Manny Pacquiao has had his run-ins with Uncle Sam, so I’m sure he’s smiling from ear-to-ear after he receives his checks from his fights in China.
According to Forbes, Manny saved millions in taxes by fighting in Macau, China instead of Las Vegas.
Forbes reported Pacquiao won $23 million when he defeated Algieri Sunday, and thanks to much lower tax rates in both China and his home country of the Philippines than in the States, he’ll get to keep more than 60 percent of it. Even if his earnings are taxed in China at 12 percent, and the Philippines at 20 percent, he’ll save more than $2 million, because the IRS could have taken up to 39.6 percent.
His promoter, Bob Arum, told USA Today avoiding the IRS was a factor in his decision to fight in China Sunday. Arum said, “We are talking millions of dollars he can save.”
I doubt Manny and HBO boxing can survive off of just gate revenue, because the US market isn’t going to continue to pay $60 to watch a mediocre fight card.
Until that happens though, Manny will be singing (see the video below) and laughing all the way to the bank.