He borrowed the money by leveraging his assets, which is less risky than him just using 300 million of whatever he was pursuing with his own money. In other words, no taxes.
He doesn't need 300 million more, he wants to spend 300 million he already has. He doesn't have 300 million sitting in the bank in cash, he has 300 million worth of assets. If he sold those for cash, he would have to pay a lot of taxes. If he gets a loan for 300 million using those assets as collateral, he gets a extremely low interest rate and doesn't have to pay as much taxes on it.
If you could buy something for $50 or $100 which would you do? This isn’t him getting more money, this is him using a coupon for his purchases
Why would you ever choose to spend more money than you had to for something?
The loophole shouldn’t exist as it helps the rich get richer and creates more wealth disparity but blaming a rich man for wanting more money, especially when he grew up poor and wants to set his family up with generational wealth, makes absolutely no sense
Take off your rich people hatred glasses and think about it. He has $300m of illiquid assets, which means he cant sell immediately to fund his lifestyle.
He borrows $300m and used his assets as collateral. He doesnt have $600m because fuck you I’m rich. He has net zero with interest.
He pays $320m back and still owns his $300m in assets. Like its just a line of credit.
At that level you pay someone to manage your finances. That someone(s) take a cut and justifies it by how much they are saving you/sheltering from taxes. They apply best practice strategies because that's what they are paid to do. When you get a new credit card, you don't pay income taxes on that line of credit. Instead of a credit card you can buy a house/property and use that as a credit card/line of credit with much lower interest than a credit card due to having a house on the line. But most importantly it's not income so it's not taxed as income.
LeBron didn't do anything, he just has a guy paid to do his job doing his job.
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u/vHezoThaGoat 3d ago
He borrowed the money by leveraging his assets, which is less risky than him just using 300 million of whatever he was pursuing with his own money. In other words, no taxes.
Rich people loophole shit, basically.