$100,000 IS GUARANTEED!!!

Greg Ambrosius · Post by **Greg Ambrosius** » Wed Mar 10, 2004 3:01 am

Okay, it's official and we're happy to report it. The $100,000 grand prize for the National Fantasy Baseball Championship is guaranteed. We have enough leagues in all three cities to guarantee the grand prize, so best of luck to everyone in the main event. We are still taking signups until midnight on Sunday, so you still have time to get in a league and compete for the largest grand prize in the fantasy baseball industry.

League prizes also remain at $5,000 for first, $1,750 for second and $750 for third. We are doing our best to fill each of the three Auction Leagues in Las Vegas and New York and have two slots open in all three.

Best of luck everyone and thanks for trusting us on this grand prize. It will be our pleasure to award one of you the $100,000 check in October.

[ March 10, 2004, 09:21 AM: Message edited by: Greg Ambrosius ]

Team Herron · Post by **Team Herron** » Wed Mar 10, 2004 3:18 am

Congratulations Greg - I know this was a goal from the outset. Your diligence and hard work are a primary reason you attracted so many of us. I will send wiring instructions shortly so you know where to send the winnings

King of Queens · Post by **King of Queens** » Wed Mar 10, 2004 3:28 am

Greg, have the 2nd, 3rd and 4th place prizes been finalized?

Greg Ambrosius · Post by **Greg Ambrosius** » Wed Mar 10, 2004 6:06 am

No they have not. To be honest, that is an area that is being scrutinized right now and there may be a change there. But I am going to stick with the grand prize and the league prizes and make this work for everyone. Nobody signed up to play for fourth place overall anyway and I'll find a way to reward second, third and fourth overall if we have to make an alteration there.

We will announce everything tomorrow morning and ask for your help in making this event go off as planned. Your odds of winning the grand prize will be greater than 300:1, which should be the best news of the day for everyone who is already signed up. We're still getting late minute signups so the final number won't be known until Monday, but we've guaranteed the grand prize, the league prizes and the event. I'll be in a live chat at 3 p.m. EST and will answer all questions there. Now it's time for lunch.

Gordon Gekko · Post by **Gordon Gekko** » Wed Mar 10, 2004 6:20 am

I'd be in favor of abolishing the 3rd place league prize money ($750/team) or lowering it below the tax limit (I thought it was $600 or something like that). You can have a bigger 2nd place overall prize. No one plays for $750, plus Uncle Sam gets his cut. Peanuts when you think about it.

nnoy · Post by **nnoy** » Wed Mar 10, 2004 6:23 am

I venture to guess you can save another 5 large by paying the overall winner only $100K and not $105, perhaps you’re already planning that.

Maybe you can throw 2nd-4th a free entry into the football contest in the fall as well. I strongly agree that no one is going to or has made a decision to play based on anything other than the overall prize and the league prizes.

It sure will make for an exciting final day for the guys within reach of 1st. Can you imagine the difference between $100K and $5K coming down to whether Trevor Hoffman strikes out Steve Finely in the final game of the season?

nnoy · Post by **nnoy** » Wed Mar 10, 2004 6:27 am

Great idea, you can save almost another 9 grand by making 3rd prize $599 in each league.

Nevadaman · Post by **Nevadaman** » Wed Mar 10, 2004 6:33 am

Gekko has a point. I believe the tax threshold for this contest is $600, so make 3rd place $500 if necessary. Better that than downgrading a well-earned 2nd or 3rd overall prize. That is still a great achievement that shouldn't be penalized.

King of Queens · Post by **King of Queens** » Wed Mar 10, 2004 6:42 am

And while we're on the subject of tax thresholds, say you finish 2nd in your league ($1750)--do you get a 1099 for $1750, or are you exempt as a result of your NET PROFIT of $500?

Also, do we have to declare the NAV (that's net asset value for the non-Gekkos) of any signed merchandise we win?

Guest · Post by **Guest** » Wed Mar 10, 2004 7:49 am

Hello - A few thoughts, if I recall the rules correctly:

- If you receive $600 ($1,200 from bingo and slot machines and $1,500 from keno) or more in winnings, the payer (NFBC) is required to issue you a Tax Form (W-2G, I believe).

- If you have won more than $5,000, the payer generally will be required to withhold 25%-28% of the proceeds for Federal income tax.

- All winnings, regardless of whether you received a tax form, should be reported on your tax return. This includes the fair market value of any non-cash prizes.

- If you itemize deductions, I believe you can offset any winnings with net-losses to arrive at your taxable income.

- In reality, if you win a $500 prize and don't report it, the IRS will only find it if it is picked up in their auditing process.

Hope this helps..

Dyv · Post by **Dyv** » Wed Mar 10, 2004 7:51 am

Originally posted by King of Queens:

And while we're on the subject of tax thresholds, say you finish 2nd in your league ($1750)--do you get a 1099 for $1750, or are you exempt as a result of your NET PROFIT of $500?

Also, do we have to declare the NAV (that's net asset value for the non-Gekkos) of any signed merchandise we win? Any prize given over $600 of value will have a 1099. It's up to you to net out your profits with the IRS forms. Also - I can only speculate here, but if you win a memrabilia prize with an ERV of over $600 you will probably also get a 1099 for that. We can have a tax facts question and answer another time... I'm not a CPA and am NOT giving tax advice, merely speaking from experience having won cash prizes in excess of $2,000 and having won merchandise in excess of $2,000 from fantasy sports contests.

Dave

Dyv · Post by **Dyv** » Wed Mar 10, 2004 7:54 am

Originally posted by :

Hello - A few thoughts, if I recall the rules correctly:

- If you receive $600 ($1,200 from bingo and slot machines and $1,500 from keno) or more in winnings, the payer (NFBC) is required to issue you a Tax Form (W-2G, I believe).

- If you have won more than $5,000, the payer generally will be required to withhold 25%-28% of the proceeds for Federal income tax.

- All winnings, regardless of whether you received a tax form, should be reported on your tax return. This includes the fair market value of any non-cash prizes.

- If you itemize deductions, I believe you can offset any winnings with net-losses to arrive at your taxable income.

- In reality, if you win a $500 prize and don't report it, the IRS will only find it if it is picked up in their auditing process.

Hope this helps.. You don't need to report prizes below $600 per the IRS regulations.

It would make a LOT of sense to reduce any prize of $700 range down to $599 or less as the net receipts of $700 - 25% tax bracket = $525 after tax. Greg - put in my vote to restructure some league and overall payouts down to $599 or $575 or something. Put the extra funds towards keeping some overall 2nd, 3rd and 4th prizes instead. Those prizes courtesy of Uncle Sam not getting his cut (legally!)

Dave

King of Queens · Post by **King of Queens** » Wed Mar 10, 2004 7:56 am

DZ, sounds like you know what you're talking about. Thanks for the advice!

a · Post by a » Wed Mar 10, 2004 7:14 pm

Originally posted by :

Hello - A few thoughts, if I recall the rules correctly:

- If you receive $600 ($1,200 from bingo and slot machines and $1,500 from keno) or more in winnings, the payer (NFBC) is required to issue you a Tax Form (W-2G, I believe).

- If you have won more than $5,000, the payer generally will be required to withhold 25%-28% of the proceeds for Federal income tax.

- All winnings, regardless of whether you received a tax form, should be reported on your tax return. This includes the fair market value of any non-cash prizes.

- If you itemize deductions, I believe you can offset any winnings with net-losses to arrive at your taxable income.

- In reality, if you win a $500 prize and don't report it, the IRS will only find it if it is picked up in their auditing process.

Hope this helps.. Players who receive money should be getting a 1099misc (this is not gambling winnings) and can offset up to the amount of the winnings with EXPENSES related to this event (Travel, hotel, meals, magazines, subscriptions, etc). Since this is a 1099 accounting, there is no withholding at all. It is up to the participant to declare the winning (and use the expenses to offset) on you taxes. You would then be taces according to where you fall in the tax bracket.

So if you win the big prize, you will receive the full 105,000.00 and it's up to you to save 30% or so to pay for taxes you owe after you fill out your 1040 forms.

I am not an accountant, but know a little about this.

Harlem Hangover · Post by **Harlem Hangover** » Thu Mar 11, 2004 3:07 am

VEGAS.. you are absolutely right.. the overall winner would get the full amount and would have the burden of paying the taxes on his/her own.. I would start keeping track of your expenses now and saving all/any receipts you can.. My guess is in addition to any travel expenses and costs associated with the trip, you can write off any websites u subscribe too, internet connection (modem, etc..) , entry fee, and anything else u can come up with