Why do boxers end up broke?

[the gent]

If the figures are correct certain fighters have made $300 million you know who that is and that guy is still 100% dead broke. Muhammad Ali is actually being taken care of by an insurance firm who handle everything about him and pay for everything. The amount of boxers who come back for one more fight shows that they have ended up broke, even Mayweather as much as he says he is rich and calls himself the money he is still in debt with the IRS(irs?) and is struggling to pay it back i want to know why do Boxers end up broke more than footballers or cricketers. How does $300 million vanish? And what is an average boxers pay and when they say Mayweather makes $50 million per fight we all know that isn't true how much would he get from it?

****** YOU PRETTYBOY DON'T REPLY HERE**

Of course this doesn't apply to all, but here is the problem that happens more often than not.

A fighter gets paid lets say 10 mil for a fight. Wow that's allot of cash. Well 10 mil before taxes. That's called getting paid 1099 in the tax world. Fighter spends the whole 10 mil, and says i'll make up the taxes on that 10 mil next fight, well there you go. You have just started to chase the dragon, and live behind the 8 ball.

penalties and interest on that original 10 mil you owe has just ballooned, and will continue.

Repeat this process and way of thinking with every large payday A fighter gets, and maybe you find your answer.

..this is a prime example of spending more than what you really earned.

[Heru]

Forget about why... The question is how can we stop it?

Promoters need to get their lazy, greedy asses to work and have the fighters in their stable participate in mandatory money management seminars and/or hire independent accountants for them with an accountant watching that accountant, just in case.

Juan Lazcano has couple restaurants, while Nate Campbell was filing for bankruptcy. Evander Holyfield has to keep fighting, while Jameel McCline has a couple of businesses. Mike Tyson was broke, while Larry Holmes is a boss, etc.

[the gent]

Forget about why... The question is how can we stop it?

Promoters need to get their lazy, greedy asses to work and have the fighters in their stable participate in mandatory money management seminars and/or hire independent accountants for them with an accountant watching that accountant, just in case.

Juan Lazcano has couple restaurants, while Nate Campbell was filing for bankruptcy. Evander Holyfield has to keep fighting, while Jameel McCline has a couple of businesses. Mike Tyson was broke, while Larry Holmes is a boss, etc.

Sorry, but that's not the promoters responsibility. These are grown men. Sure they can advise if they wish, but at the end of the day, it's on the fighter to not spend his money on BS and think the money tree is going to keep blossoming forever.

This is a prime example of where a Boxing union or retirement agency may work. A company that dose solely that. Sets up retirement funds, and money manages. Of course there are independent groups that can provide this service, but i am talking about a Specific group/ union, even where the fighter can pay into it with dues etc. in exchange for some sort of retirement protection.

Sort of like the NFL retirement fund...and yes i believe that promoters, state commissions should be required to pay into it also.

[MindBat]

u guys are forgetting ********....if floyd is out betting a 100 000 a game...on average he is gonna lost lets say 18000 long term...so he makes 100 bets in like a three month period....90 times 18000= big number....f

******** is a hell of a drug.

[MindBat]

Of course this doesn't apply to all, but here is the problem that happens more often than not.

A fighter gets paid lets say 10 mil for a fight. Wow that's allot of cash. Well 10 mil before taxes. That's called getting paid 1099 in the tax world. Fighter spends the whole 10 mil, and says i'll make up the taxes on that 10 mil next fight, well there you go. You have just started to chase the dragon, and live behind the 8 ball.

penalties and interest on that original 10 mil you owe has just ballooned, and will continue.

Repeat this process and way of thinking with every large payday A fighter gets, and maybe you find your answer.

..this is a prime example of spending more than what you really earned.

Hit another nail on the head. Most fighters don't have or never developed the mental discipline required to handle the large amount of money they 'suddenly' are fortunate enough to be earning.

For most, educating themselves about finances, investments, and money management is too mind wracking to deal with and an inconvenience.

[Heru]

Sorry, but that's not the promoters responsibility. These are grown men. Sure they can advise if they wish, but at the end of the day, it's on the fighter to not spend his money on BS and think the money tree is going to keep blossoming forever.

This is a prime example of where a Boxing union or retirement agency may work. A company that dose solely that. Sets up retirement funds, and money manages. Of course there are independent groups that can provide this service, but i am talking about a Specific group/ union, even where the fighter can pay into it with dues etc. in exchange for some sort of retirement protection.

Sort of like the NFL retirement fund...and yes i believe that promoters, state commissions should be required to pay into it also.

This isn't insurance coverage, I know who's responsibility it is to manage their money correctly.

Top sports leagues have several different programs and courses that rookies are required to take when they enter the leagues. Regardless if it's their responsibility or not. Their primary reasons might be selfish (protecting their investment, avoiding bad publicity, etc.), but it also helps the players involved to be more aware of their finances.

Why not require fighters in your stable to attend money management courses or hire an accountant, unless you're planning on robbing them blind.

I'm all with the retirement fund and protection for fighters. It is something that is long past due for boxers. There's gross negligence on behalf of those that can.

[Gorilla Dogs]

they prob think the money will always keep rolling in rolling in. then they waste it all

[Larsams]

Taxes...
Promoters.....
Managers.....
Training Partners.....
Trainer.....
Equipment.....
Gym Time......
and of course $500,000 for landscape.

[Dawerlzgreatest]

It's what happens when 99% of poor people that didn't build a business or save their way to large sums of money. You see it with lotto winners and athletes all the time.

Most people say "If I made $5 million in a fight I'd put it all away and live off $100k/year for the next 50 years". Very easy to say, very hard to do.

Its easy to do, you have 5 million every 3 months you can get like 250,000 in dividend payouts which you can either throw in the bank (poor mans method) reinvest in stocks, or buy an investment real estate property without having to take out a loan. If you go broke youre a ****** straight up, I need to set up a school to help these brothas get right knowledge on the investment game.

[Pez]

Alot of fighters come from humble backgrounds. You would think they would be more careful with their money. If I ever made millions, I wouldn't change my current average lifestyle. I would do it Freddie Roach style and buy a really nice car and that's about it.