Reed's Championship bonus to himself

Bauer
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Bauer
Edited Date/Time 1/27/2012 12:17pm
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!
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Shenzi
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Shenzi 9/2/2009 1:35pm
9/2/2009 1:35pm
Very smart people Smile
Titan
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Titan 9/2/2009 1:43pm
9/2/2009 1:43pm
I heard he did it when he thought JS was racing too...

I'm a huge Reed fan...
1
Stephon
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Stephon 9/2/2009 1:45pm
9/2/2009 1:45pm
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!
I don't know.

I like Chad, but I'm not that impressed. What's 300K to Chad Reed compared to how much he makes currently, how much he's made in the past and what he's projected to make in the future? I'd say a drop in the bucket. What did he get for a SX win and heat races?

I would have been more impressed even he would have done the same wager against James in Supercross. Maybe he'll do it next year.

I think Chad simply being on the track every week is much more ballsy than the insurance dealio. That said, I completely agree on the smart move aspect just not ballsy in my book...okay maybe a little ballsy, but just a little.

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Bauer
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Bauer 9/2/2009 1:53pm
9/2/2009 1:53pm
$300k is a huge chunk of change to anyone. Think about it...
Ewan
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Ewan 9/2/2009 1:58pm
9/2/2009 1:58pm Edited Date/Time 4/17/2016 1:56am
Titan wrote:
I heard he did it when he thought JS was racing too...

I'm a huge Reed fan...
Yeah i'd agree

Smart rider, smart business head

Whats not to like?

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Void Main 9/2/2009 2:05pm
9/2/2009 2:05pm
Titan wrote:
I heard he did it when he thought JS was racing too...

I'm a huge Reed fan...
For that to be true (which it could very well be) they must have purchased Chad's policy some time before purchasing Mikes policy (if everything in the first post is true). The first post said they bought Mike's policy the day before he busted his knee which was already a few races into the season.
41NDT
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41NDT 9/2/2009 2:05pm
9/2/2009 2:05pm
It's an Australian way of thinking (be smart and indulge)
Look @ our economy here in Aus it is going great one of the best if not the best performing economies.
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FreshTopEnd 9/2/2009 2:16pm
9/2/2009 2:16pm
avidchimp wrote:
Legal wagering, I love it!!
Insurance in a nutshell.

You can even go no-limit, like AIG did . . .
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Nerd 9/2/2009 2:24pm
9/2/2009 2:24pm
Stephon wrote:
I don't know. I like Chad, but I'm not that impressed. What's 300K to Chad Reed compared to how much he makes currently, how much he's...
I don't know.

I like Chad, but I'm not that impressed. What's 300K to Chad Reed compared to how much he makes currently, how much he's made in the past and what he's projected to make in the future? I'd say a drop in the bucket. What did he get for a SX win and heat races?

I would have been more impressed even he would have done the same wager against James in Supercross. Maybe he'll do it next year.

I think Chad simply being on the track every week is much more ballsy than the insurance dealio. That said, I completely agree on the smart move aspect just not ballsy in my book...okay maybe a little ballsy, but just a little.
Dude, are you serious?!

And he DID do the wager against James in Supercross, but obviously he didn't win that title.
Whitey
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Whitey 9/2/2009 2:45pm
9/2/2009 2:45pm
I was wondering how this insurance thing worked.
Poker_Player 9/2/2009 2:56pm
9/2/2009 2:56pm Edited Date/Time 9/2/2009 2:58pm
Bauer wrote:
$300k is a huge chunk of change to anyone. Think about it...
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.
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Nerd 9/2/2009 2:58pm
9/2/2009 2:58pm
Bauer wrote:
$300k is a huge chunk of change to anyone. Think about it...
Poker_Player wrote:
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.
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.
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zjbell 9/2/2009 2:59pm
9/2/2009 2:59pm
Stephon wrote:
I don't know. I like Chad, but I'm not that impressed. What's 300K to Chad Reed compared to how much he makes currently, how much he's...
I don't know.

I like Chad, but I'm not that impressed. What's 300K to Chad Reed compared to how much he makes currently, how much he's made in the past and what he's projected to make in the future? I'd say a drop in the bucket. What did he get for a SX win and heat races?

I would have been more impressed even he would have done the same wager against James in Supercross. Maybe he'll do it next year.

I think Chad simply being on the track every week is much more ballsy than the insurance dealio. That said, I completely agree on the smart move aspect just not ballsy in my book...okay maybe a little ballsy, but just a little.
Nerd wrote:
Dude, are you serious?!

And he DID do the wager against James in Supercross, but obviously he didn't win that title.
Is it common for the top guys to have policies like this?
Poker_Player 9/2/2009 3:02pm
9/2/2009 3:02pm
Bauer wrote:
$300k is a huge chunk of change to anyone. Think about it...
Poker_Player wrote:
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.
Did you take dollar cost averaging into that to?

Anyway so it is like a guy making $50K to bet $5K. Hell a new bike cost 1.5 times that much.
eurohero
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eurohero 9/2/2009 3:04pm
9/2/2009 3:04pm Edited Date/Time 4/17/2016 1:56am
Stephon wrote:
I don't know. I like Chad, but I'm not that impressed. What's 300K to Chad Reed compared to how much he makes currently, how much he's...
I don't know.

I like Chad, but I'm not that impressed. What's 300K to Chad Reed compared to how much he makes currently, how much he's made in the past and what he's projected to make in the future? I'd say a drop in the bucket. What did he get for a SX win and heat races?

I would have been more impressed even he would have done the same wager against James in Supercross. Maybe he'll do it next year.

I think Chad simply being on the track every week is much more ballsy than the insurance dealio. That said, I completely agree on the smart move aspect just not ballsy in my book...okay maybe a little ballsy, but just a little.
You're not impressed? Whats $3000 compared to what you make currently right? Lets use your job for instance, whatever that is. Are willing to put up one months pay(3G), getting 5 to 1 odds that you will outperform your co-workers? My guess is no, but if you are, there are people here with the phone number for Lloyd that will take the action. Not impressed................please. You can't buy that amount of confidence or competitive nature.

For those that question when he made that "bet", look at the odds he got. When the US open comes around, follow the odds when they open. The minute Stewart, RV and other top dogs fall out, Chad would be $1.5 mil to win 300K(negative odds) because it's obvious he would be the clear favorite. He made that "bet" before anyone else showed their cards. Not impressed.........................cmon. Give Lloyd a call
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Nerd 9/2/2009 3:04pm
9/2/2009 3:04pm
Stephon wrote:
I don't know. I like Chad, but I'm not that impressed. What's 300K to Chad Reed compared to how much he makes currently, how much he's...
I don't know.

I like Chad, but I'm not that impressed. What's 300K to Chad Reed compared to how much he makes currently, how much he's made in the past and what he's projected to make in the future? I'd say a drop in the bucket. What did he get for a SX win and heat races?

I would have been more impressed even he would have done the same wager against James in Supercross. Maybe he'll do it next year.

I think Chad simply being on the track every week is much more ballsy than the insurance dealio. That said, I completely agree on the smart move aspect just not ballsy in my book...okay maybe a little ballsy, but just a little.
Nerd wrote:
Dude, are you serious?!

And he DID do the wager against James in Supercross, but obviously he didn't win that title.
zjbell wrote:
Is it common for the top guys to have policies like this?
According to Reed, yes, at least if you're a guy who believes you can win a title.

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englishman
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englishman 9/2/2009 3:07pm
9/2/2009 3:07pm
Bauer wrote:
$300k is a huge chunk of change to anyone. Think about it...
Poker_Player wrote:
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.
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 .

Poker_Player 9/2/2009 3:11pm
9/2/2009 3:11pm
Poker_Player wrote:
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.
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 .

Genius would be a stretch. He has very smart people around him to make those"genius" decisions.
BobbyM
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BobbyM 9/2/2009 3:11pm
9/2/2009 3:11pm
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!
cool story...i got 10 bucks i'm gonna take out on myself
zjbell
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zjbell 9/2/2009 3:12pm
9/2/2009 3:12pm
Nerd wrote:
According to Reed, yes, at least if you're a guy who believes you can win a title.
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.
peelout719
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peelout719 9/2/2009 3:13pm
9/2/2009 3:13pm
tell you what, i'm right around the 50k mark and no fuggin way in hell i would be willing to go throw 3k down on something that isn't a sure deal. no fuggin way.

not impressed? give me a break. hell, i financed a $6000 motorcycle last year and i was contemplating if it was a smart move or not.
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Nerd 9/2/2009 3:13pm
9/2/2009 3:13pm
Poker_Player wrote:
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.
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 .

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?
BobbyM
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BobbyM 9/2/2009 3:14pm
9/2/2009 3:14pm
Bauer wrote:
$300k is a huge chunk of change to anyone. Think about it...
Poker_Player wrote:
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.
yup...many people forget bout the tax part. still good cake but 300 k is not chump change to anybody i say.
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BobbyM 9/2/2009 3:16pm
9/2/2009 3:16pm
why are people shitting on reed and what he's done or why he bet...for fuck sakes peeps. cool story and more power to him i say
eurohero
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eurohero 9/2/2009 3:17pm
9/2/2009 3:17pm
If it was confirmed that James was not riding, there is no way he is getting 5:1. You think Lloyds didn't research this before taking the action. Hit the MGM sports book in Oct and track the line, I don't think Chad gets 5:1 at all or ever has been for that matter. Without Stewart, he would be lucky to get even money odds, with Stewart maybe 3:1, but again, a 2 day race vs a 12 race series, so the odds will be in his favor, so it's tough to compare, but still, it gives you an idea.
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bobby397 9/2/2009 3:17pm
9/2/2009 3:17pm Edited Date/Time 4/17/2016 1:56am
wrong, L&M could go racing at anytime, chad did at budds creek 2007? from what he said in his interview, he made that deal when RV, Alessi, Grant, JLAW and Short were all healthy and racing.
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Drfletcher 9/2/2009 3:19pm
9/2/2009 3:19pm
At least he bet on himself to win and was out there every week.
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englishman 9/2/2009 3:19pm
9/2/2009 3:19pm
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?
That's what I wondered , if Lloyds are paying out I would think you could have it directly transferred to an account you have set up anywhere in whichever currency you'd want, taking in to account the exchange rate on the US dollar on the day of the transfer.

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