Sports: The New Gold Mine

It was once the forbidden field, one for the never-do-wells and the society’s rejects. Today, sports has become the new money-spinner, especially in the developed world, where it has become a millionaire-maker, a business with very elastic boundaries, an employer of labour and a means of expression for many who could not find a place in ‘everyday’ society.

Many of the world’s richest sportsmen would not have made it in academics or any other profession; some of them were apprentices, others did menial jobs before they gave themselves a second look, many more engaged in it as a form of enjoyment before they found the money and fame, others were rejected and found in it the acceptance they never received…the list is long. However, today, one thing is clear; they have found in sports their own goldmine.
Sports stars have become the world’s new-age celebrities; they have the world at their feet, millions around the world gather to watch them strut their stuff –whether they chase a leather ball, dunk balls from one end of the court to the other, chase balls on a hockey pitch, gallop on a horse to finish a race first or to score a chukka in a game of polo, race in tiny cars at imaginable speeds, box each other into unconsciousness in a ring, take aim at holes kilometres away from where they stand in a game of golf, take a jump from mountain cliffs, hit a ball from court to court over a net in a game of lawn tenis, run on tartan tracks – they get the best of deals and endorsements, their collective entreprise employs millions all over the world…the world just loves them more, in comparison to the man who sweats out in the laboratory to get some form of cure. The world does not even love the people who write about them as much as it loves them.
The height of it all is that they earn outrageous salaries for doing the most easy-looking things within the shortest possible time and emerge millionaires.
Some of the world’s richest athletes make more than some of the world’s richest men at the drop of a hat and, interestingly, Forbes, who has a nose for sniffing out the rich from the world over, reserves space for ‘the richest sportsmen’ in its yearly millionaires’ ranking.
Below is a list of Forbes’ list of richest sportsmen for the year 2015 and it is an indication of how much they earned between June 2014 and June 2015. They earn this much, all for being great sportsmen. Yes, great sportsmen.
1.Floyd ‘Money’ Mayweather Jnr. ($300m)
Floyd Mayweather has had a career full of monster paydays, with cumulative earnings of $420 million entering 2015. But Mayweather still craved the score of a lifetime. “Even from day one when I was with Bob Arum, I said I wanted to work extremely hard to get to a certain point in my career, which is to get to a point to be the first fighter to ever make nine figures in one night,” Mayweather said ahead of his May 2 fight with Manny Pacquiao. Mission accomplished for the man they call Money.
Mayweather received a $100m check on fight night, but the real payoff came after the revenue figures were tallied up. The fight was a dud in many people’s eyes, but it smashed every financial record in boxing, including pay-per-view buys (4.4 m and climbing), total gate ($73m) and sponsorships ($13 million). The fight is expected to gross $600m once everything is counted. The fighters and their promotion companies will divvy up roughly $400m, with Mayweather owed a 60 per cent cut. Factor in his September 2014 bout against Marcos Maidana, and Mayweather earned $285m over the last 12 months in the ring. “Floyd Mayweather just pulled off the biggest score in the history of sports and entertainment,” says Leonard Ellerbe, who heads Mayweather Promotions.
The Man they call ‘Money’ has made $300m a year, shattering the record for athlete earnings, which was previously held by Tiger Woods who banked $115m in 2008. Mayweather’s May 2 fight against Manny Pacquiao crushed multiple boxing financial records, including PPV buys (4.4 million), total gate ($73m) and sponsorships ($13m). The fight is expected to gross more than $600m once everything is counted. Mayweather has typically shunned endorsement deals, but inked agreements with Hublot, FanDuel and Burger King ahead of the May fight. The Pacquiao fight marked the fifth bout in the blockbuster 30-month, six fight deal he signed with Showtime in 2013. Mayweather, whose record stands at 48-0, plans to fight in September to complete his Showtime deal and then retire.
2. Emmanuel ‘Manny’ Pacquiao ($160m)
Pacquiao’s $125m payday for his bout against Floyd Mayweather was four times his previous high for a boxing match (Pacman’s boxing earnings also include $23m for his November fight against Chris Algieri). Pacquiao boosted his income further through endorsement deals with Nike, Foot Locker, Wonderful Pistachios, Nestle’s Butterfinger and a handful in the Philippines. The pugilist and Filipino Congressman is sidelined for the rest of 2015 after shoulder surgery to repair a torn rotator cuff.
3. Cristiano Ronaldo ($79.6m)
The three-time and reigning FIFA best player in the world has scored 60 or more goals in each of the last four calendar years and averages a goal a game for his club Real Madrid. He has more than $50m a year salary (with bonuses) through 2018 to show for it. He’s also the world’s most popular athlete, with 102 million Facebook and 35 million Twitter followers. His commercially good looks have landed him mega sponsorships with Nike and his own underwear and shirt line CR7.
4. Lionel Messi ($73.8m)
In 2014, Barcelona awarded their record four-time FIFA player of the year with a $9m a year raise in his 7th contract since 2005 to bring his take home pay to $50m a year through 2018. The Argentine holds records for most goals in Barca competitions, most goals in La Liga competitions, most goals scored in a calendar year and most hat tricks scored. His superhuman talent is why sponsor Samsung cast him as superhero Iron Man in their ad to promote the Avengers film. It’s also why his main sponsor Adidas launched a Messi icon line of shoes and apparel which has exceeded company sales expectations, including in the U.S.
5. Roger Federer ($67m)
After seeing his world ranking drop to No. 7 in 2013, Federer rebounded last year and finished the year ranked second. He continues to be among the world’s best players 17 years after he turned pro. He holds the records for most singles Grand Slam wins (17) and career prize money ($90m). He appeared in a staggering 18 out of 19 Grand Slam finals between 2005 and 2010. His endorsement portfolio is filled with long-term deals with blue-chip companies like Nike, Rolex and Credit Suisse. He extended his Mercedes-Benz deal at the end of 2014 for another three years. His sponsors collectively pay him more than $40m annually. The latest addition is a five-year pact with Sunrise, the largest private telecommunications provider in Switzerland.
6. Le Bron James ($64.8m)
James is the first NBA player to appear in five straight NBA Finals since the Boston Celtics dynasty of the 1960s. The NBA’s four-time MVP returned to Cleveland in July 2014 when he signed a two-year, $42.1 m contract after four seasons in Miami. James inked the shorter deal, instead of a richer four-year pact, so he could be a free agent again in 2016 when the NBA’s new $24bn TV deals kick in and sends the salary cap soaring. The NBA’s top pitchman added Kia Motors to his endorsement portfolio, which already included Nike, McDonald’s, Coca-Cola, Samsung, Beats by Dre, Upper Deck, Tencent and Audemars Piguet. Sales of his signature Nike shoes were tops among active players at $340m in the U.S. during 2014, according to research firm SportsOneSource. His Cavs jersey was also the NBA’s best-seller.
7. Kevin Durant ($54.2m)
The four-time NBA scoring champ won his first MVP trophy in 2014 after leading the Oklahoma Thunder to the second best record in the NBA. The 2015-16 season is the final year on the $85m contract he signed with the Oklahoma City Thunder in 2010. Durant inked a blockbuster, 10-year deal with Nike in 2014 that could be worth up to $300m, including royalties. It is the richest endorsement deal of any active athlete. Nike is one of a dozen sponsors in Durant’s arsenal, which also includes BBVA, Sprint, Sonic, Panini, 2K Sports, Skullcandy and more.
8. Phil Mickelson ($50.8m)
Mickelson earns more than $40m annually from appearances and endorsement partners Callaway, Barclays, KPMG, Exxon Mobil, Rolex and Amgen. He picked up a deal to promote psoriatic arthritis drug Enbrel after he was diagnosed with the disease in 2010 and used the drug for his treatment. The five-time Major champion re-upped with Callaway last year in a multi-year deal to use Callaway’s clubs, balls and bag during tournaments. It continues a partnership that began in 2004. Mickelson has racked up 42 PGA victories (ninth all-time), but his last win came two years ago at the 2013 British Open. His $77 m in career prize money ranks second all-time.
9. Tiger Woods ($$50.6m)
Woods made only seven cuts in 13 events during 2014 and the first half of 2015. It is a staggering fall for a player who made a record 142 straight cuts over seven years ending in 2005. Blame injuries to his elbow and back, which hampered the 14-time Majors winner over the last two years. His last Major win was the 2008 U.S. Open. The injuries dented Woods’ bank account since he couldn’t appear in his typical slate of overseas events where he racks up multi-million appearance fees. His prize money was only $600,000 over the last 12 months. Woods did pick up new endorsement deals in 2014 with MusclePharm and India’s Hero motorcycles. Hero also signed on as the title sponsor of the golf event Woods hosts annually at the end of the year in Florida. Woods’ golf course-design business has also picked up after multiple blowups. The first Woods-designed course opened in 2014 in Cabo San Lucas, Mexico. His first U.S. course is set to open outside of Houston in October. Woods is also working on course in China and Dubai.
10. Kobe Bryant ($49.5m)
Bryant had the highest salary in the NBA for the fifth straight year at $23.5m in 2014-15. Bryant took a $7m pay cut on his Lakers’ salary last season under the two-year, $48.5m extension he signed in 2013. Injuries limited the 17-time All-Star to only 41 games combined over the past two seasons. The five-time NBA champion still has deals with Nike, Lenovo, Hublot and Panini, but is moving away from straight endorsement deals in favor of being part of businesses. His future includes Kobe Inc., which he set up in 2013. The firm’s first investment was $4-6m in 2014 to buy more than 10 per cent of emerging sports drink BodyArmor. Bryant will sit on BodyArmour’s board of directors and focus on the marketing and branding of the product.