It Looks Like $ Problems For Mayweather

[MetalVomit]

I absolutely doubt that Floyd was given 20 million for his WWE stint. No ****ing way. Not when the top earning guys at their company, that work 300+ days a year probably top off at a couple million.

[oc9979]

Federal Taxes (7%) come out automatically..
People get caught up in tax evasion all the time...Just ask President ***** Nominees ..So I am not Saying floyd is not capable of tax evasion.

But if Floyd was cheating the government it wouldnt be from his fight night money or his endorsements ...

it would be from his property taxes and from not reporting money he makes from his mayweather promotions..

People usually get caught up when they dont report the income they make independently of somebody else...Not when they are dependent on somebody else like a fight night check or a endorsement..

i dont even know where you get 7% from. the 7% is state taxes not federal taxes.
page 80 on this link
shows that if you make over $357000 you multiply by 35% not 7%

[MetalVomit]

not sure how credible this wikianswer is:

The $20 million he is getting "paid" is actually just part of the storyline for the match. In actuality, he is getting paid a flat fee of $2 million plus a percentage of the returns bringing it close to the $3.5 million Tyson was paid a few Wrestlemania's ago for his appearance.

[horge]

The Government automatically take their 7% of cut of the fight money before Mayweather even cashes his checks...

Is that so? Just 7%
Any such tax withheld (at the correct rate) only takes care
of his tax obligations wrt direct earnings from his profession,
but not from endorsements.

Even if he has grossed, say, 500 Million dollars, those $$$
must surely be in various placements yielding varying returns,
or maybe generating no returns at all.

If long-term bank placements and bonds are involved, then
Floyd could have a BILLION dollars, but parked where he
couldn't touch it for fear of losing big on a locked-in interest.
He'd be rich in the long view, but he'd have no money on hand
for immediate needs, and there's the problem:

If those immediate needs include tax arrears, the penalties
and interest on THOSE can outpace commercial rates on
his placements pretty quickly.

If his business ventures have failed, if his investments in
real estate have been affected by the market, and if $$$
have been put into black holes like luxury vehicles (yes,
including pleasure craft like yachts) which can only show
depreciation, then that takes a huge bite out of his "wealth".
Can't liquidate those things easily, and most definitely not
in a recession -- they eat up a lot in upkeep/maintenance,
just like a business that "hasn't taken off yet" just keeps
eating up $$$ in rent money, utilities, staff salaries etc.,
without generating revenue.

Then there are his petty personal expenses.
His public lifestyle might be called a business investment,
the same way product-image development is a legitimate
expenditure. The best way to tell if it WASN'T legitimate,
is if Floyd lived as large, "making it rain" even during his
retirement.

We don't know for sure how Floyd's money has been
invested or wasted, nor how liquid he really is, but if he
owes taxes; or can't pay a ***elry tab despite making
millions, then it doesn't suggest financial health.

If he's in trouble, his advisers own much of the blame.
Floyd's a boxer, not an investment professional.

Before I'm accused of Floyd-bashing: I'm a Pacquiao fan, and
Manny himself has financial bad habits --although his problem
isn't bad luck in investment, but excessive charity. Happily he's
learned to set up charity foundations, so that what he's giving
away comes from interest and not just from principal.

h.

[Horus]

I absolutely doubt that Floyd was given 20 million for his WWE stint. No ****ing way. Not when the top earning guys at their company, that work 300+ days a year probably top off at a couple million.

What does working 300 days a year have to do with Paying Floyd for his market value like WWE did when they paid him?

Is it fair that Celebrity Millionaires get free shoes and free clothes from stores
just to make an appearance..But the normal person has to paid for the shoes and clothes...

Is it fair that Celebrity Millionaires get into clubs for free while the normal person has to wait in line and pay to get into the club?


Do you think Sports Illustrated would risk their prestige and credibility. Posing False Earnings...????
Sports Illustrated is a Fortune 500 company... think about that.!


Ranking the 50 highest-earning athletes in the U.S.

Five years ago, Sports Illustrated first set out to find the 50 top-earning American athletes (taking into account on- and off-the-field income). We discovered a few basic facts, and as the Fortunate 50 turns five, some things have remained dead-on consistent:


Floyd Mayweather #4

It's been a monster year (2008) for Pretty Boy, who made $20 million in purse and pay-per-view shares for his fight with Ricky Hatton and another $20 million for his foray into professional wrestling.


Floyd Mayweather Jr.
Boxing
$20,000,000 Salary/Winnings
$20,250,000 Endorsements
____________________________
$40,250,000

Link:

[Horus]

not sure how credible this wikianswer is:

The $20 million he is getting "paid" is actually just part of the storyline for the match. In actuality, he is getting paid a flat fee of $2 million plus a percentage of the returns bringing it close to the $3.5 million Tyson was paid a few Wrestlemania's ago for his appearance.

Never Quote Wiki..they are all just answers posted by anybody who can post the answer first...

[Horus]

Is that so?
As has already been pointed out, that only takes care of
his tax obligations wrt direct earnings from his profession,
and not from endorsements.

Even if he has grossed, say, 500 Million dollars, those $$$
must be in various placements yielding varying returns, or
maybe generating no returns at all. If long-term placements
are involved, then Floyd could have a BILLION dollars, but
parked where he couldn't touch it for fear of losing big on
a locked-in interest. He'd be rich, but he'd have no money
on hand for immediate needs,

If those immediate needs include tax arrears, the penalties
and interest on THOSE can outpace commercial rates on
his placements pretty quickly.

If his business ventures have failed, if his investments in
real estate have been affected by the market, and if $$$
have been put into black holes like luxury vehicles (yes,
including pleasure craft like yachts) which can only show
depreciation, then that takes a huge bite out of his gross.
Can't liquidate those things easily, and most definitely not
in a recession -- a bad business just keeps eating up $$$ in
rent money, utilities, staff salaries etc., without generating
revenue.

Then there are his personal expenses.
His public lifestyle might be called a business investment,
the same way product-image development is a legitimate
expenditure. The best way to tell if it WASN'T legitimate,
is if Floyd lived as large, "making it rain" even during his
retirement.

h.

H I already address this point and while you give argument for what could happen..I am pointing out what he has earned and what federal government automatically takes out for taxes.

Like I said before
I am not Saying floyd is not capable of tax evasion.

But if Floyd was cheating the government it wouldnt be from his fight night money or his endorsements ...

it would be from his property taxes and from not reporting money he makes from his mayweather promotions..

People usually get caught up when they dont report the income they make independently of somebody else...Not when they are dependent on somebody else like a fight night check or a endorsement deal check..

[MetalVomit]

What does working 300 days a year have to do with Paying Floyd for his market value like WWE did when they paid him?

Is it fair that Celebrity Millionaires get free shoes and free clothes from stores
just to make an appearance..But the normal person has to paid for the shoes and clothes...

I didnt say it was flat out not true, I just find it hard to believe that they would pay Floyd almost 20 times more for one storyline than they pay their top performer in one year. I'm certain that it's fairly obvious that at least 90% of the people that bought the Wrestlemania ppv, would have done it still regardless of Floyd's participation. 2 to 3 million is much more believable. I can see them saying 20 million as part of the storyline, because, obviously, that's an eye-catching amount.

[MetalVomit]

Never Quote Wiki..they are all just answers posted by anybody who can post the answer first...

I already acknowledged the presumed lack of credibility, but that answer of 2 to 3 million paid for the appearance seems much more believable than 20.

[Horus]

I didnt say it was flat out not true, I just find it hard to believe that they would pay Floyd almost 20 times more for one storyline than they pay their top performer in one year. I'm certain that it's fairly obvious that at least 90% of the people that bought the Wrestlemania ppv, would have done it still regardless of Floyd's participation. 2 to 3 million is much more believable. I can see them saying 20 million as part of the storyline, because, obviously, that's an eye-catching amount.

I dont know either, but the fact of the matter is according to forbes and sports illustrated. Floyd is the 4th Highest paid athlete ...
and WWE help make him that