Are UFC’s “locker room bonuses” still a thing?

[CTEGod]

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Don’t have anything to add just wanted to pay my respects to you. An account almost 20 years old deserves respect imo.

 

[Kvothe_the_kingkiller]

I can’t find a specific instance but I swear I’ve heard Dana and a handful of fighters mention not paying taxes as a perk of the bonuses. Maybe they just mean state-specific taxes for where they’re fighting don’t apply?

ya, "taxes" is vague. maybe if the fights were in Brazil, it's only taxed by the US IRS and not both countries, or something like that.

 

[Tito Tapped]

I can’t find a specific instance but I swear I’ve heard Dana and a handful of fighters mention not paying taxes as a perk of the bonuses. Maybe they just mean state-specific taxes for where they’re fighting don’t apply?

It's not trying to avoid paying the taxes all together, it's getting a better tax rate. Supplemental income is taxed at 22%. You are on the hook for state taxes if you earned that bonus as a result of you work in that state (POTN Bonus). For example if you live in Florida and fight in California your POTN bonus is not only taxed at 22% but you also will pay California 18% in state income tax. Alternatively, the UFC HQ sends you a bonus check for 50k for being amazing, there's no state income tax in Florida.

 

[GolovKing]

That's locker room talk we don't discuss that here

 

[GOATweight]

Can someone explain to me how paying fighters under-the-table like this doesn’t constitute tax evasion? I always feel like Dana and the fighters are ‘saying the quiet part out loud’ when they openly admit not only that these payments exist, but that they are specifically utilized to avoid having to pay taxes.

I imagine that the UFC (Zuffa LLC) deducts this as costs from their revenue in the form of bonus payments in their taxes. So no tax evasion from their part. And it is the fighter's responsibility to also report this bonus payment as income in his/her tax returns.

 

[Kowboy On Sherdog]

Hidden pay from the government... But Dana won't pay Snoop because that was illegal gambling...