Armstrong's financial situation

[veganrob]

Should Lance lose every civil lawsuits in the nearest future, he would still be having happy conversations with his banker for the rest of his life.

I don't think he has had a happy conversation in his entire life.

I know what you are saying though.

 

[The Gnome]

It's been mentioned here on the forum, but watch "broke"...it's an espn 30 for 30 documentary... some guys earned over 100 million (e.g Schilling) who overspend, have a couple of big bad investments, toss in a bunch of kids or a gambling, drug, women ect problem maybe and bam, it is all gone...certainly could happen to tex...guess it depends on how he has made decisions as well...but guys who own 5 or 6 houses and the jet are just ripe for the fall...let alone folks lining up to sue you til kingdom come...

 

[Velodude]

It's been mentioned here on the forum, but watch "broke"...it's an espn 30 for 30 documentary... some guys earned over 100 million (e.g Schilling) who overspend, have a couple of big bad investments, toss in a bunch of kids or a gambling, drug, women ect problem maybe and bam, it is all gone...certainly could happen to tex...guess it depends on how he has made decisions as well...but guys who own 5 or 6 houses and the jet are just ripe for the fall...let alone folks lining up to sue you til kingdom come...

Also you need to critically assess how Armstrong's magic $125m "net" worth has been calculated.

These financial journalists have a literary license and are known to pull up only information on the public record.

You can be certain they do not know the extent of his liabilities that are protected by privacy laws or mortgages that have not been registered or personal guarantees he has given to third parties or his divorce settlement arrangements.

 

[H2OUUP2]

I don't think he has had a happy conversation in his entire life.

'Maybe there is something more to [Lance]?'

'No, trust me. I've looked into his eyes. He's pure evil.'

 

[Benotti69]

It's been mentioned here on the forum, but watch "broke"...it's an espn 30 for 30 documentary... some guys earned over 100 million (e.g Schilling) who overspend, have a couple of big bad investments, toss in a bunch of kids or a gambling, drug, women ect problem maybe and bam, it is all gone...certainly could happen to tex...guess it depends on how he has made decisions as well...but guys who own 5 or 6 houses and the jet are just ripe for the fall...let alone folks lining up to sue you til kingdom come...

Was the reason for his comeback not purely financial?

So if he was needing to comeback then, he cant be worth too much now!

 

[AussieEdge]

It truly would be sweet if Armstrong goes broke. He has caused enough harm to cycling and helped scare away enough sponsors for him to just get away with having his results stripped.

Armstrong still hasn't gotten the comeuppance he deserves.

No I don't want him to go broke

I want the Livestrong sham to be revealed and his cancer Jesus myth busted for good

Still some out there there trotting either the 'but he is raising money for cancer' or 'he is the reason I'm still here' line.

I want that all ruined once and for all

 

[ozerulz]

You know some people just dont have the balls to tell the truth.

 

[BroDeal]

I pulled this from The Paceline. Posted by an LBS owner.

Talked to a few, other local bike shop owners in the republic and a gent from Catalyst Communications, who has frequent contact with bike shops thruout the USA, big and small. And everybody seems to be having a crappy October(mediocre september), I know I am(after a record setting June/July/August). I wonder why, he thinks it's election season, late season and some sort of lance effect...

He also mentioned that Mellow Johnnys is really in trouble, no surprise there.

Can't want until the stinkin election is done, and people get back to their bikes.

Still lots of nice weather left here in the republic. Almost 80 degrees today..but snow showers on Thursday.

It addds to my suspicion that MJs is a vanity project. It also bring up the adage about how to make a small fortune in the bike shop business. Start with a large fortune.

 

[slowup_fastdown]

My vision of Lance last week...

 

[odelltrclan]

The second issue the article addresses is that if LA has to pay back income received from winning races, he is entitled to a refund, in effect, of the tax he paid on this income. But there are two ways to figure this refund: at today’s tax rates, or at the rates existing when the income was received. Because of changes in the tax code, the latter would probably be more favorable to him:

I haven't read the article because of time constraints. Without going into lengthy details in tax law and rulings, Lance will have a tough row in trying to get tax refunds under Sec. 1341 because of the fraud component of obtaining the income. Specific rulings exist that disqualify a taxpayer who used means of fraud to obtain the income, not having a realistic unrestricted "claim of right" to the income. My bet is he is going to be SOL. The IRS will fight hard on this because of all the known circumstances surrounding Lance. I also believe that the best he can do is take deductions for repaid monies, carry it back a maximum of two years, and forward for the rest. He may not pay income taxes for the next 20 years, but it is unlikely he will be able to get refunds of taxes paid on past prize money, etc.

 

[runninboy]

Sadly A guy earning 20 mil a year for a decade is unlikely to go short of dollars to eat, even if his income disappears, but even then he has fingers in a lot of pies no doubt earning dollars.

Well it is far from that simple. Avg salary of an NBA player? over 5 million per year.
60 percent go broke within 5 years of retirement.

If a guy earns 200 million how much will he bank after taxes? Lots of taxes. Most major cities have local taxes on money you earn there. Baseball players when they play a game out of town have to pay local taxes on the paycheck they earn by playing the game in that town.
Anyway the real kicker might be someone on the inside like Landis. If you earn any money you must declare it as income to the IRS. Even from illegal activity.Did Lance ever sell EPO to Landis? If he did he had better have declared it on his income tax. Also did Lance declare the value of the drugs he was given as income? They have value. If Lance screwed with the IRS they way he did everyone else he could really be in trouble.
Other people have mentioned that Lance had large amounts of cash on hand, which people often use to avoid the IRS.
With the finders fees involved people will be ringing up the IRS to cash in.
Now couple that with divorce, child support, maybe a little palimony suit, and that Lance was buying alot of his real estate at the height of the housing bubble. His investments could actually be Huge liabilities.
THEN there is the possibility of the use of funds from a non profit. Did he reimburse Livestrong for the use of the jet at it's cost? Fuel, crew, maintenance etc etc? If not that would be taxable. I would imagine alot of his speaking fees he would sign the check over to Livestrong for the deduction. If he does that that helps with taxes but does not increase his take home monies. I have no idea how anyone could possibly estimate his net worth including him

 

[Microchip]

My vision of Lance last week...

lol
lol
lol !!!!!!

so funny!!

 

[Microchip]

Mellow Johnny's location (5th/Nueces) is on some prime real estate in downtown Austin. Does Lance own the property or does he lease the building? I would estimate that the property alone is worth several million bucks. I think it would be a shame to lose that shop, it is actually quite nice. Actions have consequences, however, and there will be a lot of collateral damage as a result.

Just needs a name change...Uptight Johnny's.

 

[Microchip]

My vision of Lance last week...

Can't help but post this again!!! Slowup, this is hilarioius!!!

 

[ManInFull]

Well it is far from that simple. Avg salary of an NBA player? over 5 million per year.
60 percent go broke within 5 years of retirement.

If a guy earns 200 million how much will he bank after taxes? Lots of taxes. Most major cities have local taxes on money you earn there. Baseball players when they play a game out of town have to pay local taxes on the paycheck they earn by playing the game in that town.
Anyway the real kicker might be someone on the inside like Landis. If you earn any money you must declare it as income to the IRS. Even from illegal activity.Did Lance ever sell EPO to Landis? If he did he had better have declared it on his income tax. Also did Lance declare the value of the drugs he was given as income? They have value. If Lance screwed with the IRS they way he did everyone else he could really be in trouble.
Other people have mentioned that Lance had large amounts of cash on hand, which people often use to avoid the IRS.

If Lance leverages smart finance and tax people, he's likely set for life. The athletes who earn millions of dollars and go broke usually hire unsophisticated advisors who push poor investments on them or even worse, people who simply steal their money.

 

[H2OUUP2]

Well it is far from that simple. Avg salary of an NBA player? over 5 million per year.
60 percent go broke within 5 years of retirement.

Completely different situation. 5 million a year to Lance is peanuts. Also, what's the average length of an NBA career? Also, that's an average salary. how many of the 60% were actually making $5 million a year? Or was the majority of the 60% making $1 or $2 million a year?

The stories you are hearing about also are guys who have 20 other people mooching off them getting money for "business ventures", and "managers" taking off the top. Also, they weren't smart like Lance. They didn't start up a foundation to raise awareness for a good cause.....oh wait, but he doesn't get a salary. LOL

Lance has got to have an off shore account as well to hide from some taxes. No?

 

[Benotti69]

Completely different situation. 5 million a year to Lance is peanuts. Also, what's the average length of an NBA career? Also, that's an average salary. how many of the 60% were actually making $5 million a year? Or was the majority of the 60% making $1 or $2 million a year?

The stories you are hearing about also are guys who have 20 other people mooching off them getting money for "business ventures", and "managers" taking off the top. Also, they weren't smart like Lance. They didn't start up a foundation to raise awareness for a good cause.....oh wait, but he doesn't get a salary. LOL

Lance has got to have an off shore account as well to hide from some taxes. No?

Armstrong surrounded himslef with lots of people too.

How much of a % was Stapleton taking off everthing Armstrong made?

Stapleton was the brains behind marketing Armstrong, he proabably got a cut of everything, 20% min. What about Weisel, he would want a cut?

Divorce how much did Kik get to buy her silence, 40% of Armstrongs worth?

Bet Armstrong does not have as much as he wants people to believe he had.

 

[Briant_Gumble]

Well it is far from that simple. Avg salary of an NBA player? over 5 million per year.
60 percent go broke within 5 years of retirement.

One of the Side effects of testosterone reported in clinical trials is reckless over confidence, I swear this can be seen in many professional athlete's.

Do you have a source for that bit of info by the way (not disputing it but it seems like a good fact to be able to pull out of my *** down the road).

Sorry to get off topic.

 

[thehog]

Divorce how much did Kik get to buy her silence, 40% of Armstrongs worth?

Kik got a backpack of sadness.

 

[H2OUUP2]

Armstrong surrounded himslef with lots of people too.

How much of a % was Stapleton taking off everthing Armstrong made?

Stapleton was the brains behind marketing Armstrong, he proabably got a cut of everything, 20% min. What about Weisel, he would want a cut?

Divorce how much did Kik get to buy her silence, 40% of Armstrongs worth?

Bet Armstrong does not have as much as he wants people to believe he had.

Well, he had more than an average Basketball player earning $5 million a year with an entourage of moochers.

You think Stapleton got minimum 20%? Wow, I want you as an agent.

As I've said before, I hope he gets taken for every penny because he's taken so many for so much, but I think he will survive this financially.

 

[Sarcastic Wet Trout]

Kik got a backpack of sadness.

But at least it's Versace.

 

[Benotti69]

But at least it's Versace.

Probably Chersace

 

[Darryl Webster]

"Lance has been pretty bummed. He really likes riding his bike," said Linda Armstrong. "But he got in trouble doing it. So I thought maybe he could try skateboarding. Some of the other neighborhood kids do that."

" Armstrong says the skateboard is "pretty sweet" and that he was using it out on the driveway for an hour already.

"I can jump and almost land back down on the skateboard already," he said. "I can't believe I ever rode bike. Bikes are for little kids. I'm way too old for that now."

The one-time winner of seven Tour de France titles says he is especially excited about all the people who skateboard.

"I've seen them hanging out outside the 7-Eleven," he said. "They're pretty badass. They smoke and everything. I heard doing drugs is cool in skateboarding, so that's totally awesome. I wonder if these guys ever tried EPO."http://www.sportspickle.com/news/14419/lance-armstrongs-mom-buys-him-a-skateboard

 

[reginagold]

House here. Probably protected asset in bnkrptcy. So there's some cushion for the former TDF winner. Found this at txbra.org


http://virtualglobetrotting.com/map/lance-armstrongs-house/view/?service=0

 

[runninboy]

Completely different situation. 5 million a year to Lance is peanuts. Also, what's the average length of an NBA career? Also, that's an average salary. how many of the 60% were actually making $5 million a year? Or was the majority of the 60% making $1 or $2 million a year?

You know i have no idea and frankly could care less.
But as far as earnings go Mike Tyson earned between 300 and 400 million during his career and ended up bankrupt with debts of about 23 million. that is not peanuts that is quite a sum to go through so it is possible.

In addition Lance has been known to make bribes. Sorry. donations to the UCI
It would not surprise me if he overpaid people like agents to keep their silence. Alot of people take percentages, publicists, agents, lawyers. Those add up quickly. Handling his divorce would bring his lawyers a nice chunk of change in addition to what he had to pay his ex and child support.
Again people with more money than Lance have ended up broke.