The Justin Wilson debenture scheme
Discussion
I had never heard of this before but the gist of the scheme was:
'...he (Justin) would receive a limited income until they (the investors) had earned back twice their investment. Thereafter they would get 10 per cent of his earnings until 2012...'
So did you get any money back? Because if you haven't then you won't be seeing any!
Found this on:
http://www.britsonpole.com/f1-donington-ceo-wants-...
Justin Wilson’s salary deal
Take for example The Justin Wilson Investors’ Club, set up in 2003 in order to help an ambitious young racer raise enough to pay for a F1 drive with that eternally cash-strapped Minardi team.
Wilson promised investors that, in return for an up-front sum, he would receive a limited income until they had earned back twice their investment. Thereafter they would get 10 per cent of his earnings until 2012.
The offer was massively oversubscribed and more than 900 people were given the opportunity to invest in Justinho, of whom nearly three-quarters were granted the minimum option of £500. Only about 90 investors were allowed to invest more than £1,000.
So, what made this offer so appealing? There is no doubt that Wilson was offering insanely generous terms. The risk was that his career would tank and he’d fail to earn enough cash to pay back his shareholders.
However, while his F1 career was fairly short-lived, he has gone on to conspicuous success in the US Champ Car and Indy Car series — just click on his category on this site for more information.
The Investors’ Club is still active and it seems safe to assume that its members feel they have had a reasonable deal.
'...he (Justin) would receive a limited income until they (the investors) had earned back twice their investment. Thereafter they would get 10 per cent of his earnings until 2012...'
So did you get any money back? Because if you haven't then you won't be seeing any!
Found this on:
http://www.britsonpole.com/f1-donington-ceo-wants-...
Justin Wilson’s salary deal
Take for example The Justin Wilson Investors’ Club, set up in 2003 in order to help an ambitious young racer raise enough to pay for a F1 drive with that eternally cash-strapped Minardi team.
Wilson promised investors that, in return for an up-front sum, he would receive a limited income until they had earned back twice their investment. Thereafter they would get 10 per cent of his earnings until 2012.
The offer was massively oversubscribed and more than 900 people were given the opportunity to invest in Justinho, of whom nearly three-quarters were granted the minimum option of £500. Only about 90 investors were allowed to invest more than £1,000.
So, what made this offer so appealing? There is no doubt that Wilson was offering insanely generous terms. The risk was that his career would tank and he’d fail to earn enough cash to pay back his shareholders.
However, while his F1 career was fairly short-lived, he has gone on to conspicuous success in the US Champ Car and Indy Car series — just click on his category on this site for more information.
The Investors’ Club is still active and it seems safe to assume that its members feel they have had a reasonable deal.
I thought this an interesting idea when it first arose. Still do in fact.
There are risks associated with it but that is true of any investment. You weigh up the risks and consider whether you think it worth a punt or not.
Imagine if the same approach was applied to somebody like Schummacher!
I'm surprised it hasn't been applied to other drivers. Or teams even.
It is somewhat reminiscent of the Racing for Britain initiative except that you stand a chance of getting your money back!
There are risks associated with it but that is true of any investment. You weigh up the risks and consider whether you think it worth a punt or not.
Imagine if the same approach was applied to somebody like Schummacher!
I'm surprised it hasn't been applied to other drivers. Or teams even.
It is somewhat reminiscent of the Racing for Britain initiative except that you stand a chance of getting your money back!
Chrisgr31 said:
Presumably the inference from Threespires is that he hasnt had any money back. This either means that Justin Wilson hasnt earned enough to pay him back or Threespires has not received the moeny he is due, or of course the inference I have from his comments is incorrect!
TBH I've just not followed it up, so have no idea exactly how the scheme worked or if I am due anything. Maybe I should make some enquiries.Thanks for the post.
I also have a £500 share and was wondering what to do with it? Although JW is a plc,I don't know how to find out whatit is worth....
After winning a few Indycar races and the Daytona 24h, I would've expected he is worth something. After all, Dario Franchitti was much further up the Sunday Times Sporting Rich List than most F1 drivers.
Any advice on how to turn this into cash is welcomed!
After winning a few Indycar races and the Daytona 24h, I would've expected he is worth something. After all, Dario Franchitti was much further up the Sunday Times Sporting Rich List than most F1 drivers.
Any advice on how to turn this into cash is welcomed!
Andy 308GTB said:
it would be interesting to know what the schemes idea of Justin's 'limited income' is...
Justin Wilson website said:
The potential return for investors is in two stages, and of course will be dependant on Justin’s success. The first stage is for investors to double their money, and this may be paid out after three years and once sufficient capital has accrued in Justin Wilson plc, which will receive all income related to his activities as a motor racing driver. Justin will be limited to a personal income of £50,000 in 2003, £75,000 in 2004, £100,000 in 2005 and thereafter index linked until investors have received double their investment.
It would be interesting to see the accounts to see what the turnover/ expenses actually weren3il123 said:
It would be interesting to see the accounts to see what the turnover/ expenses actually were
For the year ending 31 December 2010:Turnover £325,417
Cost of Sales £(116,569) (presumably JW's salary)
Gross Profit £208,848
Admin Expenses £(38,186)
Operating Profit £170,662
Which all looks good but in 2009 turnover was only £15k and the company made a £152k loss.
There is a retained loss carried forward of £915k which is the reason that no dividend has been paid to investors.
I imagine that for several years the company has been operating at a loss as Justin has been paid his salary (£100k plus inflation) but with little or no turnover.
If Justin can continue at the same or better turnover than he achieved in 2010 then investors might start to see a return in 6 years.
Based purely on what I've read here, it does sound a little bit scammy. The original blurb stated that paying back the investors was the first thing to happen. That doesn't look like it's happened and yet he's taken a decent salary out.
I might be wrong, but that's what it looks like to me.
I might be wrong, but that's what it looks like to me.
) enjoyed. 
I got a share. I followed and still observe what's going on with JW. Unfortunately I moved house about 7 times in something like ten years so kind of lost my way with what was going on. Late last year I though that I'd better update my details in case I was due any cash, something which seemed to be quite difficult to do....
Now I know why, pretty pointless. I think unless you went to the AGM's, made the effort to go and watch a race stateside, the vast majority of us have been bummed.
Pity really, he's clearly still a talented chap, hasn't had the breaks, and the champcar/indycar debacle hasn't helped at all.
I'd settle for my money back to be honest, but I think it's fair to say I stand more chance of getting three magic beans!
Now I know why, pretty pointless. I think unless you went to the AGM's, made the effort to go and watch a race stateside, the vast majority of us have been bummed.
Pity really, he's clearly still a talented chap, hasn't had the breaks, and the champcar/indycar debacle hasn't helped at all.
I'd settle for my money back to be honest, but I think it's fair to say I stand more chance of getting three magic beans!
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