Following his punishing bout against Ivan Drago, the once-champion boxer returns to Philadelphia with his family, only to discover that corrupt accountant mismanagement has left them financially ruined. To make matters worse, health issues stemming from his career force him into early retirement. Struggling to readjust to a modest life in his old neighborhood, he reopens his local gym and begins training up-and-coming fighters. In the midst of this, he meets a talented yet rebellious young boxer named Tommy Gunn, who desperately seeks guidance and sees him as the ideal mentor.

While training Tommy, the former champion grapples with his lingering frustrations and the pull of his past glory. Nevertheless, Tommy's rapid ascent in the boxing world draws the attention of a nefarious promoter, poisoning their relationship. As Tommy's ambition grows, he begins to drift away, influenced by promises of fame and fortune. The bond they once shared deteriorates, leading to an intense and public confrontation that forces each character to confront their true nature and the consequences of their choices.