Buster Douglas

hookfromhell · Jul 3, 2012

Saintpat said: ↑

It starts with the IRS -- same way Joe Louis ended up broke and in debt to Uncle Sam.

Say the fighter makes $1 million for a fight. Generally his manager gets a third and trainer probably 10 percent. That's 43 pervcent.

Oh, by the way, he owes taxes on the whole million. That's a 35 percent tax bracket -- so the fighter owes:

$333,333 to the manager
$100,000 to the trainer
$350,000 to the government
----------

and keeps the rest.

Now any fighter in that stratosphere -- and that's less than one percent of all boxers -- can set himself up as a corporation, renegotiate the percentages with the manager and trainer, work a contract where the manager and trainer are paid directly by the promoter so he doesn't show income for money he only possesses for enough time to stroke the check to them, etc., etc. But few actually get sound advice and fewer still follow that advice on such matters.
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Cool post. That sucks for the fighter.

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Buster Douglas

hookfromhell Well-Known Member Full Member