Purses: Wilder $20 mil guarantee. Ortiz $7 mil guarantee

[Articulateboxin]

Two reasons:

#1 - Taxes
#2 - Sanctioning fees

Wilder is self promoted. His accountants will have him pay himself a fee for fighting. Instead of paying the WBC 3% of 20 million, he only pays them 3% of 3 million. Instead of paying state and federal personal income tax on 20 million, he only pays on 3 million. He can then funnel the other money through various business en******, deduct all sorts of expenses, etc.

It's done this way because the accountants say to do it this way.

I'm not american so maybe they work differently from most countries in the world but it makes no difference if he declares 3 million now and 17 later, they will still be subject to 21% corporation tax (CT) regardless. As for expenses, well a portion can be taken but the IRS will watch where every cent goes, "funnelling" money isn't really that easy to do for a high profile boxer (or anyone anymore actually). You're correct in that he will likely pay himself minimum wage and then the rest in dividends. I'm not sure if there is a dividend cap in america but europe it sits around 35k before increasing from a 7% base to 35% once you reach a certain threshold.

As for sanctioning fees, I thought these were capped? So it was the same fee for 1m as it was for 100m. Perhaps this changed though!

[DARTH SILKWORMS]

I'm not american so maybe they work differently from most countries in the world but it makes no difference if he declares 3 million now and 17 later, they will still be subject to 21% corporation tax (CT) regardless.

21% is the corporate tax here, but the personal income tax is 37%. Wilder's accountants may find various benefits in adjusting how much he is paid as an individual for fighting and how much his company makes in profit as the promoter.

As for sanctioning fees, I thought these were capped? So it was the same fee for 1m as it was for 100m. Perhaps this changed though!

WBC caps at $300,000, meaning purses above $10 million pay the same fee as a $10 million purse. But by paying himself $3 million to fight, and keeping the rest as the promoter, he's only paying 3% of $3 million, which is much less than $300,000.

[LacedUp]

Yikes. This is a financial disaster of biblical proportions.

[Larry the boss]

Yeah.....basically, you can claim to be the king of the division and still be making 3mil plus adons.
#ClashInTheDunes will see the B side take home more than the purses of both fighters combined tomorrow.
HW boxing.....

and as a fan that means what to us??? the king of the division is "the best fighter" right?

[DaNeutral.]

OK, so if Wilder gets 20 and Ortiz gets 7. Who is left to pay out all the millions they are not going to make from the fight card? The PBC or Fox? This one is guna be costly.

[Guest]

and as a fan that means what to us??? the king of the division is "the best fighter" right?

You'd swear they are rated best by their popularity and how much they make.

Sad times.

[Bullrider]

OK, so if Wilder gets 20 and Ortiz gets 7. Who is left to pay out all the millions they are not going to make from the fight card? The PBC or Fox? This one is guna be costly.

Haymon, Finkel sneakily got DAZN involved brah. They didn't have any choice.

https://www.boxingscene.com/forums/showthread.php?t=833062

https://www.sportbusiness.com/news/d...r-territories/

[DaNeutral.]

Haymon, Finkel sneakily got DAZN involved brah. They didn't have any choice.

https://www.boxingscene.com/forums/showthread.php?t=833062

https://www.sportbusiness.com/news/d...r-territories/

LOL, i did not know that.

[Laligalaliga]

and as a fan that means what to us??? the king of the division is "the best fighter" right?

If you are not a draw, you are not a draw. You can use gullible followers to claim what you are not.
Thats the life a one fake champ claiming to be a draw.

[Larry the boss]

You'd swear they are rated best by their popularity and how much they make.

Sad times.

sad...................