The Business of Being Entertained

a fight for your civil rights. But we're bringing to you the Tyson versus Jake Paul fight and really how Mike Tyson got more respect, but Jake Paul made more money more than that. Mike Tyson was I think arguably looking for a payday in respect, which he absolutely deserves.

He absolutely deserves respect, and you make that clear. I was rooting for myself, really really like the new Mike Tyson, and I think in the old Mike Tyson, the historic boxer, was I think undefeatable, and at fifty eight years old, he did a great job all things considered, this guy was half his age. But that's not what I'm here to talk about. I just want to make it clear that I was rooting for Mike Tyson and I think he's a great guy. But Jake Paul was on a

whole nother situation. Jake Paul was looking to build wealth and build brand for Global Promotions Enterprise, and Mike Tyson was looking for another good paycheck and well respect or more respect, which he received, so fair exchange is no robbery. Mike Tyson was paid twenty million dollars from all estimates, so no one's going to argue about that or with I mean, anybody would love to have I'm sure listening to this twenty million dollars and he left the ring

with his faculties in his health. It appears in check, so thank God and God bless let me before I go deeper into why I think that that's not enough and what this was really about? Right, and the real drop to mic here no pun intended has nothing to do with Mike Tyson. I'm going to unpack the game for you. As Jay Z said on his four four four album, which I believe is a financial literacy album, he said, I'm about to give you a million dollars worth a game for nine to ninety nine. This is

no ninety nine. You're not paying me a thing. Let me explain to you how cause of promotions work, and let me explain to you what really happened in this fight. But I'm going to first buy explain by giving you my own context of my own life. My dad in this example was Mike Tyson, but worse, my dad never got a paycheck like that and wasn't skilled in the way that Mike Tyson was and could be singular in ability to make incredible amounts of money even if he

made mistakes. My dad was a hard working man, Johnny will Smith. We lived in south central Los Angeles. Anybody read my book Financial Literacy for All, which is still number one in the world on business finance, number one in the country, I know, at least business in business finance. If you haven't got a copy, get a copy. You know my book also up from nothing. I covered my dad's story. So we're in south central a and my my dad was this great hustler and h h had

a semen contracting business. And again people can read the details. My mom and dad owned several businesses and owned our own you know, real estate and all that stuff, and them being divorced seeing each other and there was domestic abuse in the house and you know they lost it all. But that's not the story. That's the backstory for this, which is I would be at the front door when folks would visit the house. And I remember very proudly when workers of all races would visit the house on

Fridays and they'd pick up their paycheck. And in this example, I commend Mike Tyson. He's going to be. He not going to be. He did put a lot of people to work as a result of doing this match. God bless him again. All good. I'm this is not jamming up my father or Mike Tyson. It's what we don't know that we don't know this killing us. But we think we know because no one ever gave us the memo on money and free enterprise and economics and capitalism

and ownership and opportunity. So my dad then would open the door midweek for whoever was coming in to sell whatever it is with their sellings. This one guy showed up to our front doorstep and he had a prime mortgage available from my father and my mother had incredibly good credit, so they had applied together. The broker thought that he could really get a great rate for my dad.

But the broker wasn't respectful to my dadd He wasn't he didn't call him mister, and he called him by his first name, and he is way too casual for my father's taste, and he had a new be Caucasian. It didn't help in South central LA. And this particular conversation, my dad sort of looking at them sideways, and so ultimately my father just turned the guy away. And let's just say any example that it was offering. He was

offering a three percent mortgage. Just to make this sort of clear how good of a deal this was that my dad was turning away. My dad turned it away because he wasn't respectful to him. About a week later, another guy shows up. He's a brother black man and he knows folks in the neighborhood and as a result

of that, they've introduced him to my father. And he shows up and he's he's very respectful, he's mister Smith, and oh, I know you go to I know what church you go to, and oh, yes, I've been to service with and oh you're such a you know, you're such a handsome man, and you're so dignified all the

way you dress. And he just really complimenting my father, right, just growing that ego and oh, your family is so beautiful and you know, oh, I would never do anything to disrespect you, and you know what can I do to service you? And I'll bring the documents to you midnight or wherever you happen to be to sign them. And my dad ultimately went with this guy's deal to refinance the house. That guy's deal was a hard money loan. The interest rate was just ridiculous. Let's just say, in

this example, the interest rate was fifteen percent. It wasn't that bad, but you get the point. It was really not good. And it was no comparison to the so called rude guy who was offering it three percent, but it was you know, they were after different things. And the guy who got the business from my dad knew how to bait him, and knew that he was financially illiterate, and knew that he would win the battle lose a war.

He just appealed to his ego and sort of vanity and some sort of Oh, the guy with the fifteen percent mortgage and example, gave my dad a cash out right where the other mortgage was just a refinance, just lower payments, much lower payments, by the way, so immediate cash right, which he also my dad paid for because you're financing the whole thing, so you're literally paying for the money that you're pulling out at fifteen percent. And we ended up losing the house and losing everything. And

this example happens all the time in our neighborhoods. My dad had a you know, probably a five hundred credit score. My mother ended up having an eight hundred credit score. And that's one of the reasons I think that they divorced. This example, I want you to now apply to the Tyson Jake Paul fight. Now, I'm going to give you the part that's easy. Could there have been a fight with Jake Paul without Mike Tyson that got access to

two hundred and fifty million subscribers of Netflix. The answers no. Could it have been a global event without Mike Tyson. The answers no. What it would have the buzz, the sex appeal, the interest without Mike Tyson from all demographics. I think we all agree the answer is no. He's the legend, the man Iron, Mike Tyson arguably just undefeated. And here's some of the statistics from Mike tyson professional debut.

He made his professional boxing debut March sixth, nineteen eighty five at the age of eighteen, defeating Hector Mercedes in the first round TKO technical knockout knockout. In his prime years, he became the youngest heavyweight champion in history November twenty second, nineteen eighty six at the age when he defeated Trevor

Berbick I believe for the WBC title. He was a professional career lasted until June eleven, two thousand and five, when he retired after his final fight with Ken Kevin McBride. He returned to exhibition matches from time to time. There was a fight with Roy Jones Junior, a number twenty eighth twenty twenty, and his active career was basically twenty years nineteen eighty five to two thousand and five with exhibition bouts which included this recent one with Jake Paul.

So his career spanned forty years. And when he walked into that stadium in Texas, we all saw it. The crowd went wild. I mean tys, sons, sons, sonsys. The vibe was everywhere, and even Jake Paul brilliantly deferred. I'll get it this cemitted as part of this narrative at the end of the fight deferred to Mike, and it all connects. So stay with me for a minute. I'm I unpacked this, but let me just drop one of the mics. So if this couldn't have happened without Mike Tyson,

Mike Tyson was the draw. Mike Tyson was a sex appeal. Mike Tyson was was the was the unbeatable force, the credibility that brought this thing together, that created the Okay, then why is it that Mike Tyson got paid twenty million approximately and Jake Paul got paid forty million? Boom? So somebody saying, whoa wait a minute, did John just drop the gavel here? Did he just tell us that Jake Paul, who's only been a professional boxer for about

four years, that's right out in the game. Around the year two thousand, the time that Mike re entered as an exhibition boxer after his career was over by fifteen years, Jake Paul enters as a professional boxer from being an influencer on mostly YouTube. Okay, it gets worse better, however you want to describe it. Jake Paul is a co owner of MVP I think It's Promotions, which co produced the fight. You cannot make this up. Yes, I'm a slow roller for you again. Jake Paul, who said he

hated Mike AND's gonna beat his bout it. I'm gonna tear you apart and all all this stuff. Right, he's the co owner and partner with Netflix producing the entire boxing match with Mike Tyson. So not only did he get forty million dollars double what Mike earned, he got everything else, which might make his purse upwards of And this is the part I don't know, but I'm gonna walk you through the economics so you can understand financial

literacy in real time. It might be awards of one hundred million dollars, but it's going to be a residual payment for arguably the rest of his life. This was a brilliant move by Jake Paul, not a bad move from Mike. I mean, this is Mike's discipline. He's a boxer. He's never said he was a mathematician or a businessman. He's never said he was somebody he's not. So I'm not jamming up Mike Tyson. I told you I was rooting for him. I think his career is amazing. I

think he's amazing. And if you can come out of retirement and earn twenty million dollars and then go chill and decide whether you want to work again, and if that's all you want to do, then he's achieved the pinnacle of his career. But we've all had to this generation coming after Mike, we have to have a software upgrade because you can no longer make money on your labor, on your body and expect that to pay sustainable long

term dividends. Money makes money on money more than you can ever make money on your body and on your labor. Let me walk you through this one example with no Let me first tell you about folks who try to do this with their body and it just didn't work out. Because you've heard me say that NFL players seventy percent of all of them bankrupt within five years of retirement from the NFL. You've heard me say NBA players about the same. Sixty to seventy percent of NBA players bankrupt

after five years after retirement. Their careers somewhere between three years and ten years if they're lucky, right, So by thirty years, you know you're retired, right And if you ever manage your money. Well, you're done. Let's talk about boxers going bro not in. I'm not including Mike Tyson here. Why do boxers do exhibition fights? I'm so excited about this, and you know, I'm tripping over my own words. Money. Why come out of retirement at fifty years old, right

and find an exhibition fight? It has to be money because you could You could die in the ring. I mean it could end your life. It could ruin whatever health and wellness you have, and your family's going to be terrified. So why do it? It's the money. Evander Holyfield came out of retirement, got knocked out in an exhibition fight. Floyd Mayweather. I don't understand his economics, but I just think it needs to be very careful. But

so far, so good. It appear with Floyd Merriweather, but he at least understands the back end a little bit. It appears Roy Jones Jr. Did it. They can't keep her lying on their bodies to make money. They have to start building wealth in their sleep, like Junior Bridgman. As I've said, you make money during the day, you build wealth in your sleep. Junior Bridgeman was a professional athlete,

and he did okay. He played twelve seasons, never making more than three hundred and fifty thousand dollars in a year, but he turned two point nine five million dollars that he had saved into a six hundred million dollar empire, a business empire, by buying five Windy's restaurants in Milwaukee for seven hundred and fifty thousand dollars. Eventually owned over four hundred and fifty restaurants nationwide. Junior Bridgeman again played twelve seasons and never made more than three hundred and

fifty thousand dollars in any one season. A great example of a boxer that did well on the back end was George Foreman. He did it with the George Foreman grill. He made over two hundred million dollars from a grill, not a grill in his mouth, not fighting in the grill, not boxing with his hand, but thinking with his brain, winning the battle from the shoulders up. And not only did he take some revenue, but he also had some ownership in stock in the company that made the grill.

Let's go back now to this fight and why I want to tell you that it wasn't right, not right for the future of boxers. Again, fair exchange, no robbery, So obviously Mike was very happy, so God bless him. But Jake Paul played a more significant role, probably his least significant role actually was as the boxer. He played a role in the business aspects of every aspect of this fight that was streamed on Netflix. He's a co founder of Most Valuable Promotions MVP. He collaborated with Netflix

to organize and promote the event. The partnership marked netflix first venture into live sports streaming, highlighting Paul's influence in bringing about to a global audience. Hold on I'm getting to It. Financially, the fight was lucrative for both fighters, and Paul made forty Tyson made twenty million over two hundred and eighty million subscribers on Netflix. It was made available worldwide, including me and my wife Shacher, we watched it.

Paul's involvement extended beyond the ring, as he actively participated in the sports promotion and organization through MVP. This collaboration with Netflix not only showcases business acumen, but also demonstrated his ability to influence the boxing industry and their evolution, particularly in integrating streaming platforms. Into sports, broadcasting and social media,

which is his history, is where he came from. Jake Paul was deeply involved in the business side of this fight, leveraging his promotional company, his promotional company, and partnerships with Netflix to orchestrate this groundbreak breaking event which was the biggest box in any boxing event other than what's happened in Las Vegas. Let me break down some of the

financial involvements from MVP event promotion and organization. MVP was a key promoter of the fight, handling logistics, marketing, in overall event management. This involved literally literally the negotiation of all the contracts, including the for him and Mike. Then he negotiated it on godtract. Of course, he doubled his income, he doubled his fee. Uh. Overall events management was handled

by him. UH. This again all the negotiations for the venue and managing media relationships and media contracts, revenue sharing. As a promoter, MVP would have negotiated a share of the event's revenue streams, which include include not limited to sponsorship deals, securing sponsors for the event and with MVV receiving a portion of these funds. Think about now, all the logos you saw on the walls, on the on the screens, on on the gloves, on the on the mat.

You know, you know, walking leading up to it, you know, in the months and weeks, in the weeks and months, the days, weeks and months leading up to this event, all of those promotions events. Think about all that background about marketing, all those logos, all those companies, all of that he negotiated, and all of that he participated in. Merchandise sales I'm talking about, you know, the apparel and memorabili. I'm gonna get to these numbers in a minute. Broadcast rights.

Although the fight was streamed on Netflix, MVP may have also negotiated. I'm sure they did terms that included share of the streaming revenue or a flat feed for broadcast rights. My guess is a share, because there's gonna be gonna be rebroadcast rights, which again I'm going to get to as I now tell you how boxing promotion works. Again, put out your pen and pen paper or your iPad here, whatever it is you write on here you go key elements negotiating. Well, first of all, matchmaking. You want to

identify fighters whose clash will draw significant an interest. Hello, what did I tell you, you cannot have a fight with just Jake Paul. He's just not that interesting by himself. But him and Mike Tyson, wooh okay. So I'm not saying it's all entertainment. But you know that slap that happened before the fight. You've seen Mike Tyson knock somebody

out right with one one hit. And when he touched Jake Paul on that preview whatever they did where they were, you know, before they got them in the ring, Jake Paul didn't even flinch. I mean, his body barely moved. It was an open handed slap. It was, in my opinion, for entertainment purposes. I think it Mike really hit him. He had been laid out on the ground, but again

it promoted height. I'm gonna just go to the end of the fight because I just, I just it is hiding in plain sight, and I got to tell you this before I go back to the contracting part. At the end of the fight, Jake Paul salutes. First of all, he doesn't seek the ncout knockout Mike Tyson in our opinion, In my opinion, he'd already knocked him out financially, and he didn't want to hurt his prized asset. Why not get this guy out and then have people he would

have He would have lost either way. You knock him out. People say you knocked out a fifty eight year old man. You'd be ashamed of yourself. You knock him out. Everybody who's who's rooting for Mike Tyson now hates you, right, leaving the man with his dignity. You've already won. By the way, did you notice when Mike Tyson came into

to the ring and when they introduced Jake Paul. They introduced Jake Paul as a philanthropist, a businessman, an entrepreneur, a promoter, you know, social media, YouTube or influencer, blah blah blah, and then it get around the boxer, right, and then when they introduced and it was some you know, collapse whatever, and then you cantrod use Mike Tyson, the greatest fighter of all time. I them iron, my eyes respectfully earned, and the stadium went wild. I go, Mike,

go Dyson. At the end of this fight, this four hour event, by the way, they had you, They had all of us looking at logos and commercials and right buying goods online. And getting all amped up for four hours trying to get to this main event and and it was actually the women's uh, the women's boxing event was actually extraordinary. Even though I think the Latino lady, the lady got robbed, she definitely won. But the other lady did put up a good, good fight. But the

Latino woman lady definitely won. So four hours and at the end of this he just gives it away on national television. He says, oh, yeah, you know, Mike, you know, you're just such a legend and I respect you so much, and you know, uh, there was no need to go. I didn't want to hurt him. Didn't want to hurt him. Okay, all right, this is your prime asset and it's key to your brand. You couldn't knocked him out. If it was maybe maybe could knocked him out. I don't know.

But he didn't, and he didn't even try. Then he when asked does he want to somebody to fight this other guy for the guy's name, he admits it again and says, look, I got the money, I've got the control. I run this whole thing. That guy needs me, I don't need him. Translation, he doesn't have the vibe that Mike has. I think he went to Mike and negotiated this deal. I think he went to Mike and asked Mike to fight. That's what I think again, matchmaking. This guy,

Jake is a really good businessman. I think he went to Mike initially and said, when you like to fight in the exhibition deal, I'll pay you twenty million dollars. And that's all Mike song. And that's all that people tied to Mike's song. And again I'm not criticizing Mike for making this decision. Contracts, securing agreements on fight terms, per splits, and broadcast rights. This is the job of

the promoter. Keep in mind Netflix was the streaming partner, okay, and I'm going to get to the back end on them as well. They're your streaming partner, right, They're not in the They're done a boxing match before. They're relying on their partner, which is Jake Paul, who's negotiating his own compensation and the guy he's brought in to fight with them. Sanctioning bodies they work. The promoter works with organizations like the WBC and WBA for title recognition and

sanctioning fees. Event planning, in logistics, venue selection, choosing high profile venues to maximize audience and gate revenue. Licensing, obtaining permits and hearing the State and International Boxing Commission regulations. Production organizing everything from weigh ins to press events and fight night productions. Hype building, leveraging social media. What does Jake come from? What's his gold standard? What is he great at? I've already told you he came from social media.

By the way, you shouldn't hate on any of this. Right, they put off, you know, an extraordinary entertainment event, probably more entertainment than true boxing. They put off an extraordinary event, and we, I think, on balance, we're pleased with it. So check the box. You know, you also had a presidential election that was I think an entertainment event. But that's a whole other conversation for another time. You know, what could argue all this is WWE produced? But did

I just say that? So? Hip building is one of the jobs of the promoter. Celebrity endorsements, involving high profile figures to add buzz, advertising partnerships with and sponsors, running global campaigns, broadcasts, and streaming deals. This includes pay per view, selling rights to pay per view platforms is a major revenue driver streaming platforms. Now, I've already said this was stream by Netflix and John. Why are you mentioning pay

per view revenue? Why are you mention international rights selling broadcast rights to other countries for additional revenue? Why am I mentioning that? Because now Netflix owns the whole deal, and if they cut a deal like I think they cut with Jake, they own it together. They're gonna be cashing this thing out for the next five years. They're gonna make revenue for the next six months, just like a cash register as they re license this to other

platforms all around the world. Dropped the mic again. This is the gift that keeps on giving sponsorships and partnerships, partnerships with brands for pre event advertising, ring signage, and co branded campaigns. I wan should go back and watch the game. Game watch it is a game. Go back and watch the fight again from my lens. Fighter relations, uh managing Fighter brands career progression and contractual obligations to keep them satisfied and loyal. Mike, what does it take

to get you in the ring? Let's talk about revenue. Pay per view or streaming. Stream was stream for free. It was really smart for Netflix extreamly for free. They didn't do pay per view this time, but they're gonna get another back end, live Gate. I'm gonna get to that in a minute. Okay. It's ticket sales for the event promoters aimed at phil arenas or stadiums for maximum revenue. Sponsorships, high profile sponsors, sponsors, energy, drinks, apparel, brands paid to

us to be associated with the event. Merchandise, merchandising, streaming, I've already covered that. Okay, Expenses, fighter purses covered that event calls, right, Venue, security, production, sanctioning fees cover that advertising and promotion. Okay. Undercard fights, we've covered that, right. Break even point determined is determined by the guaranteed payouts to fighters and event calls and venue calls versus the anticipated revenue. And then you have upside sharing. I hope

Mike got some of this. Often fighters who really cut good deals get a piece of that upside. Global distribution, selling, international broadcast rights and scholarships can be significant boost post fight. All right, here is the numbers. I'm sorry, here he is. Here are the numbers the gate at and T Stadium in Texas, they had seventy three some people come through. It's the biggest event in the history of boxing outside of Las Vegas. Folks got on planes or gott in cars,

whatever and went to a stadium. I watched it on Netflix, but they went to checked in hotels, branded cars, bought plane tickets, bought gear, bought merchandise, bought food, buy hot dogs. And you're starting to go and watch this thing again again from my lens. You make money during the day, you bill wealth and your sleep. What did Malcolm X say, You've been bamboozled, You've been tricked, you've been food, you've been hoodwink. I'm not saying you've been bamboozled. Here, you

got value for your money because it delivered entertainment. Even though we wanted the fight to be more interesting, and we really wanted Mike, I think, to knock them out or at least give a good fight. But it's fine. We're all happy to see Mike happy, and Mike was not upset to the end of the fight, which tells me again this was the arrangement, like, just come out of just come out of retirement, do the best you can, and if you can knock me out, Mike rate, but

you know, I'm gonna come ready for bear. I think it's what you know, Jake Paul had in mine and probably told his friend, Mike type they're friends, and you know, Mike was like, yeah, I'm gonna do this, but I'm not gonna hurt myself either. And he at the end of the day he acknowledged that Jake was a good fighter, and it was a good fight, and you know, take my money and go home. So you had a gate,

now seventy two three hundred people. Let's just say the average ticket price is five hundred dollars, which is a mix of standard and VIP pricing I'm making I'm just estimating, but seventy three hundred times five hundred dollars per person, it's thirty six point fifteen million dollars. So just on the gate, right, you've basically covered Jake Paul's salary or you want to call it Mike Tyson salary plus plus plus. So that gate revenue. Then you've got sponsorship deals, right,

we know that that was significant. Then you've got you know, estimated sponsorship deals ten to twenty million dollars. This is branding in the arena. Fighter gear, you know, marketing campaigns throughout the promotion energy, drink, appairre of brands, tech companies. Again, I think it's ten to twenty million dollars. So now you've added that to the thirty six million. So now just round that up in the twenty million plus thirty six you know, call that sixty million. That covers both

fighters and your I think your venue calls. I'll get that in a second global post live rights. Netflix could license the rebroadcasting on other platforms because they own it. So here's some examples of some of those deals what they may look like. By the way, are you having as much fun with this as I am? Send me notes you know when you see this on social media,

on YouTube or by the way, subscribe follow me. Tell your friends to follow this podcast every week where I unpack the economy and repack it with you in mind. Get my book Financial Literacy for All, Go to operation to helpe and sign up for financial coaching and counseling at Scholarship for entry level Coaching and Counseling. So it's free to you. Let me know what you think about this and whether you want me to do more like this. Okay,

back into this, I'm so excited. Examples. So we're up at now sixty million dollars in revenue, which is covering the core expenses of the venue and the fighters. You still have other expenses. But here's the examples of the deals. Ten million dollars for Asian markets, eight million dollars for European markets. These are rebroadcasting rights, five million dollars for other territories. Total potential licensing revenue just from one rebroadcast

twenty three million to thirty million. Yeah, streaming and replay rights. Netflix could offer the fight as part of a higher tier subscription or make it available on demand for purchase, and that could be I mean, just two million purchases at fifteen dollars is thirty million dollars. Ancillary rights documentaries or exclusive content about the fighters or the event. They've already done. A documentary is already up, by the way, you can watch it that chronicle the pre fight. They'll

probably do something postfight. Two betting partnerships, especially in markets where sports betting is legal. So you have revenue here, Well you figured it out. The revenue for us these expenses. Here's some of the expenses we talked about the fighter perse event costs not it cost ten fifteen million dollars. Marketing might have cost ten million dollars, but Jake Paul did a lot of that himself through social media, and frankly, a lot was paid that through was promoted through advertisers.

They're paying basically than to pay for marketing, because the advertisers essentially marketed the event. Every time they put a commercial on it did something, it says, hey, we're associated with this ingredible fight, so wet They paid him to market his own event. Sanctioning fees two to three million dollars. Staffs, logistics, and miscellaneous for the day of the event and leading up to it is probably five million dollars, So it doesn't take a rocket science to figure out that there's

a whole lot of profit leftover. The fight is profitable primarily due to its global appeal and cross platform potential. Leveraging mix of live event income and post event licensing streaming insures that sustained revenue beyond the fight night lives on forever. This model showcases the evolving economics of combat sports in the age of digital streaming and global audiences

and hello social media personalities. In summary, a major boxing promotion promoter orchestrated this entire ecosystem from fighter selection to global distribution. The economic it's hinged on maximizing the live gate sales, sponsorship revenue, and managing expenses, but most of all broadcasting revenue post event. In other words, the real money is yet to be made. So, yeah, you can't just live on your body anymore. You can't, just like

you can't just rock a mic. Is my late friend, the great Quincy Jones, who is a dear friend, the deer mentor and a big brother, once told me, John, if you think you're in the music business and you don't own licensing rights, publishing rights, writing rights, some kind of rights, you're actually not in the music business. You're just a temporary performer. Boom. So think about how they a lot of artists have gotten robbed in broad daylight. They don't want to focus on the business side. They

just want to They just want to be creative. They let somebody else handle the business. Member it's the music business. It's the business of music, and if you sign a bad contract, they own you for life. That happens in the music business. So you're rocking the mic, but you don't own the mic. You don't own the stage. Look, I want to own I want to own the VIP bracelet company. Yeah, I admit that. I want to own the whoever does the portable stages. I want to own

whoever licenses. I'm sorry, Lisa's the microphones and the mic stands and the camera lenses. Yes, the lenses of the camera are not owned by the folks running the cameras or the production company. They're at least because they're expensive to two hundred two thousand, sometimes two hundred thousand dollars four a lens. The body of the camera, that's another company, right. I want to own the film. Uh, it's not digital these days, you're starting to get this. I want to

own the catering company, the graphics company. Give me something that's going to get used all the time, the porta potties. Think about it. Just unpack a concert, unpack a promotional event, unpack a night at the club. Think about all the vendors involved in that process. And when that artist comes and goes they got a hit and that one day and not a hit another that their career might be over.

But the next person can come along. They're going to use the same mic, the same vip races, the same bound you know, security security company, the same valet company, right, the same lawyers, same business managers. Right. So these folks are ever great and they live for ever, and we get mad at them because they're great negotiators. That the attorneys, the business managers, the financial backers. Don't get mad at them. Don't hate the don't hate the players if you want

to hate the game. But I'm trying to teach you the game. Again, as Jay Z said, I'm trying to give you a million dollars with a game for nine ninety nine. I'm giving it to you for nine for ninety nine. This costs you nothing but your time. So whether you're a singer or whether you're a professional athlete on the on the field. Right. I did a video

on my social media Straight Talk Live series. You can go back and watch it where I talk about there's an NFL player who tried to negotiate his contract through an LLC limited limited liability corporation, so they would just pay him the entire amount that he was owed under the contract, and he'd paid, and then he would take his expenses out and he would treat himself as a corporation. Well, you you're not a corporation. You're not a partner with

the NFL. You're an employee. You're not even you don't even work for the NFL. You work for a team that's licensed by the NFL. Hello, can I get an a man. I'm just breaking it down for you. You're working for a team, right who has a license agreement. They paid for it from the NFL. You're onder that team's banner, and you're an employee of that team. They give you health insurance, they give you training, they give you infrastructure. They give you a place to sleep, but

a place to they take your to your transportation. And now you can't decide that you want to now be a partner. Once they've taken all the risk off the table. You have no risk other than your body. So you're an employee. And by the way, they can fire you anytime they like. I'm sorry, they can release you from your contract. And you're getting paid so much, Well, no one's gonna feel sorry for you. Save your money. Invest in business like Junior Bridgeport did. Junior Bridgeman, I mean did,

and many other highly successful people beyond Junior Bridgeman. You have Magic Johnston, and you know Michael Jordan, and all these players today are Steph Curry are doing great jobs of managing their brand and managing their businesses. They're managing their body on the field, so when they step off the field, that's really their career. Anybody who's become a billion there by the way, in professional sports are the arts didn't do it by rocking the mike, bouncing basketball,

hitting a ball of any kind. They did it by transferring to business. So this is no different right And again I'm an inn where I started. I'm not hating on Mike. I love Mike. I respect him, and he he is living his truth and he has a right to live it any way he sees fit. He also came up in a different generation where these conversations were not common, and you have access to a software upgrade that Mike didn't have because you have me and others

tell you how this game was played. Nobody told Mike how this game was played. I mean, his dream was to be a boxer, and that was a dream come true. And by the way, he's done it masterfully, and he deserved that standing ovation that he got. That sustained standing ovation.

I was clapping from him on the TV set. But no different than an Apple phone when the first one came out, iPhone one two three, uh, and you know, but even when they came out, you know, you know, iPhone four or five, six, seven, eight, nine ten right there. Now I have the iPhone sixteen Pro and no different. And as soon as the iPhone comes out, there's a software up grade because they missed something, because they wanted to make something a little bit better, because they don't

let the perfect become the death of the good. But they understood the clients have constantly evolving demands and they if they're going to pay for this product, they want software that is almost more valuable than the infrastructure the body itself. So now my iPhone sixteen Pro has a my last time I checked as a software of eighteen points something. So the phone just came out and already the software is out stripping it in its upgrade. It's again,

it's eighteen point one. I always eighteen point one. I just checked. The phone just came out. Because it's not about the body, it's about the software. It's about the business plan. It's that the magic right is in the software is in the functionality inside of the body, around the body that brings the body to life. So in Tyson's generation, it was about perfecting that body. And he did it better than anybody else. And he's deserved a standing ovation. And I'm so glad that he that he

came out of there ringing, healthy and wealthy by any measurement. Right, anybody would love tweet me and wise and he and he goes and live a fight another day. I hope he stops fighting with his body, he starts fighting with his brain. But but Jake Paul understood the software, and he understood the business plan, and he understood that this was the business of boxing. And that brother, I must give him credit honor. I mean my brother, he's under

God's under God's plan. He is my brother. Uh. He mastered, He mastered this business plan, co promoter and fighter. He rocked the stage and owned it. This is John O'Brien. This is money and wealth on Black Effect Network. This was Unpacking Tyson versus Jake Paul, the fight of the decade. Mike Tyson got more respect and got paid, but Jake Paul made more money and build wealth. And Brian Fair exchange is no robbery, good negotiations. When you leave the

table and everybody is slightly irritated. So I think this worked out just fine for them. And I want you to understand the games being played on you so you can mash the game and own some of it yourself. Start with owning your home. Start with but having a will, Getting a life insurance policy cost just as much to rent as it does to own your own home. Getting your credit screw up. Okay, you got it. You know I'm about to start preaching, all right, John O'Brien of

in Light This is Money and Well. Money and Wealth with John O'Brien is a production of the Black Effect Podcast Network. For more podcasts from the Black Effect Podcast Network, visit the iHeartRadio app, Apple Podcasts, or wherever you listen to your favorite shows.