Mayweather-Cotto Shatters Golden Boy’s Records for Sponsor Rights Fees, Promotional Value

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Below is a news summary by Ben Parrino, an Entertainment Management student at Missouri State University.

(from Sports Business Journal, May 6, 2012) The pay-per-view title bout between Floyd “Money” Mayweather and Miguel Cotto, presented by Golden Boy Promotions, contained the highest grossing sponsor rights fees and promotional value the company has ever seen. The CEO of Golden Boy told reporters the fight brought in $2 million in sponsor rights fees and had promotional value of at least $8.5 million, easily shattering the company’s previous highs of $1 million in cash and $4 million in promotion. The sponsors for the fight included AT&T, DeWalt, O’Reilly Auto Parts, History Channel, the Mexican State of Puebla, and Corona, who was stationed at the center of the ring mat.

The event happens to be the first sponsorship deal between Corona and Golden Boy Promotions. The beverage company recently dethroned longtime sponsor Tecate, which has been Golden Boy’s most visible sponsor in North America since 2007. Corona overshadows Tecate with its media spending, but does not have a history of activating behind boxing in stores like its predecessor. Fight promoter, Richard Schaefer says that this activism will come with time and maturity the company puts in with the sport. Schaefer states, “This is all relatively new. But we are convinced that, if you look at the Corona platforms, which are available on a national basis, this will give us even greater reach.”

Two companies who pushed for promotional rights for the fight included DeWalt and O’Reilly. Together, they received clearance to advertise the pay-per-view contest in more than 5,350 stores and hold contests in more than 250 stores. Additionally, O’Reilly spent an estimated $1.5 million on radio advertisements, which were broadcast simultaneously in English and Spanish two weeks prior to fight date. Along with these two promotional efforts, NCM Fathom distributed the fight for viewing in 350 U.S. theaters and ran trailers promoting the event on more than 7,000 screens.

The title fight that shattered Golden Boy’s previous records and thrust the company once again into the national spotlight seemed to have the reach they were trying to achieve. “We’ve been working for years now to convince brands how important activation is in this sport, as it has been in other sports. With this sponsor lineup, you see that the efforts are paying off,” comments Schaefer. If you were lucky enough to catch the fight, I hope your eyes were not only fixed on the boxers, but also the mat beneath their feet.