Earning money and building wealth is a common topic during the holiday season. For example, when New Year’s resolutions are discussed. An interesting additional topic is the amount of work that must be done for it.
It soon becomes about earning billionaires, politicians, footballers and poker players. With billionaires, it is often passive money that grows their wealth. They don’t have to do anything or much for it. Their interest in a company or their share ownership fluctuates without being able to influence it.
Pay slip football players
A few years ago, the paychecks of a few Dutch professional footballers were suddenly on the street. There it turned out that they simply paid the then applicable tax rate on their salary. In almost all cases they were left with less than half of their gross wages net.
Income from advertising and similar ancillary activities is added to such a salary. But they also have to pay tax on that. High earners obviously have more options to shift their income. Depending on the country where they pay income and gambling tax , there are many or fewer opportunities for avoidance.
Size and more
During meetings, such as birthdays and the current festive gatherings, it is nice to hear the comments. When it comes to the size of a company, for example, attendees can talk a lot about each other.
Sometimes it takes a while for someone to notice that different definitions of size are used. Then one person assesses the size of a company based on the number of employees, while another takes the turnover, net profit, number of branches or foreign branches as a starting point.
Making money and the poker player
We see a similar phenomenon in the earning of money and assets of athletes. On the editorial board of OnlineCasinoGround someone shouts that Phil Ivey is the highest earning poker player. In fact, such a statement is based on his prize money won.
That is also the case when it comes to the money and assets of Roger Federer, Michael van Gerwen and many other famous athletes.
The sum of Phil Ivey’s prize money won may currently amount to $ 25 million. First of all, we mainly looked at the major tournaments. So it can be more if smaller prize money is also included. But in addition to the profits he made, he also has losses and costs, of course.
For poker players, the costs may consist only of hotel and travel and accommodation expenses. For others, there are additional costs for, for example, trainers, physiotherapists and accountants. Poker players sometimes use such services on an ad hoc basis, but tennis players employ these persons or on the basis of a contractual arrangement.
You can observe similar blind spots in making money and wealth everywhere. A salaried employee may wonder about the hourly rate of a hired freelancer. He or she compares it to his own salary and suspects dollar signs in the eyes of the self-employed person. However, those signs do not exist when the costs, hours and facilities are compared.
After all, in addition to salary, the employee also has access to a workspace. And there he has a computer, telephone and other facilities, which the self-employed person has to pay for himself from his hourly rate.
Back to the poker players and other gamblers there can be a discussion about the best poker player. You can of course look at the number of years at the top, strategic creativity and other matters. However, making money and wealth is the simplest starting point.
Phil Ivey and Patrik Antonius still top most of the lists. As we indicated above, this involves prize money. However, Patrik Antonius also tells when he has lost money. This sometimes involves not sick amounts of around half a million euros per game of poker.
And Phil Ivey had to pay a lot of money after some allegations of cheating. In 2018, a judge sentenced him to repay profits of nearly $ 10 million. That, of course, makes a difference.
It puts the ‘best player’ rating into perspective based on that prize money. Not to mention that cheating might disqualify him from that title. We also encounter several cheaters among most of the players on the lists.
We don’t see the youthful poker player Fedor Holz on most lists. While he had already won several millions together until 2016. Holz announced that he would quit poker in 2016.
However, he just continued to play, albeit at a slower pace. With poker friend Matthias Eibinger he started Pokercode, a company where they sell poker training. He will have increased his capital with this by now. With prize money won, he currently stands at nearly $ 35 million.
Well, making money (or winning) and capital. Power is also such a nice word where people can use different definitions. However, the Dutch tax authorities and the Gaming Authority are very clear: capital is the value of all assets minus all debts. The determination of ownership can vary considerably from country to country.
In other countries, the tax authorities also know the phenomenon of all assets minus all debts. But in translations on websites it often goes wrong. For example, wealth becomes ‘assets’, which is actually property. The best translation into English of our word ‘assets’ is ‘net worth’. In fact the net worth, so the remaining assets after deduction of debts.
The translation is nice, because English-language sites in particular make plenty of lists of the ‘net worth’ of poker players, movie stars and others. The makers write that it is ‘net worth’. But as with the Quote 500, it is mainly guesswork, based on the pluses and minuses of known data. After all, capital is an amount composed of many data.
However, much information is unknown to the compilers. And the richer a person is, the more difficult it is to oversee all data. Even the tax authorities have to set up specialists there.
Making money playing poker
We will come back to the best poker player, making money and net worth. The top earners on the poker lists say that making money is becoming increasingly difficult. Firstly, of course, because there is more and more competition. What is special about the other reasons is that they differ considerably per player.
Some players say that making money with online poker is getting more and more difficult. They attribute this to improved software, in other words computers can also play better and better. Others report that live tournaments are being made inaccessible. This is done, for example, by making them more exclusive or by moving them to the private environment.
A remarkable reason is the disappearance of so-called ‘high rollers’. The deposits of wealthy businessmen with little poker experience often ended up in the bank accounts of professionals. Today’s wealthy businessmen, when they play poker , usually offer good resistance.
Probably the poker lists will show some changes in 2020. To earn some money ourselves, we will stick to a game of roulette and a few rounds on the online slots for the time being !