Bout packs $8 million punch in nongaming revenues

Friday, Jan. 15, 1999 | 11:21 a.m.

Mike Tyson's return to the boxing ring won't be an economic knock-out by Las Vegas standards.

But his heavyweight bout with South African Frans Botha should generate at least an $8 million nongaming economic impact for the city and immeasurable exposure to a new audience.

The Las Vegas Convention and Visitors Authority can't calculate the precise economic impact of Saturday's fight because, as of Thursday, the MGM Grand hadn't officially disclosed attendance projections.

Kevin Bagger, senior research analyst for the LVCVA, said his office determines the nongaming economic impact of a fight based on the number of people attending a boxing match. Sources have said sales for the Tyson-Botha bout have been lighter than expected.

But Don Welsh, senior vice president of marketing for the MGM Grand, said the hotel expects between 11,000 and 12,000 people to be in the arena for the fight -- with all but about 200 paying for their tickets.

Previous Tyson fights have generated between $8 million and $9 million in nongaming revenue for the community. That's considerably less than what the LVCVA figures is generated for a major convention or a large betting event such as the Super Bowl.

Bagger said the LVCVA has a predetermined formula based on attendance and whether the event is reaching a convention crowd or a general tourist crowd. Large venues, such as the MGM Grand Garden and the Thomas & Mack Center, for boxing matches add to the potential revenue.

The LVCVA has no primary research on the specific spending habits of boxing fans but believes they are similar to most tourists. For every high-spending celebrity attending the match, the LVCVA figures there is a low-budget fan who may have received a cheap ticket to help fill the building.

Bagger said last year's Super Bowl game in San Diego drew an estimated 211,000 people to Las Vegas, producing about $56.3 million in nongaming revenue. By comparison, this month's Winter Consumer Electronics Show brought in an estimated $147.4 million with its 94,000 attendance over four days.

Bagger said Tyson's infamous "bite fight" against Evander Holyfield on June 28, 1997, generated $8.9 million for the community, and the first Tyson-Holyfield bout on Nov. 9, 1996, produced $8.2 million.

But how much fight patrons spend in hotels and restaurants isn't the only measure of success in a fight. The immeasurable promotional exposure for Las Vegas will be great, Bagger said. And it's international exposure, especially with one of the competitors being from South Africa.

"It's a major worldwide event, and we get fabulous media exposure," Van Heffner, president of the Nevada Hotel and Motel Association, said. "With this pairing, they're adding a completely new dimension of international interest."

Heffner said each fighter generates his own following. The Hispanic crowd swells behind boxers such as Oscar de la Hoya. Despite his bizarre behavior in the ring -- or possibly because of it -- Tyson generates his own legion of fans.

Heffner suspects Botha will have his own followers tagging along for the bout, and a television audience halfway around the world will be getting their first look at Las Vegas.

But it's the controversial Tyson who is selling this fight.

"Anytime you have a former titlist in the ring, there's an added level of electricity," Heffner said. "I have a number of friends from Delta Air Lines that are flying into town specifically to see this fight."

While some airlines are reporting their flights are full coming into town this weekend, McCarran International Airport spokeswoman Debbie Millett said there really isn't a lot of added commotion at the airport as a result of the fight. After all, she said, it is a three-day weekend for some and the planes into Las Vegas are supposed to be full when there's an extra day to play.

Heffner said it's that extra day that will turn this fight weekend into a more financially lucrative period for local restaurants.

"That extra day (Martin Luther King Day on Monday) is especially significant for the shopping centers, the entertainment centers and our wonderful restaurants," Heffner, who also serves as president of the Nevada Restaurant Association, said.

"If you're coming from a long way away, like Atlanta, two days may not be enough. But if you add a third day and have an event like a fight to make the trip even more worthwhile, you're going to draw people who have never been here before."

Some critics have said Saturday was a poor date to schedule the fight because it's halfway between two major events in Las Vegas -- New Year's Eve and the Super Bowl -- and that could discourage some high-rollers from coming to town.

Heffner disagrees.

"I think you have a specific crowd for fights," Heffner said. "And it's going to be a different crowd from the one that will come for the Super Bowl. If a high-roller wants to be here for the fight, he'll be here. That's the kind of fan following there is."

And the MGM isn't the only property to capitalize. Welsh said his hotel is sold out, but there are additional events at "the City of Entertainment" over the weekend aside from the fight to assure a full house. In addition to a Muhammad Ali tribute, MGM's "EFX" show is turning over the reins of the lead role from David Cassidy to Tommy Tune this weekend.