Vasyl Lomachenko vs. George Kambosos Fight Purse Details: “The Matrix” Could Lose Millions to Taxation Law in Australia

Roughly a year ago, 36-year-old Vasyl Lomachenko lost his bid for the lightweight division’s undisputed title to Devin Haney. As he walks towards the twilight years of a magnificent career, ‘The Matrix’ is returning to the ring to stake a claim at the vacant IBF lightweight title. At the opposite corner stands George Kambosos Jr., who instead rides on the back of a triumph. After his consecutive losses to Devin Haney in 2022, he defeated Maxi Hughes and became the IBO lightweight champion. Now a two-time Olympic gold medalist stands in his way to prevent him from achieving title unification.

The duo will meet at the RAC Arena in Perth, Australia, the day after tomorrow. Per the available reports, Lomachenko remains a -650 favorite to win against Kambosos Jr.’s +450. However, an interesting aspect seems to have come forward. It deals with the two boxers’ fight purse. As it appears, Lomachenko might wind up with a smaller portion, while George Kambosos Jr. could end up receiving the lion’s share of the split. But that’s not all. If the information is correct, the Ukrainian might have to further part with literally half of his earnings on account of the taxation laws prevalent in Australia.

Vasyl Lomachenko: Claim at the Lightweight title might end with a lightweight wallet

An article on ‘NY Fights’ purports that the split share between ‘The Ferocious’ and Vasyl Lomachenko stands around 60/40. The Australian would reportedly receive the majority. Hence, the take for the two boxers could be somewhere to the tune of $5 million for Kambosos Jr. and nearly $3.5 million for Lomachenko.

Now, according to the Australian Taxation Office, “If you’re from overseas and come to Australia to work, you’re either a foreign or temporary resident for tax purposes.” However, the policy states that the foreign resident is not bound to pay up for the ‘Medicare levy’. The Ukrainian-born Lomachenko is a resident of California, in the United States. As a foreigner (Non-Resident Australian), he is visiting the country for a fight, which is essentially his vocation. Hence, per the prevailing laws of the land, he might be subject to taxation laws accordingly.

Per the 2023-2024 schedule of ‘Foreign residents tax rates’, for any ‘taxable income’ which is $180,0001 and over, the applicable tax would be $61,200 plus 45c for each $1 over $180,000. So if applied (45%) to the purported split he could end up with, it seems, ‘The Matrix’ would be parting with an amount close to $2 million in taxes. Then, with further cuts on account of the trainer fee and payment to the rest of the staff, there is a high possibility that Vasyl Lomachenko’s take-home would dwindle to $800,000–$900,000, give or take.

Now where does that put the two-time Olympic gold medalist vis-à-vis his previous payouts?

How did it go previously?

When he fought ‘The Dream’, Vasyl Lomachenko’s guaranteed purse stood somewhere in the neighborhood of $3 to $4 million. However, he also had a share in the PPV earnings. So if added, his title take-home must have been around $10 million.

Some six months before, when he fought Jamaine Ortiz for a non-title bout, he reportedly received $5 million. Both of these matches occurred in the United States. Thus, applying the suitable tax rates, his payday would still remain higher than what he would be getting in Perth in a matter of days.

But then the fact remains that, given Lomachenko’s age, opportunities for big fights would come down gradually. Hence, he has to make the best of the opportunities he has at his disposal. More significantly, for a boxer of his profile, it is important that when he finally departs from the sport, it be with a winning legacy and not an inglorious exit.

What’s your take on the purse split between Vasyl Lomachenko and George Kambosos Jr.? Please share your views with us in the comments below.