I note that the world's number one golfer, Nick Faldo, appears to be as dab a hand with the balance sheet and ledger as he is with a number nine iron. Nick Faldo (International) Ltd, a company where his parents and his wife are the directors, has as its main activity 'the promotion of a professional golfer'. Some 98 of the 100 shares in the business are held by Faldo himself (paying out a healthy dividend per share in the latest accounts for the year ending September 1991).
While the company did not receive any of Faldo's considerable prize money or appearance fees in its 1991 accounts, merchandising income and golf course endorsements provided the bulk of a £2.42 million turnover. Even so, the business notched up administrative expenses of £2.46 million, which after income from interest was added in resulted in a loss for the year before tax of £12,721. As a result, Nick Faldo (International) was able to keep the tax bill down to a very reasonable £165,657. What were the biggest elements of the administrative expenses? Presumably the payroll costs of the five employees of Nick Faldo (International), which totalled some £1.425 million.