Punch drunk on tax

Aren’t we all?

But with the highly anticipated #Fury vs. Usyk fight later today / tomorrow (depending on where you are in the world!) let’s take a look at some famous boxers’ struggles with taxes and other financial issues.

🥊 Mayweather Jr

Undefeated boxing legend Floyd Mayweather Jr. reportedly owed the #IRS around $22 million in unpaid taxes from previous years.

Mayweather, who was ranked number one on Forbes’ list of the world’s highest-paid athletes in 2018, has been the subject of numerous reports that he has been deficient in the payment of his #taxes.

It is rumoured that one of the reasons he fought Connor McGregor a few years ago was to keep the IRS at bay.

Though if he used that purse to pay the tax on the last one, how does he pay the tax on the latest purse? 🤔

See the problem?

Sucker punch.

🥊 🥊 Joe Louis

Joe Louis is regarded as one of boxing’s greatest heavyweights also had a run in with the IRS.

During his prime, Louis’ substantial earnings coincided with dramatic increases in hashtag#tax rates, leaving him with significant tax liabilities. However, perhaps more unusually, his problems were compounded by his decision to donate his fight purses to war relief efforts.

However, reportedly due to his management team making an absolute Horlicks of the gesture, the result was that the IRS still viewed these earnings as taxable income despite the fact he had given the funds away.

Low blow.

🥊 🥊 🥊 Mike Tyson

“Iron” Mike Tyson, once one of the highest-paid athletes, famously declared bankruptcy in 2005 despite earning hundreds of millions during his career.

At one point, he owed the IRS nearly $57 million in back taxes.

Perhaps unsurprisingly, this might have contributed to Iron Mike stating in a podcast a couple of years ago that “Taxation is a form, you know, it’s a legal form of extortion, when you think about that.”

However, he has since made a fiscal comeback that even Rocky Balboa would have been proud of netting $900k per month from his cannabis brand.

He also has the small matter of a Netflix fight in the summer with Jake Paul – who said Vaudeville was dead?

Up off the canvas.

🥊 🥊 🥊 🥊 Tyson Fury

Current heavyweight champion and man of the moment, Tyson Fury, has also reportedly faced a dispute over unpaid business rates on a property he owned.

OK, granted, that’s not really tax but… yer know.

Fury, however, is set to earn a significant sum – reportedly £100m – from his upcoming fight with Oleksandr Usyk.

As such, he will face a substantial tax bill, potentially amounting to around £45 million (if it all represented profit – which it won’t.)

Although the fight takes place in the Kingdom of Saudi Arabia, this won’t help his UK tax position as (I believe) he is resident for tax purposes in the UK.

No doubt someone can add up how many nurses or teachers that will add up to…

Undisputed heavyweight champion of the world?

Conclusion

The financial struggles of boxing legends like Floyd Mayweather Jr., Joe Louis, Mike Tyson, and Tyson Fury offer valuable lessons about the importance of tax compliance and more general financial management.

Even the most successful careers can be overshadowed by financial missteps and tax issues.