Post: #1

Is David Beckham beta after bailing out his wifes failing fashion business?

After she spent nearly £3,000,000 on her new Mayfair store, her brand was left with a "£3.8million deficit for 2014 despite a turnover of £34million."

http://www.thesun.co.uk/sol/homepage/sho...-firm.html

Beckham then provided over £5,000,000 to the company to keep it going.

Despite not being short of a few pennies, was he right to bail out his wife's extravagant hobby?
Or should he have let her face the consequences of her over-spending?

Post: #2

This is his wife of 17 years and the mother of his kids.... Not some side piece he has been banging for 2 months.

I see nothing wrong with trying to bail out a family business.

This thread is beta.

Post: #3

This isn't TMZ.

Post: #4

(03-14-2016 08:24 AM)Cr33pin Wrote:  This is his wife of 17 years and the mother of his kids.... Not some side piece he has been banging for 2 months.

I see nothing wrong with trying to bail out a family business.

This.
Also:

Quote:Whatever the shop finances, David and Victoria need not worry. Last year Brand Beckham was estimated to be worth £500million.

He bailed his wife's business out using 1% of his net worth.
Beta Of The Year!

It's like the "women ordering appetizers" thread all over again.

Quote:Chartered accountant and tax lecturer Robert Leach told The Sun: “The accounts suggest it is a transfer of operations between companies owned by Victoria and David. In effect the couple are simply moving the profits between themselves.”

This article reminds me of Trump's critics nagging about his business failures. Oh, he went bankrupt four times.
Never mind the hundreds of ventures he started that were and are doing well.
Most people just can't comprehend how wealthy people operate and move their money around. They don't play by the same rules as your average Joe.
It's a different world.

So her fashion label's uber-luxurious flagship store in a highly prestigious location in Central London costs more money than it makes?
Shocking!

Post: #5

First, this alpha/beta nonsense has to stop. You're seeing it in places where it doesn't exist. There is no evidence to suggest either.

Second, this is almost certainly typical hack journalist reporting on matters they have no understanding of. To provide a similar example: I am launching a product currently which I am getting bank funding for. I expect to show a small year one loss, like VB, approximately 10% of turnover. I expect to show substantial year two profits - profits roughly equivalent to my year one turnover. If in year two I decide to reinvest previous drawings or funds from other areas of my business (I don't have a spouse to illustrate the point with, but it is not all that dissimilar) to maximise year two profitability, or to account for new circumstances which couldn't be foreseen at the point of startup but which do not fundamentally undermine the attractiveness of the business opportunity, am I somehow failing?

In many respects, being able to show a loss on your balance sheet is desirable, as it allows you to retain more of your future profits and keep them out of the hands of the tax man. Anyone who has ever had reason to invest in a business or audit their accounts will tell you that they should always be read with a healthy degree of skepticism, as we all try to be as creative and forward thinking as possible when reporting certain things to the tax man.

Post: #6

Pretty sure someone like David Beckham makes more in passive income each year with sponsorship deals than his entire wife's brand takes in as gross profits. A few million pound is literally play money to someone on this level it doesn't even move the needle.

Post: #7

Quote:Is David Beckham beta after bailing out his wife's failing fashion business?

Is it beta to use one failing business' losses as a tax write off for far more successful ones?

Post: #8

I agree with cr33p1n, this thread is beta.

Post: #9

Why is it always no reps starting gossipy threads about celebrities? We don't give a fuck.

Post: #10

I guess I'm the dissenting opinion here. I greatly enjoy these types of threads. The ensuing roast of the OP never fails to be hilarious.

Post: #11

Exclusive footage of what Cr33pin did to OP.

Post: #12

(03-14-2016 10:52 AM)MiscBrah Wrote:  I guess I'm the dissenting opinion here. I greatly enjoy these types of threads. The ensuing roast of the OP never fails to be hilarious.

Agree. And its good for newbies to get such a smackdown early. It hurts now but in the end it will help them develop thick skin and survive and thrive on this forum.

Post: #13

Ouch! Think I'll just kick back and relax from starting a thread for a while!

Post: #14

Alpha / Beta is not binary. It's not "either your alpha or you're beta". They are terms used to describe behaviors.

Post: #15

Appear that the loss mostly comprises of capital expenditure which can be written off in the first year for corporation tax purposes. Wouldn't be surprised if the company actually made a profit and the £5m+ capital introduction is for more capital expenditure in future years.

BTW in the UK when you buy an asset you can claim the entire asset value in the first year against corporation tax (you will not be able to claim in future years unless more assets are bought). Your article alone is showing assets purchased as being more than £4.12M depending on how the website had been treated. This does not include any other assets that may had been purchased during that period. Which is higher than the £3.8M loss shown in the article. Quick maths there show that's a profit available for dividends of more than £300k.

As I haven't seen the set of accounts (I'm not going to pay to do so) I can't interpret any further.

Post: #16

I picked my sister up from the airport and didn't ask for any money. Was that beta?

Post: #17

(03-14-2016 11:43 AM)franko100 Wrote:  Ouch! Think I'll just kick back and relax from starting a thread for a while!

It's okay, you'll win them over next time.

Post: #18

Post: #19

She can reinvest that as capital and make even more profit later.

Post: #20

I took my parents out to dinner and bought them appetizers. I didn't make them leave the tip. Was that beta?

Post: #21

As a Londoner and someone employed in the fashion industry Victoria Beckham has gone from around a decade of ridicule to finally earning her chops in the notoriously competitive fashion design world. Dig around on how her collections were received past two years. She's actually doing pretty well while her Spice Girl chums are begging for her to do a whip round "reunion" that she simply doesn't need to do because she exists on an entirely different financial level.