Why Jake Paul Could Lose $34,000,000 After Getting Knocked Out By Anthony Joshua

Jake Paul could end up losing as much as $34 million after his sixth-round knockout loss to British heavyweight Anthony Joshua, and it is another rough twist while he recovers from injuries taken in the ring.

Last Friday (December 19), the 28-year-old picked up a second defeat on his record (14-2, 7 KO) after falling to Joshua, 36, (29-4, 26 KO) at Miami’s Kaseya Center.

The two went six three-minute rounds, and Paul hit the canvas four times before Joshua finally closed the show with a knockout.

Even though the fight brought huge attention and a massive paycheck, that money does not land in full once taxes and deductions get involved.

After headlining the Most Valuable Promotions card on Netflix, Paul checked into the hospital, where he later said he had two titanium plates fitted, with one on each side of his jaw.

"Some teeth removed. Have to have only liquids for 7 days so no @doghausdogs," he added via Instagram.

In a new update, it has now been reported that he could lose up to $34 million from his fight earnings once taxes are counted.

So while the purse number looks huge on paper, the final amount he keeps could be much smaller than many people expect.

Both Jake Paul and Anthony Joshua will have gargantuan taxes to play Ed Mulholland/Getty Images for Netflix

In November, the Daily Mail suggested the Netflix purse was worth around $184 million.

Paul later posted on X: "Stop asking me. $267 Million," seemingly pointing to what he says the fighters were competing for financially.

Sports and entertainment accountant Oriana Morrison later told 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."

Other reports claimed Paul and Joshua would split the nine-figure purse evenly, meaning each man would take a massive share before taxes.

However, it looks like Paul may have to hand over up to $34 million in tax, depending on how the payout was structured and where it was counted.

The boxer confirmed that he'd had surgery on his jaw Instagram/jakepaul

As a US citizen and a resident of Puerto Rico, Paul still has to deal with US federal taxes, according to The Mirror.

He would be hit with the top federal rate of 37 percent, which could push his tax bill to a staggering $34 million if the purse truly was split straight down the middle.

Even with a win, that kind of tax bite would be huge, so it is easy to see how a giant headline payday can quickly shrink once the government takes its cut.

And despite Joshua being the winner on the night, reports suggest he may face an even tougher bill overall.

AJ, who lives in the UK, is reportedly looking at a tax total of about $43.8 million.

Part of that would go to the Internal Revenue Service (IRS) in the United States.

After that, he would still need to deal with UK obligations, including National Insurance Tax, and make up the difference between his full UK tax bill and what was already withheld in the US.

In other words, even though the purse figure is massive, a large slice can get pulled away through cross-border tax rules and how earnings are treated in different countries.

AJ will have to pay more in taxes than The Problem Child Netflix

After the knockout, Paul said he plans to take a break from fighting, and he also said he wants to start chasing a cruiserweight world championship next.

"I've been going hard for six years, so I'm going to take some time off," he confirmed.

For now, though, his focus seems to be on recovery, especially after the surgery and the strict liquids-only plan he described.