Boxing


Getting Into The Business of Boxing

15.08.05 - By Coach Tim Walker - tpwalker@hotmail.com - After weeks of bellyaching about how languid boxers are, I finally decided to put my two cents in on the financial state of boxing from a boxer's perspective. Unfortunately boxing does not have the lush surroundings of the NFL. It does not have the seasoned players union of the NBA. It does not have the support system of professional hockey or baseball.. Even the infrastructure of college, which is often used as preping grounds for some pro sports, does not lend itself to the screwy essence of professional boxing. In other words, any boxer who would be good enough to go to college for boxing would probably turn pro anyway thus the institutions of higher learning that offer boxing on their curriculum go relatively unnoticed.

SUPPORT SYSTEM FLAWED FROM THE BEGINNING

Amateur boxing is the means to the end. Most amateur programs are volunteer based and this is largely where the problem begins. Virtually any Joe Blow who has an affinity for the sport can join a local gym as an unpaid assistant. Many don't have a real clue as to what boxing truly is or how to develop a boxer and instead of learning the sport they come in with preconceived attitudes and hinder the growth of its participants. I can't begin to tell you how many times I have walked into a gym and seen a trainer instructing just flat out wrong. In reality a person who hasn't played organized football, baseball or basketball wouldn't volunteer for those sports on any level beyond the very novice levels. Still this happens in boxing.

LACK OF BUSINESS SENSE EQUALS LESS BUSINESS CENTS

Boxers are conditioned to believe that their sole responsibility to their career is training and getting in the ring. This is wrong! Take some control of your lives and careers, and have some say in what goes on. When a boxing manager tells you that a particular clause of his/her contract is industry standard that is a slap in the face. It basically means that you are viewed as a dime a dozen and nothing about you requires him to be unique in his approach to you. For instance, boxing management agreements typically have language allowing for fees plus recouping clauses to be charged on the gross income. Sure, any individual or entity that incurs risk to build or promote something deserves to be compensated. But to recoup everything off the top and then charge 33% for their services off the top is unheard of an any sport other than boxing. Off the top means prior to any taxes or other incurred expenses are paid for the management gets paid. Doesn't sound like a big deal? Check this out.

$100,000 Purse (Gross)

Tax (28%) = $28,000

Training Expenses = $10,000

Management (33%) = $33,000

Lawyer (5%) = $5,000

Trainer (10%) = $10,000

Boxer has $14,000 left

$100,000 Purse (Net)

Tax (28%) = $28,000

Training Expenses = $10,000

Management (33%) = $20,460

Lawyer (5%) = $3,100

Trainer (10%) = $6,200

Boxer has $32,240 left

The above scenarios show how much the boxer ends up with when the people who are in essence working for him earn on the net and the gross. The tax and expenses don't change but you can clearly see that paying on the gross benefits the boxer much more than paying on the net income. Obviously this works even for the fighter who is earning $3,000 a fight.

Let me know if installments like these are interesting and I will keep doing them. The next installment would be on how to negotiate the down the managers 33%.

Article posted on 15.08.2005



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