Sexton - Bonus money

ando
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8/29/2024 1:11am
Tryhard wrote:
I'm sure whatever it is, it should be 3x more. I say this mostly because of the revenue stream of moto/supercross, and whole heartedly the risk...

I'm sure whatever it is, it should be 3x more. I say this mostly because of the revenue stream of moto/supercross, and whole heartedly the risk these guys are at. Lastly because most of these guys have spent and dedicated a lifetime of injury, disappointment at times, and great sacrifice to get where they are. It costs almost nothing to play football or baseball if you compare it to high level amateur motocross. In football and baseball, the rejects are still making 500k plus, the highest level of rejects in ball sports get at least free college! Motocross and supercross? lucky if all in the 10 are making money, unless they have a social media following.

They are getting paid what the market values them at.  Has zero to do with physical risk.

3
2
8/29/2024 1:59am
dv12.com wrote:
Standard Factory Riders bonuses ballpark:Per Race overall from bike manufacture: 100k - 50k - 25k. Some have MX moto win bonuses, like $10-$15k... Championships: $1M to...

Standard Factory Riders bonuses ballpark:

Per Race overall from bike manufacture: 100k - 50k - 25k. Some have MX moto win bonuses, like $10-$15k... Championships: $1M to $1.5M each. They might have the same bonues for each SMX races but I doubt the teams pay that high bonus for SMX championship or if they pay any actually. Not sure about gear bonuses, those vary a lot depending the contracts but nowhere close to manufacture bonuses...

For a rider like Sexton, I would think his bike salary would be closer to $2M than to $1M. As far as other deal, think at least $1M for the rest (Pants/Jersey/Gloves/Boots/Goggles)

To put in perspective, my highest Yamaha deal 20 years ago was $850k, $75k/win, $25k for 2nd ($35k if 2nd behind a Yamaha rider. Got a few of those behind MC or Chad), $10 for 3rd. Biggest deals for the rest, Gear/Boots/Helmet/Energy Drink etc.., $500k.

So i gather 1.5m in your best year.

After taxes, management and other expenses, would you end up with 500k in your pocket??

Not too glamorous when you consider all the time, effort and risk a rider gives.

 

1
1
Tryhard
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8/29/2024 4:33am
Tryhard wrote:
I'm sure whatever it is, it should be 3x more. I say this mostly because of the revenue stream of moto/supercross, and whole heartedly the risk...

I'm sure whatever it is, it should be 3x more. I say this mostly because of the revenue stream of moto/supercross, and whole heartedly the risk these guys are at. Lastly because most of these guys have spent and dedicated a lifetime of injury, disappointment at times, and great sacrifice to get where they are. It costs almost nothing to play football or baseball if you compare it to high level amateur motocross. In football and baseball, the rejects are still making 500k plus, the highest level of rejects in ball sports get at least free college! Motocross and supercross? lucky if all in the 10 are making money, unless they have a social media following.

ando wrote:

They are getting paid what the market values them at.  Has zero to do with physical risk.

DC is worth 5.6 billion, lets repeat that.

5.6 billion dollars!

Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of the pie.

10
APLMAN99
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Tualatin, OR, USA
Fantasy
8/29/2024 6:54am
Tryhard wrote:
I'm sure whatever it is, it should be 3x more. I say this mostly because of the revenue stream of moto/supercross, and whole heartedly the risk...

I'm sure whatever it is, it should be 3x more. I say this mostly because of the revenue stream of moto/supercross, and whole heartedly the risk these guys are at. Lastly because most of these guys have spent and dedicated a lifetime of injury, disappointment at times, and great sacrifice to get where they are. It costs almost nothing to play football or baseball if you compare it to high level amateur motocross. In football and baseball, the rejects are still making 500k plus, the highest level of rejects in ball sports get at least free college! Motocross and supercross? lucky if all in the 10 are making money, unless they have a social media following.

ando wrote:

They are getting paid what the market values them at.  Has zero to do with physical risk.

Tryhard wrote:
DC is worth 5.6 billion, lets repeat that.5.6 billion dollars!Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of...

DC is worth 5.6 billion, lets repeat that.

5.6 billion dollars!

Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of the pie.

DC?  Which DC do you think is worth $5.6B?  Hopefully you aren't thinking of Coombs when you make that silly of a statement.  

9

The Shop

SEEMEFIRST
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Arlington, TX, USA
8/29/2024 8:40am
Tryhard wrote:
I'm sure whatever it is, it should be 3x more. I say this mostly because of the revenue stream of moto/supercross, and whole heartedly the risk...

I'm sure whatever it is, it should be 3x more. I say this mostly because of the revenue stream of moto/supercross, and whole heartedly the risk these guys are at. Lastly because most of these guys have spent and dedicated a lifetime of injury, disappointment at times, and great sacrifice to get where they are. It costs almost nothing to play football or baseball if you compare it to high level amateur motocross. In football and baseball, the rejects are still making 500k plus, the highest level of rejects in ball sports get at least free college! Motocross and supercross? lucky if all in the 10 are making money, unless they have a social media following.

ando wrote:

They are getting paid what the market values them at.  Has zero to do with physical risk.

Tryhard wrote:
DC is worth 5.6 billion, lets repeat that.5.6 billion dollars!Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of...

DC is worth 5.6 billion, lets repeat that.

5.6 billion dollars!

Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of the pie.

WTF?

2
Tryhard
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8/29/2024 8:45am Edited Date/Time 8/29/2024 8:48am
ando wrote:

They are getting paid what the market values them at.  Has zero to do with physical risk.

Tryhard wrote:
DC is worth 5.6 billion, lets repeat that.5.6 billion dollars!Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of...

DC is worth 5.6 billion, lets repeat that.

5.6 billion dollars!

Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of the pie.

SEEMEFIRST wrote:

WTF?

The 5.6 billion, it is 100% satire.I doubt he is worth that much.  Do some research though you'd be surprised at what he holds a share in, do some scc research on who DC is involved with . He is making something off of everything.   

1
5
APLMAN99
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8/29/2024 11:54am
Tryhard wrote:
DC is worth 5.6 billion, lets repeat that.5.6 billion dollars!Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of...

DC is worth 5.6 billion, lets repeat that.

5.6 billion dollars!

Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of the pie.

SEEMEFIRST wrote:

WTF?

Tryhard wrote:
The 5.6 billion, it is 100% satire.I doubt he is worth that much.  Do some research though you'd be surprised at what he holds a share...

The 5.6 billion, it is 100% satire.I doubt he is worth that much.  Do some research though you'd be surprised at what he holds a share in, do some scc research on who DC is involved with . He is making something off of everything.   

Don't be so sure.  I don't think that he's in the poor house or anything, but being involved in businesses is not always indicative of high income or wealth.  Especially if those businesses aren't backed by something tangible, like income properties and such.  Again, I don't think Coombs is going to be on the welfare line tomorrow, and the companies he's a part of may seem to bring in a lot of gross revenue, but don't automatically equate that to billions, or even 10s of millions of dollars in wealth.  It's not usually realistic.  

1
MX252
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8/29/2024 8:41pm

How much do promoters make off the outdoors as apposed to indoors??

1
Madkiwi
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Auckland, NZ
8/29/2024 8:47pm
Tryhard wrote:
DC is worth 5.6 billion, lets repeat that.5.6 billion dollars!Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of...

DC is worth 5.6 billion, lets repeat that.

5.6 billion dollars!

Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of the pie.

SEEMEFIRST wrote:

WTF?

Tryhard wrote:
The 5.6 billion, it is 100% satire.I doubt he is worth that much.  Do some research though you'd be surprised at what he holds a share...

The 5.6 billion, it is 100% satire.I doubt he is worth that much.  Do some research though you'd be surprised at what he holds a share in, do some scc research on who DC is involved with . He is making something off of everything.   

And F'ing GREAT for him. You take the risk, do the work, arrange the deals...you deserve it.

5
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Soul Indigo
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Phuket, TH
8/30/2024 1:42am
MX252 wrote:

How much do promoters make off the outdoors as apposed to indoors??

The right to say “AMA Pro National” inflates the cost by a mill. 

Could feed a few riders and their families with that but the middleman “earned” his keep amirite?


It’s kinda like the stock market. 

Where people make money gambling on the economy, at the expense of those who actually produce the economy. 

1
nealb129
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Taylors, SC, USA
8/30/2024 3:46am

Tax advice on vital!  Gonna stop paying my cpa now! Thanks vital!

2
PRM31
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8/30/2024 4:03am Edited Date/Time 8/30/2024 4:11am

I wonder how much more Chase gets to keep by being a FL resident vs. CA? No state income tax, but states still get their money and I’m not sure how it plays out with a higher income athlete.

wreckitrandy
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Granite Falls, NC, USA
8/30/2024 4:57am
Tryhard wrote:
DC is worth 5.6 billion, lets repeat that.5.6 billion dollars!Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of...

DC is worth 5.6 billion, lets repeat that.

5.6 billion dollars!

Drink the Kool-Aid a little harder buddy. None of these guys are getting a fair slice of the pie.

SEEMEFIRST wrote:

WTF?

Tryhard wrote:
The 5.6 billion, it is 100% satire.I doubt he is worth that much.  Do some research though you'd be surprised at what he holds a share...

The 5.6 billion, it is 100% satire.I doubt he is worth that much.  Do some research though you'd be surprised at what he holds a share in, do some scc research on who DC is involved with . He is making something off of everything.   

The smarter you WORK hard, not 'try',,, the more billions will fall in your lap as well. I don't begrudge anyone that makes a bunch of money, legally. Which rules out 90%, give or take, of all politicians. They make jobs for dummies lIke me. 

DaveNoones
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8/30/2024 10:27am
Spoonguy wrote:
Write offs, or business expense are still money spent. It doesn't make it any less painful if something is a tax deduction. When fuel costs go...

Write offs, or business expense are still money spent. It doesn't make it any less painful if something is a tax deduction. When fuel costs go up for my business, I don't think "luckily it's a write off" or "no big deal, it's a write off", it genuinely sucks. All those tax deductable items cut into Chase's bottom line and hurt.

dv12.com wrote:
Exactly! The least amount of expenses = Most money in my pocket. I've always lived this way and why I've never flown in a private jet...

Exactly! The least amount of expenses = Most money in my pocket. I've always lived this way and why I've never flown in a private jet. Half of that private jet bill, you're still paying for it.... I DGAF if it's a write off... People have a hard time understanding how taxes work

Correct DV You spend 100k, your tax bracket is lets day 30% so you get back 30k you spent 100k

1
Snoqualmie
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Boise, ID, USA
8/30/2024 10:54am
PRM31 wrote:
I wonder how much more Chase gets to keep by being a FL resident vs. CA? No state income tax, but states still get their money...

I wonder how much more Chase gets to keep by being a FL resident vs. CA? No state income tax, but states still get their money and I’m not sure how it plays out with a higher income athlete.

I believe it is common for most top tier riders to have a company set up for them -  for example a LLC. This could help minimize their taxes. 

DV posted on this awhile back. He said he paid a zillion $s in taxes his first year of big money. Then the second year, he got some advice from McGrath's CPA (?) on how to structure his company and his tax liability decreased. 

APLMAN99
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8/30/2024 2:17pm
Spoonguy wrote:
Agents, trainers, financial advisors, a place to stay on both coasts, motorhome and driver, lawyers, practice facilities, health insurance, and mechanics bonuses etc.. His 5 million...

Agents, trainers, financial advisors, a place to stay on both coasts, motorhome and driver, lawyers, practice facilities, health insurance, and mechanics bonuses etc.. His 5 million or so is gross income for the Chase Sexton inc. business, not what Chase actually makes.

kawasa84 wrote:
Luckily everything you mentioned (save a mechanics bonus) is tax deductible business expenses, if ran as a business, which I'm positive is for all the top...

Luckily everything you mentioned (save a mechanics bonus) is tax deductible business expenses, if ran as a business, which I'm positive is for all the top riders. Someone at Chase's level, with the aforementioned needs/expenses, could easily be looking at having deductions in the $700K per year range easily. And thats including incremental depreciation of the motorhome.

Now residing in FL, he also doesn't have to pay a state income tax on his earnings, which also helps.

Frankly, I would be very surprised if Chase is "only" earning $5 million per year. I would expect its actually higher than that

Spoonguy wrote:
Write offs, or business expense are still money spent. It doesn't make it any less painful if something is a tax deduction. When fuel costs go...

Write offs, or business expense are still money spent. It doesn't make it any less painful if something is a tax deduction. When fuel costs go up for my business, I don't think "luckily it's a write off" or "no big deal, it's a write off", it genuinely sucks. All those tax deductable items cut into Chase's bottom line and hurt.

While I agree that a lot of people don't fully understand what they are saying when they talk about a 'tax eight off', at least some understand that the expenses that you can't 'write off' are much worse for your overall net income.  The fact that you are able to use something that you may need to do anyway as a business expense, for example, is huge for a lot of small business owners.  I know people who effectively made about $250K in their household who are able to reduce their taxable income to below $50K because a lot of their 'living expenses' were able to qualify as business expenses.  I've also known at least a couple of people who went a little bit too far and claimed a little bit more than they should have for business expenses and ended up paying some back taxes with hefty fines, too.  It all depends on how far you want to push something.  

But yes, things like a private jet to the races, exclusive trainer, etc., are going to be a big expense either way you slice it.  It's just a little bit better if you aren't paying an extra 35% of income tax on that money you are spending, I suppose.  

2
Sully
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JP
8/30/2024 6:12pm
PRM31 wrote:
I wonder how much more Chase gets to keep by being a FL resident vs. CA? No state income tax, but states still get their money...

I wonder how much more Chase gets to keep by being a FL resident vs. CA? No state income tax, but states still get their money and I’m not sure how it plays out with a higher income athlete.

Snoqualmie wrote:
I believe it is common for most top tier riders to have a company set up for them -  for example a LLC. This could help...

I believe it is common for most top tier riders to have a company set up for them -  for example a LLC. This could help minimize their taxes. 

DV posted on this awhile back. He said he paid a zillion $s in taxes his first year of big money. Then the second year, he got some advice from McGrath's CPA (?) on how to structure his company and his tax liability decreased. 

DV covered it on page 1 of this thread when I asked him if they were subject to the 'jock tax'.

TalinH112
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8/31/2024 11:06am
moto111 wrote:
image 401

Perfect 🤣

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