FanPost

Why You'll Never see a Pacquiao or Mayweather fight in the UK, No Matter How Often They Say They'd Love to Fight at Wembley

As we are now experiencing the 'Pacquiao /Khan/Wembley' rumours doing the rounds after 'talks' (meeting publicly at a boxing gym for a quick photo op) this week, let me point out why this is not happening: UK tax laws.

UK tax law is such, that any foreign sports star must not only be taxed for the event or competition they are taking part in, but that a percentage of their earnings from outside the UK are also subject to UK tax. It's a ruling that has been challenged by Andre Agassi (he lost) and has been cited by people like Usain Bolt as a reason not to compete in the UK.

So, if Pacquiao were to fight Khan in the UK in May, and then somehow 'the fight that must not be named' were to happen in Vegas in September, then Pacquiao would be not only frittering away a portion of his purse to Michael Koncz, but also to the UK taxman. If Manny did a few more footlocker ads in the build-up? He'd be paying tax on those too.

Pacquiao has had highly-publicized tax problems in the Philippines. Floyd has not fought outside of the MGM Grand in New York since he fought Sharmba Mitchell in Oregon in 2005.

Amir Khan on the other hand would love this as he would a)make a shed load of money from a massive fight and could fight in Vegas in December, and pay no UK tax on his earnings abroad.

So does this mean no international stars compete in the UK? Of course not. We have Carson Jones fighting soon, and Richar Abril...OK, I jest, but if you are an elite level competitor, who can draw a considerable crowd elsewhere, then it makes little sense to bother to fight in the UK.

Will Floyd? Nope. Miguel? Nope. Manny? Nope, nope, nope.

[Full disclaimer: certain events have waived this tax for international competitors. The Olympics in 2012. The Champions League Finals held at Wembley. Is it possible a Pacquiao v Khan fight could receive such a waiver? Yep. Is it probable? Nope.]

For a more in-depth legal perspective, see this:

http://www.lawinsport.com/articles/tax-law/item/how-the-uk-taxes-overseas-athletes-and-what-the-consequences-are-for-uk-sport

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