Jake Paul faces a potential financial setback of up to $34 million following his defeat to British boxer Anthony Joshua, who knocked him out in the sixth round. This loss adds to Paul’s recent difficulties as he recovers from injuries sustained during the fight.
On Friday, December 19, 28-year-old Jake Paul recorded his second career defeat (14-2, 7 KO) against 36-year-old Anthony Joshua (29-4, 26 KO) at the Kaseya Center in Miami.
The match lasted six three-minute rounds, during which Paul was knocked down four times by the heavyweight Joshua before ultimately being knocked out.
After headlining the Most Valuable Promotions event on Netflix, Paul was hospitalized, later revealing that he had two titanium plates surgically inserted into his jaw.
“Some teeth removed. Have to have only liquids for 7 days so no @doghausdogs,” Paul shared on Instagram.
Recently, it has been disclosed that Paul might lose up to $34 million from his fight earnings.
In November, the Daily Mail estimated that the Netflix purse was valued at about $184 million.
Paul later posted on X, stating: “Stop asking me. $267 Million,” seemingly alluding to the total prize money at stake for the fighters.
According to a sports and entertainment accountant, Oriana Morrison, speaking to The Independent: “Even if the lower figure – the rumoured $184m purse – is true, AJ could bring home $92m.
“We haven’t seen a boxing match with a purse at this level since Mayweather vs Pacquiao in 2015 or even Mayweather vs McGregor in 2017. It’s higher than any Saudi purse to date.”
Additional reports indicate that both Paul and Joshua would split the purse equally.
However, Paul is expected to pay up to $34 million in taxes.
As a US citizen residing in Puerto Rico, Paul must navigate US federal taxes, according to The Mirror.
He falls under the top federal tax rate of 37 percent, which would result in a $34 million tax bill if the purse was evenly divided.
Despite his victory, Joshua appears to face a larger tax burden.
Living in the UK, Joshua will owe approximately $43.8 million in taxes.
A portion of this will be paid to the Internal Revenue Service (IRS) in the US.
Joshua will also need to pay National Insurance Tax and reconcile his full UK tax liability with what has been paid in US taxes.
Following his knockout, Paul announced plans to take a break and pursue the cruiserweight world championship.
“I’ve been going hard for six years, so I’m going to take some time off,” he stated.