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It's Quiet thread 14 - 'do one' edition
- Thread starter tolmie's hairdoo
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Messi doesn't do tax.
But if we offered him share oprtions in CFG, for instance. and if the reports about moving to New York for the last 2 years of his contract are true, then he wouldn't be a UK resident when he exercised the options.
CFG is a UK entity so will it will need to account in the UK. His tax may well be payable in NY but that won't make a huge saving over the UK tax. Options, as you know, are in any event, worthless unless the value increases from the strike and the strike price needs to be market. In other words, options are not a tax efficient way to pay him. In any event, they aren't going to give him more than say 5% of the company under option. That means a $125m payment before tax even if the value DOUBLED. Can't see it being true or particularly attractive.
Options are worthless unless the value of the option increases. But the strike price needs to be market value ie $5bn
It’s the same as a cash bonus though, notional share options, notional gain etc
Functionally the same, but I'd assume the equity grant would be via warrants instead of options, no? Have exactly the same tax issues though.Options are worthless unless the value of the option increases. But the strike price needs to be market value ie $5bn
Tugay One Cup
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stories about him staying are just impatience and attempts to keep people clicking.
Yep and I don't know why so many fannies fall for this shit with every single big transfer we do.
Because Pep, Txiki and Jorge are all going to fly across and tell Messi to stay at Barca while the board (note: not just the twat of a president) are treating the guy like a twat? Sure.
Exactly, however they are structured they have major tax implications unless people are prepared to try and evade.Functionally the same, but I'd assume the equity grant would be via warrants instead of options, no? Have exactly the same tax issues though.
Precisely, tax inefficient - not impossible but not obviously a massive saving for the club if they are ensuring he is covered for the tax.It’s the same as a cash bonus though, notional share options, notional gain etc
hammersmithlad
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Options are worthless unless the value of the option increases. But the strike price needs to be market value ie $5bn
Good to see you’re aboard this thread as your name has been summoned a few times :-)
Issuing share options this year during a pandemic with a relatively low share value maybe beneficial in a few years time when hopefully the global crisis is under control & the exercise price a fair deal higher.
So I wouldn’t call them worthless but I agree it’s a gamble to rely on an increase in value whenever that exercise year occurs & probably not a huge incentive for Messi.
Mind you if he performs well & helps City win then it almost turns into a performance incentive with the share value potentially increasing too.
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