Mayweather McGregor “Fight”: Business Tutorial and Controversial Lessons

Now that the fight is over (Floyd won as expected and we made $$$), we think it is the perfect time to highlight all of the chaos that occurred leading up to the fight. A lot of the items will be controversial and several will be obvious for those with a background in sales/business/sports. The most important part? If the presidency and the fight didn’t prove that people are driven 100% by emotion nothing will (notice we don’t talk about politics anymore because there isn’t money to be made!). Lets jump in!

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Business Lessons

Brand Damage: We’re starting with the most obvious one. We got several messages and read a ton of websites that suggested “Floyd Mayweather is incentivized to throw the Fight”. Immediately, our response was the same: “Ask us how we know you’ve never run a meaningful business?” The message is clear and to the point: Brand Damage. If Floyd were to throw the fight he would lose significantly more money by killing all of his boxing revenue: the gym, the TMT store, all endorsements and of course his image as The Best Ever. The funniest part of the entire debate is that people believe Floyd is all about the money… then decide he would throw the fight. That doesn’t make any sense at all because he would lose somewhere around $1 billion over the course of his life by throwing the fight.

Consumers Always Take The Bait: We saw our media version of cloaking with the fraud video of McGregor “Ko’ing” Paulie Malignaggi in a sparring session. The media stunt worked with the spread on Mayweather falling from -700 to -400 or so (some places went as low as the 300-350 range) which is absurd. Broadly speaking, people want to believe in the underdog so they fell for the bait and took the entire story hook, line and sinker. If there is one thing that won’t change? Average guy always believes in the underdog because he is a reminder of himself… a guy who never had a shot in the first place.

The second part of taking the bait is the real *entertainment* opportunity that has now opened up. The real move here is for a fight between Paulie Malignaggi and Conor McGregor. Since they now have a clean beef with fake footage and outrage from Paulie, your average consumer would pay for the fight. That said, since the “jig is up”, we doubt the fight would happen since the above average person would know that Conor would lose again (not to mention the significant brand damage for Conor McGregor after another loss).  The entertainment value gives it a chance though. While we give it a 0.1% chance of ever happening, if Conor needs money he can always go down this route to make a few million. End of the day… Too much brand damage now that he has his own athletic business. But. It would work for entertainment dollars.

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Marketing is King – Three Steps: The media has done a great job of portraying Floyd Mayweather as a typical boxer who has financial problems. They went so far as to say he owes a ton of money to the IRS even though 30 minutes of research would reveal that he locked in a different investment vehicle to capitalize on a higher return on investment.  This was an important step in the marketing process because it gave Conor some fodder for the pre-fight conferences. It also caused people to look into Mayweather and learn about him (the MMA fans that is) and gave them yet another reason to hate him (anyone remember what people said about Donald Trump’s taxes for the entire election cycle?)

The second step was Mayweather. He had to find a way to make it seem like Conor had a chance (practically no shot, we had 1:20 due to a DQ or something strange like breaking his own hand). So he went into repetitive talking mode, similar to a sales pitch, stating on paper Conor has a shot… “He’s a lot younger. When you look at myself and Conor McGregor on paper, he’s taller, has a longer reach, he’s a bigger man from top to bottom. He’s a lot younger, so youth is on his side… And I’ve been off a couple of years. And I’m in my 40s. So, if you look at everything on paper, it leans toward Conor McGregor.” – Floyd Mayweather. After this… He continued to thank the MMA side for putting the fight together and acted as polite as possible… until the end when he guaranteed the fight wouldn’t go the distance during the weigh in… this is marketing 101! He never said he would lose, he just gives people a reason to show up to the fight. If people think Conor has a chance that means more PPV buys, more people in seats and more money for him.

The third step was covered above. You had video of Conor doing well combined with Mayweather saying he was inactive making it possible to get hit during his own training regimen. Combine those two items and the masses believe in some dude with a chest tattoo. Watching all of this unfold was beyond brilliant.

The fourth and final step was hyping the fight up as a brutal one (this took the entire duration of the hype phase to work). Mayweather went on to say he would “go to Conor” which was just code for fighting in the pocket and throwing consistent lead punches… killing any sliver of hope that Conor had. Both fighters said the bout would not go the distance. Conor stated it would last 4 rounds and Mayweather guaranteed on Jimmy Kimmel live that it would not go 12 rounds. This resulted in a perfect set up since most people don’t want to see a round 1 KO and they don’t want to see a 12 round boring fight. For some reason, the general population (regulars) want to see something in-between, which is what they were essentially communicating.

Will This Be Good For Sports? This will be interesting. Our guess is that this will be a positive for both boxing and MMA because it is a form of cross pollination. If you ran a website that sold yoga pants and expanded into other sporting wear for women… There would be a good chance it worked but not a guarantee. This is similar as you have two types of combat sports combining for a day to see if they can get more dollars out of each pocket (MMA fans spending to watch boxing in the future and vice versa). The second part that makes it interesting is that Mayweather is forty years old. If Mayweather fought at age thirty… The fight would have lasted 1 round at maximum. The timing is actually quite good so we think it’ll end up being a good long-term decision. Conor doesn’t look terrible losing to an older guy and Mayweather didn’t have to KO him in a single round so it looks more reasonable than it actually was. Perception is reality and they did a good job making this fight seem legit.

Controversial Lessons

We’re going to make a lot of people mad with this section but we’ll go ahead and do it anyway. There are a lot of controversial topics here and some of them are definitely painful. Ranging from racism (still exists today) to people being taken advantage of. Nothing you can do about so no need to worry about it but here we go…

Who Bet on Conor? We’re not overly cynical here so we think the vast majority of people don’t know anything about sports which is fine. Your average guy who thinks that Conor had a chance is simply a regular or a fool. They have no actual fitness experience and might look decent since they went to the gym… But they are simply not athletic. They are the same people who believe that “elite” training is about periodization and peaking at the right time. That level of knowledge is given to 14 year olds who competed at the high school level.  To emphasize this, the vast majority 98% of people, are not athletic or knowledgeable about the top 2% in any shape or form. So we’ll say that 98% of the people who bet on Conor just don’t know anything about sports (nothing negative to say) just “smile, nod and agree”

The second group of people are the emotionally attached. We have nothing bad to say about MMA, Conor is a top athlete in his specific sport… that said… It’s not the same as boxing. The hardcore *MMA* fans and the hardcore *Ireland* fans voted heavily on Conor. These guys were simply blinded by emotion. Nothing negative here, it is simply human emotion: 1) dedicated MMA fans and 2) patriotic Irish citizens. The good news is that you should look for these people in the future. If you see another lop sided bet like we had here, you can find these people and make wagers against them in your favor. When people are emotionally attached you should hear the cash register ringing in your head.

The third group represents the scum of the earth. Actual racists. You can spot these guys because they had to show their cards. Look for people who 1) claim to be athletic experts and 2) somehow thought McGregor would win. This is the ugly side of the chaos that ensued over the last couple of months. They cannot hold both beliefs together at the same time. One of them must be false. We’re going to be careful and make sure that spotting is done correctly: Step 1: before claiming the person is racist, make sure you check their financial incentives. A ton of the guys who said he had a chance are making money off of the fight so they are doing it to get more people to watch the fight (ESPN is an example, more controversy = more viewers so someone has to take the other side). This is the vast majority. Step 2: if they make nothing from the fight, you’ll have to do your own research to see if the person is an actual expert in sports or not and finally Step 3: if they are experts and don’t make money from it… make sure there is no emotional attachment: huge MMA fan, Irish, involved specifically with McGregor etc. After checking all three boxes… chances are you’ve met an actual racist. An extremely small portion of the population, but you now have a clean way to see if someone is an actual scumbag.

Drugs in Sports: Now that we’re seeing more and more athletes get busted for drugs it’s time to let the cat out the bag. Any smart athlete in the top 0.1% is on drugs of some kind and it would be foolish to avoid them. Sure they are not on millions of dollars of drugs 24/7… But. They are using drugs. How else do these athletes come back in under 6 months from serious injuries such as torn ACLs? The answer is drugs. Besides, with $100M+ on the line what intelligent person wouldn’t max out all of the rules he could? Even with blood tests, there are still many ways to get your body to near maximum numbers without tripping the alarms…. To kill the last shred of hope that pro-athletes are “clean” just ask yourself an honest question. If you were borderline professional, the difference between say $1M a year in salary or $60K a year in a development league… Would you look into how the tests are done and maximize your chances? We can all be realistic when it comes to the real answer.

All that said, it would be wise to legalize them to some extent. It’s a bit of a predicament because going overboard on drugs results in death and on the other side, low doses result in improved recovery time (injuries) and performance. There is no magic drug to make someone athletic anyway. Even if someone had talent (top 5%), with drugs they would not beat someone who is in the 0.1%. It’s just not going to be enough. The rules should be given some more wiggle room. Find out if HGH should be legal for injury recovery. Look into the numbers needed for max performance and make that the cut off. This way, everyone is using the same exact amount since overdosing isn’t beneficial (it would actually lower performance long-term). In the future, we wouldn’t be surprised if the rules change… It is just far too complicated since encouraging drug use could also lead to severe issues (young athletes using them and killing themselves as well)… At the end of the day, we’d say some sort of NDA agreement for all pro-athletes and those about to go pro would work. The leagues could then allow low doses, making everything clean and younger athletes wouldn’t know the truth unless they made it to the big leagues in the first place.

Anything for the Money: Now that it is crystal clear that the entire event was just a spectacle… Everyone knows the truth about the power of marketing. They hit a sweet spot where they capitalized on the masses. Your average guy isn’t an expert in anything so illogical things such as “boxing gloves make it impossible for a TKO/KO for Mayweather” made sense to them. In fact, you probably heard such arguments leading up to the fight. The only reason they lowered the weights for the gloves? You guessed it… Marketing (made the fight *seem* more brutal).

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The nasty part is the lengths at which they were willing to go (we got the round off by one but oh well – Mayweather had to make it look close to merge the two businesses). They embarrassed Paulie Malignaggi for the money (he should have known better since Conor knew he had no chance as well – went so far as to say he wouldn’t even bet on himself). They took your average consumer for a ride with huge mark ups in Vegas. And. They also cashed in an ungodly amount of promotions. While the fight hype and set up wasn’t all that bad, the darker side should immediately come into question. If a large fight with a ton of built in demand still went through all of these hoops… would a poor person be willing to give you fake information on the internet? Would that same person be willing to sell bunk products at 100% mark ups? Would they sell re-packaged junk and say it’s a new innovation? For those that have read Efficiency they know the answer and how to spot it.

Get Ready for the Hate: As we described in a prior post, the average person roots against the favorite 99/100 times. This was no different. Mayweather has been the heel for years and that naturally means… He’s the best. The real underlying point is to avoid fame. People who want to be famous and successful will end up receiving death threats, tons of negative attention and forced to live a life “on guard” at all time. While there is nothing to be afraid of, getting rich first then deciding if you actually want fame is a much better set up for the future. The more recognizable you are the more hate you’ll get. You’ll also find that you have a lot more “friends” who ask you if you need “help” with anything. All of this is just code for ways to get money (angling). Even if you are relatively unknown and rich, a small number of people will leak information which just makes you a target in the future.

With that we’ll leave you with our favorite tweet during the fight. And. As you can see, this entire post was written before the fight even began (hence the time post immediately after the win).

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On a final note… if you’re interested in learning more about making money, staying in shape and doing so without choking off your personality… You’ll probably like our book Efficiency. The benefits include:  1) How to get into the top 10% physically with one hour a day of exercise; 2) How to eat correctly to be in the top 10%; 3) How to figure out what type of intelligence you have; 4) How to use this type of intelligence to choose a career and the *right* company: Wall Street, Technology or Sales; 5) How to start an online business and sell (the basics and all you need to start); 6) Clear outline of how to create and start an online product business with correct copywriting; 7) How to go into affiliate marketing if someone wants to take a stab at the competitive space; 8) Overview of how affiliate marketing operates and how to do it and 9) How to do all of this and maintain a normal social life (avoid choking off your personality).

Comments

  1. says

    I have been following you guys for 8 months now. I understand the concepts and did cash out from this. I have learned so much and now I am trying to see how I can use this knowledge in the future. Thank you for insights I can’t get anywhere else.

  2. Katavasis says

    Not gonna lie, i wanted McGregor to win because i like him. But this didnt hold me from betting on the ‘Money’.

    On another note, the funniest thing was people’s faces when at round 4 i believe( after theey were drooling all over the first 3), Floyd threw that lightspeed first direct and shoulder rolled. They knew something was up haha!

  3. says

    WSPB –

    Love this article, bottomline, dissected and analyzed to hit on every angle of the storyline leading to money to be made for quite a few people. I hope the community understands this isn’t an article about the fight, but about ways to analyze situations for business purposes. Taking emotion out, at the end, is key.

    -Lanny

  4. Bill says

    “Who Bet on Conor? The third group represents the scum of the earth. Actual racists.”

    Why no mention of plenty of blacks and other non-Whites who openly supported Mayweather because he is black and was fighting a White?

    Does WSPs subscribe to the ‘Only Whites can be racist’ view?

    Otherwise, good work placing your bets and winning $$$. Should be some good political future opportunities coming up as well.

    • Wall Street Playboys says

      Nope not at all, anyone can be racist. We are simply pointing out you can’t be a “sports expert” and think he had a shot. Just not possible unless you made money or had some sort of reason to hype the fight.

      • MKT says

        I think his point is that the “racist” bit seemed like virtue signaling…at least that’s my take. There were people who went for both Conor and Mayweather based on their race. However, they’re probably a statistically-insignificant part of the betting base.

        With that said, the rest of the article was great and very informative. Kudos!

  5. S.T.E.M. will make laser sharks real says

    Let me make the argument that a logical “racist” (not actually racist) would actually bet on Mayweather (WSP feel free to delete if this comment seems logical to me but is actually illogical and you can find flaws in it):

    Empirical evidence suggests, though you’ll never here this at a university, that individuals historically from sub-Saharan Africa are more athletic or at least have better musculature than individuals from Europe and Asia. Bet on the black guy if two fighters are evenly matched otherwise. Is this racist in the modern sense of the word? Probably? It’s still logical. Is there any other way the 10% minority of African-Americans in the U.S. could so completely disproportionately (relative to population size) dominate the American sports leagues? Socio-economic factors and cultural focus on sports are too small to explain the disproportion entirely.

    And before anyone tries to tear me apart on here, let me preemptively add that race might be socially constructed, but biology is not. If I were betting on a high-altitude race, I’d bet on the Tibetian or Nepalese as they actually have proteins in their blood to allow them to more effectively use the thinner, lower oxygen air at higher altitudes.

    Bet biology when you know it carries an advantage. That isn’t racist (maybe it is?), it’s logical. Rhetorically, both are the same species, but would you rather bet on a Chihuahua or a Greyhound in a dog race? Same species, different advantages in different situations. Know the advantage, know the situation, and you can make money.

    P.S. CRISPR, a newly discovered gene editing tool, will make sports very interesting within our lifetimes. Our ability to edit our own genomes will also make the idea of race entirely irrelevant as people will be able to change their biology at will. Loved efficiency btw

      • S.T.E.M. will make laser sharks real says

        I completely agree on if it was MMA, then go with Conor. I just wanted to suggest that, all else being equal, look for the factors that others refuse to consider because of their emotional attachment to certain ideas as you pointed out in the post. In this fight, MMA vs Boxing, there are many other variables. But if both were professional, highly trained MMA fighters with similar histories and no injuries, biology on the cellular level can be the deciding factor. We already know that many individuals train at high altitudes because it causes an increase in the production of red blood cells, thus increasing their cardiovascular efficiency at low altitude competitions (some even dope themselves with blood transfusions before competitions). If someone had this advantage naturally from birth and you knew it while others overlooked it, wouldn’t it be a good factor to consider for a bet (all other factors being equal)?

        The study of biology can increase your betting efficiency without ever coming from a place of hatred. I don’t suggest you should ever treat someone differently because of factors decided at birth. That is both illogical and, to put it mildly, a total dick move. I just wanted to point out that we can critically examine ourselves and draw conclusions from solid data as long as the scientists that collect the data remain objective. These statistical conclusions are different (or at least I see them differently) from gross stereotypes that lack supporting data and come from a place of hate and insecurity which you point out in –> http://wallstreetplayboys.com/follow-the-hate-and-youll-find-the-truth/

        As an aside if anyone is interested, look at the number of Kenyans (of the ethnic minority Kalenjin group) that win marathons with a google search and you’ll quickly find out that they have the triple-benefit of a natural high-altitude training environment, a culture that values running and hard work, and a leg-related biological advantage.

        To quote from an NPR article on the topic: “There are 17 American men in history who have run under 2:10 in the marathon,” Epstein says. “There were 32 Kalenjin who did it in October of 2011.”

    • Anthony says

      A few points:

      – Historically SSA tribes were relatively isolated. Ergo their genetics are heterogeneous, every other place in the world is homogenous.

      – What does this mean? More extremes. Perfect example: Comprared to Europeans, SSAs are shorter AND taller. But the average European height is higher. Get it?

      – Professional sports work by the Pareto principle. “Winner take all”. It doesn’t matter what the aggregate looks like.

      I don’t have a background in statistics, hopefully someone who does sees these comments and can explain better.

      • S.T.E.M. will make laser sharks real says

        Anthony,

        Halfway through a response and the browser crashed. I don’t know if it got posted or not so I’ll keep it short(er) this time. I want to be the first to admit that I have an amateur understanding of statistics. It is entirely possible that I misinterpreted data. It is NEVER, I repeat, NEVER my intention to make character or worth judgements based on biology. I only wanted to show that we, as rational actors, would be acting and betting emotionally if we refused to consider biology as a factor because it “feels” wrong. Biology is even implicitly considered when the fights are planned, as both fighters need to make weight. We don’t let 250lb., 6’7″ monsters destroy the light-weight champion because we acknowledge biological differences like height and weight lead to skewed odds. I only ever wanted to suggest that there are further biological differences on the cellular level that your average person does not know about or is intentionally ignorant of due to their emotions, which lead to further skewing of the odds that we can take advantage of. Let me end with the statement that we are all living beings with sentience and consciousness. This fact unites us all and makes us all equally valuable.

      • Anthony says

        In response to S.T.E.M. will make laser sharks real says
        August 27, 2017 at 7:32 pm

        Yes, there are innate biological differences between groups.

        No, you can not infer the outcome of a single championship boxing match based on the aforementioned differences.

        Yes, many people have irrational biases.

        Yes, you can can profit from an information asymmetry.

        Equally valuable…..no comment.

      • S.T.E.M. will make laser sharks real says

        Thank you for the fair criticisms in your comments. Sorry for slipping into rhetoric instead of logic at the end.

  6. David Nystrom says

    The racism thing is a strawman.

    I wanted Conor McGregor to win because of racial pride.

    But I bet money on Floyd Mayweather because of advice on this website among other places.

    Successful investing requires removing emotion from your decisions. I wanted McGregor to win for emotional reasons, but the facts concluded Mayweather would win.

    Glad I took your advice–I made money.

    Thank you.

    • Wall Street Playboys says

      Interesting should have added racial pride as reason never thought about it

      That said we stick to our guns on putting your reputation on the line with no financial gain = no other reason but being a scumbag. Referring specifically to people who make their money with sports/fitness that claimed he had a shot (was a joke)

  7. Anon1 says

    Great article WSP!,

    not sure about the “actual racists” paragraph though. If they’re experts but have no emotional and financial attachment they’re racist scumbags because they picked white irish conor over black American Floyd?

    I don’t really think its possible to prove racist intent based on three data points. And Can you even measure emotional attachment?

    I think that it is possible that experts that favoured conor were racist because they wanted anyone other than floyd to win, but i’m not sure.

    • Wall Street Playboys says

      Our point is why would they put their reputations on the line (brand damage) when anyone knew the chances of a win for Conor was 0%, Floyd just let it run longer for the fans.

      Agree very hard to find these people. But. We have seen a few.

  8. Ym says

    “They are the same people who believe that “elite” training is about periodization and peaking at the right time”

    Next post please

    • YM says

      to add to this suggestion – how can someone who is in “good shape”, but a non-athlete, become more athletic (hopefully very much more) all around?

      would think a a pick up / intramural type sport in a big city isn’t going to make that happen

  9. says

    Millions of stupid people were wasting their time watching that rigged fight. Watching those 2 idiots make millions. I decided to do the opposite & skip it. Regular people have a fascination with watching other people make millions & being entertained. Entertainment is over priced & over rated. Pure nonsense.

  10. RE Guy says

    Was curious about the fight and read an article describing the odds.

    Matrix Moment:

    “The odds by qualified boxing analysts have remained largely the same, going from (some numbers) to (some numbers)”

    “On the other hand, the odds by the general public have changed dramatically”

    So, the people who should know what the odds are still think exactly like they did two months ago.

    And the “general public” who watches all the entertainment and bets purely on who can trash talk the best are propping up McGregor (with their money).

    Amazing this is said in print without irony.

    Thanks for the heads up on this one!

  11. Sharmba says

    Nobody in their right mind would have bet on Conor in this fight just like anyone would be a moron to place money of Floyd lasting longer than 1 minute in an MMA [Or even kickboxing fight].

  12. Jack says

    I love your site and have turned lots of ppl onto it but the “racism” part of this post was a little much.

    Are you saying that a white person wanting Connor McGregor to win because *gasp* HE’S ALSO WHITE (!) makes them “the scum of the earth”?

    Yours is one of the only ‘red-pilled’ personal finance sites I know of and if you guys start writing about “white privilege” and acting like every white person who doesn’t hate themselves is evil it will break my heart man.

    • Wall Street Playboys says

      If you can’t figure out what we’re saying you’re not smart enough to read here not even close.

      We have said white privilege is a myth a billion times yet you are so slow you can’t figure out that putting your reputation on the line = beyond questionable. Re-read the post and if you can’t figure it out you’re just dumb as rocks.

      Obvious to us you are unsuccessful financially, we don’t even have to ask.

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