1% of 4.8 billion valuation would only net 48million. He’d probably get somewhere around 750k a week? There’s no way we give him like 5% of the CFG.
If it’s a share option with shares vesting annually (20% each year) with an annual option to sell & ultimate exit obligation to sell ‘em back to CFG at the agreed pricing basis giving Messi the ‘proper value’ then this is such a smart way.
The shares can be a different class of share too ... no voting rights etc but even if not a 5% shareholding in a private company is pretty much worthless especially if CFG retain pre-emption rights which they will.
Trust me I’m a recovering accountant.
I thought his slice of equity would be undervalued at the time he gets it, and he gets rewarded immensely for jumping on the CFG bandwagon 5-10 years down the line.
Beckham's 2007 MLS contract that let him have an expansion team for $25 million was only a $5 million discount on the price paid that year for the Seattle Sounders to be set up.
But by the time he cashed in that chip 10 years later to form Inter Miami, an expansion slot was worth $400 million. He essentially got a $375 million discount.
Being paid in equity would be covered by FFP rules, which are so broad they basically cover any form of payment. And I think UEFA have already covered their tails with CFG because they rejected City's attempt to farm out a lot of City staff to CFG in previous years' accounts.
Payables are all forms of consideration due in respect of employees as a result of contractual or legal obligations, including wages, salaries, image rights payments, bonuses and other benefits. Amounts payable to people who, for various reasons, are no longer employed by the applicant fall within the scope of this criterion and must be settled within the period stipulated in the contract and/or defined by law, regardless of how such payables are accounted for in the financial statements.
I was assuming Messi is going to get a slice of CFG equity that is not hugely valuable. That is the amount that would go into the books, but then in 10 years time it's worth 3 or 4x as much, and he's been rewarded massively.