UnderGround Forums Wise tax advice for fighters

11 days ago
12/28/05
Posts: 1806

Doesnt the ufc do some type of to teach the basics about money/life after fighting?

11 days ago
1/1/01
Posts: 10582

They use to employ a guy named Brad Smuckler to give fighters assitance. 

11 days ago
8/19/03
Posts: 29010

I would like to see some of the longtime vets of the Octagon, like Jim Miller and Clay Guida, who have legitimately made about as much of a "career" in the Octagon as one possibly could, and have done so without being elite, marquee superstars.

 

I don't know much about either one of them as people outside of the Octagon, but I'd be curious to know, nonetheless. 

 

It's an unpopular opinion, but I don't believe the UFC needs to be, or even should be, responsible for fighters' financial education (or lack thereof).  That's the responsibility of the fighter, and of the people they have entrusted to manage their careers.   I'm not saying it isn't shitty, but that's any business.  

 

I said it on some thread, maybe even this one, but Dana is there to provide an opportunity, and nothing more.  How you manage or don't manage your own career or finances is your responsibility, whether or a fighter, a computer programmer, or salesman. 

11 days ago
3/15/19
Posts: 594
0hi0direct -
Don J -
the_decimator - 
Tug Dabone -
Eskimo -
WaltJ -

Pretty crazy stuff.   

 

MMA is a tough life before you even get into the cage. 

 

Respect to those who do it, because it certainly isnt financially viable for most participants.  

What do you do for a living that this surprised you? Because the exact same shit happens to my earnings. 

Sort of.

Self-employed people have to pay the part of Social Security and Medicare taxes that an employer would pay on behalf of an employee. So, independent contractors (fighters) are hit with an approximate 7.5% additional tax to pay SSI and Medicare, although there is a small offset against gross income that reduces your federal income tax slightly. 

There are still a large amount of white/blue collar people doing contract labor as a self employed person. This is isn't news to us. 

 

This may be news to fighters, but no surprise there...

 

 


Exactly. I have been self employed for 15 years now and I always knew I HAD to pay taxes on my earnings.

You can find ways to lower your gross, and ultimately not pay as much as expected. My adjusted gross, is usually around 50% of my total gross. So I only pay taxes on that amount. Things like management fees, etc are all write offs, so you are not paying taxes on the fees you pay your management, gym, etc. Also depending on where you live, things that normal people cant write off like phone, rent, travel, etc all help lower your adjusted gross. GET A GOOD CPA!!

This.  As a fighter theres an ungodly amount of write-offs.  If done properly and thoroughly, they should be paying little to 0 taxes. 

 

Nutrition

Equipment

Coaches

Travel

And 300 other options

 

 

This is what I would have thought. 
 

I knew of a fellow who had hundreds of rental units. He himself had no income. It all went to a corporation which rented him a home (a perk of being the president of a corporation) that was owned by another corporation. Every thing he ever bought, every mile he travelled, was all a business expense. My guess is that he had upwards of 10 million in real estate, generating millions of dollars (flips, private sales, rent to own, private financing and buy and hold, lots of joint ventures) and made 20k or less a year. 
 

Not the most encouraging thing for anyone who pays 20-50% in income tax, but that’s the way the world works. Instead of fighting it, these fighters need to work with the system. 

11 days ago
1/1/01
Posts: 4583

Great advice from fighters!
I was writing a memoirs book and rereading my old journal. I found that I'd made $5,000 for my Strikeforce fight against Marloes in 2009 and I was SO EXCITED because that's the most I had ever been paid.  :O  Pay scales are really varied.  The UFC minimum wage used to be $8,000 and now I think it's $12K.  At least that's an improvement!

 

I'm glad someone told me to make an LLC after I got into the UFC.  I think it was my accountant.  He really saved me.  My dad helped me out with investing in mutual funds.