Thursday, March 18, 2004
Andre Agassi Loses British Tax Case
LONDON - Andre Agassi was ordered Wednesday to pay British tax on income earned from endorsements, in a ruling that could have implications for Tiger Woods, the Williams sisters and other highly paid stars.
Judge Sir Gavin Lightman of the London High Court said Agassi had to pay about $50,000 in taxes on income paid by Nike and Head Sports to his U.S.-based company Agassi Enterprises Inc.
Anyone who competes or performs in Britain has a liability to pay tax, the court said. Athletes already pay tax on prize money but now must also pay up on earnings they receive from endorsements while they are in the country.
Agassi's business manager, Todd Bozick, said he was disappointed in the ruling, but believes the additional tax in England will be offset by Agassi's lowered tax liability in the United States.
"In the end, Andre likely will recover most if not all of any additional UK tax paid as a result of the ruling by offsetting the foreign tax credit against his U.S. tax liability," Bozick said by phone from his Woodland Hills, Calif., office.
That offset ostensibly could work the same way for many other American athletes who compete in Britain.
British tax authorities argued that because Agassi spent time each year competing at Wimbledon and other tournaments in Britain, that activity was relevant to his endorsement earnings.
Agassi's lawyers had appealed a tax demand for the 1998-99 tax year.
But Lightman agreed that Agassi was liable for tax on income connected to his activities in Britain, even if the paying and receiving companies had no tax presence here.
The judge said it would be "absurd" to allow tax liability to be avoided by channeling payments through a foreign company that is not in Britain.
"If this were the case, the tax would effectively become voluntary," he said.
In Portland, Ore., Nike spokesman Scott Reames had no immediate comment on the potential ramifications of the British ruling.
"Anything that involves our athletes, we will certainly examine it," he said.
The decision has major implications on sports and entertainment stars who compete or perform in Britain.
Although Wimbledon and the British Open golf championship attract the biggest names in tennis and golf, some stars already don't make the trip.
Several tennis players avoid Wimbledon because they do not want to play on grass, while some American golfers stay at home rather than play the tough links courses used for the Open.
If playing at Wimbledon and the Open means handing over money to the Inland Revenue, more could decide to stay away.
Richard Baldwin, tax partner in the Deloitte Sport Group, said most tax authorities have a system where, if sports stars have to pay tax in another country, they receive a tax credit back home.
This High Court ruling makes the British tax law enforceable and in line with other countries, he said.
"Sports stars and entertainers who come over here have to pay UK tax — whether the Inland Revenue can collect it is another matter," Baldwin said in an interview.
"There is now a new approach to try and collect the tax when the performers are actually here rather than chasing them afterwards."
Baldwin said the issue does not apply to team sports, where players are considered employees and pay taxes through the club.
LONDON - Andre Agassi was ordered Wednesday to pay British tax on income earned from endorsements, in a ruling that could have implications for Tiger Woods, the Williams sisters and other highly paid stars.
Judge Sir Gavin Lightman of the London High Court said Agassi had to pay about $50,000 in taxes on income paid by Nike and Head Sports to his U.S.-based company Agassi Enterprises Inc.
Anyone who competes or performs in Britain has a liability to pay tax, the court said. Athletes already pay tax on prize money but now must also pay up on earnings they receive from endorsements while they are in the country.
Agassi's business manager, Todd Bozick, said he was disappointed in the ruling, but believes the additional tax in England will be offset by Agassi's lowered tax liability in the United States.
"In the end, Andre likely will recover most if not all of any additional UK tax paid as a result of the ruling by offsetting the foreign tax credit against his U.S. tax liability," Bozick said by phone from his Woodland Hills, Calif., office.
That offset ostensibly could work the same way for many other American athletes who compete in Britain.
British tax authorities argued that because Agassi spent time each year competing at Wimbledon and other tournaments in Britain, that activity was relevant to his endorsement earnings.
Agassi's lawyers had appealed a tax demand for the 1998-99 tax year.
But Lightman agreed that Agassi was liable for tax on income connected to his activities in Britain, even if the paying and receiving companies had no tax presence here.
The judge said it would be "absurd" to allow tax liability to be avoided by channeling payments through a foreign company that is not in Britain.
"If this were the case, the tax would effectively become voluntary," he said.
In Portland, Ore., Nike spokesman Scott Reames had no immediate comment on the potential ramifications of the British ruling.
"Anything that involves our athletes, we will certainly examine it," he said.
The decision has major implications on sports and entertainment stars who compete or perform in Britain.
Although Wimbledon and the British Open golf championship attract the biggest names in tennis and golf, some stars already don't make the trip.
Several tennis players avoid Wimbledon because they do not want to play on grass, while some American golfers stay at home rather than play the tough links courses used for the Open.
If playing at Wimbledon and the Open means handing over money to the Inland Revenue, more could decide to stay away.
Richard Baldwin, tax partner in the Deloitte Sport Group, said most tax authorities have a system where, if sports stars have to pay tax in another country, they receive a tax credit back home.
This High Court ruling makes the British tax law enforceable and in line with other countries, he said.
"Sports stars and entertainers who come over here have to pay UK tax — whether the Inland Revenue can collect it is another matter," Baldwin said in an interview.
"There is now a new approach to try and collect the tax when the performers are actually here rather than chasing them afterwards."
Baldwin said the issue does not apply to team sports, where players are considered employees and pay taxes through the club.
Wednesday, March 10, 2004
Jackson Discusses Steroids in Baseball
TAMPA, Fla. - Reggie Jackson challenged baseball's whopping home run totals, and claimed that some are the result of players taking steroids.
"Somebody definitely is guilty of taking steroids," the Hall of Fame slugger told The Atlanta Journal-Constitution for Thursday's editions.
"You can't be breaking records hitting 200 home runs in three or four seasons. The greatest hitters in the history of the game didn't do that," said Jackson, who hit 563 home runs.
San Francisco slugger Barry Bonds is just two home runs shy of tying his godfather Willie Mays for third place on the career home run list with 660. Babe Ruth is second with 714 and Hank Aaron first with 755.
"Henry Aaron never hit 50 in a season, so you're going to tell me that you're a greater hitter than Henry Aaron?" Jackson said. "Bonds hit 73 in 2001, and he would have hit 100 if they would have pitched to him. I mean, come on, now. There is no way you can outperform Aaron and Ruth and Mays at that level.
"There is a reason why the greatest players of all time have 500. Then there is that group that is above 550. There is a reason for that. Guys played 19, 20, 25 years. They had 9,000 to 10,000 at-bats, and it was the same for everybody.
"Now, all of a sudden, you're hitting 50 when you're 40."
Jackson also said he wants to join fellow Hall of Famers in meeting with baseball commissioner Bud Selig to discuss baseball's steroid-testing rules, which he does not believe are stringent enough.
"Why wouldn't you ask me or Aaron or somebody like that to give you some insight? Bud is a nice guy, but he doesn't know what's happening here," Jackson said.
He added that any time any baseball veterans "speak the truth and show our concern, it's like, `Oh, they're just whining.'"
Jackson also criticized the baseball players' association for not accepting a more stringent drug-testing policy.
"The last I heard, (the illegal distribution of steroids and other drugs) was against the laws of the land," Jackson said. "The players' association talks about `my rights.' My rights? Do you have the right not to pay taxes? You do something wrong, you pay the penalty."
TAMPA, Fla. - Reggie Jackson challenged baseball's whopping home run totals, and claimed that some are the result of players taking steroids.
"Somebody definitely is guilty of taking steroids," the Hall of Fame slugger told The Atlanta Journal-Constitution for Thursday's editions.
"You can't be breaking records hitting 200 home runs in three or four seasons. The greatest hitters in the history of the game didn't do that," said Jackson, who hit 563 home runs.
San Francisco slugger Barry Bonds is just two home runs shy of tying his godfather Willie Mays for third place on the career home run list with 660. Babe Ruth is second with 714 and Hank Aaron first with 755.
"Henry Aaron never hit 50 in a season, so you're going to tell me that you're a greater hitter than Henry Aaron?" Jackson said. "Bonds hit 73 in 2001, and he would have hit 100 if they would have pitched to him. I mean, come on, now. There is no way you can outperform Aaron and Ruth and Mays at that level.
"There is a reason why the greatest players of all time have 500. Then there is that group that is above 550. There is a reason for that. Guys played 19, 20, 25 years. They had 9,000 to 10,000 at-bats, and it was the same for everybody.
"Now, all of a sudden, you're hitting 50 when you're 40."
Jackson also said he wants to join fellow Hall of Famers in meeting with baseball commissioner Bud Selig to discuss baseball's steroid-testing rules, which he does not believe are stringent enough.
"Why wouldn't you ask me or Aaron or somebody like that to give you some insight? Bud is a nice guy, but he doesn't know what's happening here," Jackson said.
He added that any time any baseball veterans "speak the truth and show our concern, it's like, `Oh, they're just whining.'"
Jackson also criticized the baseball players' association for not accepting a more stringent drug-testing policy.
"The last I heard, (the illegal distribution of steroids and other drugs) was against the laws of the land," Jackson said. "The players' association talks about `my rights.' My rights? Do you have the right not to pay taxes? You do something wrong, you pay the penalty."
Tuesday, March 02, 2004
Massu, Chela, Advance at Mexican Open
ACAPULCO, Mexico - Second-seeded Nicolas Massu dominated Mexican Alejandro Hernandez 6-2, 6-0 victory Monday night in the first round of the Mexican Open.
No. 7 Juan Ignacio Chela of Argentina cruised past Albert Montanes of Spain 6-3, 6-4, and Oscar Hernandez of Spain defeated Belgian Dick Norman 6-4, 3-6, 7-6 (6).
Also, Richard Gasquet of France beat Christophe Rochus of Belgium 7-6 (4), 3-6, 6-3, and Stefan Koubek of Austria topped Harel Levy of Israel 3-6, 7-5, 6-4.
On the women's side, fifth-seeded Marion Bartoli of France knocked out Rita Grande of Italy 6-3, 6-1.
Marta Marrero of Spain and Flavia Pennetta of Italy also advanced Monday in the $822,000 event.
Marrero beat countrywoman Gala Leon Garcia 7-5, 6-2, and Pennetta topped Samantha Reeves of the United States 4-6, 6-4, 6-3.
Also, American Mashona Washington defeated German Julia Schruff 6-0, 6-2 in a qualifying match.
ACAPULCO, Mexico - Second-seeded Nicolas Massu dominated Mexican Alejandro Hernandez 6-2, 6-0 victory Monday night in the first round of the Mexican Open.
No. 7 Juan Ignacio Chela of Argentina cruised past Albert Montanes of Spain 6-3, 6-4, and Oscar Hernandez of Spain defeated Belgian Dick Norman 6-4, 3-6, 7-6 (6).
Also, Richard Gasquet of France beat Christophe Rochus of Belgium 7-6 (4), 3-6, 6-3, and Stefan Koubek of Austria topped Harel Levy of Israel 3-6, 7-5, 6-4.
On the women's side, fifth-seeded Marion Bartoli of France knocked out Rita Grande of Italy 6-3, 6-1.
Marta Marrero of Spain and Flavia Pennetta of Italy also advanced Monday in the $822,000 event.
Marrero beat countrywoman Gala Leon Garcia 7-5, 6-2, and Pennetta topped Samantha Reeves of the United States 4-6, 6-4, 6-3.
Also, American Mashona Washington defeated German Julia Schruff 6-0, 6-2 in a qualifying match.
Wednesday, February 25, 2004
Europe Falling From Global Golf Elite
CARLSBAD, Calif. - Padraig Harrington returns to the Match Play Championship as the highest-ranking European in the world. What concerns the Irishman is that he is No. 12.
That means no other European is in the top 10, the first time that's been the case since the world ranking was created in 1986.
"We don't really deserve to have anyone there," Harrington said. "We're not setting the world alight at the moment. We don't have players winning majors. It's a different time now. I don't think there's any cause for concern, but at the moment, the standard has dipped."
That could change this week if Harrington manages to get through six matches at La Costa Resort to win the Accenture Match Play Championship; or if Darren Clarke (No. 13) repeats his brilliant performance from 2000, when he dusted Tiger Woods in the 36-hole final.
Europe had two major champions in 1999 — Jose Maria Olazabal at the Masters and Paul Lawrie, who made up 10 shots in the final round at Carnoustie to win a playoff in the British Open.
Both are outside the top 64 and didn't qualify for this World Golf Championship.
Harrington and Clarke are among 15 Europeans in the 64-man field at La Costa, a number that figures to be whittled down when the most fickle format in golf gets under way Wednesday.
Woods is the defending champion and has been the No. 1 seed since this tournament began in 1999. As an example of how anything goes, he has reached the finals only twice, and two years ago was knocked out in the first round by unheralded Peter O'Malley of Australia.
"It's the unpredictability of match play," Woods said. "If we had to play match play every single week, guys would retire by the age of 40 because of the emotional ups and downs and roller coasters you go through on 18 holes."
Vijay Singh will try to end a streak of the No. 2 seed losing in the opening round the last three years. If he gets past Shingo Katayama of Japan, Singh will try to get out of the second round for the first time.
Other top seeds are Davis Love III (No. 3) against Briny Baird, and Masters champion Mike Weir taking on former PGA champion Rich Beem.
Some believe it's difficult to play well after a victory, and someone suggested to Beem that Weir might be suffering a post-victory hangover from the Nissan Open.
"I'll be sending plenty of champagne to his room," Beem replied.
The only champagne Montgomerie gets is before his flight departs from California — usually Wednesday, no later than Thursday since he started coming here in 1999.
"My record here is very, very poor," Montgomerie said. "Why? I don't know. Coincidence, hopefully. We'll see if we can do a little bit better this year, but you never know."
Montgomerie plays Nick Price in the first round.
While Harrington has slipped to No. 12 in the world, Montgomerie has bigger problems. Once ranked No. 2 in the world behind Greg Norman in 1997, he has fallen to No. 57, his lowest position in over a decade.
"Am I 57th in the world over the last two years? Probably, yes," he said. "I'm not complaining about it. I just have to address the situation and do something about it."
He's not worried about no Europeans in the top 10, either.
"It's not great for us, but at the same time, there's a few players on the fringes," Montgomerie said. "A good week here or there will get us back in there. As a European player — or (Ryder Cup captain) Bernhard Langer as the case may be, I wouldn't worry unduly about it."
Clarke won another World Golf Championship last year, the NEC Invitational, making him the only other player besides Woods to have won multiple WGCs.
His only worry is his game, having gone in the tank since he misunderstood swing coach Butch Harmon. He arrived at La Costa having missed the cut at Torrey Pines and Riviera.
"I got myself into the wrong sort of position, so now I'm working to get myself out of it," he said.
And when did he discover he was doing the wrong thing?
"When they started hooking left, and then hooking another 15 yards," Clarke said. "It's usually a dead giveaway."
Picking a winner at the Match Play Championship is anything but that.
When Woods (No. 1) defeated David Toms (No. 6) in the finals last year, it marked the first time that two top-10 seeds had even reached the finals.
The seeds of other Match Play champions in its short history look like lotto numbers — 24, 19, 55, 62.
Those belonged to Jeff Maggert, Clarke, Steve Stricker and Kevin Sutherland. Of that group, Clarke is the only one who even qualified for this year's tournament.
CARLSBAD, Calif. - Padraig Harrington returns to the Match Play Championship as the highest-ranking European in the world. What concerns the Irishman is that he is No. 12.
That means no other European is in the top 10, the first time that's been the case since the world ranking was created in 1986.
"We don't really deserve to have anyone there," Harrington said. "We're not setting the world alight at the moment. We don't have players winning majors. It's a different time now. I don't think there's any cause for concern, but at the moment, the standard has dipped."
That could change this week if Harrington manages to get through six matches at La Costa Resort to win the Accenture Match Play Championship; or if Darren Clarke (No. 13) repeats his brilliant performance from 2000, when he dusted Tiger Woods in the 36-hole final.
Europe had two major champions in 1999 — Jose Maria Olazabal at the Masters and Paul Lawrie, who made up 10 shots in the final round at Carnoustie to win a playoff in the British Open.
Both are outside the top 64 and didn't qualify for this World Golf Championship.
Harrington and Clarke are among 15 Europeans in the 64-man field at La Costa, a number that figures to be whittled down when the most fickle format in golf gets under way Wednesday.
Woods is the defending champion and has been the No. 1 seed since this tournament began in 1999. As an example of how anything goes, he has reached the finals only twice, and two years ago was knocked out in the first round by unheralded Peter O'Malley of Australia.
"It's the unpredictability of match play," Woods said. "If we had to play match play every single week, guys would retire by the age of 40 because of the emotional ups and downs and roller coasters you go through on 18 holes."
Vijay Singh will try to end a streak of the No. 2 seed losing in the opening round the last three years. If he gets past Shingo Katayama of Japan, Singh will try to get out of the second round for the first time.
Other top seeds are Davis Love III (No. 3) against Briny Baird, and Masters champion Mike Weir taking on former PGA champion Rich Beem.
Some believe it's difficult to play well after a victory, and someone suggested to Beem that Weir might be suffering a post-victory hangover from the Nissan Open.
"I'll be sending plenty of champagne to his room," Beem replied.
The only champagne Montgomerie gets is before his flight departs from California — usually Wednesday, no later than Thursday since he started coming here in 1999.
"My record here is very, very poor," Montgomerie said. "Why? I don't know. Coincidence, hopefully. We'll see if we can do a little bit better this year, but you never know."
Montgomerie plays Nick Price in the first round.
While Harrington has slipped to No. 12 in the world, Montgomerie has bigger problems. Once ranked No. 2 in the world behind Greg Norman in 1997, he has fallen to No. 57, his lowest position in over a decade.
"Am I 57th in the world over the last two years? Probably, yes," he said. "I'm not complaining about it. I just have to address the situation and do something about it."
He's not worried about no Europeans in the top 10, either.
"It's not great for us, but at the same time, there's a few players on the fringes," Montgomerie said. "A good week here or there will get us back in there. As a European player — or (Ryder Cup captain) Bernhard Langer as the case may be, I wouldn't worry unduly about it."
Clarke won another World Golf Championship last year, the NEC Invitational, making him the only other player besides Woods to have won multiple WGCs.
His only worry is his game, having gone in the tank since he misunderstood swing coach Butch Harmon. He arrived at La Costa having missed the cut at Torrey Pines and Riviera.
"I got myself into the wrong sort of position, so now I'm working to get myself out of it," he said.
And when did he discover he was doing the wrong thing?
"When they started hooking left, and then hooking another 15 yards," Clarke said. "It's usually a dead giveaway."
Picking a winner at the Match Play Championship is anything but that.
When Woods (No. 1) defeated David Toms (No. 6) in the finals last year, it marked the first time that two top-10 seeds had even reached the finals.
The seeds of other Match Play champions in its short history look like lotto numbers — 24, 19, 55, 62.
Those belonged to Jeff Maggert, Clarke, Steve Stricker and Kevin Sutherland. Of that group, Clarke is the only one who even qualified for this year's tournament.
