We made a post yesterday about Francis Ngannou earning a huge sum in a single fight, far more than what Wizkid and Davido combined have made from music in their career.
However, some followers questioned why his net worth is still way lower than that of Wizkid and Davido.
Firstly, Amount made is not directly proportional to net worth. This means that just because someone earns a large amount, doesn’t necessarily translate into an equivalent increase in their net worth (The total value of assets minus liabilities).
In financial terms and in school we were told, Private cars are often considered liabilities, for wealthy individuals, a sophisticated car is an investment. Value increases over Time.
That being said, Francis Ngannou lives in the United States, where the tax rate can be as high as 37%, with a slight relief for couples filing jointly, but it remains burdensome for high-earning individuals. The U.S. federal tax system is progressive, meaning that as income increases, so does tax.
Imagine having 100,000 and needing to pay close to 40% in taxes. Francis faces higher taxes, which kind of affects his net income.
On the other hand, Wizkid and Davido live in Africa, where taxes are generally lower, and the tax system can be more easily manipulated compared to the U.S., where taxes are rigorously monitored before income is processed, you go must bow....
Additionally, many artists like Wizkid and Davido record in their own studios, employ personal staff, and secure promotional and distribution deals with bigger brands.
These brands are not paid but rather on commission. In contrast, Francis Ngannou pays hefty sums to GymShark for training and other entities before being promoted, regardless of whether he wins or loses a fight. He also has to pay his personal staff, management, and trainers, even if he loses. The gamble is on self.
It will likely take Francis a few more years to build a significant net worth, if Age permits, we all know he's hitting 40 in few years and most fighters fall back around that age.
Finally, while Burna Boy earns the most, he isn’t wealthier than Wizkid or Davido because he's tied to a 360 record deal, which gives him only a small percentage of his actual earnings. Before you argue that Wizkid and Davido are also signed to major labels, it's important to note that they are not in 360 deals.
Most of them only have promotional/distribution deals with larger companies.
