Kelly the Dog Posted January 8, 2007 Posted January 8, 2007 Pardon my interruption, but $250M is a hell of a financial bath. And you also say this as if 2/3 of 31 other owners do not have to approve the sale. They are interested in preserving and increasing the value of their own franchises as well; allowing the sale of any franchise for less than market value hurts every franchise. DO NOT expect Buffalo to get a sympathy !@#$. Agreed, on both points. Ralph will not be able to give a big hometown discount to potential buyers. What he will probably be able to do is not simply sell out to the highest bidder, if they are from another city and plan to move the team. The NFL wants a team in Buffalo, contrary to the doomsayers.
Lurker Posted January 8, 2007 Posted January 8, 2007 Wait, I thought that Ralph makes $30M a year? Just ask Forbes. And the lack of inheritance tax at least allows his wife/daughter enough time to find a suitable replacement owner who would be willing to keep the team in Buffalo. At least in theory. I would HOPE that his daughter isn't solely motivated by money. Plus it beats any -- I repreat, any -- alternative investment vehicle in terms of annual appreciation.
Lurker Posted January 8, 2007 Posted January 8, 2007 If I was the heir and didn't want to run the team. I would sell a majority stake to a rich investor and keep a large but minority position and let someone else run the team while I sit back and collect the shareholder stake each year, not to mention that initial shot of cash when stake is sold. That would indeed be the best option, IMO. Whether a buyer would "settle" for just a majority stake would be the big question mark.
UConn James Posted January 8, 2007 Posted January 8, 2007 Plus it beats any -- I repreat, any -- alternative investment vehicle in terms of annual appreciation. No sh--. Supermarket chains are rolling around screaming for joy at 1 percent net profits.
Mickey Posted January 8, 2007 Posted January 8, 2007 Wait, I thought that Ralph makes $30M a year? Just ask Forbes. And the lack of inheritance tax at least allows his wife/daughter enough time to find a suitable replacement owner who would be willing to keep the team in Buffalo. At least in theory. I would HOPE that his daughter isn't solely motivated by money. Maybe so but isn't that from all his income sources, not just the Bills? I thought his business concerns went way beyond the Bills. Why would a new owner want to keep the Bills in Buffalo if he can double or triple his investment in another city? Even if the family wanted to find an owner who was willing to pay what the franchise was worth who would keep the team in Buffalo, how in the world would they find such a person and how could they enforce such a promise? First of all, the family is going to want market value which is a figure that would be based on the worth of an NFL franchise in whatever city currently wants a team bad enough. The value isn't going to be based on the what an NFL team in Buffalo NY is worth. That will be a very large figure, maybe 750 million, who knows? Who in the world would pay 750 million for a franchise and then keep it in a location where its earnings reduce its value to 500 million? I just think it is a pipe dream that someone is going to be willing to sacrifice a few hundred million bucks to keep the team in Buffalo. God bless Ralph for not cashing in and moving years ago. Our best bet is to keep him alive or hope that somehow he has found a way to force his heirs to keep the team here. I want to hope that his daughters, a new owner, the league, someone will do whatever needs to be done to keep the team in Buffalo but I just don't see it happening. Its math.
UConn James Posted January 8, 2007 Posted January 8, 2007 God bless Ralph for not cashing in and moving years ago. Our best bet is to keep him alive or hope that somehow he has found a way to force his heirs to keep the team here. Anyone take Advanced Cryogenics classes? Hey, Focker (ajzepp), get up there and gerentolo-gate!!
Tcali Posted January 8, 2007 Posted January 8, 2007 I'm not sure the inheritance tax is really much of a factor in the decisions being made by the Wilson family members. The fact is that this franchise as an asset has a huge value, not because it is generating buckets of cash where it is now, in Buffalo. Its huge value and corresponding huge inheritance tax is based on its market value. That value is massive because of the cash it can generate somewhere else. Simply moving will raise an ubelievable amount of money as whatever city that wants this team bad enough will make whatever deal it takes with a post-Ralph owner. Even if there were no taxes, the heirs of Ralph Wilson would make way more money from selling the team than they will make in year to year operational income. If you had a choice between selling the team for 750 million or keeping it and cleraing 3 or 4 million per year, what would you do? The problem is not tax law, it is the inescapable fact that this team, this asset, can generate waaaaaaay more cash in another city than it can in Buffalo. Because it can, buyers will be willing to pay boatloads of cash for this team and that sale will generate far more income for the heirs than would keeping the team. Probably the best alternative to selling the team for the heirs is to keep it and move it to a more profitable location themselves. The inescapable logic of math is unfortunately going to cost us this team eventually. But Ralph knows he will go to hell for eternity if he allows that to happen. I think that affected his already made decision.
Tom Posted January 8, 2007 Posted January 8, 2007 Anyone take Advanced Cryogenics classes? Hey, Focker (ajzepp), get up there and gerentolo-gate!! Instead of 'Weekend at Bernies', we could have...... Well you get the idea.
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