Fighters’ Projected Shared Revenue from Tomorrow’s Bout Could Fetch 24,000 Net Acres in the Utica
The eve of the most anticipated fight of this generation has arrived.
The Las Vegas strip likely carries an unprecedented buzz of excitement and anticipation as the long-awaited matchup of Floyd Mayweather and Manny Pacquiao finally commences on the world stage. If you’ve been fortunate enough to attend a concert, show or sporting event in Las Vegas, it seems to carry more weight and prestige than an ordinary venue. Mayweather/Pacquiao will undoubtedly fit the bill, and all in attendance will surely witness an unforgettable event.
Good luck getting tickets, if you do try to go. Joe Maloof, whose family used to control the Sacramento Kings and Palms Casino Resort, Michael Buffer, known for his signature “Let’s Get Ready to Rumble!” and Las Vegas’ own mayor, Carolyn Goodman have all reportedly been unable to get tickets to the event.
Here are some random economic stats for the bout, compared with happenings in the oil and gas industry:
- $6,000: The price of used mud pumps and mud tanks on oil equipment sites like Rigzone (and Ebay). The current price for two tickets to the Main Event are selling on StubHub for around the same amount. If you want to sit on the floor, be prepared to spend well over $30,000.
- $75 million: the initial amount of revenue in gate receipts from 18,000 tickets sold by the MGM Grand – the location of the fight. That averages out to more than $4,000 per seat. Synergy Resources paid roughly the same amount per acre for 7,440 gross acres in the Wattenberg Field last year.
- $1,700: The price (after taxes) for a 446 sq. ft. room at the MGM Grand. It’s about $350/night if you walk across the bridge to the New York New York. The money saved by switching hotels could get you into just about any oil and gas conference in the world.
- $2.3 million: The overall value of sponsorships on Manny Pacquiao’s shorts. In 2013, Reliance Energy was drilling 11,800 foot vertical wells in the Permian for approximately $2.0 million apiece.
- 3.8 million: the projected number of Pay-Per-View purchases in North America, at $100 apiece. This will generate $380 million – the same amount Rice Midstream Partners (ticker: RMP) priced in its initial public offering.
- 6: the number of years it took for the fight to materialize. The Keystone XL pipeline, on the other hand, is now in its seventh year with no immediate resolution in sight.
- $300 million: the amount of projected shared revenue between the fighters, which could fetch you 24,000 net nonproducing acres in the Utica Shale – a deal made by Gulfport Energy (ticker: GPOR) last month.
- $410 million: Floyd Mayweather’s career earnings BEFORE the fight tomorrow. He is projected to make $180 million from the fight tomorrow, which would place his career earnings at $590 million. If all of his earnings were used in one fell swoop, Mayweather could have swept the Bureau of Ocean Energy Management’s Lease Sale 235, which received $539 million in high bids. The March 2015 sale, based on acreage rights in the Central Gulf of Mexico, spanned approximately 923,700 acres and received bids from industry heavyweights like Chevron (ticker: CVX), Royal Dutch Shell (ticker: RDS.B) and Statoil (ticker: STO).
On a semi-related note, electric companies in Pacquiao’s home country of the Philippines are encouraging residents to turn off appliances in order to avoid power outages.
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