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Financial Dispute and Unjust Exit Terms

8:05
19:13
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At 8:05 in

GROUNDED! Airplane Partnership is DONE! | True Story of Greed v/s Friendship

What happens here

Upon expressing his desire to leave, the original owner of the plane (referred to as Ricky), who purchased the plane in 1972, initially refused to let the new, fifth partner buy out his share at its current value of $31,875. Ricky insisted that the speaker would only receive his initial $22,500 investment back, completely disregarding the additional $7,000 the speaker contributed towards painting the plane (which the other partners hadn't wanted to pay for) and the appreciation in value from the upgrades. The speaker tried to negotiate, offering to settle for $24,000 (keeping $1,500 for the paint contribution), but Ricky remained steadfast and belligerent, stating that the extra money was 'his money' and that the speaker would be 'lucky' to get his initial investment back. This highlights a critical lack of formal agreements regarding asset valuation and partner buyouts within the partnership.

Goal: Illustrate the financial injustice faced by the speaker due to informal agreements.

Tools and materials

  • Cash Investment N/A — Initial investment in the plane
  • Paint Work Contribution N/A — His share of the cost to repaint the airplane

What they say

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start realizing and thinking to myself, "Josh, you're kind of getting screwed over here. So, if I've got a fourth of a plane that's worth $90,000 and we bring in a fifth person, does that dilute my share or does that mean that this plane is now worth more?" So, we've the value a little more because we replaced the entire interior while it was sitting in the shop and the windshield while it was sitting in the shop. So, on that math, the fifth partner was coming in at 25 five 25,500 bucks. So, if there are five people involved in the purchase of an aircraft and that person's paying $25,500, then that means 25,500 * 5 this airplane is worth $127,500. Right? Well, I went in and I told them, "I don't want I I don't I don't want to be a member of a fifth partner on this airplane. I want out." So, this guy could just buy my share for the 25 five. So, we had a meeting and we were meeting the new guy that was going to buy in on the plane and I just said, "I'm out. He can buy my share at 25 five." This is where I found out who were my friends and who were the money-grubbing uh part of this partnership. What was it all about? The original owner of the plane, let's just call him Ricky. We'll just say Ricky is the original owner of the plane. He bought the airplane back in 1972, way way back. Probably paid 12,000 bucks for this airplane back in that day. Since then, the plane's been rebuilt, overhauled, the engine has been overhauled, the plane's been painted, the paint is absolutely horrible right now. So, just prior to this, we'd all talked about painting this plane. After the deer repair, it would have had a white spot on it and then flaky, messy spots. In other words, we only painted one little section about this big on the airplane and the rest of it looks old. It's going to look like crap. And I I don't know about you guys, but I don't want to fly around in something that looks like Sanford and Son. I want to fly around in something that I can be proud of when I land at the airport, people won't think, "Oh, good gracious, that thing flies?" I don't want that. So, what I offered was I gave him 7,000 bucks towards my part my fourth of getting this plane repainted. And whatever it cost, we divide it by four and we repaint the plane. Nobody else wanted to repaint the plane, they just want to fly. I want something that I'm that I can be proud of. I want to take care of my equipment and that's part of taking care of my equipment, I think. Keeping it clean, keeping it…

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