Jake Paul set to lose £25m prize money after | Boxing News

Jake Paul, the YouTube sensation-turned-boxer, might lose up to £25million of his combat purse from the Anthony Joshua bout due to tax, yet he’ll still pocket more than the two-time world heavyweight champion, despite his brutal defeat. The 28-year-old took on Joshua, 36, in Miami, Florida, last Friday in his latest dream matchup, stepping into the ring with the heavyweight just weeks after his proposed combat with Tank Davis was called off.

Paul, identified as “The Problem Child,” demonstrated moments of ability during the combat, but endured 4 knockdowns, including a savage knockout in the sixth spherical. Despite leaving the ring with a double jaw fracture, Paul still walked away considerably wealthier, as did Joshua. However, thanks to beneficial tax legal guidelines, Paul’s earnings from their nine-figure purse break up exceeded those of Joshua.

Reports counsel that Paul and Joshua divided a prize purse price roughly £137m equally. Joshua’s whole tax invoice is estimated at around £32m, with the Brit paying United States income tax at the best charge, since the combat came about on American soil.

Joshua would also be accountable for the distinction between his general UK tax obligation and the quantity already deducted in the United States, a deficit estimated at about £5.5m payable to HMRC.

An further £1.4m could be due in National Insurance contributions.

Paul, a US citizen residing in Puerto Rico, is only subject to US federal taxes, with no obligations to the U.Okay. and no state tax in Florida. His tax invoice, calculated at the top federal tax charge of 37 per cent, quantities to £25m.

Following a double jaw fracture, Paul has determined to take a break from boxing. He expressed his ambition to return to the cruiserweight division, where he hopes to rise up the ranks and compete for a world title.

“I’m going to come back and fight people my weight and go for the cruiserweight world championship at some point,” Paul declared. “I’m going to take a little break. I’ve been going hard for six years, so I’m going to take some time off.”

Eddie Hearn, the pinnacle of Matchroom Boxing, and his long-term fighter, Joshua, recommended Paul’s efficiency. “Hats off to Jake,” Hearn told ESPN after the match.

“A broken jaw is really difficult to come back from, but that last shot AJ hit him with would have knocked out a lot of heavyweights.

“He went down arduous but he was aware on the ground. It was a one-sided combat, always was going to be a one-sided combat, but you may’t give him something but credit and respect.”

Joshua suggested that Paul could reignite his rivalry with Davis or challenge Ryan Garcia. “America, I feel you have got somebody who might probably come back, mud the dust off his shoulder and come back someday in 2026. Maybe against Gervonta Davis or Ryan Garcia, who is aware of?” Joshua speculated.

This article first appeared on Mirror US.