Aluko Exclusive

[craig 5,199]

Excellent. A player who plays for the shirt & not the money. I hope it all goes well. Either way, at the end of this season Rangers should pay him that 150,000 back.

 

I would agree in that if we end up selling the lad on we should reimburse him that fee.

 

One thing is for sure, this lad will undoubtedly give his all when selected. He has motivation to.

 

It is a lifting feeling knowing someone will think less about money and more about their career in a money ruined business.

[craig 5,199]

When you think about it he has to be on something like 8 grand a week, in 26 weeks he should earn over 200 grand. If the 150k he paid is tax deductible then that's a gross wage of 50 grand for six months.

 

While not great for a Rangers player, his family certainly won't starve.

 

Having said that, it's a pretty amazing gesture.

 

I highly doubt the lad will be getting 8 grand a week. What makes you throw that number out there ? I would be surprised if he is on more than 5k. But I would readily admit I have NO IDEA what he would be on.

 

The 150k he paid is unlikely to be tax deductible unless he has his own business set up - and I would think he doesnt. Either way he wouldnt be able to deduct the 150k as it looks like much of it wasnt his own money, so he can hardly deduct it from his own tax bill - he would have to include the gifted money as income and then would deduct the payment to net it out to zero. No tax refund to be gained.

[calscot 0]

I made the 8k up as it sounds a bit under average for Rangers players. I have no idea either but my post was supposition. A scenario if you will.

 

If it's not tax deductible surely he should be organising the payment so that it works out that way? Surely training fees are tax deductible and he is due a tax rebate for his time at Aberdeen as his net wage is reduced?

 

You are probably right but that doesn't mean it makes sense - it SHOULD be tax deductible just by common sense.

[craig 5,199]

I made the 8k up as it sounds a bit under average for Rangers players. I have no idea either but my post was supposition. A scenario if you will.

 

If it's not tax deductible surely he should be organising the payment so that it works out that way? Surely training fees are tax deductible and he is due a tax rebate for his time at Aberdeen as his net wage is reduced?

 

You are probably right but that doesn't mean it makes sense - it SHOULD be tax deductible just by common sense.

 

But he didnt pay the fee himself. It was paid by family and friends - he cant take a tax deduction for expenses he didnt make himself. I am no tax expert but I would actually think that if he is considered an employee (so paying Schedule E tax - i.e. doesnt have his own company or sole tradership) then any expenses are not tax deductible.

 

As an employee none of us get to deduct expenses do we ? We drive to work but we cant reclaim petrol costs.

 

Either way, the gesture he has made has been pretty astounding. We have effectively gotten a very decent SPL player (some think we should be aiming higher... however, Naismith when we bought him was no more than a "decent SPL player" too) for nothing other than wages.

 

Cheap, proven option who has something different to what is available to us.

 

I, for one, am happy we have signed him and 2 that he will be highly motivated to prove himself and win that 2 yr option.

 

This lad couldnt have much more motivation if he tried. And that will do for me right now.

[calscot 0]

Couldn't he do a deal with Rangers for the club to pay the fee and him to take a reduced wage minus the fee? Wouldn't that be more tax efficient? Or am I too into tax avoidance?

Edited November 25, 2011 by calscot

[calscot 0]

PS Wholeheartedly agree with the rest of your post...

[Super_Ally 0]

I get your analogy craig but Naismith looked a far better signing when we bought him and had played at a better standard for longer in our league than Sone.

[craig 5,199]

Couldn't he do a deal with Rangers for the club to pay the fee and him to take a reduced wage minus the fee? Wouldn't that be more tax efficient? Or am I too into tax avoidance?

 

He could do exactly that as far as I am aware

[craig 5,199]

I get your analogy craig but Naismith looked a far better signing when we bought him and had played at a better standard for longer in our league than Sone.

 

To be honest I never saw much of Naismith before we signed him. I only saw Aluko against us and he was always very decent against us. A player you feared could damage us.

 

Longer I will give you.... but better standard ? They BOTH have been playing SPL, is that not the same standard ? Killie and the sheep were similar standards, no ? Or do you mean individual performance standard ?

[ian1964 10,870]

I'm pretty confident he will turn out to be a good aquisition,the guy has speed,a good touch, bags of SPL experience and has a driving desire to succeed.