Floyd Mayweather is scheduled to face UFC champion Conor McGregor next month in a fantasy boxing match. The unusual card is expected to reel in millions, an angle which most believe is the reason why the previously retired undefeated boxer took the bait.
While most may perceive that the earnings Mayweather stands to earn further pad his massive wealth, it could be inadvertently used to pay off his 2015 tax bill. According to Forbes, the Flamboyant One filed a petition with the U.S. Tax Court to delay an action tied up to the IRS-related liabilities until after the McGregor joust.
Floyd Mayweather dealing with debt and taxes
Considering how Floyd Mayweather has amassed millions in earnings from his fights, tax issues hardly come as a surprise. Most fighters (including Manny Pacquiao of the Philippines) have had to deal with it, normally ending up seeking a reprieve.
In the case of Mayweather, it comes a bit of a surprise considering he has been able to burn money on luxuries. That includes expensive cars, betting and shelling out huge investments at anything he pleases. Somehow, the undefeated boxer may have overlooked his tax obligations which now need settling.
Will McGregor fight pay off his tax debt?
A bankrupt Floyd Mayweather may be hard to see considering he does have substantial assets which are illiquid according to the petition singled out by the Washington Post. It seems that the boxer does have a liquidity event scheduled so everything may depend if the tax courts would grant him his wish.
Curiously, Mayweather claims he has the money to pay off the debt. The odd thing about it is why he would need the McGregor fight to pass before doing so. It could be a case of revolving his finances – suggesting that the petition may be nothing more than a delaying tactic to remain liquid.
The August 26 fight between the two popular icons is forecasted to generate over $600 million in revenue. This will come from ticket, pay-per-view and merchandise sales among others. With so much to expect, Floyd Mayweather may be playing it safe – meaning he does have the money that could keep him out of the red.
The whole petition thing sends mixed signals, including the bankruptcy angle. Mayweather did settle a previous $6.17 million lien from his 2007 tax return but the final say on the matter will still be at the hands of the U.S. Tax Court.