The Inevitable 2022 Pros Switching Sponsors Thread

[Cgkdisc]

I think one thing we're seeing is a few retail brands who do not manufacture their discs persuading their manufacturers: Infinite>Innova and DD>Lat 64 that it's in their best interest to reduce their wholesale price (and/or rebates/incentives) and use that additional margin available at the brand level to sponsor players closer to the point of sale, especially since DD is in the U.S. and Lat 64 is not.

In another case: Discmania>China/Lat 64, they're acquiring potentially less expensive sources for discs and manufacturing them on the premise that spending that increased wholesale/retail differential money on sponsored players at the brand level will be a more effective way to increase sales.

 

[jakebake91]

Yes, I dabble in crypto so I understand... but I have to think the guy who worked with an agent and got a 4 year / 4 million contract would understand what he's getting here.

This is the same guy who took the holistic/homeopathic treatment route for Lymes disease, right?

 

[txmxer]

One huge reason is taxes. Ricky gets taxed at the current value of BTC and has to pay in cash. Then if he loses money on the transaction he is stuck with capital gains losses capped at $1500 per year.

so he has to pay taxes on the value even if it hasn't touched it? Asking--not a tax expert.

 

[Hampstead]

DD's nuts....






Nevermind

 

[runningDoc]

cool to see the second million/year barrier breaker so soon.

 

[txmxer]

as long as demand >> supply, plastic will move with minimal effort.

I know it's a demanding effort to create content, but particularly for the mid-level/up and coming players, they could really optimize their brand in a high demand market without being Paul McSocki world champ.

I would point to a guy like Danny as someone that has made an impact for DD with being a pro-tour name.

 

[Dingus]

so he has to pay taxes on the value even if it hasn't touched it? Asking--not a tax expert.

Yes. Any time a company gives you "property" as payment outside of an employee equity agreement you have to pay income tax on the market value of the property at the time it was paid to you. That then sets your basis moving forward, so if you sell at a profit you won't get double taxed.

 

[ray1970]

Hopefully Wysocki can move as much product as Paul.

Well, I did just manage to order a Felon but the process was very reminiscent of trying to catch a Discmania release. Added one to my cart and before I could pay it was out of stock. Did this a couple of times until I successfully added and paid for one.

Not sure if he'll move discs like McBeth but apparently people are buying them up already.

 

[jmdaire27]

Ricky signed with DD?!?! A mil a year?!?! Whoa!








… I'm done.

 

[Dingus]

I personally always doubted the McBeth contract, and I doubt this one as well. I think the hypothesis that there was a back door equity arrangement makes a lot of sense, or at least a significant chunk of the million being dedicated to lofty incentives.

I really wish that one of these companies was publicly traded so we could dig into the reports. It would be cool if they actually released a ROI white paper for McBeth or Ricky, but I doubt that would ever happen.

 

[rj29274]

Purely speculation but Hailey K to INNova and Catrina to Infinite makes sense to me

 

[discerdoo]

Well, I did just manage to order a Felon but the process was very reminiscent of trying to catch a Discmania release. Added one to my cart and before I could pay it was out of stock. Did this a couple of times until I successfully added and paid for one.

Not sure if he'll move discs like McBeth but apparently people are buying them up already.

I think he'll definitely make an impact, possibly approaching what McBeth did with Discraft. Lots of new players and Trilogy has had success in the past marketing to them. Can't imagine his performance slipping either, he should be healthy, focused and familiar with their lineup.

 

[Cgkdisc]

I personally always doubted the McBeth contract, and I doubt this one as well. I think the hypothesis that there was a back door equity arrangement makes a lot of sense, or at least a significant chunk of the million being dedicated to lofty incentives.

I really wish that one of these companies was publicly traded so we could dig into the reports. It would be cool if they actually released a ROI white paper for McBeth or Ricky, but I doubt that would ever happen.

I think the financials of their foundations must be public which might provide an insight into the "dynamics" of these high-profile deals.

 

[Dingus]

I think the financials of their foundations must be public which might provide an insight into the "dynamics" of these high-profile deals.

Possibly... I think the information would be limited to who donated how much. Not sure what good it would do us to know Ricky put $300k into the foundation without knowing where he got that money from.

 

[Flick Maniac]

Oh wow, Dynamic Discs just announced Ricky Wysocki has signed with them. Did any of you know about this?

I thought he had several years to go on that 5-year deal with Innova??

 

[foxdawg10]

One huge reason is taxes. Ricky gets taxed at the current value of BTC and has to pay in cash. Then if he loses money on the transaction he is stuck with capital gains losses capped at $1500 per year.

Capital gains loss write off is actually $3,000 for individuals and married filing jointly, and $1,500 for married filing separately.

 

[bbwrenn]

This is the same guy who took the holistic/homeopathic treatment route for Lymes disease, right?

Allegedly.

If you believe all the details described, he was 99% sure he took antibiotics for his finger AFTER the lyme would have been contracted, meaning it should have squashed them both if it was going to work.

Personally I'd have taken them again "just in case", but if he really has the time line straight, then he would be correct that taking more isn't going to do anything for the lyme.

Either way, Ricky 2018 versus Ricky 2021 is no comparison in health. He looks a million times better. This contract seems pretty strong. I wish him the best of luck.

 

[roblee]

Yes. Any time a company gives you "property" as payment outside of an employee equity agreement you have to pay income tax on the market value of the property at the time it was paid to you. That then sets your basis moving forward, so if you sell at a profit you won't get double taxed.

Big contracts aren't just straight income, seldom lump sums, and often performance based with incentives to "potentially" reach the the publicized amount. They could also incentivise exceeding the contract amount. Plenty of ways $$ could be placed into tax deferred accounts; corporate, trust, insurance, retirement, foundation, charity, ....

 

[ray1970]

Lots of new players and Trilogy has had success in the past marketing to them.

Ha. It would be kind of funny if they tried to capitalize on this by coming out with some Wysocki edition Diamonds and Sapphires.

 

[SaROCaM]

I figured since it worked so well for Drew I for the tenth year in a row with throw a mixed bag. I just inked a deal with myself to remain as my sole sponsor. I thought about leaving my current deal in spite of how well it has worked over the years. In the end since my wife refused to sign me regardless of the concessions I made, I stuck with myself.

This reminds me of a previous post someone made, something like:

"I just finalized a 5 disc deal with Innova.

They'll be arriving sometime next week."