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http://thekingmaker.me/floyd-mayweather-broke/
Mayweather’s Financial Future Projected
Floyd Mayweather: Heading for a crash?
Let’s assume Floyd Mayweather lives to be 70. How long can he sustain his current lifestyle? Below is an analysis based on his entire career – from start to assumed finish.
Career earnings hit $350 million with the Canelo fight. He has a maximum of 4 fights left on his current Showtime deal. There are no guarantees he will fight 4 more times. Assuming he fights all 4 fights he’s looking at a guaranteed $133,000,000.00 with an estimated further $50,000,000.00 tied to PPV performance. That’s a maximum total take of $533,000,000.00 from a career that should not go beyond his current contract.
Less: Ellerbe/Al Haymon‘s management fees – assumed to be the traditional 25% – $133,250,000.00
Trainer’s (& all form training) fees at traditional 10%: $53,300,000.00
“I make good money with my nephew anyways,” said Roger Mayweather. “I train my nephew and I still make more money than most motherfuckers in the sport of boxing, period. I make more money than them and I’m talking about world champs.”
Roger Mayweather already has an estimated net worth of $20 Million.
Sum of Management & Training Costs: $186,550,000.00
Pre-tax earnings: $346,450,000.00
Expenses & Outlays Assumed Claimed As Business Expenses/Purchases
He owns a G5 private jet – $35,000,000.00.
Annual running costs: $1,750,000.00.
Assuming Floyd doesn’t upgrade & get a newer model – as he’s already got an aged version of the jet – that’s lifetime running costs of $1,750,000.00 * (70-36) = $59,500,000.00.
Mayweather & Bodyguards
His 7 full-time bodyguards each make $150,000 per year. $1,050,000.00 per annum. Let’s assume he has & will maintain this level of personal security between 2008 & 2016 or 9 years so… 9 * $1,050,000.00 = $9,450,000.00. Let’s say Floyd maintains a security detail of 2 men after this period. That’s another $150,000.00*2*(70-39)=$18,600,000.00.
His bodyguards travel on a separate jet because Floyd is afraid of having too much weight in the cabin. A chartered (rented) flight for 7 from New York to Los Angeles costs $42 520.00 – so ten such flights per year run to $420 520.00 per annum. Let’s assume he has & will maintain this level of personal security between 2008 & 2016 or 9 years so… 9 * $420,520.00 = $3,784,680.00. Lifetime cost of the contracted security detail of 2 post-career adds a further 2 * $420,520.00 = $841,040 * (70-39) = $26,072,240.00. This is based on 10 NYC to LA length trips per year.
Floyd Mayweather: Spending beyond his means & with reckless disregard for financial common sense.
Floyd Mayweather Jr. bought US$605,000 worth of tickets for his friends to the Canelo Alvarez fight. With tickets prices listed at $2,000, $1,500, $1,000, $600 and $350, he must have bought well over 300 tickets for family, friends, and (presumably) friends of friends. Let’s assume Floyd does the same (ignoring any inflation) for his next four bouts; so five bouts – that this is known about – 5 * $605,000.00 = $3,025,000.00.
Payment to Juan Manuel Marquez for not making the contractually stipulated weight for their bout = $600,000.
On July 3, 2009, the Associated Press reported that the IRS had filed tax liens against Mayweather of US$6,170,000.00. He also owed another $193,000 pursuant to a New Jersey Superior Court case. Tentatively assumed as payable from pre-tax earnings.
Gross Taxable Income after deductibles
$346,450,000.00-$35,000,000.00-$59,500,000.00-$18,600,000.00-$9,450,000.00-$3,784,680.00-$26,072,240.00-$3,025,000.00 – $600,000.00 – $6,170,000.00 – $193,000.00 =$184,055,080.00
Taxable income = $184,055,080.00
Taxation = Variable owing to fluctuations in earnings during career. In Nevada earnings of $1,000,000.00 per annum are effectively taxed at 38.4%; earnings of $5,000,000.00 are effectively taxed at 41.5%; earnings of $90,000,000.00 are effectively taxed at 41.9%. Let’s take 41.6% as a convenient steady state taxation rate on career taxable income… that’s a cumulative tax bill of 41.6% * $184,055,080.00 = $76,566,913.28
After tax earnings: $184,055,080.00 – $76,566,913.28 = $107,488,166.72
Mayweather spends $6,500 per year on boxers. He throws them out after wearing them once. That’s $17.80 per day. There are 12,108 days between now & Floyd’s 70th birthday. Total cost $17.80*12,108=$215,522.40
Mayweather has four children. Child support per child is estimated at a mandated (by the State) $2,000.00 per month per child should they reside with their mother(s). That’s 12*4*$2,000.00 = $96,000.00 per annum. That’s a life-cycle (age 0 to 18) of 18*$96,000.00=$1,728,000.00.
Mayweather’s custom made iPod classic is diamond-encrusted and solid platinum – $50,000.00.
Bugatti Veyron $1,600,000 (allegedly bought for him by the MGM Grand)
Some of Floyd Mayweather’s Cars.
Mercedes SLS 201,500 USD
Lamborghini Aventador 397,500 USD
Mercedes-Benz S600 92,900 USD
Rolls Royce Phantom 470,295 USD
Ferrari 458 233,509 USD
Ferrari 599 $320,580
Rolls Royce Drophead 469,900 USD
Bentley Mulsanne 298,900 USD
Pre-All Black/White Collection
Ferrari F430 $279,000
Black Ferrari 599 $320,580
Lamborghini Murcielago $330,000
Mercedes SLR $500,750
Sub-Total (excluding Bugatti): $3,915,414.00
Insurance runs at 2.21% of the purchase cost per vehicle per year: 2.21%*$3,915,414.00*(70-36)=$2,942,042.08 based on initial quote from Hagerty Insurance. Let’s assume he maintains a similar size fleet throughout.
Mean cost per vehicle: $326,284.50
New vehicles purchased per annum: 2
Projected cost in 2014 USD of vehicles between 1/1/2014 & Floyd’s 70th birthday: $22,187,346.00
Add: Cost of cars already bought
Total lifetime spend on cars: $26,102,760.00
Recouped value from trade-ins assuming 2 cars in & 2 cars out of fleet per annum – assuming a trade-in value of 40% of purchase price = 2*$326,284.50*40%*(70-36)= (inflow of) $8,874,938.40
Floyd Mayweather only wears shoes once. Let’s assume he wears 1.75 pairs of shoes per day. Let’s assume (conservatively) the mean pair of shows retails at $195.00 – that’s a lifetime spend of 1.75*365.25*$195.00*(70-30) = $4,985,662.50 on shoes alone – assuming this practice started at age 30.
His 22,000- square foot Las Vegas home – $9-million – has five-bedrooms & seven-baths & is custom-built on a gated community golf course. $3,000 in monthly gardening maintenance – $36,000.00 per annum or (70-30)*$36,000.00 in lifetime costs assuming this practice started at age 30 = $1,440,000.00.
He bought his fiancée Shantel Jackson a $2.5 million engagement ring. It went nicely with her other jewellery collection… Mayweather also paid $16 million to buy his fiancée a 27.64-carat diamond necklace called The Heart of Eternity. Assuming she is now the legal owner of both of these items that’s an additional $18,500,000.00. Ferrari 458 Spyder for Jackson $257,412.00.
Floyd gambles compulsively & obsessively – this is perhaps the easiest financial loss to quantify as anyone who gambles as often and consistently as he does regresses decidedly toward the bookie edge of 4.54%. Betting a mean $50,000.00 per day from age 30 to age 70 would likely lead to a nett loss of $50,000.00*365.25*(70-30)*4.54%=$33,164,700.00.
Custom watch collection: $6,400,000.00 (in one box). Let’s assume the resale value at a pawn shop for these items is $2,000,000.00. Net expense of $4,400,000.00.
Four court-side tickets to Game 7 of the Heat-Spurs = $80,000.00.
Earrings and a necklace for his 13-year-old daughter = $250,000.00.
Personal Barber – on call – estimated at $40,000.00 per annum. $40,000.00 * (let’s assume this service commenced when he was 32 so 70-32) = $1,520,000.00.
Cadillac golf cart – $20,000.00.
Diamonds of Atlanta Strip Club visit with Ray J. – assumed half of $50,000.00 total spend for $25,000.00.
Leather Jacket – $100,000.00.
Burnt $100.00 bill in Atlanta night club.
Personal Expenses: $215,522.40 + $1,728,000.00 + $50,000.00 + $26,102,760.00 + $2,942,042.08 – $8,874,938.40 + $4,985,662.50 + $1,440,000.00 + $18,500,000.00 + $33,164,700.00 + $80,000.00 + $250,000.00 + $1,520,000.00 + $20,000.00 + $25,000.00 + $100,000.00 + $257,412.00 + $100.00 + $4,400,000.00 = $86,906,260.58.
Starting to see how Floyd could renege on a Florida property deal? With $107,488,166.72 in actual after tax income & publicly discernible expenses of $86,906,260.58 – assuming I have accounted for anything less than 80.85% of his actual expenses (& I have to assume that its unlikely I’d be able to have found anything more than 65% of his actual expenses without intimate knowledge & access to his accounts) Mayweather’s journey to financial oblivion seems pre-ordained.
“He’s following the regimen of other successful fighters that had no income away from boxing. And he’s 36 years old. He’s got to actually think about his future…..When you’re at that point when you find yourself hitting rock bottom… well hopefully he comes to his senses before it gets to that point.“ 50 Cent
Floyd doesn’t have a single endorsement deal. He has an apparel company called The Money Team, but no deals with Nike, Adidas or Reebok. Mayweather’s company did well at a trade fair selling some $200,000.00 of merchandise (assumed margin of 35% meaning $70,000.00 in gross profit) which the other so-called Money Team celebrated with $100,000.00 worth of champagne & other frivolity – hardly the sort of business acumen one deems likely to result in long run upside for the enterprise.
‘We don’t know what we’re doing until we do it,’Mayweather assistant.
I regard Mayweather as an era-defining talent; a generally good soul who is generous & kind but who is charting a course to financial oblivion that will render him a laughing stock on or before:
13 June, 2017
SI: Tell us about your best investment.
Mayweather: I don’t want to put that out there. I don’t want anybody taking the blueprint of what I do. I keep that to myself. Just know that I’m in a good position.
“When I was growing up, seven of us lived in one bedroom. I got a closet now that’s bigger than that bedroom was.” Floyd Mayweather
“When you take a broke person out of the slums and give them a chance at bettering themselves, in due time, their true colors will eventually reveals itself. That’s why they say, leave trash in the garbage for bums to dig through because you will find yourself hanging around garbage so much, you’ll forget how rotten it is,” Floyd Mayweather.
Historical Precedents
Evicted: Holyfield was forced to move out of his palatial 109-room mansion south of Atlanta in July after failing to come up with $14million in back mortgage payments.
Evander Holyfield was forced to move out of his 109-room Atlanta mansion after failing to come up with $14 million in overdue mortgage payments. Manny Pacquiao owes the governments of the United States & the Philippines a combined $68,000,000.00.
Official documents show the IRS claims he owes the government federal income taxes from 2006 to 2010 … totalling $18,313,668.79 in debt.
Yearly breakdown:
2006 — $1,160,324.30
2007 — $2,035,992.50
2008 — $2,862,437.11
2009 — $8,022,915.87
2010 — $4,231,999.01
Manny’s U.S. tax issues come on the heels of a nasty tax war in his home country, The Philippines government claim he evaded paying $50 million in taxes in 2008 and 2009 alone. Philippines officials have frozen the bank accounts Manny has in the country … and even placed a lien on one of his most expensive properties.
But the most inescapable signal of Mayweather’s downfall is that its happened before & is why he came out of retirement:
“He wasn’t broke,” Floyd Sr says. “But he had a money problem.”
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