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Thursday 11 July 2013

Will Coach's Followers Put Their Money Where Their Mouth Is?

After Coach Tomer's announcement yesterday that he and his wife filed for personal bankruptcy, his Facebook page began to fill with comments from his supporters lauding his bravery, generosity, vision, etc. One commenter, even said that it was time for them to give back.

Hey YTB'ers! It's time to give back. Let's get to work!!!!!While many in YTB would like to believe that there were thousands upon thousands who made a lot of money with YTB, the truth is that a relatively small number actually did.  This number is hard to define since most pople involved in the program are instructed to "fake it till you make it."

But, without a doubt, YTB did make a lot of money for quite a few people. Even Coach had a program  in 2008 to make 10,000 millionaires in 10 years.  I wonder if these folks will put their money where their mouth is and truly give back to the man who "gave them so much?"

According to his bankruptcy filing, he and his wife have assets of $271,808 with liabilities of $3,863,026.  The Federal Gift Tax Exemption (2011) is $13,000 for an individual and $26,000 for a married couple. Will  those whom Coach help make those millions be willing to write a tax free check to Coach to lift him from this bump in the road? The difference between assets and liabilities is only $3,591,218--or 276 people....or 138 couples.  If 276 people each wrote a check to Coach, he could accept the gift without any tax implications and there would be no tax implications on the giver (except a reduction in the $5m lifetime gift exemption).

Imagine the numbers who could make a smaller contribution. According to YTB's reporting on the Travel Weekly Power List, there are 12,000 people in the program. If each one wrote a check for $299.27 (less than it cost to get into the program--and certainly they have made much more than that

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