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02-08-2021, 12:23 PM
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#1
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Just another Facist
Join Date: Mar 2002
Location: Now in Houston
Posts: 52,771
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Mattress Mack bet 3.4 mil on Tampa
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02-08-2021, 06:12 PM
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#2
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Registered User
Join Date: Nov 2007
Location: Houston, TX
Posts: 1,515
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Quote:
Originally Posted by JustRalph
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It was a hedge for the free mattress promotion.
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02-08-2021, 07:53 PM
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#3
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Just another Facist
Join Date: Mar 2002
Location: Now in Houston
Posts: 52,771
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Quote:
Originally Posted by garyscpa
It was a hedge for the free mattress promotion.
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Yep, I knew that......I a actually spoke to him about it a few years ago. I asked how he was finding a place to lay off enough money. He said that some places in Vegas were glad to accommodate him.
Using Draft kings kind of surprised me
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02-08-2021, 10:07 PM
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#4
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Registered User
Join Date: Aug 2009
Posts: 10,989
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Quote:
Originally Posted by garyscpa
It was a hedge for the free mattress promotion.
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Wait...
I don’t think that’s how a hedge is supposed to work.
He could have just as easily lost that bet.
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All I needed in life I learned from Gary Larson.
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02-09-2021, 12:51 PM
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#5
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clean money
Join Date: Sep 2006
Location: Maryland
Posts: 23,558
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Quote:
Originally Posted by TJDave
Wait...
I don’t think that’s how a hedge is supposed to work.
He could have just as easily lost that bet.
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Maybe Ralph or Gary have a better (or more accurate) explanation, but I think his 'promotion' involved "If the Bucs win" or "if Brady wins"...
so the 'hedge' part comes in against the losses accrued from essentially betting against the Bucs already w/ his promotion. Also could factor things like promotional/marketing benefit (a lot of companies would gladly spend 3.4 Mil for a small super bowl marketing campaign).
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02-09-2021, 01:01 PM
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#6
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Registered User
Join Date: May 2011
Posts: 22,629
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Quote:
Originally Posted by TJDave
Wait...
I don’t think that’s how a hedge is supposed to work.
He could have just as easily lost that bet.
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All the people that bought $3000 mattresses from him during the promotion period were getting their money back (free mattress) if Tampa won.
if he lost that bet, he would have sales from mattresses
if he won that bet, he would have great advertising for free mattresses
I am not sure what term would be better than hedge, please let us know.
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02-09-2021, 09:50 PM
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#7
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Registered User
Join Date: Aug 2009
Posts: 10,989
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Quote:
Originally Posted by davew
All the people that bought $3000 mattresses from him during the promotion period were getting their money back (free mattress) if Tampa won.
if he lost that bet, he would have sales from mattresses
if he won that bet, he would have great advertising for free mattresses
I am not sure what term would be better than hedge, please let us know.
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Correct. I wasn’t familiar with his promotion. Should have been. Sorry.
__________________
All I needed in life I learned from Gary Larson.
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02-10-2021, 08:45 AM
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#8
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Registered User
Join Date: Nov 2007
Location: Houston, TX
Posts: 1,515
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Quote:
Originally Posted by davew
All the people that bought $3000 mattresses from him during the promotion period were getting their money back (free mattress) if Tampa won.
if he lost that bet, he would have sales from mattresses
if he won that bet, he would have great advertising for free mattresses
I am not sure what term would be better than hedge, please let us know.
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The only not free about it is they get a 1099-Misc. I had a client who got one a few years ago when the Astros won the World Series.
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02-10-2021, 08:53 AM
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#9
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Registered User
Join Date: May 2011
Posts: 22,629
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Quote:
Originally Posted by garyscpa
The only not free about it is they get a 1099-Misc. I had a client who got one a few years ago when the Astros won the World Series.
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so Mattress Mack gets to expense it twice? the purchase price and the 1099-misc?
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02-10-2021, 01:56 PM
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#10
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Registered User
Join Date: Dec 2011
Posts: 4,285
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Quote:
Originally Posted by davew
so Mattress Mack gets to expense it twice? the purchase price and the 1099-misc?
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Expense what? He can only expense the manufacturing costs of the furniture, delivery, and other associated costs. The 1099-MISC affects the buyer not the seller.
__________________
Best writing advice ever received: Never use a long word when a diminutive one will suffice.
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02-10-2021, 02:33 PM
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#11
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Just another Facist
Join Date: Mar 2002
Location: Now in Houston
Posts: 52,771
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Quote:
Originally Posted by AndyC
Expense what? He can only expense the manufacturing costs of the furniture, delivery, and other associated costs. The 1099-MISC affects the buyer not the seller.
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You would have to buy a shitload of furniture though to have really hit your taxes hard.
But if you have ever been to GF. You know it's hard to get out of their without spending the proverbial "shitload"
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02-10-2021, 04:23 PM
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#12
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Registered User
Join Date: Dec 2011
Posts: 4,285
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Quote:
Originally Posted by JustRalph
You would have to buy a shitload of furniture though to have really hit your taxes hard.
But if you have ever been to GF. You know it's hard to get out of their without spending the proverbial "shitload"
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The hard hit goes to Mac for taxes on gambling winnings.
__________________
Best writing advice ever received: Never use a long word when a diminutive one will suffice.
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02-10-2021, 06:50 PM
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#13
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Registered User
Join Date: Nov 2007
Location: Houston, TX
Posts: 1,515
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Quote:
Originally Posted by davew
so Mattress Mack gets to expense it twice? the purchase price and the 1099-misc?
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The 1099-Misc expense to Mack offsets the sales revenue. So he's even on that and expenses the purchase price. He also picks up the gambling income which should sort of equal the amount of the 1099-Misc's.
The gambling income could be in a different entity or even personal.
Last edited by garyscpa; 02-10-2021 at 06:52 PM.
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