The world was aflutter when the unlikely fight between Floyd "Money" Mayweather, Jr. and Conor McGregor was announced. However, as more details about Mayweather's personal life emerge, the motivation for the bout seems a little clearer on the undefeated champion's part.
According to multiple news sources, Mayweather recently filed a Tax Court petition on July 5th asking the IRS to allow him a reprieve until after he faces McGregor on August 26th.
"Although the taxpayer has substantial assets, those assets are restricted and primarily illiquid," the petition said, according to the legal website Law360. "The taxpayer has a significant liquidity event scheduled in about 60 days from which he intends to pay the balance of the 2015 tax liability due and outstanding."
No details regarding Mayweather's exact tax amount owed have been released at this time. The IRS had previously suggested that Mayweather had the resources to fix the issue even though much of his wealth is illiquid. Mayweather has vast real estate holdings, exotic vehicles and jewelry.
The petition also asks to reduce the penalty Mayweather received from not paying all of his taxes for the year. Mayweather's last fights were in 2015 when he fought Manny Pacquiao in May and Andre Berto in September. Now known as the richest boxing match in history, the fight grossed over $700 million. Mayweather took home about $220 million with a $100 million guaranteed purse.
The IRS failure-to-pay penalty is typically 0.5 percent of the owed taxes for each month, according to the IRS website. Mayweather's 2015 taxes are currently 15 months past due, which would equal a 7.5 percent charge on top of what is owed.
It seems that Mayweather is using the same tax loopholes that other rich people use, however, due to his stature as the reigning bad boy of boxing, he will be vilified in the weeks leading up to the fight. As an astute businessman, it seems clearer now that a pretty sure bet against a boxing neophyte like McGregor, which could potentially make more than his fight against Pacquiao, was a great reason to take the fight.
The adage by The Notorious B.I.G. Is still true "Mo' Money, Mo' Problems", but it seems Mayweather has a hat trick secured with his McGregor IRS bill elimination bout.