Bankruptcy !!!

I kno this may not be a great topic but my question is why do so many boxers go into Bankruptcy a few years after they retire from boxing


alot of great boxers went into bankruptcy such as tyson(no need to explain), riddick bowe, and pernall whitaker lost alot of money Diego Corrales was in a serious situation with the irs before he passed away, andim pretty sure alot more boxers are in the same situation?

why did riddick bowe go into bankruptcy? he was so good earn a lot of money what happened to him?

do boxers get taxed more or sumthing...lol?

we can add hassim rahman to the list

Because they aren't accountants, they make a living from getting punched in the head.....

A lot of the fighters out there never had money before and dont know how to hold onto it. They have a lot of hangers on that help them spend it as well.

Well one reason is the fighters do not have exactly as much money as everyone thinks...Though top level guys do have a truck load of it.

The second is many of these guys make the mistake of not being involved in their own finances except for spending it....You have $1,000,000 and owe $250,000 in taxes then go out and spend $1.5 mil on a house and cars you are already in debut.....Even those who have good accountants handling their finances can't be helped if the money is spent faster then it is made.....

Not to mention these guys forget it takes money to keep these things...Happens all the time

Michael Spinks was so scared of ending up like his brother Leon he set up timed accounts....

Once he made a decent amount of money he would live off of that...then he would take his next purse and put it in an account that would keep it locked for 5 or so years...This way if he went broke he had that money to fall back on and it was gaining interest the whole time....

If I am not mistaken he had set these accounts up so he would have one available until he was 55 or 60......

jesus that reminds me...dont the promoters take a percentage of what the fighters get?

Yes Michael Spinx was a smart man i think when he was done boxing he had like 50 mil or some number close to that. I read that somewhere.

- They have the wrong people around them.

I mean that in a business sense not in a let's be friends sense. They surround themselves with friends who are as clueless as they are about business. It takes money to generate money.

- Spending more then what they have earned.

As pointed out by Daxx, a boxer will earn 'X' amount of money. Hell go out and buy a new car, maybe a new house, something nice for the wife or their mom. Now they've spent more then what they earned. Without really thinking.

Oscar learned thru Bob that Promoting is where the money is at. Bob was a mentor to Oscar and Oscar learned a lot from him.
Take JMM & Rafa they own clothing stores in Mexico.
Ponce de Leon owns a restaurant.
Montiel & Family run a boxing Gym in their hometown.
PBF has a record label (tho not a sucessful one) and it all indicates that he will become a promoter.
Cottos a promoter


It seems to me like the newer generation of fighters are learning.. Some not all take Zabs dumb! ass playing dice in the middle of the street ::**

Yeah it is sad really. Some boxers can make millions in a career, but get bled dry. They surround themselves with people they do not need, giant entourages who basically provide no service at all, and keep them even after the money stops flowing in. Look at the lifestyle Tyson tried to maintain, crashing Bentley's like they were toys. They just don't realize it only takes one fight and the well will run dry.

From "Friends" all the way up to Promoters, boxing is full of Bloodsuckers who are more than willing to take advantage on the uneducated.

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Originally Posted by toogood4u

I kno this may not be a great topic but my question is why do so many boxers go into Bankruptcy a few years after they retire from boxing


alot of great boxers went into bankruptcy such as tyson(no need to explain), riddick bowe, and pernall whitaker lost alot of money Diego Corrales was in a serious situation with the irs before he passed away, andim pretty sure alot more boxers are in the same situation?

why did riddick bowe go into bankruptcy? he was so good earn a lot of money what happened to him?

do boxers get taxed more or sumthing...lol?

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Here you go togood4u, asketh and you sha'll receiveth.
Read this article here. This is what I meant when I said the wrong people around them.

http://www.fightnews.com/principe74.htm

Boxers have always invested in various businesses. Boxers today investing in businesses is nothing new. Joe Louis is a good example of a boxer putting his money into businesses that he knew nothing about. He ended up a meet-and-greeter for the casinos after a failed comeback. Some boxers today will end up in exactly the same situation.


It's amazing how few boxers actually make a lot of money out of the sport. Look at JL Castillo, a fantastic career, endless title fights and he already owes people money before he's finished boxing. But what was his highest payday in his career after his people all get their cut/expenses/taxes etc? I don't think he had more than a couple of fights with over a million dollar purses so he only ever made a few hundred thousand dollars net from his biggest fights.

I think it's because alot of boxers fail to realize they'll only be making money for a short period of time. They make a million dollars get a loan for a $3 million house and then find years later that they keep up the lifestyle. SOme probably refuse to accept it and dig themselves into a hole.

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Originally Posted by CutMeMick

Quote:

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Originally Posted by toogood4u

I kno this may not be a great topic but my question is why do so many boxers go into Bankruptcy a few years after they retire from boxing


alot of great boxers went into bankruptcy such as tyson(no need to explain), riddick bowe, and pernall whitaker lost alot of money Diego Corrales was in a serious situation with the irs before he passed away, andim pretty sure alot more boxers are in the same situation?

why did riddick bowe go into bankruptcy? he was so good earn a lot of money what happened to him?

do boxers get taxed more or sumthing...lol?

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Here you go togood4u, asketh and you sha'll receiveth.
Read this article here. This is what I meant when I said the wrong people around them.

http://www.fightnews.com/principe74.htm

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jesus he got screwd over big time.

being a boxer really is really risky,

the IRS does tax you hard cause alot of purses are well publicized!

so many boxers do not invest their actual portion of the purse that is net.