The last piece before this article was about how much Manny Pacquiao would earn in agreeing to fight Floyd Mayweather for this era’s biggest boxing event.
Now, let us conjure scenarios how that money would be spent.
Let’s us take away 30 per cent of that total earnings in the US (PPV share, live gate receipts, CCTV and fight merchandize sale), 10 per cent trainer’s cut and training costs before tax. Nobody escapes the US taxman. Keep that in mind.
Manny would be left with something like US$41.4 million of his US earnings (excluding Philippine cable and TV rights) of the estimated US$46 million he stands to earn after deducting the trainer’s fee of Freddie Roach.
How much would Manny spent for his training?
Let me just put a conservative estimate of US$5,000 per day (to cover food and accommodation for his entourage) and plane tickets. If he trains for eight weeks, that would be something like US$2.8 million for the duration.
So Manny is left with US$38 million before tax. Less 30 per cent that the IRS would levy on him, Manny will still have US$27.02 million net pay.
Spend another couple of millions for tickets, ringside seats, hotel accommodations for 80 friends who would trade their life plans and the educational plans of their children just to be at the ringside seat of history, it is safe to assume Manny will take home US$25 million net.
Of course, he still has to pay his lawyers when he comes back to the Philippines and BIR would still be aching to get their 35 per cent share of Manny’s net income.
His lawyers of about five will go home something like five million pesos richer each – that’s US$500,000 less. One of my sources told me that for one lawyer alone, Manny had already shelled out a cool Php90 million in total since their lawyer-client relationship began.
Bonuses to friends and hangers on: another half a mil.
US$24 million – net before Philippine taxes.
US$17 million – net after Philippine tax.
US$1.4 million- net after Philippine tax on TC and Cable rights.
US$18 million – total net earnings after taxes and expenditures.
That is, at Php45-to-a-dollar exchange rate, a cool P810,000,000 take home pay!
But words of caution please. Manny doesn’t get to bring that amount of dollars when he comes home days after his Mayweather fight or have it transferred to his Philippine account immediately.
It will take a minimum of 45 days before HBO and IRS could agree on the figure that Manny would earn. A major cut from his gross earnings would be withheld by the IRS. That is the reason why most of fixed-income American earners get their rebates at the end of each fiscal year.
That means Manny again making cash advances from Uncle Bob.
Did you say Manny is running for a seat in Philippine Congress?
How much do you think he will have to spend to have an even chance of winning?
Figure this out. Manny reportedly spent close to P20 million for his friend’s mayoralty campaign in 2007. His friend won. There are seven towns in Sarangani, excluding his own bid that that of his running mates in the province.
I will leave it to you to do the math.
But your guess is as good as mine.
Manny’s hard earn money is going down the drain if he continues to live the lifestyle of traditional Philippine politicians.
