Does it mean that if a boxer get 10 millions guarantee, he gets 10 millions straight into his pocket (no tax). Or whatever the fight makes he will get no less than 10 millions but have to pay tax. I'm sort of lost on this guarantee thing.
It means they are guarenteed $10 million. So despite whether they win or lose, despite live gate numbers, and ppv numbers, they will receive at least $10 million pre-tax.
Correct, they will get the amount irregardless of the gate/ppv numbers. They can get more, but they will NOT get less.
Ok thanks......so no matter what the outcome is (tickets sale, ppv,etc) the will get no less than 10 mills. OK now it's much clearer. Thanks
They ALWAYS still have to pay taxes. I've heard about promoters bullshitting fighters before though and saying that if they fight overseas or in certain states then it's tax free (which it's not), which is probably part of the reason so many boxers end up in deep doodoo over their taxes. The guarantee amount is also before paying trainers, promoters, managers, cutman, entourage, etc.
But it's not pulled out of the check (since it's not payroll), so it's up to the fighter to declare the income and pay taxes on it himself.
The promoter running the promotion gets a cut off of the total revenues, but the fighter's promoter also gets a cut from the fighter. Thus, for instance, if Hatton-Pacquiao is promoted by Top Rank, then Top Rank would get a cut on top, and then would get paid a percentage by Pacquiao, and GBP would get paid a percentage by Hatton.
