MANILA, Philippines – Boxing promoter Bob Arum has shot down the possibility of staging a future Manny Pacquiao fight at the historic Madison Square Garden in New York City.
The Top Rank Inc. CEO explained that a New York bout it will cost Pacquiao $3 million in taxes, something the Filipino boxer wouldn't want, especially now that he is still settling a P2-billion tax case with the Bureau of Internal Revenue.
“[You have] to understand that Manny is a foreign national,” Arum said in a teleconference with international boxing media. “If he fights in New York, he has to pay a state tax, city tax, unincorporated business tax that comes to 14 percent. And because he’s a foreign national, he can’t take a credit for any of those taxes.”
“The penalty in fighting in New York if Manny’s earnings are $20 milion is as much as $3 million. So the difference in fighting in Nevada, which has no state tax, and fighting in New York, is $3 million.”
Pacquiao hopes to have a future fight in New York, where some of the sports' most memorable bouts were held.
Among the monumental battles that were held at the Garden was the 1942 bout between "Sugar" Ray Robinson and Jake LaMotta, the 1951 fight between Rocky Marciano and a fading Joe Louis, and the "Fight of the Century" between Muhammad Ali and Joe Frazier.
Pacquiao, however, admitted that it will still depend on Arum, who negotiates most of his bouts.
“It depends on my promoter, Bob Arum. He’s the boss in talking about the promoting. Wherever the fight is, I will fight,” said the fighting congressman.
Most of Pacquiao’s bouts in the US have been held in Las Vegas, Nevada, considered the gambling capital of the world. He also fought once at the Cowboys Stadium in Dallas.
He fought once in Macau to avoid the burden of paying US taxes, but the move took a toll on Pacquiao’s pay-per-view buys.
Arum said taxes are also the reason behind Floyd Mayweather’s insistence to stay away from New York.
“Mayweather has the same problem because Mayweather he lives in the state of Nevada that has no state taxes. So if he pays taxes in New York, he doesn’t get a credit against his state taxes because he pays none, because he lives in Nevada,” he said.
“It’s all well and good to say, ‘Why don’t you fight in New York?’ But it comes a real problem.”