Lionel Messi, the world’s highest paid footballer and his father Jorge Messi have been accused of defrauding Spain of more than £3m between 2007 and 2009 by using tax havens in Belize and Uruguay. Messi claims he “didn’t know anything”. This article looks at Lionel Messi tax troubles, Will Lionel Messi go to jail and urges one that to take financial responsibility.
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Lionel Messi Tax Troubles
The complaint against Lionel Messi centers on alleged tax fraud between 2007 and 2009. Prosecutors contend Messi and his father, aiming to lower their Spanish tax bill, sought to manage the player’s lucrative income from image rights through shell companies set up overseas. Messi claims he “didn’t know anything”about the corporate structures alleged to have been created to decrease his tax bill and when he signed the related documents he did so on the advice of father Jorge and his lawyers.
Prosecutors filed charges in 2013. Lionel Messi has denied any wrongdoing, and in August of that year he and his father paid $6.75 million in back taxes plus interest. Prosecutors allege the pair sought to hide the Barcelona forward’s earnings in offshore accounts, amounting to the defrauding of the Spanish government to the tune of €4.1 million ($4.6 million). They could face a jail term of up to 22 months if found guilty.
In June 2014, a Spanish state prosecutor asked the judge to drop the tax fraud charges against Messi but not his father. Later that year, a judge ruled that the case against both would proceed, despite the state prosecutor’s request. “We have always fulfilled all our tax obligations, following the advice of our tax consultants, who will take care of clarifying this situation,” Messi posted on his Facebook page when the charges were initially filed.
Lionel Messi was also implicated in the so-called “Panama Papers” offshore leak in April 2016, according to reports. FC Barcelona has promised to give Messi legal and financial support, as the Argentina international considers whether to sue over the leak.
Lionel Messi, who arrived at Barcelona as a 13-year old in 2000 and gained Spanish citizenship in 2005, has won eight Spanish Primera Liga titles and three Champions League crowns during his time at the club. He is Barcelona’s and the league’s, all-time leading scorer. Messi clearly has a burning desire for anything to do with football as he once stated “Money is not a motivating factor. Money doesn’t thrill me or make me play better because there are benefits to being wealthy. I’m just happy with a ball at my feet. My motivation comes from playing the game I love. If I wasn’t paid to be a professional footballer I would willingly play for nothing.” The Argentine world class striker is a huge success as a result of his genuine passion for the game: “I always thought I wanted to play professionally, and I always knew that to do that I’d have to make a lot of sacrifices. I made sacrifices by leaving Argentina, leaving my family to start a new life. I changed my friends, my people. Everything. But everything I did, I did for football, to achieve my dream.”
Lionel Messi has an annual salary from his club, FC Barcelona, of more than $20 million, plus endorsements from sponsors including Adidas and PepsiCo. Adidas is his biggest sponsor, paying him a reported $4 million per year.He also has deals with Gillette, Samsung, Gatorade, and other companies. According to Forbes, he earned an estimated $73.8 million in 2015. Messi is so valuable to Barcelona that if he ever leaves, the club that buys him will have to pay a $340-million buy out.
Will Lionel Messi go to jail?
The likelihood of Lionel Messi going to jail is small but it will depend on how his defense is presented to the judge and how he receives it. The most likely outcome is a substantial fine and a suspended sentence. Another Argentine star, Javier Mascherano,who used to play for Liverpool , was accused of avoiding taxes and he was found guilty, paid a big fine and he was given a year sentence, but that was suspended so he’s out of jail as well.”
Top 10 Sports Players
Forbes Magazine have released the top 100 highest-paid athletes for 2016 . The 100 athletes hail from 23 countries and compete in ten sports. Image below shows the top 7 Sports Players as per Forbes,How much they earn through salary or winnings and how much they earn through endorsements. Sports persons major income is through endorsements. Sports careers often hang on slender threads. Here, ability and luck waltz amidst swings in fortunes. Our article Sports person income and endorsments : Virat Kohli, Maria Sharapova look at two sports person Virat Kohli and Maria Sharapova and see how much they earn? How much is through endorsements? You can check out the entire Forbes list at www.forbes.com/athletes/list/
Top Sport Player list as per Forbes:Lionel Messi is Second in List
I don’t know anything?
Your relationship with money is yours to deal with, forever. Whether you have what you have or you have what you have plus 2 crore, you will treat money the same way for your future. Working toward financial responsibility may not sound like the most exciting life decision, but falling into debt is definitely a lot less fun than budgeting. Being smart with your money is a life skill that can be learned at any age, but it’s easier to start young.
Don’t play the blame game
Every five years, we partake in what seems like the cherished national pastime of blame somebody else. Infact many see it every night when India wants an answer. Whether it’s BJP blaming Congress, industries blaming market condition, or citizens blaming politicians, everybody seems to find someone else to blame for our many problems. Here’s my question: What good does it do to blame other people? The answer, of course, is nothing. I’m here to encourage you to take at least some of the responsibility when things go wrong and then learn from your mistakes. Ultimately, I think you’ll find that doing so will be more empowering and more productive than blaming someone else.
If we blame Economy,Market ,for our losses, all we can do is say we got badly misled and hope we don’t get fooled again. We’re powerless to improve our situation. But if we instead take responsibility for risky investing or listening to the latest professed market seer, for not sticking to our financial plans or for any other number of things, we have a much better opportunity to minimize the chances of bad things happening to us in the future.
When it comes to personal finance, playing the victim card instead of taking responsibility will get you to one place, broke and in debt. It all comes down to how you think, and how you react to your thinking. Henry Ford once said, Whether you believe you can, or you can’t, you are right. Your financial goals need your money, time and attention.
Take Financial Responsibility
What Financial responsibility gives you is freedom. Freedom to know that you can rely on yourself instead of depending on someone else for your financial destiny. The freedom to be debt free. The freedom to grow wealth instead of wallowing in debt. Take Responsibility for Your Money. Working toward financial responsibility may not sound like the most exciting life decision, but falling into debt is definitely a lot less fun than budgeting. Being smart with your money is a life skill that can be learned at any age, but it’s easier to start young.
Pay your bills on time. All of them. Utilities, rent, credit cards, medical bills, etc. They have a due date… and that due date needs to be adhered to. Strictly.
Live within your means. That means live on less than you earn. That means not borrowing from friends,family,maxing out a credit card every month. That means having extra money at the end of every month,even if it’s Rs 1000. If you have Rs 1000 left over at the end of the month, you lived that month on less than you made.
Learn how to shop for insurance. You need auto insurance,Health insurance and life insurance
Learn how to control your spending habits. Are you an impulse buyer? Do you get sucked into “sales” and “online shopping” and “limited edition” stuff? Control your spending habits. Know how to say NO to that thing that you just don’t need to be buying. Save up for the fun things… it’ll be that much more worth it in the end.
Save for emergencies. That means you have atleast three of expenses set aside in an emergency fund or account in case are unable to work, your family member break a leg. Anything. Emergencies happen and you need to save for them.
Get your debt under control. If you’re in debt, now’s the time to get out of debt.
Learn to read the fine print. If you are signing your name on a dotted line for ANYTHING, be damn sure you’ve read the fine print. If it’s a gym membership, know how long you’re locked in. If it’s a credit card, know EXACTLY what the fees and interest rates look like now and down the road. Bottom line is,if you are ever, EVER signing a legal document, you BETTER know exactly what you are signing. Because guess what? If you find out down the road that there’s a stipulation or line in that contract that you don’t like and you’ve already signed it too bad. You’re stuck. So, get the information now.
Save for the future. That means learning about ways to invest your money whether it’s contributing to EPF,PPF,Fixed Deposit, Mutual Funds or maybe even a money market account.
Learn about taxes. Know how much is taken out of your salary,how much TDS is deducted, if you’re going to need to set aside some income to save or pay your taxes later. Know about estimated taxes. Know about deductions. Know how to file your taxes.
Anything you’d add to the list?
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- Cricketer and Money
- Saina Nehwal,Money and Investments
- Amitabh Bachchan – from bankruptcy to crorepati
- An Interview: 20s and Money
Have you taken responsibility for your money? How did you take responsibility for your money? What is the most difficult , as per you, part of finances?
