Filipino superstar boxer Manny Pacquiao is reportedly keen to stage his next bout – a fifth fight against Mexican Juan Manuel Marquez – in Macau, in order to avoid paying tax.
Michael Koncz [Pacquiao’s chief adviser] told Yahoo! Sports that the 39.6 percent tax rate Pacquiao would face if he were to fight again in the U.S. makes a fall bout in Las Vegas “a no go.”
Promoter Bob Arum is hopeful of arranging a fifth match between Pacquiao and Marquez in the fall, potentially on Sept. 14. Arum’s preference is for the fight to be at the MGM Grand in Las Vegas, which is his company’s home base.
But Arum and Koncz say Pacquiao is balking at the additional money he’d lose to the government if the fight were held in Las Vegas. Arum said Pacquiao would not have to pay taxes if the fight takes place in casinos in either Singapore or Macau.
“Manny can go back to Las Vegas and make $25 million, but how much of it will he end up with – $15 million?” Arum said. “If he goes to Macau, perhaps his purse will only be $20 million, but he will get to keep it all, so he will be better off.”
Macau is proving an increasingly popular destination for sporting events, having already poached most of Las Vegas’s top casino brands. The territory hosted China’s first UFC tournament in November 2012.
Pacquiao has an estimated net worth of $85 million, so naturally it’s incredibly important that he avoid paying as much tax as possible. Maybe he’s saying up for an island.