Macao packs a big punch

In hosting the highly anticipated matches of Manny Pacquiao and Chinese legend Zou Shiming, the port city is laying its claim as the capital of the boxing world

A palpable shudder of anticipation is sweeping Macao this week as champion Manny Pacquiao prepares to defend his World Boxing Organization welterweight crown against Chris Algieri on Nov 23 at the Venetian Macao's Cotai Arena.

In every corner of the 28.5-square-kilometer former Portuguese colony that was returned to the People's Republic of China in 1999, residents and visitors alike can sense the impact of the "Pacquiao effect" - a financial tidal wave that dwarfs any precedent in the long marriage between boxing and gambling.

The eight-division world champion, a congressman in the neighboring Philippines, is the most popular fighter on the planet.

Pacquiao is guaranteed to pocket at least $25 million (before pay-per-view earnings are tabulated) for the fight. One year ago to the day, he was paid $31 million for a win over Brandon Rios at the same venue that coincided with a 70 basis point lift in host Sands China Ltd's gambling market share.

Thanks largely to the estimated $235 million brought in by the Pacquiao-Rios bout, Macao's gambling revenue jumped 21.3 percent over November 2012, capping a year that saw the special administrative region generate roughly seven and a half times the revenue of the Las Vegas strip.

Overall gambling revenue in Macao has taken a hit over the last quarter, dipping nearly 20 percent in October. But if history repeats, the return of big-time boxing will right the ship - at least at the Venetian.

A normal weekend at the host casino brings in around $65 million. Last year's first two boxing events imported by Las Vegas-based Top Rank, without Pacquiao, brought in $117 million and $148 million. With the $235 million generated by Pacquiao-Rios, that meant a $500 million for the Venetian from three events.

But for Top Rank founder and CEO Bob Arum, that's just the tip of the iceberg.

Arum had long dreamed of a rebirth of boxing in the world's most populous nation, but it was not until he witnessed an exhibition basketball game between the United States and Lithuania at Cotai Arena in 2008 that he got a real feel for the enormous potential.

"It was right before the Beijing Olympics, and the whole country was excited about showing off China to the world," Arum recalls.

"I watched that basketball game in the sold-out arena and the noise and excitement was incredible. I thought to myself, 'If they get this worked up over foreign basketball players, how would they react to big-time boxing with Chinese fighters?'"

Over the next few years, Arum's plan to promote in Macao became a bit of a running joke in fistic circles. Always, it seemed, there were too many obstacles, from government red tape to the lack of marketable homegrown talent. China had officially banned pro boxing for three decades (from 1959 to 1989), and when archrival promoter Don King put on a show in Chengdu, Sichuan province, in November 2008, it looked like Arum's dream was done.

But that all changed in the autumn of 2012 when, out of the blue, Top Rank matchmaker Bruce Trampler received a call from an agent representing Zou Shiming, the slick flyweight from Zunyi, Guizhou province, who had won three Olympic medals for China: bronze in the 2004 Athens Games and gold at both Beijing 2008 and London 2012.

Already a legend in his homeland, Zou was looking for an American promoter to front his professional debut.

"I had been shooting off my mouth for years about going to China, and all the bloggers were making fun of me about doing a show in Macao, but now it was all starting to come together," says Arum.

"This is a country with 1.4 billion people and I knew there had to be something there, because boxing is a sport that hooks people when they see it up close. I had never heard of Zou, and at first I said, 'What the hell are we going to do with a 108-pounder?' ... but after Bruce ran it by me, I checked with Rob Goldstein at the Venetian Resort in Vegas, which oversees the Venetian in Macao.

"Rob called me back and said, 'My people over there don't get excited about a lot of things, but when I mentioned this kid they went crazy. Get him no matter what you have to do.'"

When Arum traveled to Beijing in early 2013 to announce Zou had been signed to a four-year promotional deal, more than 100 Chinese media outlets attended. Guaranteed $300,000 for his four-round debut that April, Zou notched a stylish decision over Mexico's Eleazar Valenzuela. He is undefeated in four fights since and will face No 1 ranked contender Kwanpichit Onesongchaigym of Thailand in a 12-round title elimination bout on Nov 23.

"A lot was made about Zou's purse, which was a record for a pro debut, but that was just one of the things that made it such a historic fight," says Arum. "It was Macao's coming-out party as a global boxing center. We brought in a crew of more than 100 people, including (broadcasters) Larry Merchant and George Foreman, and (ring announcer) Michael Buffer. All the bells and whistles.

"When we first talked to the Venetian, we asked 'How Chinese should we make the show?' I thought maybe we should have the ring introductions in Mandarin or something. They said absolutely not; they wanted everything to be done just like for a big Manny Pacquiao fight in Vegas. They wanted the Las Vegas experience in Macao, right down to the light show and the Top Rank Knockout girls."

Zou's debut, aptly dubbed Fists of Gold, sold out Cotai Arena, and the estimated 300 million viewers who tuned in for CCTV's live nationwide telecast witnessed a scene right out of Caesars Palace or The Mirage, with music blaring and fans stomping their feet and shouting "Jia you!" (Let's go! in Mandarin) every time Zou landed a punch. Further proof, says Arum, of boxing's untapped potential in the world's fastest growing economy.

"Zou Shiming has single-handedly put boxing in the mainstream of Chinese sports and energized the people who follow it," he says.

"The number of people who watched his debut was remarkable - anywhere from 150 to 200 million homes and upward of 300 million individuals, based on the surveys we had done. That's incredible. Most countries don't even have that many people.

"Zou will never be a superstar in the United States, but in China he is already at that level. We signed him not just to promote him, but also to introduce other great fighters from all over the world to the Chinese market, which in turn will get all of China caught up in the sport of boxing. That's the plan."

Arum took his vision to the next level with the $30-million promotion for Pacquiao-Rios last November.

"Macao really is like a second home to me ... and not just because so many fans traveled from the Philippines to watch the fight," Pacquiao said later.

"I could feel it in the build-up, the way the Chinese media embraced it and kept it in the headlines. When we did the media tour in Beijing, it was really special. Everywhere I visit in China, people want to talk about boxing. They are embracing it.

"Chinese boxing fans are getting more and more sophisticated; they are great students of the sport and they really show their appreciation for it. I think Macao is becoming one of the most important boxing centers in the world, thanks to the Venetian and Top Rank."

Multibillionaire casino magnate Sheldon Adelson, a longtime friend of Arum, heads Sands China Ltd, which owns the Venetian. Ed Tracy, president and CEO of entertainment at Sands China Ltd, formerly had a working relationship with Top Rank in Atlantic City.

"We're thrilled to be a part of the rebirth of boxing in China," Tracy says. "To have the opportunity to bring such a high level of athletic entertainment to Macao at this point in its development as a global sports market is really an honor and a privilege. We want to bring the best that's available in the world at a time when Macao is experiencing tremendous success.

"Zou Shiming is a legend in China - the only Olympic gold-medal winner in the history of China in the fight game - and we think he's one of the most exciting fighters to hit the sport in the past 20 years. Showcasing him is an opportunity to really separate Macao from the rest of the markets in Asia, and that's what we're aiming for."

Barring something unexpected on Sunday, the one-two punch of Pacquiao and Zou - both of whom are put through their paces by Hall of Fame trainer Freddie Roach - will continue to drive Macao's march to global boxing dominance.

"Both Manny and Zou love fighting in Macao, and a lot of it is because of the Venetian and Cotai Arena, which is like Caesars Palace, the MGM Grand and Madison Square Garden all rolled into one," Roach says.

"I don't know if I've ever seen a more perfect place to hold a big fight. There's not one bad seat in the place, and when the crowd gets worked up, it sounds like the roof is going to come off. Anybody who doubts Macao is a major player in boxing doesn't know what they're talking about. It really is becoming the capital of the boxing world."

The strong working relationship between Top Rank and the Venetian will help speed the process.

"At the Venetian there is never any question when you ask for something to be done," says Arum. "Cost is virtually irrelevant, even when you say something is going to be a lot more expensive.

"That makes a huge difference in how we present these promotions. In the Venetian we have a partner that understands what it takes to get to the top and stay there. Eventually, of course, we would like to host four to six shows a year in Macao and one day introduce pay-per-view in the Asian market. Once we get that going it could be a monster."

For the 82-year-old Arum, who worked as a lawyer in the US Department of Justice before launching Top Rank by promoting Muhammad Ali's 1966 world heavyweight title defense against George Chuvalo, fulfilling his dream of revitalizing Chinese boxing is the ultimate achievement.

"I promoted more than two dozen of Ali's fights, and hundreds more involving champions like Pacquiao, Sugar Ray Leonard, Thomas Hearns, Marvelous Marvin Hagler, Roberto Duran, George Foreman and Floyd Mayweather," he says.

"But what we will do in China, what we will do with Zou Shiming in partnership with the Venetian, will be the biggest thing I ever accomplish - opening up the world's most populous country to boxing.

"I predict that before he retires, Zou will make more money in one fight than Pacquiao has ever made in a single fight. It's like God knew I had this dream - and with Zou I can make it come true."

Murray Greig is a Canadian author and former boxing trainer.

murraygreig@chinadaily.com.cn