MMA isn’t the easiest sport to make it in career-wise, as many fighters have found out. Many find that the sport doesn’t pay as much as an outsider might imagine, and even at the highest level, there’s concerns about fighter pay and whether or not the UFC’s practices are fair.
Few know this struggle with forging a successful career better than fighters that have been around the sport for a long time and experienced it all, and that includes former UFC wrestler Ben Askren and current ONE lightweight Eddie Alvarez.
Both of those fighters have taken to Twitter to offer advice to other current fighters about things such as taxes and money management.
Dear Fighters, Uncle Sam will take 30-50% of your money dependent on state taxes and income bracket. No one will tell you this. Plan accordingly.
— Funky (@Benaskren) June 28, 2020
The line of conversation started with Ben Askren tweeting a warning to new fighters that, depending on their state and their income, they could end up losing as much as half of their earnings just from taxes. His sentiment was added to by SBG Ireland coach John Kavanagh, most known for training former champion Conor McGregor.
Its always so traumatic when you sit with your fighter after the first time they get a decent pay day…and they learn about taxes for the first time. Like that kid crying playing the monopoly game ? https://t.co/7y1lfr1X4n
— Coach JK (@John_Kavanagh) June 28, 2020
But current ONE Championship lightweight Eddie Alvarez, who formerly competed in the UFC’s lightweight division, also had something to add on to that. He provided a number of tips, not just on taxes but on keeping money in reserve and investing it.
Fighters ..adding to @Benaskren
1) Set up an LLC before getting you’re first paycheck( this will allow you to write off most expenses )
2) Create a solid safety fund preferably 6 months
3) having 100k in you’re account doesn’t make you rich Do Not Ball out!
4) Save and invest— Eddie Alvarez (@Ealvarezfight) June 28, 2020
Alvarez also revealed that his own investments are spread across multiple things rather than being placed in one specific thing that could lose value.
Residential and commercial real estate mostly maybe 20 percent over all money in stocks , some bitcoin , having many lines in the water and gaining as much knowledge as possible in what you invest in Is ? key
— Eddie Alvarez (@Ealvarezfight) June 28, 2020
Many athletes are able to live off just their paychecks without having to worry too much about other things such as investments, but that’s not the case for most of the MMA fighters outside the top echelon of the UFC. And with the league struggling somewhat financially thanks to the loss of ticket sales at the gate in recent months, it doesn’t look like that situation will improve anytime in 2020.
With these circumstances, all fighters can do is continue to push for more attention to their cause and manage their own assets smartly.