FIGHT CLUB CONSENSUS (Positive Consensus/Bear Market Indicator) May-Pacquiao finally provides stimulus Federal Reserve seeking
May 1, 2015
The upcoming Mayweather-Pacquiao fight in Vegas may be a dud fight wise, but it has delivered when it comes to over-the-top VIP consumption. The numbers and cash being thrown around are quite staggering. As one concierge service summed up, "“To put it lightly, it’s complete mayhem—the demand for tickets, hotel rooms, transportation and nightclub VIP tables."
- Hotel rooms in Vegas are going for 5 to 6 times the normal rate and that includes hotels that are not on the A-list. The Stratosphere jacked up their rates by 617 percent, Golden Nugget by 590 percent. Even the Motel 6 increased their rates by almost 320 percent for the weekend.
- For the premium on the Strip hotels, like Caesar's Palace, a suite is going for $50,000 per night.
- Scoring tickets to the fight? After market tickets are going for up to $150,000
- Price of admission for a viewing party of the night’s boxing matches at the Mohegan Sun in the Poconos of Pennsylvania is $35. The Mohegan Sun in Connecticut is charging $35 for entrance to a viewing party in its 5,300-seat ballroom. At last check, tickets were already sold out at both venues via TicketMaster, and general admission prices—for watching boxing on TV, remember—have been listed at $70 to well over $200 at secondary resale sites such as StubHub.
- Both Mayweather and Pacquiao could earn over $100 million apiece from the fight.
- Revenues expected just from ticket sales to the fight are estimated to be $74 million—an amount that trumps the most recent Super Bowl ($60 million) even though the football venue held four times as many seats.
- Total amount that gamblers are expected to bet approximately $80-100 million at Nevada sports books on the fight.
- Estimates are out there of 3 million pay-per-view buys at about $100 each which could bring $300 million in sales for US, Puerto Rican and Canadian markets alone.
- Total revenues the fight will generate are estimate to be $400 million, including sponsorships and pay-per-view and foreign licensing fees.
This is for an event that could last less than 10 seconds if one of the fighters managed to connect with the right punch.
Maybe this is the stimulus the Federal Reserve was hoping to create as a result of their Quantitative Easing/low interest rates/money printing program. A lot of money sloshing around looking for a home that can help good old fashioned business like casinos, bars, and strip clubs upright themselves after years of struggle. History has also shown that these displays of over-the-top gluttony can also mark the last hurrah of an era dominated by conspicuous consumption.