In a spectacular night of boxing that captivated a global audience on Netflix, Anthony Joshua emerged victorious with a decisive knockout over Jake Paul in Miami. However, the financial aftermath of the fight reveals a story almost as dramatic as the action in the ring. While the official purse figures were staggering, a complex web of tax obligations across two nations has significantly reduced the champion's final take-home pay.
The Knockout Win and The Financial Blow
Anthony Joshua solidified his status with a powerful performance, ending the highly-publicised crossover bout with a clean knockout. The event, streamed live by Netflix, was a massive commercial success, drawing viewers worldwide. For his efforts, Joshua was guaranteed a reported purse of $93 million, a figure matched by his opponent Jake Paul. On the surface, it appeared to be one of the most lucrative nights of the British boxer's career.
Yet, the location of the fight in Florida, USA, and Joshua's residency in the United Kingdom triggered a dual-taxation scenario. Despite Florida having no state income tax, the United States government imposes federal taxes on all earnings generated on American soil. This meant a substantial portion of Joshua's earnings was immediately subject to US law.
Breaking Down Anthony Joshua's Massive Tax Bill
The financial deductions from Joshua's $93 million purse are layered and severe. First, the US federal government taxed his earnings at the highest income bracket rate of 37%. This single deduction amounted to approximately $52 million, a colossal sum that left many fans stunned.
The tax obligations did not end when Joshua left American soil. As a legal resident of the United Kingdom, he is required to declare his global income to His Majesty's Revenue and Customs (HMRC). Reports indicate he will owe an additional $11.3 million in UK taxes, plus around $2.8 million for National Insurance contributions.
When combined, the total tax liability from both countries reaches nearly $66 million. After settling these mandatory payments, Anthony Joshua is expected to retain roughly $74 million from the fight. While still an enormous payday, it is a stark reduction from the headline-grabbing $93 million figure.
The Contrast with Jake Paul's Finances
Interestingly, the financial outcome for the loser, Jake Paul, is comparatively less burdensome. As an American resident, Paul is only subject to U.S. federal taxes on his $93 million purse. He does not face the additional overseas tax obligations that apply to Joshua. Consequently, despite losing the fight inside the ring, Paul is positioned to keep a larger percentage of his guaranteed purse than the victorious Joshua.
Joshua has always been vocal about understanding the business side of boxing. Speaking about such high-profile matchups, he emphasised his dual focus. "It's everything. Ever since I came into the game I clocked the hustle. I'm a fighter first and foremost," he stated. He also highlighted that the opportunity was as crucial as the financial reward, noting, "It's not even my biggest payday, it's not about money. For me, it was more about the opportunity. I had to showcase my skills to the world."
Nevertheless, the fight proved that in the modern era of crossover boxing spectacles, the final bell in the ring is just the beginning of a complex financial reckoning, where residency and location can deliver almost as impactful a blow as any punch.
