Tendai Keith Guvamombe
The boxing world was left in awe this past weekend as British-Nigerian heavyweight powerhouse Anthony Joshua (AJ) made a thunderous return to the ring.
In a highly anticipated crossover spectacle streamed globally on Netflix, Joshua silenced the doubters by delivering a devastating sixth-round knockout against YouTuber-turned-boxer Jake Paul at the Kaseya Center in Miami.
However, while AJ celebrated his victory in the ring, a massive financial reality check awaited him in the locker room.Despite the clinical performance that left Jake Paul with a double jaw fracture, the “British King” is now facing a staggering financial hit.
The fight, billed as one of the biggest commercial events of the year, generated an incredible prize purse of approximately £137 million ($185 million).
Under the terms of the agreement, both fighters secured an even 50/50 split, meaning Joshua walked away with a career-high payday of £68.5 million ($93 million) for his night’s work.The joy of this record-breaking check was quickly dampened by the complexities of international tax law.
Because the bout took place in Miami, Florida, Joshua immediately fell under the jurisdiction of the IRS in the United States. While Florida is famous for having no state income tax, the US federal government still demands a massive 37% cut from high-earning foreign athletes.
This initial deduction alone swiped roughly £25.8 million directly from Joshua’s purse before he even left American soil.The financial drain didn’t end at the Atlantic.
As a UK resident, Joshua is liable for tax on his global income to HMRC. Under double-taxation treaties, he must pay the difference between the US tax and the UK’s top income tax rate of 45%. This results in an additional £5.6 million bill for the UK government, alongside a further £1.4 million in National Insurance contributions.
All told, the taxman on both sides of the pond has claimed over £32 million ($43 million), leaving Joshua with approximately 53% of his original earnings.Interestingly, this means that despite losing the fight and suffering a broken jaw, Jake Paul is projected to keep a larger portion of his purse than Joshua.
Since Paul is a US citizen residing in Puerto Rico, he avoids the UK’s heavy tax reach and the 45% bracket, allowing him to walk away “richer” than the man who knocked him out. Joshua still pockets a handsome £36.5 million, but the massive gap between his gross and net pay serves as a stark reminder of the hidden costs of global boxing glory.
