On Monday, Yahoo Sports reported that welterweight Manny Pacquiao will make his return to boxing on November 24th when he squares off with Brandon Rios in the unlikely location of Macau, China, prompting millions of Americans to ask, “What’s boxing?”
I kid, of course. The reports of boxing’s death has been greatly exaggerated, and a bout featuring one of the all-time greats is still typically of significant interest to sports fans, provided of course there is no football, baseball, basketball, hockey, soccer, UFC fights, or roller derby being televised at the same time.
There had been little anticipation from the sports community for Pacquiao’s return, however, largely due to the fact that the last time we’d seen him, he was kissing the canvas after a vicious right hand from Juan Manuel Marquez and giving birth to a brilliant internet meme, only a small sample of which can be enjoyed below:
Interestingly enough, however, it has been the tax world that has been keeping a watchful eye on Pacquiao’s return. Back in February, Pacquiao adviser Michael Koncz sparked some controversy when he told Yahoo Sports that his fighter would likely eschew the bright lights of Vegas for his next bout due to the rising top U.S. tax rate, which increased from 35 percent to 39.6 percent on January 1, 2013.
That threat has now come to fruition, with Pacquiao choosing to take his talents to China, where he is hugely popular and, more importantly, the top marginal tax rate is only 12 percent. Because Pacquiao is neither a U.S. resident nor a citizen, he will not pay U.S. tax on any money earned from the fight, allowing him to pocket an extra 28 percent of the purse.
In simple terms, if Pacquiao rakes in $25 million from the Rios fight, holding the match in China will allow him to walk away with $22 million, while a Vegas bout would have left him with only $15 million.
With his tax savings settled, Pacquiao can now focus his attention on giving America’s finest photoshoppers a hilarious new knockout position with which to work.
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