The European Super League has raised questions about how football clubs are funded and why they end up swimming in debt. Here’s what the experts say.

Super League
Soccer fans protest plans for a European Super League.

  • The ESL was set to be one of the most elite and wealthy breakaway football leagues ever.
  • Despite the league’s collapse, it’s triggered a fan-led review into clubs’ financial situations.
  • Two football finance experts told Insider how clubs earn money and why they get into so much debt.
  • See more stories on Insider’s business page.

The new European Super League (ESL) came crashing down recently after nine football clubs pulled out of the plans following huge backlash from fans, politicians, and players.

The 12 teams that were about to join the elite breakaway league would have been handed between 100 million to 350 million euros ($120 million to $420 million), the Financial Times first reported.

The ESL was also planning to receive $4.2 billion in debt financing from JPMorgan over a 23-year period, before the US investment bank said it “misjudged” the deal after the majority of the teams withdrew from the league within 48 hours.

Now, a fan-led review into English football will take place to assess clubs’ finance, ownership, and supporter involvement in the game.

But it begs the question: where does all this money come from in the world of football? Overall, there are three main sources of revenue: broadcasting, commercial, and matchday revenue.

TV broadcasting revenue

TV deals are one of the most important sources of income for football clubs. which can be sold domestically and internationally. Leagues, such as the highly popular English Premier League, own the television distribution rights of all their games.

TV channels bid for the rights to air the matches and the football leagues sells them to the highest bidder. For the Premier League, this happens every third season and is typically Sky Sports, BT Sports, and most recently, Amazon Prime.

Robert Wilson, football finance expert and lecturer at Sheffield Hallam University, told Insider that broadcast revenue typically makes up around 70% of the income of most Premier League clubs.

Although each club gets an equal share of the deal from the Premier League, they also receive merit payments – if they’re shown on TV more, they get paid more.

Wilson said that last year, Liverpool, who won the Premier League, earned around £150 million ($208 million) from the domestic TV rights deal, while Norwich City, who came last, earned around £110 million ($153 million). Relegation is therefore a costly and daunting prospects for clubs near the bottom of the league.

Read more: What Wall Street bankers really thought about JPMorgan’s $4.2 billion European Super League deal

The rights to show Premier League matches between 2019 and 2022 were sold for nearly £4.5 billion ($6.2 billion) in 2018, with Sky Sports getting hold of the majority of the games. This was a drop from £5.1 billion ($70 billion) in the 2016-2019 seasons.

Reports suggest that when broadcasters bid for 2022-2025 TV rights this summer, they won’t be prepared to spend as much as they did in previous years. Since BT Sports and Sky Sports agreed to a content-sharing deal in 2017, competition dropped between TV channels for the need to bid big, The Guardian reported in January.

“They were trying to produce – in my view – more football and the market was probably saturated,” Wilson said.

Commercial revenue

Another big money pot for football clubs is commercial revenue – in other words, income from sponsorship and merchandising, ranging from shirt sales, license holders, and retail outlets.

Big brands, such as Adidas, pay license fees to football clubs to stick the club’s logo on their shirts. As an example, Wilson said Adidas pays Liverpool a flat fee of £75 million ($10.4 million) to license the production of their replica jerseys.

“It doesn’t matter if they sell one shirt or a hundred million shirts, they still get £75 million,” Wilson said.

He also said the shirt sponsor, which is stuck on the front of the football shirt, is also a source of commercial revenue, as well as shirt-sleeve sponsors. Some of this revenue goes into the other parts of the club, such as the women’s club, he added.

The merchandising aspect of commercial revenue was hit hard during the COVID-19 pandemic because of the closure of shops, Dr. Nicolas Scelles, senior lecturer in sports management at Manchester Metropolitan University, told Insider.

“They can still sell online, but of course it affects the commerical revenue,” he said.

Matchday revenue

The final major source of income for clubs is the money they earn on the day of a match. This includes matchday sponsorship, the sponsor on the ball, and most importantly, tickets sales.

The expensive corporate boxes, which business people use to entertain clients in, contributes to the total income, as well as food and drink sales.

It’s important to note that matchday revenue varies depending on the size of the club stadium – a bigger stadium with more fans, such as Arsenal’s Emirates stadium, will generate more revenue on a match day.

Scelles said this type of revenue has been affected the most by COVID-19 considering that stadiums were forced to close for the majority of 2020.

Transfer fees can also be income, Scelles said, as well as club owners’ injecting in their own money, but these two factors aren’t consistent sources of revenue that keep every football club up and running.

So why do clubs end up drowning in debt?

Player transfer fees and players’ salaries are the two main things that football clubs spend their money on, and they’re not cheap, especially when there’s no cap on how much players earn.

The most expensive transfer fee so far was Neymar da Silva Santos Júnior who transferred from Barcelona FC to Paris Saint Germain (PSG) for £200 million ($277 million) in 2017.

Wilson said it’s not uncommon for a number of clubs to spend more than they earn, and many have 140% of expenditure to turnover. The expenditure usually gets underwritten by future revenues, he added.

“Because the TV deals and the sponsorship arrangements are multi-year, they’ve got some guaranteed future revenue. But then they tend to accrue large debts and that’s why we see frequent instances of ownership change,” Wilson said.

Ownership transition can happen when a club ends up in millions of dollars of debt and a new owner takes over from the previous one to inject more money into the club. But this starts the cycle all over again, Wilson said.

The piles of debt stem from the huge competition between the teams. They’re all fighting to win the most trophies, nab the best players and be the best in the league. As a result, they hike up players’ salaries and transfer fees.

This “winner takes all scenario” sets benchmarks for other clubs, Wilson said. For example, Neymar being transferred for £200 million lifted the entire ceiling for how much transfer fees should cost, he said.

Wilson believes football’s financial system isn’t sustainable. “These losses are almost accepted as part and parcel of the financial model,” he said. “There’s loopholes and grey areas,” he said.

The only reason why there’s a review into the finances after the European Super League is because the clubs involved are some of the biggest in the world and the logistics of the league sparked uproar from loyal fans, Wilson said.

From a business perspective, Scelles doesn’t think clubs being in debt is a bad thing as the money is being used to generate more revenue, develop the club, and extend it internationally. But he said there needs to better financial management in place, even though this is hard to regulate in football.

Read the original article on Business Insider

Under Biden’s plan, the top 1% of Americans would pay an extra $100,000 in taxes every year

biden amtrak
President Joe Biden and First Lady Jill Biden.

  • Biden wants to increase taxes on the highest-earning Americans to offset his spending plans.
  • His proposed increases would basically only impact the top of 1% of Americans, according to a report.
  • Biden’s tax proposals aren’t final, and his proposed capital gains increase may not go up that much.
  • See more stories on Insider’s business page.

Under President Joe Biden’s proposed tax increases, the top 1% of Americans could soon see their tax bills grow by about $100,000 per year.

A new report from the Institute on Taxation and Economic Policy (ITEP) finds that only the highest-earning Americans would see their taxes change if President Biden’s proposed increases to the income tax rate and capital gains rate pass. That change is concentrated amongst the top 1%, defined as those with an income over $681,600 (their average income is $2,167,700). The bottom 99% of taxpayers would see a 0% tax change, it said.

On average, the highest earners would see an increase of $104,130 in taxes, coming in at around 4.8% of their income. For those making between $276,200 to $681,600 – an average income of $404,100 – the average tax increase would be $20 a year.

Some states will be hit harder than others by tax increases

In a few states, a larger share of the population would feel the impact of proposed tax hikes. The report highlights that in five states – and the District of Columbia – a more than 1% share of the population would feel a hit.

Those are New Jersey, Massachusetts, Connecticut, California, and New York. In Massachusetts and New Jersey, 1.2% of the population would be affected by tax hikes. The wealthiest New York City residents will soon have the highest tax rate in the country regardless, per Insider’s Hillary Hoffower.

Biden’s proposals target the wealthy, but they’re not final

Biden’s latest tax proposals explicitly target the highest-earning Americans to offset the costs of multibillion-dollar investments in childcare, education, and paid leave. He’s also proposed raising the corporate tax rate from 21% to 28% to offset investments in infrastructure like roads and bridges.

Beyond increases, the IRS could also get about $80 billion in funding to ramp up enforcement on the wealthiest taxpayers, as Biden is proposing. A recent study by IRS researchers and academics found that the top 1% of Americans may be hiding billions from the IRS; Biden’s increased IRS funding could raise $700 billion over a decade, which would still leave the wealthy hiding hundreds of billions.

Of course, the package still has a long way to go before becoming law. A Morgan Stanley research note looked at Biden’s proposals versus what they predict as possible, and said the corporate tax rate and rate on capital gains will ultimately come in lower. However, the income tax rate increase and IRS enforcement will likely be as Biden proposes.

“Look, I’m not out to punish anyone. But I will not add to the tax burden of the middle class of this country,” Biden said in a Wednesday speech to the joint session of Congress.

He added: “When you hear someone say that they don’t want to raise taxes on the wealthiest 1% and on corporate America – ask them: whose taxes are you going to raise instead, and whose are you going to cut?”

Read the original article on Business Insider

A fight over Trump’s SALT tax cap is threatening to derail Biden’s $2 trillion infrastructure plan

Trump Biden
President Joe Biden and former President Donald Trump.

  • A bipartisan group of lawmakers is seeking to reverse Trump’s 2017 SALT tax cap.
  • The demands of the “SALT Caucus” could impact Biden’s $2 trillion infrastructure package.
  • The caucus said the cap resulted in higher tax bills in New York, California, and other states.
  • See more stories on Insider’s business page.

A congressional battle line was forming last week over former President Donald Trump’s SALT tax cap, which is threatening to derail President Joe Biden’s $2 trillion infrastructure proposal.

A bipartisan group of more than two dozen lawmakers, calling itself the SALT Caucus, formed to push for Trump’s cap on tax deductions be reversed. They sought to include it as part of Biden’s plan to stimulate the nation’s economy.

“This issue is so critical to our state and our constituents that we will reserve the right to oppose any tax legislation that does not include a full repeal of the SALT limitation,” the newly formed group said in a letter.

The caucus could cause problems for Biden as he prepares to push a massive spending bill through a deeply divided Congress. Democrats hold a slim majority in the House, adding greater weight to each vote against his plan.

For Biden to eliminate the cap as part of his spending plan, there would have to be “a discussion about how that would be paid for, what would be taken out instead,” Jen Psaki, White House press secretary, said Thursday.

She added: “As you also know – just with our little calculators out – it is not a revenue raiser, and so it would add costs – and potentially significantly – to a package.”

Progressive Rep. Alexandria Ocasio-Cortez seemed to be at odds with the caucus last week.

“I don’t think we should be holding the infrastructure package hostage for a 100% repeal of SALT,” Ocasio-Cortez, of New York, told a pool reporter.

SALT, which is part of Trump’s 2017 tax cut, placed a $10,000 cap on federal deductions for state and local tax. The caucus said the cap resulted in increased tax bills in New York, California, and other high-tax states.

Eliminating the cap would likely lower taxes for the wealthy, who could claim higher deductions on their federal returns. But it could also raise the cost of Biden’s plan, making it more difficult for House Speaker Nancy Pelosi to usher the plan through the House.

New Jersey’s Rep. Josh Gottheimer, a member of the new caucus, also spoke out. He said it “it is high time that Congress reinstates the State and Local Tax deduction, so we can get more dollars back into the pockets of so many struggling families – especially as we recover from the pandemic.”

Read the original article on Business Insider

Europe’s wealthy are falling behind – London just dropped out of the top 10 cities for very high net worth individuals

london street

  • A new report looks at where the very high net worth – between $5 million to $30 million – live.
  • London fell out of Wealth-X’s top 10 ranking for the first time dating back to 2004.
  • The US dominated the ranking, with seven cities in the top 10 including the top spot – New York.
  • See more stories on Insider’s business page.

London is no longer a top-10 hub for very high net worth (VHNW) individuals.

In fact, the city’s share of VHNW individuals dropped by 16% in 2020, according to a Wealth-X’s second edition of the Very High Net Worth Handbook, which classifies VHNWs as having net worth between $5 million and $30 million.

London was knocked out of eighth place to 12th – the first time that London has been out of the top 10 since Wealth-X records dating back to 2004.

The report cites a few different factors for London’s fall down the ranks, including damages from Brexit, general pandemic economic conditions, and “poorly performing” equity markets. All was compounded by much stronger showings for the VHNW in the US and Asia.

As Insider’s Harry Robertson reported, the UK’s economy shrank by 9.9% in 2020 – the worst contraction on record as the UK fared the worst of the G7. The UK has also been particularly hard hit by the virus.

“The third major wealth region of Europe significantly underperformed its global peers, with the VHNW population declining by 7% to 623,880 individuals,” the report said.

Meanwhile, New York remained in first place, showing that a different story was unraveling across the pond. In fact, US cities represent the vast majority of the top 10 for the VHNW, with seven cities making the list. New York is holding fast to number one, and all of the US cities represented saw their VHNW populations grow.

The wealthiest Americans also saw substantial growth in 2020, with America’s billionaires adding $1.62 trillion to their wealth over the last 13 months.

On the whole, the VHNW population grew by 1.3%, amounting to a total of around 2.7 million. That’s a much smaller gain than prior years, but Wealth-X predicts a robust recovery and 1 million more VHNW individuals by 2025. Even still, the VHNW population’s total wealth rose by 1.2% to a total of $26.8 trillion.

On the other hand, a recent report from the Pew Research Center found 54 million people fell out of the global middle class, classified as those who earn about $14,600 to $29,200 a year, meaning they live on around $10 to $20 a day. A January report from Oxfam estimated that not only did 200 million to 500 million potentially fall into poverty in 2020 – it could also take a decade for the bottom to recover.

London’s drop on the VHNW list is another potential signal of its uncertain future as a financial hub, and as a home for the wealthy. In March, London saw drops in the Global Financial Centres Index, which ranks how competitive different finance hubs are. While it’s still the second top financial center, it fell over 10 points and barely ranks above Shanghai.

Read the original article on Business Insider

The 6 richest Americans are worth more than the GDP of 13 US states combined, including Delaware, Maine, and Hawaii

Tesla CEO Elon Musk and Amazon CEO Jeff Bezos.

  • According to Forbes, six Americans are worth more than $100 billion, making them centibillionaires.
  • Their combined fortune of $815 billion is just over the collective GDP of the US’ 13 poorest states.
  • Amazon CEO Jeff Bezos is worth nearly $200 billion, beating the 2020 GDP of Utah.
  • See more stories on Insider’s business page.

America’s richest keep getting richer.

The six richest Americans are worth more than the GDP of 13 states combined, including Delaware, Maine, and Vermont, according to data from Forbes and the US Department of Commerce.

The publication’s rich list contains six “centibillionaires” – people worth at least $100 billion each.

In a new report, the Institute for Policy Studies (IPS) and Americans for Tax Fairness (ATF) said this meant that individually, each of the centibillionaires had a net worth bigger than the GDP of each of the 13 poorest US states.

Read more: 9 hurdles facing Biden’s $2.2 trillion infrastructure, jobs, and tax plan as Republicans pitch a less-pricey alternative

But calculations by Insider show that, collectively, these six centibillionaires have a collective fortune bigger than that of the 13 states combined.

Amazon CEO Jeff Bezos, Tesla CEO Elon Musk, Microsoft co-founder Bill Gates, Facebook CEO Mark Zuckerberg, Berkshire Hathaway CEO Warren Buffet, and Oracle founder and chairman Larry Ellison have a combined fortune of around $815 billion, per Forbes data from April 12.

US 10 richest people

This is just over the combined GDP of the 13 poorest US states, according to 2020 data from the US Department of Commerce: Hawaii, New Hampshire, Idaho, Delaware, West Virginia, Maine, Rhode Island, North and South Dakota, Montana, Alaska, Wyoming, and Vermont.

Bezos is worth nearly $200 billion – just over the 2020 GDP of Utah.

Vermont has the lowest GDP of all the US states, at $32.8 billion in 2020, followed by Wyoming and Alaska, though this is largely due to their small populations.

Mississippi has the lowest GDP per capita, at $38.5 billion. It has high levels of poverty and a low median income, in part caused by its historic reliance on cotton agriculture.

The ATF and IPS also found that over the last 13 months, American billionaires increased their wealth by 55%, Insider’s Juliana Kaplan reported. In the second half of 2020, meanwhile, 8 million Americans fell into poverty, according to a study by the University of Notre Dame and the University of Chicago.

“We’re going to come out of the pandemic another degree of more unequal,” Chuck Collins, director of the Program on Inequality at IPS, told Kaplan.

Oxfam suggested wealth taxes could be a good option to reverse this. In December, academics published a study of 50 years of tax cuts for the wealthy that suggested “trickle-down” economics made inequality worse and didn’t lead to economic growth and employment.

Argentina became the first country to respond to the pandemic with a one-off “millionaire tax” approved by its Congress in December, which the government hopes will raise $3.78 billion to help pay for its pandemic response.

The US has also ramped up efforts to tax its highest earners.

Massachusetts Sen. Elizabeth Warren has proposed an “ultra-millionaire” tax on individual net worth above $50 million, while New York Gov. Andrew Cuomo included tax hikes for the state’s richest in his 2022 budget proposal.

President Joe Biden, meanwhile, has proposed raising the corporate tax to 28% as a way to fund his $2 trillion infrastructure plan. The package, which Biden hopes will overhaul the US economy, includes investments in transportation, water, broadband, power, housing, and education.

Read the original article on Business Insider

Gen Z is going to have a hard time getting rich

gen z
Gen Z is set to make less money on stocks and bonds.

  • Gen Z will earn a third less on stock and bond investments than past generations, Credit Suisse found.
  • They can expect average annualized returns of just 2%, according to the bank’s investment returns yearbook.
  • Another obstacle for Gen Z: they’ve been the most unemployed during the pandemic.
  • See more stories on Insider’s business page.

Gen Z is walking a rocky road to getting rich.

They’re set to earn less than previous generations on stocks and bonds, according to Credit Suisse’s global investment returns yearbook.

In fact, the generation can expect average annual real returns of just 2% on their investment portfolios – a third less than the 5%-plus real returns that millennials, Gen X, and baby boomers have seen. Credit Suisse’s analysis took in average investment returns since 1900 and forecasted them going forward for Gen Z.

The yearbook acknowledges that marked deflation could increase bond returns, The Economist reported, but it said inflation is more of a concern. What the report calls a “low-return world” is yet another another financial obstacle for the generation, who may be on track to repeat millennials’ money problems.

A December Bank of America Research report called “OK Zoomer” found that the pandemic will impact Gen Z’s financial and professional future in the same way that the Great Recession did for millennials.

“Like the financial crisis in 2008 to 2009 for millennials, Covid will challenge and impede Gen Z’s career and earning potential,” the report reads, adding that a significant portion of Gen Z is entering adulthood in the midst of a recession, just as a cohort of millennials did. “Like a decade ago, the economic cost of this recession is likely to hit the youngest and least experienced generation the most.”

Gen Z was hit hardest in the workforce

Gen Z been been impacted the most in the workforce, facing the highest unemployment rates.

They entered a job market crippled by a 14.7% unemployment rate in May – greater than the 10% unemployment rate the Great Recession saw at its 2009 peak. Those ages 20 to 24 had an unemployment rate of nearly 27% when the unemployment peaked last April according to data from the St. Louis Fed, more than any other generation.

Recessions typically hit younger workers hardest in the short-term, but can reap long-term consequences.

“The way a recession can really hurt people just starting out can have lasting effects,” Heidi Shierholz, a senior economist and the director of policy at the Economic Policy Institute, previously told Insider. “There’s a lot of evidence that the first postgrad job you get sets the stage in some important way for later.”

Recession graduates typically see stagnated wages that can last up to 15 years, Stanford research shows. That was the case for the oldest millennials graduating into the Great Recession, who in 2016 saw wealth levels 34% lower than that of previous generations at the same age, per the St. Louis Fed.

A follow-up study showed that by 2019, this cohort had narrowed that wealth deficit down to 11%. Such financial catch-up could be an optimistic sign for Gen Z in terms of regaining any ground lost building wealth during the pandemic.

However, millennials have had a 5%-plus annualized investment return on their side. With a projected 2% annual return for Gen Z, building wealth may be even harder to do.

There’s more to building wealth

Of course, stocks and bonds are just two asset classes. There are other ways Gen Z can build wealth, such as investing in real estate or by becoming successful entrepreneurs. Many Gen Zers have already embarked on an entrepreneurial path as early as their teen years, which could go a long way in wealth creation.

But the pandemic has caused a housing frenzy that led to depleted inventory and inflated housing prices, making it more difficult to buy real estate – and build wealth through it. And while more prospective new businesses were formed in 2020 than ever before, almost a third of existing small businesses were wiped out by the pandemic. Altogether, the pandemic could ultimately cause Gen Z to potentially lose $10 trillion in earnings.

Within the next decade, Gen Z’s income will rise to such a point that they’ll effectively take over the economy, but their wealth could well be far behind previous generations by the time they get there.

Read the original article on Business Insider

I got a tour of Citi’s new wealth hub in Singapore for high-net-worth clients, a 30,000-square-foot space with ‘garden pods’ for meetings. Look inside.

singapore citi wealth hub
The space features “garden pods” for meetings.

  • I toured Citi’s new wealth hub in Singapore for its high-net-worth clients.
  • It was designed to cater to clients with assets starting at 250,000 Singapore dollars, or about $186,000.
  • It felt more like an upscale lounge than a bank. It was full of trees, a free café, and “garden pods” for meetings.
  • See more stories on Insider’s business page.
Global investment bank Citi has opened a 30,000-square-foot wealth hub on Singapore’s Orchard Road, the city-state’s glitzy luxury shopping thoroughfare.

singapore citi wealth hub

The Citi Wealth Hub on Orchard Road, Citi’s largest wealth hub globally, was created to cater to the bank’s Citigold and Citigold Private Clients, who must have at least 250,000 Singapore dollars ($186,000) and SG$1.5 million ($1.1 million) in investable assets respectively. 

The idea is to bring together Citi’s Singapore-based relationship managers and wealth specialists in a central location where they can advise these clients on building their wealth, according to a Citi spokesperson. 

While Citi doesn’t disclose its numbers of Citigold and Citigold Private Clients, there’s no shortage of wealthy potential clients in Singapore.


The city-state is home to 3,732 ultra-high-net-worth individuals, or individuals worth at least $30 million, according to Knight Frank’s 2021 Wealth Report.

In the 2021 Global Financial Centres Index that ranks global financial centers, Singapore ranked fifth overall after New York, London, Shanghai, and Hong Kong.

“Citi has an enormous opportunity to serve the growing affluent segment in Singapore,” Brendan Carney, CEO of Citibank Singapore Limited and Global Consumer Banking, said in a statement announcing the opening of the wealth hub in December. 

I recently got a tour of the Citi Wealth Hub, which spans 30,000 square feet across four floors. The seventh floor is dedicated to the Citigold Centre for Citigold clients, who must have at least SG$250,000 ($186,000) in assets.

singapore citi wealth hub

Clients are greeted by a sleek reception area with fresh flowers. Like everywhere else in Singapore right now, everyone is required to check in with contact tracing app Trace Together.

The Citigold Centre is a large glass-walled atrium with meeting pods, a cafe, and an abundance of greenery.

Singapore citi wealth hub

Ministry of Design, the interior design firm responsible for the space’s biophilic design, refers to the atrium as a “Banking Conservatory.”

It certainly didn’t feel like any bank I’d been in before.

singapore citi wealth hub

Instead of tellers or conventional meeting rooms, there are “garden pods” where clients can meet with their wealth managers.

Each pod is set up with a round table, four chairs, and a screen where a relationship manager can advise the client using a larger screen instead of a laptop or tablet.

singapore citi wealth hub

Source: Citi

A free cafe serves Lavazza coffee, TWG tea, and chocolate bon bons from local pastry chef Janice Wong.

singapore citi wealth hub

Source: Citi

And there are other nooks throughout where clients can meet with their relationship manager or just lounge with a coffee.

singapore citi wealth hub

Source: Citi

The most exclusive part of the wealth club is the Citigold Private Client Centre on the eighth floor.

singapore citi wealth hub

To become a Citigold Private Client, you must have investable assets of at least SG$1.5 million, or about $1.1 million. 

These clients gain access not only to the wealth hub in Singapore, but to a dedicated relationship manager who consults with a team of specialists, including portfolio counselors and mortgage specialists, to best advise the clients.

The Citigold Private Client Centre is a smaller, intimate space, filled with small meeting nooks – and still plenty of greenery.

singapore citi wealth hub

Source: Citi

From this area, Citigold Private Client members can order something from the cafe with one of the staff and have it delivered to them.

singapore citi wealth hub

Source: Citi

The wealth hub has 30 client advisory rooms that are named after national trees and flowers of countries where Citi has a presence.

singapore citi wealth hub

Source: Citi

The Citi employees who work at the wealth hub occupy the sixth floor.

singapore citi wealth hub

Plastic dividers separate individual workspaces in the plant-filled office.

The wealth hub can house more than 300 relationship managers and wealth specialists, but in Singapore, only 75% of a company’s employees are currently allowed to be in the office at one time.

singapore citi wealth hub

Source: The Straits Times

My tour of the Citi Wealth Hub made it clear that the luxe space was designed for a world where in-person meetings and events were the norm.

singapore citi wealth hub

During my tour, the Citi spokesperson emphasized that the wealth hub was meant to bring clients together with their relationship managers and wealth specialist for in-person rather than online meetings.

The initial plan was also to hold seminars and talks with business leaders, according to the Citi spokesperson. Right now, the only events are online.

In the pandemic, people have grown more accustomed than ever to virtual meetings, and in-person events have become much more limited.

Still, Singapore is likely closer to a return to in-person normalcy than most other countries, as the city-state has contained the virus and reported only 30 deaths throughout the pandemic.

Read the original article on Business Insider

Kim Kardashian is officially a billionaire, according to Forbes

kim kardashian west house

Reality TV star and fashion and beauty guru Kim Kardashian West has appeared on the Forbes World’s Billionaires List for the first time.

Forbes cites Kardashian West’s two businesses, shapewear company Skims and makeup line KKW Beauty, in addition to “reality television and endorsement deals and a number of smaller investments” as the reason for the valuation.

In June of 2020, Kardashian West sold a 20% stake in her cosmetics company KKW Beauty to makeup giant Coty, in a deal that ultimately placed the value of the brand at $1 billion overall, according to Reuters.

Kardashian West also earned money from her family’s E! network reality show, “Keeping Up With The Kardashians,” as well as real estate.

Forbes estimated Kardashian West’s net worth from October of last year at $780 million. Kardashian West’s soon-to-be-ex husband Kanye West also appeared on the Forbes list for the first time this year, with a valuation of $1.8 billion attributed to his sneaker brand Yeezy and his musical career. Forbes had previously confirmed West was worth $1.3 billion in August 2020, but he was not included in Forbes’ 2020 World’s Billionaires List as it was published in April.

2021 isn’t the first time Forbes has featured a member of the Kardashian-Jenner family. Kylie Jenner also once appeared in the pages of Forbes as a billionaire after launching her Kylie Cosmetics line. She appeared on the cover of Forbes’ women billionaires issue in August of 2018. However, Forbes later ran a major story saying that Jenner’s net worth had been overvalued and that Jenner was no longer considered a billionaire by Forbes’ standards.

Read the original article on Business Insider

The typical older Black millennial has 17 times less wealth than white peers, and student debt may be why

The millennial racial wealth gap persists.

Older millennials born in the 1980s are making a wealth comeback, but there’s a vast racial wealth gap lurking underneath this progress.

In 2016, older millennials’ wealth levels were 34% below where they should be if the Great Recession hadn’t occured, per a 2018 study by the Federal Reserve Bank of St. Louis. Within three years, the first part of a new St. Louis Fed study found, they had narrowed that wealth deficit down to 11%.

However, the second installment of the Fed’s study reveals that these strides look quite different when broken down by race. While white and Hispanic families saw improvement in building wealth, the study states, Black families experienced the reverse as they fell further below wealth expectations between 2007 and 2019.

From 2016 to 2019, white families of this older millennial cohort saw wealth levels go from 40% to 5% below where they should be. That wealth deficit doubles to 10% for Hispanic families, but that is still less than their 2016 wealth deficit of 15%. The deficit soars for Black families, who were 52% below wealth expectations in 2019 – a significant increase from 39% three years prior.

These differences look just as staggering when framed as median wealth for the same year. For older white millennial families, that’s $88,000 – four times the $22,000 median wealth for Hispanic families and roughly 17 times the $5,000 median wealth for Black families.

The report doesn’t take into consideration effects from coronavirus recession, as full data for that period isn’t yet available.

Black millennials bear a bigger student debt burden

Despite these wealth differences, the St. Louis Fed found that all three groups had income levels that aligned with expectations, indicating that earnings weren’t preventing wealth accumulation.

The report suggests that one reason older Black millennials are increasingly falling below wealth expectations is because of their staggering student-loan debt.

Black students shoulder a heavier debt burden than their white peers: About 87% of Black students attending four-year colleges take out student loans compared to about 60% of white students. They also owe $7,400 more on average than their white peers after graduating, per the Brookings Institute.

Black borrowers under the age of 40 were also more likely to be behind on payments in 2019 than white or Hispanic borrowers, according to the Federal Reserve. Black graduates are nearly five times as likely to default on their loans than their white peers.

The racial wealth gap is why some politicians and lawmakers are advocating for student-debt cancellation. Several experts previously told Insider that communities of color would be one of the groups that will gain the most from student-debt cancellation plans.

Right now, it looks like this socieconomic divide isn’t close to narrowing any time soon. As the St. Louis Fed report’s authors, Ana Hernández Kent and Lowell Ricketts, wrote, “Given the large wealth deficit and negative trend, the disparities among older Black millennials may persist as these families age, inhibiting their full participation in the economy.”

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Meet the millennial designer and CEO who wants to make comfort clothing the new power dressing

Misha Nonoo
Misha Nonoo.

Way back in 2011, Misha Nonoo was having brunch with some friends in Manhattan. She was around 25 at the time, sporting a jacket that she herself had designed.

By chance, a buyer for the brand Intermix was sitting one table over. “She said, ‘I love the jacket you’re wearing, where is it from?’ And I said, ‘Oh, I made it,” Nonoo recalled to Insider.

Next thing she knew, Nonoo found herself in the buyer’s office, showing off eight original designs. “I walked out with a purchase order for six of the eight pieces,” Nonoo said. It was worth $150,000.

A few months later, Nonoo officially launched her eponymous clothing line, and within two years, she became a finalist for the prestigious CFDA/Vogue Fashion Fund. In 2015, she was named one of Forbes’ 30 Under 30. That same year, she became the first designer to host a fashion show on Instagram. The next year, Snapchat.

Read more: Inside the world of ‘Bling Empire’s’ Jaime Xie, the tech heiress forging her own path as a fashion influencer

Nonoo, now 35, told Insider she can’t exactly remember her first celebrity client but said her first clients were her friends and family whose support helped build the business – it’s just that Markle and Princess Beatrice happen to be in her friendship circle. Another friend, Facebook COO Sheryl Sandberg, was a key player in her groundbreaking Instagram fashion show. (Nonoo is married to Michael Hess, heir to the Hess oil fortune and an energy entrepreneur.)

Today, the brand counts celebrities such as Bella Hadid, Cate Blanchett, Meghan Markle, and Amal Clooney as fans. In 2019, she teamed up with Markle, then a working royal, on a clothing line for the women’s charity Smart Works. The sleek designs and sustainable ethos of Nonoo’s brands are some of the reasons it’s won such highly placed fans.

“I have always been a huge fan of Misha – personally and professionally,” stylist Sarah Slutsky told Insider. “I love the way she prioritizes uniform dressing. I think a formula for what to add to your closet is empowering and helpful for many women. I believe when you can build a wardrobe with pieces that are interchangeable, the options for feeling put together are endless and the result is confidence.”

Nonoo’s latest collection, entitled “The Perfect 10,” includes white collared shirts, cozy turtlenecks, and sweatpants, intended for the new on-the-go – just from the bedroom to the kitchen table for yet another Zoom meeting.

In an interview with Insider, Nonoo talks about her latest fashion collection, getting her start in fashion, and the future of sustainability in the industry.

Her brand doesn’t keep inventory and doesn’t have seasonal collections

Growing up, Nonoo always knew she wanted to start her own thing. Born in Bahrain, Nonoo relocated with her family to London at the age of 11.

She attended college between London and Paris, going to both the European Business School and the École Supérieure du Commerce Extérieur, studying international business and French.

At 23, she came to New York to work at a menswear tailoring company, which agreed to sponsor her visa. “I wanted to live in New York,” she said. “This was my way in.”

She has come a long way since that chance encounter in Manhattan. Today, A hallmark of her business model is that she produces everything on-demand, and does not create seasonal collections. The former was inspired by a situation that arose early on in her fashion career.

In the very beginning, she had worked with one retailer that placed an enormous purchase order. She was excited, she recalled.

“Then I quickly realized you only have a 10-week full-price selling period and your gross margin agreement means that every week you’re on sale, [wholesalers are] chipping away at that gross margin,” she said.

Misha Nonoo
Slutsky told Insider that Nonoo “carefully considers what it is to invest in a clothing item in a way that you would have an item designed to last.”

“The agreement is designed so that you’ll never win as a designer,” she continued. “It was always designed in the favor of the major department store.”

The store also decided to return any inventory that was not sold, leaving Nonoo with excess product. “That was a huge learning curve,” she said, adding that all the money that was being wasted could have easily put her out of business.

“Now I look back on that,” she continued. “That was the beginning of me starting to manufacture on-demand and to understand that I wanted to own my relationship with my customer and that I never wanted to be beholden to a major department store.”

That worked out well, as wholesalers were hit hard during the pandemic. Some filed for bankruptcy, while all were severely impacted by the loss in foot traffic as shopping pivoted online.

Meanwhile, because Nonoo now produces everything on demand, as manufacturing in China shut down, she could turn to Peru and Los Angeles for production without losing much money from wasted inventory.

The brand also began honing in on its social media strategy and was able to launch a loyalty program for customers, with the highest tier including a tailoring allowance and a personal stylist. For that, customers have to spend at least $2,800.

Misha Nonoo
Jules Miller, founder of The Nue Co., wearing the latest Misha Nonoo collection.

Consumers are educating themselves more on sustainability, Nonoo says

Although the pandemic has accelerated this, Nonoo said she thinks customers have been educating themselves on how to consume less.

For those with the means, it’s about forging fast-fashion and buying pieces of clothes one knows they will reuse over and over again. That’s who Nonoo’s line seeks to service, the customers that want quality staple items that will be reused over and over again.

Even young people – many of whom still buy cheap fast fashion – have become conscious about how the industry is polluting and damaging the environment, Nonoo said.

“A lot of them use platforms like Threat Up and the Real Real, Poshmark to buy things secondhand,” she continued. “As opposed to buying virgin fashion that comes from a source like one of the major fashion brands.”

Aside from making seasonless products and not keeping an inventory, Nonoo’s brand has also eliminated single-use plastic from its supply chain and has plans to forgo using single-use polyesters.

Another trend that will follow long after the pandemic is seasonless fashion shows, Nonoo said. That’s ironic for Nonoo, as she made headlines years ago for being the first designer to host an Instagram runway show.

Misha Nonoo
Commercial lawyer Thandi Maqubela wearing the latest Misha Nonoo designs.

That opportunity came about one night while Nonoo was having dinner at the home of a friend of hers, Facebook’s Sheryl Sandberg.

Nonoo told Sandberg that earlier that day, she had toured Instagram’s headquarters and spoke to someone who works in the marketing and events department about how the fashion industry was quickly changing.

She relayed the conversation to Sandberg, who agreed that the industry was undergoing a shakeup. The idea of a virtual fashion show emerged.

“She said, ‘Well, Instagram can’t officially partner with anyone,'” Nonoo said. “But she was really incredibly helpful and walked me through what the parameters were and the lines we could cross.”

There were strict guidelines for the show, which, Nonoo said, helped her and her team be even more creative. But that didn’t make the task any easier. It was hard because an Instagram fashion show “hadn’t been done before.”

But now, Nonoo is leading the way to another runway disruption – hardly doing them at all.

“It’s about consuming things when you need them, that fit into your life, and that are going to work for you for a long time,” she said.

Nonoo said she thinks the pandemic has disrupted the industry so much, that even when shows fully come back, “I don’t think fashion weeks are going to be the same.”

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