Tax Problems of the Foreman vs Norton fight (forgotten over time) "Norton's impressive performances against Ali made him one of the top heavyweight contenders for Foreman's titles, but the future hall-of-famer was installed as a 3–1 underdog against the hard-hitting champion and given little chance of obtaining a victory. A week before the fight had happened, promoter Don King, banking on a victory by Foreman, had already inked a deal that would see Foreman make his next defense against Ali in the "Rumble in the Jungle." [1] A 3 to 1 underdog, Norton was back in a familiar position, promised less money than Foreman ($200,000 to the $500,000 George was guaranteed), and deemed a solid underdog to the hard-slugging Texan. If Caracas seems like a strange destination to hold a heavyweight boxing event, there was a practical reason it was sought out as the host: an agreement had been reached stipulating all taxes would be waived.[2] Don King produced the initial guarantee, a $10million letter of credit from Carl Lombardo, a 34‐year‐old Cleveland construction millionaire. King earlier had persuaded Lombardo to put up $400,000 for the Foreman‐Norton bout here. Aftermath (Foreman by K.O. in 2) There was considerable controversy after the fight as both fighters ran into unexpected trouble with the Venezuelan government. The fight had been made in Venezuela on the basis that all taxes would be waived. However, a day after the fight, the government reneged the offer and insisted that they collect 18% of the fighter's purses, which was $700,000 for Foreman and $200,000 for Norton. Authorities stopped both men at the airport and neither could leave the country unless they posted bonds for the tax money. Norton settled his dispute first, paying $47,000 in taxes and posting a $60,000 bond which enabled him to leave the country on March 29.[4] Foreman, however, remained in the country as Venezuelan government demanded no less $150,000 in taxes from his purse.[5] After five days of negotiations, Foreman's camp was finally allowed leave on April 1.[6] The tax problems ultimately led to the fight being dubbed "The Caracas Caper."
That was always one of the big problems w/ Kenny. He did things on a fight by fight basis and was not aligned with a promoter. Being the house fighter sure helps things along the way sooner or later. You can bet DKP got fee's reduced or something for Foreman. It may not make any difference getting the money from above, but Norton and perhaps Young, were the last of the independents.
Anyone know why Foreman couldn't defend the title in the USA? For one thing he won the title in Jamaica. Then crushed Roman in Japan, then Norton in Venezuela, and lost it to Ali in Zaire.
Tax purposes. Even back then, the IRS allowed you to make a certain amount that is untaxed. Once you go over that threshold figure, you pay. But a nice part is untaxed.
Foreman should have fought Ali in the "cool confines" of the Astrodome, and in front of his own hometown fans.
