Manny Pacquiao turned down $40 million from Floyd Mayweather in 2012, and it was a genius move

Two years after negotiations for a Floyd Mayweather-Manny Pacquiao fight blew up in 2010, the two fighters again failed to make a fight happen in 2012.

Mayweather, in what he would later call Pacquiao’s last chance to make the fight, offered Pacquiao $US40 million straight-up to fight him.

“I got on the phone with Manny. I done my homework, and seen what he was used to making in big fights. So the offer that I gave him. I offered him $US40 million, and said that I would wire him $US20 million within 72 hours,” Mayweather told Bob Costa in March of 2012.

Pacquiao turned it down and asked for a 50-50 revenue split instead, Mayweather says.

“I’m not giving up the split. I’m not. I can’t. I can’t afford to,” Mayweather told Costas.

That $US40 million offer was widely panned as an insult to Manny. But still, $US40 million was double what Pacquiao typically makes per fight. In addition, Pacquiao couldn’t have known if he’d ever get another chance to fight Mayweather. Floyd would have made out like a bandit (he would have controlled 100% of revenue minus Pacquiao’s $US40 million fee), but you couldn’t have criticised Pacquiao for agreeing to the biggest purse of his career.

Three years later, Pacquiao stands to make more than double what Floyd offered him in 2012. While Mayweather gets a 60-40 revenue split, Pacquiao still gets a cut of total revenue (PPV buys, ticket sales, everything). Forbes estimates that he’ll make between $US80 million and $US120 million on May 2. The New York Times has Pacquiao’s number at “well over $US100 million.”

Pacquiao’s promoter, Bob Arum, told the New York Times that Manny will get the first instalment of his purse on Monday, two days after the fight, in a form of a check that’s bigger than Mayweather’s entire offer in 2012.

“On Monday morning, I will hand Manny a check for $US50 million as a down payment, guaranteed,” Arum said.

It’s possible that Pacquiao could have made more if he agreed to a fight in 2010. Back then, Mayweather agreed to a 50-50 revenue split before Pacquiao pulled out of negotiations because he wouldn’t agree to Mayweather’s rigorous drug testing guidelines.

But compared to the 2012 offer that Mayweather later claimed would be his last offer, he made a smart move by waiting Floyd out and betting he’d come back with a better offer eventually.

NOW WATCH: Nate Silver has the perfect formula for winning your March Madness bracket

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.