Finding Real Life Solutions To Your Tax Problem

Interesting tax questions stemming from Mayweather / Pacquiao

On Behalf of | Apr 29, 2015 | Tax Controversy |

Depending on who you ask, the hype machine has definitely shifted into overdrive with the most anticipated fight in years closing in. For many sports fans, Saturday is nirvana, with the NFL Draft, the Kentucky Derby and the NBA Playoffs all happening on one day.

While many people will admire how much money Floyd Mayweather and Manny Pacquiao may make on Saturday, one thing is for certain. There are several financial records that could be broken. After all, the pay-per-view revenue is estimated at being more than $300 million.

The gate revenue at the MGM Grand Garden Arena will be more than $70 million. When you consider the money from international broadcasting rights, merchandise sales, and other closed circuit presentation and it is no wonder that Mayweather and Pacquiao can walk away with nearly $100 million.

Aside from the money that the fighters will make, Uncle Sam is poised to have a heavy payday as well. Because of their earning levels, Mayweather and Pacquiao will likely be paying at the highest federal tax level of 39.6 percent. Since Floyd Mayweather is a Nevada resident, he will also be paying state taxes.

But arguably the most intriguing tax question is not likely to be answered in a U.S. tax court. Since Manny Pacquiao is a citizen of the Philippines and a senator in his country’s government, the question will be how much in taxes will be paid to his government. There reportedly is a treaty between the U.S. and the Philippines that prevents double taxation, but the government ostensibly wants to tax Pacquiao’s other international earnings from endorsements. It will be interesting to see how much, if any, is ultimately paid.


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