Reed's Championship bonus to himself

EmDub425
Posts
607
Joined
3/7/2009
Location
Tacoma, WA, USA
9/2/2009 3:22pm
yes insurance dividends are tax free. Because it's "insurance" and not income
eurohero
Posts
545
Joined
5/7/2007
Location
Berlin, DE
9/2/2009 3:23pm
zjbell wrote:
Interesting. Lloyds of London is everywhere, they are the insurer of my companies aircraft. I've heard of baseball players with injury policies, but policies against winning...
Interesting.

Lloyds of London is everywhere, they are the insurer of my companies aircraft.

I've heard of baseball players with injury policies, but policies against winning a series is an interesting concept, I guess I've never thought about it.
unfortunately, many people have thought about. The US housing market fell victim to it along with many banks. In a nutshell, there were "bets" on people's ability to repay loans, or inability, those "bets" were packaged up and bundled into a portfolio and sold off, with "insurance" for the portfolio if it tanked. The people organizing that actually wanted this to happen, they would make more money.
9/2/2009 3:26pm Edited Date/Time 4/17/2016 1:56am
Ya but if he is making $7M (no idea how much he is making) a year that is a little over 4%. For someone making $50K...
Ya but if he is making $7M (no idea how much he is making) a year that is a little over 4%. For someone making $50K a year it is $2K...still think it is a large chunk for him. He said he does it every year so he must have done it last year SX.
Nerd wrote:
If he's making $7M, then paying his agent 10%, then paying taxes for almost half of that (probably isn't paying that much in taxes with write-offs...
If he's making $7M, then paying his agent 10%, then paying taxes for almost half of that (probably isn't paying that much in taxes with write-offs and tax shelters and whatever), then it's 10%.

Although it would be a write-off as well.
BobbyM wrote:
yup...many people forget bout the tax part. still good cake but 300 k is not chump change to anybody i say.
To most of us it is massive but not to "anybody". Take Tiger Woods for example. He made $110M last year. $300K is chump change since it is .27 percent of what he made.


I am not saying Reed is ballsy for doing it but it is not that much money to him. He said he is making more from his investments this year than from his racing.
Lightning78
Posts
6353
Joined
12/12/2007
Location
Huntington Beach, CA, USA
9/2/2009 3:34pm
Reed either is doing this himself or has some really good business minded people around him. That was pure genius and if he trurly is making more off investments than racing then he is going to be set for life. I'll bet his great grandchildren won't have to work. The dude is a very smart business man which I have gained a newfound respect for the guy since I majored in Finance in college

The Shop

peelout719
Posts
2507
Joined
4/30/2008
Location
Ogden, UT, USA
9/2/2009 3:36pm
To most of us it is massive but not to "anybody". Take Tiger Woods for example. He made $110M last year. $300K is chump change since...
To most of us it is massive but not to "anybody". Take Tiger Woods for example. He made $110M last year. $300K is chump change since it is .27 percent of what he made.


I am not saying Reed is ballsy for doing it but it is not that much money to him. He said he is making more from his investments this year than from his racing.
I am not saying Reed is ballsy for doing it but it is not that much money to him. He said he is making more from his investments this year than from his racing.

that is exactly why it is ballsy. he made more money on his investments than from his racing. but his investments would be null if not for his racing. he was betting on his racing, confident, ballsy.
Bauer
Posts
1623
Joined
8/15/2006
Location
Corona, CA, USA
9/2/2009 3:39pm
Yeah, like you'd pony up $300k and bet it on Chad! Who are you trying to kid? You wouldn't even bet $3k, you liar!
Racer92
Posts
17965
Joined
8/15/2006
Location
Central, TX, USA
9/2/2009 3:58pm
Great story Bauer and congrats to Reed for well deserved title and bonus, both.

Cant believe people would get on here and attempt to diminish Reed's wagering 300-large on a title when anyone whos lined up at a gate realize the odds of shit going wrong.
eurohero
Posts
545
Joined
5/7/2007
Location
Berlin, DE
9/2/2009 4:01pm
To most of us it is massive but not to "anybody". Take Tiger Woods for example. He made $110M last year. $300K is chump change since...
To most of us it is massive but not to "anybody". Take Tiger Woods for example. He made $110M last year. $300K is chump change since it is .27 percent of what he made.


I am not saying Reed is ballsy for doing it but it is not that much money to him. He said he is making more from his investments this year than from his racing.
No offense, but Reed is not even in the same zip code with Tiger when it comes to $$$. For Tiger, $300K is no biggie, but Reed had a hard enough giving bonus money to mechanics over the years, $300K is a big deal and it was balsy for sure.
petegrath
Posts
1112
Joined
5/18/2009
Location
John's Island, SC, USA
9/2/2009 4:14pm
Nerd wrote:
If he's making $7M, then paying his agent 10%, then paying taxes for almost half of that (probably isn't paying that much in taxes with write-offs...
If he's making $7M, then paying his agent 10%, then paying taxes for almost half of that (probably isn't paying that much in taxes with write-offs and tax shelters and whatever), then it's 10%.

Although it would be a write-off as well.
englishman wrote:
What currency is he getting it paid in ? Perhaps it's going direct to Switzerland ! I would think if he wagered $300K of his own...
What currency is he getting it paid in ? Perhaps it's going direct to Switzerland ! I would think if he wagered $300K of his own cash on the deal his agent isn't gettting a brass farthing of that but what do I know ???

Either way the guy is a fooking genius with balls of steel .

Nerd wrote:
Correct me if I'm wrong, but we were talking about domestic income, and Suzuki America can't pay him in Swiss Francs. But I think (not sure)...
Correct me if I'm wrong, but we were talking about domestic income, and Suzuki America can't pay him in Swiss Francs.

But I think (not sure) insurance payouts are tax-free anyway, so I think his wager pays out tax-free. Can anyone confirm that?
My insurance settlement was tax exempt for an accident I was in a few years back.

Don't know about his type of policy, but if it's like mine it'll be tax free. I'm betting it is.

Which is cool!

Very cool.
jndmx
Posts
9694
Joined
1/20/2008
Location
South Kingston, RI, USA
9/2/2009 4:22pm
Racer92 wrote:
Great story Bauer and congrats to Reed for well deserved title and bonus, both. Cant believe people would get on here and attempt to diminish Reed's...
Great story Bauer and congrats to Reed for well deserved title and bonus, both.

Cant believe people would get on here and attempt to diminish Reed's wagering 300-large on a title when anyone whos lined up at a gate realize the odds of shit going wrong.
X2
Clutchy
Posts
2830
Joined
3/24/2009
Location
redding, CA, USA
9/2/2009 4:23pm
WOW.... I wonder, do you think James took the same action on chad...? hmmmmmm
lumpy790
Posts
11629
Joined
9/18/2007
Location
York, SC, USA
9/2/2009 4:26pm
$300k.....bonus $$
Tiki
Posts
10621
Joined
8/1/2006
Location
Corona, CA, USA
Fantasy
9/2/2009 4:54pm
7-15% of your annual income to make an additional 135% of your annual income if you are the best at what you do?

To someone that makes millions $300K is like $4,000 to the rest of us. For double your income its risky but if you are a top performer its pretty much a no brainer.

I.e. Big deal. I hope his team shared in some of that wealth.
Void Main
Posts
17013
Joined
3/19/2008
Location
USA
9/2/2009 4:56pm
Bauer wrote:
Here's something you might not be aware of that illustrates to me how confident and determined Chad Reed is. Suzuki's bonus to him for winning the...
Here's something you might not be aware of that illustrates to me how confident and determined Chad Reed is. Suzuki's bonus to him for winning the 450 National MX title was $1.5 mil, paid for by a Lloyds of London insurance rider that cost them $300k. They also bought one for Mike Alessi...the day before he broke his kneecap!

Word is that Reedy put up $300k of his own money for an additional $1.5 mil policy, making his outdoor title worth $2.7 mil, after deducting the 300k he wagered.

Pretty ballsy move, betting 300 large on yourself in a 12 round series where anything could happen. My hat's off to Reed, the man has sack (and is liquid, too!). Awesome!
BobbyM wrote:
cool story...i got 10 bucks i'm gonna take out on myself
What would the odds be if that were Vegas?
FastEddy
Posts
14815
Joined
8/3/2008
Location
💀, FL, USA
9/2/2009 4:58pm Edited Date/Time 4/17/2016 1:56am
Bauer wrote:
$300k is a huge chunk of change to anyone. Think about it...
Dam right it is.
To be honest...
I would have had a hard time even wagering $300.00 on Chad with RV & Alessi racing.
The dude is definitely confident and believes in himself.
v1rus99
Posts
369
Joined
7/30/2008
Location
Perth, AU
9/2/2009 5:10pm
Reed is the man.
9/2/2009 5:15pm
To most of us it is massive but not to "anybody". Take Tiger Woods for example. He made $110M last year. $300K is chump change since...
To most of us it is massive but not to "anybody". Take Tiger Woods for example. He made $110M last year. $300K is chump change since it is .27 percent of what he made.


I am not saying Reed is ballsy for doing it but it is not that much money to him. He said he is making more from his investments this year than from his racing.
peelout719 wrote:
[b]I am not saying Reed is ballsy for doing it but it is not that much money to him. He said he is making more from...
I am not saying Reed is ballsy for doing it but it is not that much money to him. He said he is making more from his investments this year than from his racing.

that is exactly why it is ballsy. he made more money on his investments than from his racing. but his investments would be null if not for his racing. he was betting on his racing, confident, ballsy.
I meant to say "I am saying Reed is NOT bally" My bad.

He is making money off of his investments whether he races or not. He was not talking about this particular gamble.
9/2/2009 5:20pm
To most of us it is massive but not to "anybody". Take Tiger Woods for example. He made $110M last year. $300K is chump change since...
To most of us it is massive but not to "anybody". Take Tiger Woods for example. He made $110M last year. $300K is chump change since it is .27 percent of what he made.


I am not saying Reed is ballsy for doing it but it is not that much money to him. He said he is making more from his investments this year than from his racing.
eurohero wrote:
No offense, but Reed is not even in the same zip code with Tiger when it comes to $$$. For Tiger, $300K is no biggie, but...
No offense, but Reed is not even in the same zip code with Tiger when it comes to $$$. For Tiger, $300K is no biggie, but Reed had a hard enough giving bonus money to mechanics over the years, $300K is a big deal and it was balsy for sure.
How do you figure? What does he make per year? $7 - $8 Mil. Do the math. $300K is 4% of $7M or 3.75% of $8M. I am not sure what you make but lets say it is 100K the bet would be $4K. Hell you will spend more than that on vacations. It's half of a new bike. It ain't shit to him. He will spend more than that on a vacation and flying home to Australia. Didn't he say somewhere that he spent $50 or $75K for them to fly home one time. You guys think to small.
JOHN CHOATE
Posts
2024
Joined
9/18/2008
Location
Dallas, NC, USA
9/2/2009 5:26pm
WHATEVER!!!!!! Good job Chad.
englishman
Posts
2812
Joined
3/7/2008
Location
England, GB
9/2/2009 5:31pm
Tiki wrote:
7-15% of your annual income to make an additional 135% of your annual income if you are the best at what you do? To someone that...
7-15% of your annual income to make an additional 135% of your annual income if you are the best at what you do?

To someone that makes millions $300K is like $4,000 to the rest of us. For double your income its risky but if you are a top performer its pretty much a no brainer.

I.e. Big deal. I hope his team shared in some of that wealth.
If they had the faith to back him with thier own money then they must have if not - too bad.
Motodrew295
Posts
1025
Joined
5/2/2008
Location
Kennewick, WA, USA
9/2/2009 5:40pm
Im thikning that it was suzuki's money put up. I have no idea how this insurance thing works, but I think it worked out that suzuki said here you can have 300K salary or WE will take out another policy and you can double your bonus for the title. Either way the money was coming from suzuki, he just played middle man and threw his outdoor salary on a Championship bonus. It ended up being a 600k investment with a 3Mil return.

I doubt with his so called "ILLNESS" lurking right around the start of the series he would throw down that much cash... unless it doesn't mean that much to him.
Stephon
Posts
1982
Joined
8/16/2006
Location
Hollywood, CA, USA
9/2/2009 6:32pm
Wow, I must say, I'm quite surprised at how easily impressed some of you all are.

I, in no way, bashed Chad, he was my pick to win from the beginning of the MX season. I like Chad I just think he should have NO trouble investing 300K to make 1.5 million in this particular situation.

Why wouldn't he bet on himself? Why? The only guys he's lost to outdoors, Ricky, James and KW, aren't out there. I don't know, there wasn't anyone else I thought would beat him over 12 rounds.

We are talking about a guy who's been making 6 figures probably since '02 and 7 figures since '03; 6.5million in '04 around 9 million in '08. He says this year he's made as much as he ever has and you all are impressed by 300K. Wow.

Listen, from my point of view, if Chad "isn't" thinking that way there's a problem. Shit, I think that way and I ain't got no where near 300K.

We aren't talking about Ivan or Josh, etc. betting 300K on themselves. That, I would be impressed by.

Rapper Jay-Z is worth a reportedly 500 million dollars. He gave the American Red Cross 1 million dollars after Hurricane Katrina. While I think it's great that he gave; how much of a percentage is it of what he's worth?

I guess I'm not impressed because I expect Chad to be thinking exactly that way.
Motodude
Posts
5281
Joined
2/2/2008
Location
Sydney, AU
9/2/2009 6:37pm Edited Date/Time 4/17/2016 1:56am
So that usd$2.7m will be $3.25m when he gets it back to Austarlia on todays rate. With the rate dropping to below usd80c it will only grow larger.


And some here think CR is dumb. Its about time MX got back to having smart, legit people involved. Tat's and stupid hats lost that demographic years ago.

Knowing Bauer, I wonder if what he has blabbed all over the net is fact or possibly privy information he cant keep his name dropping mouth from spouting.
Nerd
Posts
6155
Joined
4/1/2008
Location
USA
9/2/2009 6:45pm
Stephon wrote:
Wow, I must say, I'm quite surprised at how easily impressed some of you all are. I, in no way, bashed Chad, he was my pick...
Wow, I must say, I'm quite surprised at how easily impressed some of you all are.

I, in no way, bashed Chad, he was my pick to win from the beginning of the MX season. I like Chad I just think he should have NO trouble investing 300K to make 1.5 million in this particular situation.

Why wouldn't he bet on himself? Why? The only guys he's lost to outdoors, Ricky, James and KW, aren't out there. I don't know, there wasn't anyone else I thought would beat him over 12 rounds.

We are talking about a guy who's been making 6 figures probably since '02 and 7 figures since '03; 6.5million in '04 around 9 million in '08. He says this year he's made as much as he ever has and you all are impressed by 300K. Wow.

Listen, from my point of view, if Chad "isn't" thinking that way there's a problem. Shit, I think that way and I ain't got no where near 300K.

We aren't talking about Ivan or Josh, etc. betting 300K on themselves. That, I would be impressed by.

Rapper Jay-Z is worth a reportedly 500 million dollars. He gave the American Red Cross 1 million dollars after Hurricane Katrina. While I think it's great that he gave; how much of a percentage is it of what he's worth?

I guess I'm not impressed because I expect Chad to be thinking exactly that way.
And he's been making these insurance policies the entire time, so subtract every time he lost.

And you're also talking pre-tax income.

Talk like this is exactly why the message boards get a bad name.
MX Culture
Posts
3276
Joined
6/19/2009
Location
Lake Geneva, WI, USA
9/2/2009 6:52pm
nerd- who is his agent, WMG?
if so, I bet that they showed him how these policies work and also take a piece of it...maybe even payed part of the payment in exchange for the return.

correct me if I'm wrong, I certainly could be.
dd
MX479Guy
Posts
2577
Joined
4/5/2009
Location
Atlantic Beach, FL, USA
9/2/2009 6:52pm
My opinion...

Chad does better when he's under huge pressure.

Chad threw out the gauntlet by betting on himself and hung a carrot in front of James, but James still didn't come out and race. not even a single round, like he said he would.

Chad bet on himself with Alessi, James, RV, etc all capable of racing and beating him.

Chad took out Lloyds on himself, James bought more cars.
MX479Guy
Posts
2577
Joined
4/5/2009
Location
Atlantic Beach, FL, USA
9/2/2009 6:57pm Edited Date/Time 4/17/2016 1:56am
Tiger cost himself over 800K dollars with one missed putt this last weekend.

Tiger is a pimp, and did huge things for the sport of golf. The economy can suck and he is still bringing in huge profits for any tourney he is entered in, and on TV>
Nerd
Posts
6155
Joined
4/1/2008
Location
USA
9/2/2009 7:06pm
MX Culture wrote:
nerd- who is his agent, WMG? if so, I bet that they showed him how these policies work and also take a piece of it...maybe even...
nerd- who is his agent, WMG?
if so, I bet that they showed him how these policies work and also take a piece of it...maybe even payed part of the payment in exchange for the return.

correct me if I'm wrong, I certainly could be.
dd
Could be, but it has never been mentioned, so until such a point that it is, I'll assume that's false.
ando
Posts
4490
Joined
8/20/2009
Location
Perth, AU
9/2/2009 7:59pm
From an interview with Steve Cox on the SpeedTV.com website:

“I’ve always done it, and most riders do it,” Reed says of taking out the insurance policy. “And if they don’t, they’re stupid -- or they just don’t have any confidence in themselves, or they aren’t in a position to win. But how much it costs is based on the riders, which is why some of the lower-ranked teams can offer huge bonuses, because it’s a big gamble, and for those guys to go win on those lower teams, it’s highly unlikely. For me, with my Lloyd’s thing, it’s difficult -- really difficult. With my track record of being consistent and being there week-in and week-out, I’m a high risk for them as a guy who can win races and championships. So there were a lot of terms and conditions in my policy that I didn’t necessarily agree with, or was pumped with, but I had no say in the matter. For example, if I’d have won this championship, but didn’t achieve three overall wins, I would’ve gotten no money at all. There was a stipulation that I had to win a minimum of three races, and a few other things in there as well. And I bought this policy when Ryan (Villopoto) was there, when I thought James (Stewart) was going to race, when I thought (Mike) Alessi was going to be there all year long, and it cost a good 300 grand to purchase it.”

Although he wouldn’t say how much it paid off now that he has fulfilled the obligations in the policy, Reed did say that it was the most he’s ever gotten for a championship, and “well over two (million dollars).”
P
Posts
6054
Joined
11/21/2006
Location
Greensboro, NC, USA
9/2/2009 8:16pm
He would have had to have bought the policy before James signed his current contract to think that James might be racing the series.

The bottom line is that MX is a small community and EVERYONE in the industry knew that James wasn't going to race the series whether he wanted to or not.Shocked


P

Post a reply to: Reed's Championship bonus to himself

The Latest