The caller said he just found out the Internal Revenue Service (IRS) is chasing Pacquiao for back taxes in the principal amount of about $400,000 representing what he should have paid the US government since 1991.
The amount didn’t include what he will owe in taxes for the Erik Morales fight last Sunday morning (Manila time).
"This is a financial nightmare for Manny," said the man on the phone. "If you add interest and penalties, the amount could go up to $800,000. When the IRS comes knocking on your door, it’s bad news. You just don’t forget about it and call up your friendly government contact for a quick fix. This problem isn’t going to go away until it’s resolved."
Pacquiao figured in six US fights before taking on Morales. The caller said he was told Pacquiao paid only $80,000 from his total purses to the government but some $400,000 was withheld for tax purposes.
"If it’s true that $400,000 was taken from Manny to pay his taxes and he has only paid $80,000, my question is where’s the rest of the money?" wondered the caller. "Who took it? Which bank account did it end up in?"
If the money wound up in somebody’s pocket, Pacquiao will be left holding the bag. The IRS is running after Pacquiao, nobody else, and he’ll have to own up to the liability whether he likes it or not.
The caller said when Pacquiao signed a contract to be managed by Shelly Finkel last month, he was broke.
"Manny didn’t have $200 to his name so the signing bonus of $300,000 was a welcome thing," continued the caller. "Manny’s a generous kid. He’s not selfish. He’s not like 99% of the boxers I know. He’s the best Filipino human being there is. He likes to help out those in need. But the downside to being generous is you might wind up with nothing if you give too much of what you have."
The caller said veteran Filipino boxing trainer Ben Delgado, who’s jobless in the US, went to Pacquiao about two weeks ago to ask for a little money. Pacquiao didn’t hesitate to put $350 in cash in Delgado’s hand. That’s the kind of guy he is.
The caller also confirmed that Pacquiao’s purse for the Morales fight was $2.8 Million but the fighter was told it was $1.75 Million. The actual purse, however, is not confirmed. The contract was negotiated before Finkel became Pacquiao’s manager.
Finkel said he is reviewing the fight contract and would not disclose the figures out of respect for Pacquiao. If Pacquiao wants to reveal what he earned, it’s up to him to break the news to media, added Finkel. But it will never come from the New York businessman.
The caller said the issue of the gloves meant more than just the brand.
"Freddie (Roach) wanted to make the point that Murad (Muhammad) never bothered to share the details of the contract he signed in Manny’s behalf for the Morales fight," the caller went on. "My opinion is the choice of gloves had little significance, maybe 70% psychological and 30% real. Murad never consulted anyone about the choice of gloves and Freddie’s point was he never consulted anyone on the other points in the contract. I presume that meant the actual purse for Manny, too."
The caller said the Pacquiao camp is wracked by dissension.
"Murad is blaming Freddie and Freddie is blaming Murad," he went on. "There are problems on the management and promotions fronts. There’s even a problem between Freddie and the cutman Lenny de Jesus who is Murad’s guy. No wonder Manny’s confused. I’m just hoping he doesn’t get depressed and self-destructs."
The caller remarked that Pacquiao proved his greatness by standing up to Morales until the final bell.
"Manny’s a great fighter and a great guy," said the caller. "All Filipinos should be proud of him. You can’t say anything negative about him. There’s a lot that he can learn from the Morales fight, things he should work on in the gym. It’s difficult for Manny to work on new techniques with 75 to 80 fans hanging around. Morales fought him like Agapito Sanchez did and Manny couldn’t adjust. I thought Manny would give up in the fifth round after he was cut but he fought bravely, like (Juan Manuel) Marquez who came back from getting knocked down thrice by Manny in the first round of their fight."
Reporters from at least two local TV stations phoned me yesterday asking for my reaction to a wild rumor from Las Vegas that Pacquiao sold out for $4 Million because he was a heavy betting favorite.
My reaction to the rumor is it’s hogwash. That’s the most ridiculous thing I’ve ever heard. Whoever is peddling that rumor is sick in the head. If Pacquiao was out to lose, do you think he would’ve fought like he did? He almost killed himself in the ring trying to win for his countrymen. This talk of a sellout makes me boil.
I suspect the rumor is coming from people who may be marginalized by Pacquiao’s new alliance with Finkel. That’s the trouble with some Filipinos. They resort to backbiting, badmouthing and maligning without basis and for spite when it’s convenient to hide behind the cloak of "unconfirmed rumors." Crab mentality is a disease that makes a human being a crass animal with no conscience.
Don’t believe a word of that bad talk. Pacquiao is a national hero and treasure. His big heart beats proudly for the Philippines, for you and me.