazy to think that after years of tension it could burst into something so profitable.
ReplyDeleteThat's crazy how much revenue that it generated. It was the richest fight in history, with a purse of $300 million, causing Floyd Mayweather to be the highest paid athlete, which is insane. The amount of money that he earned is minimal compared to how much they both generated though, which is crazy to think that after years of tension it could burst into something so profitable.
ReplyDeleteGreat post Tommy on a significant, current event. It’s pretty unreal that Las Vegas made that much money in one night. Also considering the up rise in UFC and the downfall of boxing, I was surprised by how much interest there was in the fight. Regardless Las Vegas should be more than happy that they were the host city for this event. I just wonder what they will even do with the 150 million extra dollars?
ReplyDeleteExpensive yes, but was it worth it? I personally didn't watch the fight but hearing from people that did said it wasn't worth the money. I wonder how many people that bought those expensive tickets regret the decision. This is because both fighters knew they were going to get paid millions, win or lose. If we wanted to see two people actually fight each other we would make it so that the winner makes majority of the money. Then you would see people actually fighting for their lives/money! No doubt in my mind that fight would've been more interesting if only one fighter won money.
ReplyDeleteThat is pretty crazy that a fight can bring in so much money for a city. It is interesting to see the people who spent to see the match are angry due to the lack of entertainment. I guess you could say it's twisted that people like to pay money to see people get beat up, but that's how our society has changed. Personally, I am not a fan of boxing but I know there are many people who are. It is smart for Las Vegas to host an event like this to boost their economy.
ReplyDeleteIt's ridiculous to think that people make millions of dollars just by jumping around a ring for an hour. There is so much profit that sports bring in and yet nearly 60% of the all the money goes to the players, and the remaining percent gets split up for the workers that assisted in putting everything up. Personally I don't believe that athletes should be getting paid the wages that they do, but I won't say that people paying to watch the "fight of the century" aren't spending their money wisely. As someone who did watch the fight, I think that it's crazy that both fighters received an insane amount of money. This is probably why the two took the fight out so much, they were making the average American's annual salary every four seconds. I think that if they were instead given a set amount with an added bonus, then by giving the remainder of the income to the community there could be a drastic change in Vegas' economic growth, especially if the event is going to create that much profit.
ReplyDeleteI personally had no want to watch this fight and don't really understand how much money people paid to either see the fight live or on demand. I can't believe how much tickets cost and the hotel stay. I heard that it wasn't that great of a fight, and that the excitement leading up to it was really the best part. Both fighters earned a great deal of money from fighting, maybe if more was on the line with a bigger or only a prize for a winner it would have been a better fight.
ReplyDeleteI knew that this fight was huge for the economy, but I never actually looked at the numbers. Its insane how much was brought into just the city of Las Vegas, not including the fight, hundreds of millions of dollars were made in just a few hours. Ive never seen ticket prices so high and couldn't imagine spending that much to watch a fight. I was already skeptical about spending the 100 bucks for PPV. I also heard that this single fight made much more money than all the fights in throughout the year.
ReplyDeleteYes the fight may have brought money to the city and the local businesses but I don't think it actually helped the economy as much as it could have. In reality most of the money that was spent in the hotels or the local businesses will probably just stay within those companies and will not be seen by any other part of the economy. Over all the fight might have been a great thing to see but realistically it wasn't worth the money to see it.
ReplyDeleteGood topic since this just happened and it was the talk this past weekend too! Wow tickets really were that much? It suprised me how much money Las Vegas made in just one night all for a few hours of fighting. I heard that some people who bought the fight on tv said it really wasn't worth it because it was a little bit of a let down in the end. As a result of the fight the overwhelming amount of money brought in for it can do Las Vegas well with new buildings and businesses! Good article over all but watch your grammar because some words were capitalized that didn't need to be and it was a little distracting but good job with this topic!
ReplyDeleteI love that you wrote about this. I did in fact watch the fight on pay-per view, now I didn't personally pay for it so I would probably say the fight was worth watching. The two (Mayweather and Pacquiao) have made a boat load of money themselves and I can't imagine how much the economy in Las Vegas increased. Bringing in the money they were making from just advertisement.... Incredible!
ReplyDeleteAlthough only one boxer got his hand raised at the end of the fight, there was no real loser because both of the fighters got millions of dollars for just being a part of the fight. Despite the ridiculous amounts of advertising and pump up for this fight, it was not nearly as good of a fight as anyone was hoping for.
ReplyDeleteThis fight was the most antisepsis fight in the last twenty years. It cost one hundred dollars just to buy the fight on paper view. If you wanted to sit ring side you would be looking at a ticket that cost thirty five thousand dollars.Some people don't make that much money in a whole year. Overall this fight was just another slight boost to are slowly rising economy.
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ReplyDeleteI don't know why sports became such expensive and one thing It is kind of weird to think how two people fight each other also how people watch other people were fighting. I was surprised about ticket the minimum ticket price is 6 thousand dollar. I don't think March madness's average tickets are 6 thousand dollar. People are so crazy. I have no clue why people spend that much money to watch fighting. Both boxers got lot of money. Overall this boxing is for money and no entertainment.
ReplyDeleteI knew that this fight was huge for the economy, but I never actually looked at the numbers. Its insane how much was brought into just the city of Las Vegas, not including the fight, hundreds of millions of dollars were made in just a few hours. Ive never seen ticket prices so high and couldn't imagine spending that much to watch a fight. I was already skeptical about spending the 100 bucks for PPV. I also heard that this single fight made much more money than all the fights in throughout the year.
ReplyDeleteI agree with each idea that you touched on, and was also surprised with all the stats about the revenue that this event brought in. It is crazy to think that one fight could make that amount of money. It's crazy to think that this one event can have that much money floating around in general, between bets that people made and the payout of each fighter. It definitely did cause some economic growth in Las Vegas, and was a good event for the economy. Who knows if another fight will bring in this much revenue again, we'll have to see.
ReplyDeleteIt's cool to hear how much the fight actually helped the city of Las Vegas itself. I didn't realize the hotel statistic and everything else. With the outcome of this fight though, I'm going to believe that this will probably won't repeat itself, at least for a while. We'll see how boxing does in the future as far as bringing more money to their accompanying city.
ReplyDeleteI did not see the fight, but I did hear a lot about it for a few days after it happened. It's insane how much money events like this bring in. Similar to something like the Olympics, cities can bid for events and have the advantage of the money impacting their economy and boosting it. I am interested to see if anything like this kind of event will do as well or be as anticipated in the future.
ReplyDeleteEven though the fight didn't live up to the hype, they still lived up to the profit of the fight. The revenue will definitely boost MGM's employment and could lead to more success in Sin city.
ReplyDeleteI think it is interesting how much revenue the fight brought to the city. I probably would not have wanted to go to the fight just because the city had no hotels left. The city has increased the amount of people just for one fight. I heard that the price to watch the fight on pay per view was $100 and even if I was a big fight fan I still wouldn't want to pay that much money to watch it.
ReplyDeleteI enjoyed how you brought this topic into economics - especially when the fight wasn't that good (in my opinion). I expected how many people would come to the fight, but not how high and how popular it would all be. It's amazing how jam-packed the city got because of all the hotels that were packed. I find it amazing how much money the fights would get. I think its funny how much money goes towards the fight with bets and such - I bet a brand-new business could be built with all the money.
ReplyDeleteThis is an interesting topic because it seems like everyone knows about it. The amount of money that went into this fight was incredible. Tickets were selling at $350,000 and that blows my mind. Its a shame the fight wasn't as good as it should have been.
ReplyDeleteI understand that there was a lot of hype for this fight, but was the exorbitant amount of money being charged really necessary? It's good that Las Vegas businesses were able to take advantage of the fight being held there. But how do people justify spending upwards of $6,000 on a ticket, even if they are already incredibly rich? It's also criminal that cable networks were able to charge people nearly $100 to watch the match. All this money could have been spent on so many things that would be useful, productive, etc.
ReplyDeleteI like how you related your post to something that happened very recently. I would like to see it be more bias towards Manny because he is more respectful towards people. It would also be nice to see how much money people made that were in charge of setting up the fight.
ReplyDeleteI kind of find it intriguing that such a sports event has built up such a large number of viewers and revenue for that I've never have met anybody interested in boxing. While it is a great fight for a very large honor, I can honestly say that as apart of the teenage demographic, I didn't have any interest to watch it. From researching a little into popularity of sports, according to the 2013 Harris Poll, the six sports with most fans are American football (46%), baseball (14%), basketball (10%), auto racing (7%), ice hockey (5%) and tennis (3%). Boxing isn't even mentioned in this poll, but due to successful advertising and marketing, this event made the insane amount of money that it did.
ReplyDeleteI think this is a great topic that you brought up because it's had so much talk and been in the media lately. It's crazy to think that almost 100% of hotels were packed and how costly the tickets were. Based on your article, some tickets cost as much as a house...that's insane. Although everything was drastic and costly, it did bring great revenue to Vegas and the surrounding businesses, towns, and people. Also, pay per view must have made incredible money of this. Overall the fight of the century brought many fans to Vegas and increased revenue drastically for one single night.
ReplyDeleteI definitely heard about the fight this past weekend because it was all that anyone was talking about and was also all over social media. While I don't follow the fights closely and didn't really care that much, I think a lot of people did care and wanted to watch it because of the influence of celebrities. There were so many celebs at the event in Las Vegas which probably was a huge source of income for the city as well. Obviously the tickets and hotel rooms were very expensive for an average jo, but think of all the celebrities who paid to stay there and paid for luxuries as well. They not only influenced others to tune into the fight, but they also helped out the city of Las Vegas economically too. I also think that the price to pay in order to watch the fight on the t.v. was way too high. But again, the demand for this entertainment allowed the Pay Per View suppliers to set prices this high. Overall I think the fight itself was a let down to many and probably not the best use of money but in general it brought economic growth to an already prosperous Las Vegas for a night!
ReplyDeleteFloyd Mayweather not only a master in the art of boxing, also a master at creating a lot of hype for his fights and able to sell out seats to all his fights. I agree that these fights do bring in a lot of money to the city, but I don't think that it will cause economic growth. This fight really wasn't too much different than all of his previous fights, they all brought in a significant amount of money. Also with the profit that Las Vegas gets from the casinos, this one fights won't make a substantial difference.
ReplyDeleteIt seems everyone know about the fight even if they didn't watch it. But the amount of revenue achieved during the fight, earning at least 150 million dollars and the tickets were selling for $350,000 even though the fight wasn't as many expected it to be.
ReplyDeleteThe economic boost was incredible, and even though the fight was deemed to be sup-par after the fact, the perceived value of the match going in is what drew the insane amount of cash inflow. Additionally, because in the eyes of many consumers the fight fell flat, it may deter such extreme economic inflows for similar events in the future.
ReplyDeleteWowzers! I am really surprised at how much revenue the fight brought to the Las Vegas economy other than just the fight. It also seems to be quite an inelastic good, because the price was quite high for such a short event, but that did not deter any of the buyers from purchasing their tickets.
ReplyDeleteIt’s crazy that they can make so much money off of just one fight. It wasn’t even that good of a fight! If someone can make that much money off of just the hype up for an event, just think of what business ideas you could exploit!
ReplyDelete$150 million dollars is an insane amount of money. It makes you wonder how much the super bowl pulls in annually. I was also wondering if a rematch would pull around similar numbers. My guess would be that it wouldn't do nearly as well because of how disappointing Pacquiao was. Mayweather won fair and square.
ReplyDeleteAs boxing is simply not as glorified as it was in the 80’s and 90’s so this fight was fairly crucial to boxing remaining relevant in today’s society of fast-pace, competitive world of sports. These two extremely popular boxers brought worldwide attention back to this sport and spiked the revenue in every aspect that it was broadcasted and shown. Las Vegas became almost completely overwhelmed with guests who paid a pretty penny to see these two fight from the nosebleeds; even watching this game via pay-per-view cost around one hundred dollars. This match may not have brought boxing back to the forefront of sports but it certainly raised an incredible amount of money.
ReplyDeleteAs this fight was dubbed the fight of the century, demand for such an event increased dramatically. Not only did enormous amounts of people flock from around the country to one sport to watch two men fight for just under an hour that provided incredible amounts of money to be spent in one area, but also people from around the globe tuned into television networks and on demand channels, priced at $100 per view, to watch such an event. Prices skyrocketed in Las Vegas for hotel rooms, souvenirs, and much more simply because the demand for such commodities were so great not to mention other areas around the globe tuned in allowing for the revenue to be earned from such a spectacle to be so astronomical.
ReplyDeleteim not sure this example is growth, i would instead postulate that it is an example of moving to a point closer to the PPF, as there are no resources being introduced by the fight, and the resources aren't able to be used more than in the past. It may also just be an example of reallocation of services.
ReplyDeleteIt surprises me to know how much revenue the city of Las Vegas gained from this event. As such an elastic good, the prices soared, but there was still a large demand for tickets and pay per view. There wasn't a surplus of tickets, and therefore this drove the ticket prices to nearly $50,000 a seat.
ReplyDeleteThis was so interesting! I cannot believe that this event was bringing in so much revenue. My question would be: how are they going to use all of the revenue they received from this event? However it is spent, I'm sure it will help the economy by creating jobs and employment with the increasing money supply.
ReplyDeleteI can't believe that so many people came to see this event or even just come to celebrate the fighters, because it brought in so much money for Las Vegas. This event brought people in that needed hotel rooms and food and possibly souvenirs which made people spend a lot of money which increased the money supply and overall helped the economy in general.
ReplyDeleteThis is really interesting, it's amazing to see how one event, one fight can bring so much money into the local economy. I cannot believe that people payed 100 dollars to watch the fight on pay per view. I actually cannot believe that this one fight had such a huge impact on the economy.
ReplyDeleteYes this fight was insane. Its crazy how much money they got, but Las Vegas has so many opportunities to swindle people out of money. The fight would , yes, increase GDP, so it would end up helping our economy in the long run, but no where in there does it say that they would spend the money to help the economy more. Please correct me if I am wrong, but the government is not getting that money to help unemployment. The only way that money would help fix unemployment is if the place hosting the event decided to hire more workers, but most likely they won't hire more people. They will most likely invest in building other properties, which does help increase GDP because of investment spending. Therefore I think that this was a lot of money that they got and the revenue is very high, but I don't really think it impacted the economy that much.
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