AZ Republic: Bidwill Jr Wants His Say

[Duckjake]

People can say what they want about the old man but my guess is that hes a pretty shrewd character. I would guess that he has been transfering ownership through trusts and other means to his children for years if not decades. After the debacle with Stormy you can bet he has protected his interests and more importantly for him his legacy.

The top estate tax rate is around 45%. Just on the value of the football team the tax would be over $200 million.

So I would guess the B's have some top estate planners working with them. Well, on second thought, given the way they run the football team......

 

[daytripper]

The top estate tax rate is around 45%. Just on the value of the football team the tax would be over $200 million.

So I would guess the B's have some top estate planners working with them. Well, on second thought, given the way they run the football team......

Given the way they run the team they'll probably come out of the estate process 10 mil under the tax cap!!!

 

[ajcardfan]

Given the way they run the team they'll probably come out of the estate process 10 mil under the tax cap!!!

Yeah, old Bill will probably figure out a way to actually get a refund out of the deal!

 

[football karma]

The top estate tax rate is around 45%. Just on the value of the football team the tax would be over $200 million.

This is a very common problem with the estate tax and the inheritance of a low basis business (meaning the value of the business at death is all "gain" to be taxed) --

Given a franchise value now of $700 to $800 million, thats a tax of $300 to $350 mm.

Lots of businesses get sold so the tax can be paid (btw -- this is the most common argument for eliminating the estate tax -- it forces alot of family started businesses, farms, ranches, etc to be sold so the heirs can afford the tax)

It also gets interesting if the family doesnt get along. Even if the estate can afford the tax, if one family member demands his/her share in cash, often times that can force the sale of a business.

Certainly I can see a Bill Jr forcing a sale just to spite his brother

 

[Houdini]

When Jerry C. put the Suns up for sale, it sounded to me like it wasn't because he wanted to get rid of the Suns so much, but rather he wanted to avoid some of the issues with these estate and inheritance taxes in case he did pass away. My guess is Jerry C. is probably smarter on that front than Bill Bidwill too. I don't know all the tax laws and loopholes, but I thought the following quote from the following article regarding Jerry putting up the Suns for sale was interesting. It said:

"Like many aging sports team owners who bought their franchises decades ago, Colangelo, 64, is facing two onrushing issues: his own retirement and inheritance taxes. Jack Kent Cooke's son could not afford to buy his father's Washington Redskins in 1999 after the owner's death. Family-owned clubs like the Atlanta Falcons and New York Jets were sold in part because of estate-planning concerns. "

http://phoenix.bizjournals.com/phoenix/stories/2004/03/08/daily15.html

 

[vinnymac]

Can they just do us and the world a favor and SELL THE FREAKING TEAM!

if by some miracle the bidwills do decide to sell the team, i hope bill gates would be interested in buying the team. then again i wonder why the nfl turned down gates in buying the seahawks.

 

[ActingWild]

When Jerry C. put the Suns up for sale, it sounded to me like it wasn't because he wanted to get rid of the Suns so much, but rather he wanted to avoid some of the issues with these estate and inheritance taxes in case he did pass away. My guess is Jerry C. is probably smarter on that front than Bill Bidwill too. I don't know all the tax laws and loopholes, but I thought the following quote from the following article regarding Jerry putting up the Suns for sale was interesting. It said:

"Like many aging sports team owners who bought their franchises decades ago, Colangelo, 64, is facing two onrushing issues: his own retirement and inheritance taxes. Jack Kent Cooke's son could not afford to buy his father's Washington Redskins in 1999 after the owner's death. Family-owned clubs like the Atlanta Falcons and New York Jets were sold in part because of estate-planning concerns. "

http://phoenix.bizjournals.com/phoenix/stories/2004/03/08/daily15.html

Oh man, I actually had a moment of hope for a second there. Awful to think that Bidwill's passing could mean we'd finally get a real owner, but it makes me happy to see that there's a chance Sr. could be the last of the Bidwill owners.