Wilson Direct Quotes- And who controls sale of team?

[patmoran2006]

First a question.

If Ralph Wilson was to pass away, certainly not a stretch by any imagine at 88 years old. Who would be in control of the sale of the team? Would the franchise simply go to the highest bidder?

Also, I read the Rochester version of the Wilson interview, and I sure as hell don't like these direct comments.
http://www.democratandchronicle.com/apps/pbcs.dll/article?AID=/20070617/SPORTS03/70617001/1021

"There may be somebody who will come along in Buffalo and buy it. You can’t tell. I can’t guess the future and nobody can.”

Also this.
The Bills’ lease with Erie County runs through the 2012 season, but it would be easy to break if bought out under the terms of the agreement.

If the team was sold, a relocation would be subject to the approval of the other NFL owners.

Wilson said he would not consider selling part of the team to someone in Western New York while he’s still alive to give that person the chance to eventually take over the club.

“That’s absolutely out,” he said.
=====================================================
This sure as hell doesnt sound like an owner who is overly concerned that the Bills remain in Buffalo after his passing.

Anyway, thoughts or answers on how the team gets sold after he's gone?

[gil]

My guess - if he was afraid of the estate taxes his daughter would have to pay - then could he have it going into a trust of some sort with an executor who has specific instructions on the sale of the team and the distribution of the profits?

[patmoran2006]

My guess - if he was afraid of the estate taxes his daughter would have to pay - then could he have it going into a trust of some sort with an executor who has specific instructions on the sale of the team and the distribution of the profits?
I honestly dont know.. That certainly sounds logical though

[Stewie]

If the asset was his to transfer at will, he could pass it to his heirs just like any other asset, provided he does it legally.

However, since there are transfer restrictinos (other owners must approve, etc)... He can either agree on the sale terms before he dies, or have his estate negotiate with the league under whatever directive he gives them.

At the end of the day, he has more options if he handles it while alive. However, they may not be the best options for him, depending on his real motivations.

Time will tell

[gil]

Somebody has to know how the sale of a team works if the owner dies

Honestly, I'm not sure how many times this has happend outside of the NYG and Mara, and there he left it to his son.

[Mr. Pink]

The Sale of the team would be left up to his estate and lawyers to sell off, which would be done in the best interests of the family if no plan is drawn up by Mr. Wilson.

Meaning, the team would most likely be sold to the highest bidder to add the most money into the estate.

But even if a plan is drawn up, I still think it's gonna be somewhat tough for this area to keep the Bills after Mr. Wilson passes. The NFL is bis business and interested a lot in their bottom line as well as every owner. Say a Buffalo based group offers to buy the team for 650 million dollars and an out of state interest group based out of LA, which the NFL wants to get in that market...just using examples here....Say that group offers 800 million for the team- knowing full well they'll easily make money being in the 2nd largest TV market in America.

The other owners and NFL would more likely approve the sale to the LA group than the Buffalo group. Seeing it raises franchise values accross the board based on a higher selling price.

If you remember correctly every team that's moved now has to be approved by the league. Clevelands' move was approved by the league, Al Davis flipping the team from Oak to LA and back was approved. If those moves are approved, why wouldn't the Bills being moved be approved? As much as we'd all hate it, it's the grave circumstances of that matter.

I'm optimistically hopeful that the team will stay here, but that shadow of a doubt that they won't is still there based on the economics of the game. Not too mention some of Wilsons' actions/comments aren't helpful.

[gil]

Yeah, I read those comments and thought 'man, at least you could pretend like you give a bleep about the people and the fans' - maybe he does and the reporter just mis-characterized his remarks, but he sure sounded like a grumpy rich old man.

[patmoran2006]

So I could be wrong, but it SEEMS that Buffalo's best chance of remaining in Buffalo after Wilson is gone is for him to change his mind and sell the team while he's still alive. ?

[patmoran2006]

Yeah, I read those comments and thought 'man, at least you could pretend like you give a bleep about the people and the fans' - maybe he does and the reporter just mis-characterized his remarks, but he sure sounded like a grumpy rich old man.
Ya , that wasn't encouraging at all and I was more than a little surprised. It sounded like he was "bothered' when Mark Gaughn brought up selling the team anytime soon while he's still alive.

[gil]

So I could be wrong, but it SEEMS that Buffalo's best chance of remaining in Buffalo after Wilson is gone is for him to change his mind and sell the team while he's still alive. ?
it would seem that way - leaving it up to the highest bidder is scary, but there are so many other considerations (league approval of a buyer, relocation, political pressure from schumer and others, bad PR for the league) that it's almost crazy to speculate at this point - but that's what we're here for.

[Mr. Pink]

So I could be wrong, but it SEEMS that Buffalo's best chance of remaining in Buffalo after Wilson is gone is for him to change his mind and sell the team while he's still alive. ?


I would agree with this. I feel it would get into more of a "bidding war" if the team makes it into his estate. Estate lawyers only care about the bottom line, and Wilson has already stated he's not leaving the team to anyone.

If Ralph were to sell off a portion of his team now to a local owner who'd own say like 10% now or whatever it may be, then would complete the buyout when Wilson passed on...I think that would be the best way to go. And a way that the NFL would agree to.

Thing is and even Ralph must realize this, the terms of the sale, would be based most likely on todays prices and market value. So say that deal is in place...the person who buys now, agrees to give Ralph 60 million now for a 10% stake and then 600 million when dies. Who's to know/say if Ralph does live 10 more years, it is possible, the franchise will be worth well more than 660 million in 10 years. And then Ralph has screwed his family out of some money. Which could be 200 million dollars, who knows? I understand that yes to you and me 660 million is a lot of money, but Ralph has probably made double that since he's been owner of this franchise.

So Ralph is in the middle of either being loyal to the community that helped him become what he is today or loyal in getting his family the most money he can.

I dunno if I was Ralph if I could easily make that decision myself.

[lordofgun]

I'm not worried about it.

[Stewie]

I disagree that the estate lawyer will necessarily care only for the bottom line.

Ralph could possibly have some unique options if he really wanted to give his baby to Buffalo. He could donate a lions share of the team to various western New York institutions, maybe some schools, hospitals, churches, and set up a trust to manage the annual operating expenses.

Of course, the NFL would need to approve anything. And if they wanted the team in LA for the next tv renewals, it will happen.

[Ickybaluky]

I disagree that the estate lawyer will necessarily care only for the bottom line.

Ralph could possibly have some unique options if he really wanted to give his baby to Buffalo. He could donate a lions share of the team to various western New York institutions, maybe some schools, hospitals, churches, and set up a trust to manage the annual operating expenses.

Of course, the NFL would need to approve anything. And if they wanted the team in LA for the next tv renewals, it will happen.

Current bylaws prevent that type of ownership structure.

[patmoran2006]

I'm not worried about it.
Respectfully and without being combative about it.

Why are you not worried about it? What do you see that makes you feel good about the prospects about the next owner of the Bills buying a team that will stay here.

[DynaPaul]

I think Ralphie's ego as a shrewd businessman is stopping him from selling it to Golisano right now. Face it... by not selling the team before he dies he puts this franchise at a HUGE risk of being acquired by someone who wants to move the team. Obviously he's fine with that.

[feldspar]

Whoever is the executor of the team (Wilson's lawyers - or whoever) has to approve of the sale too, no? That means that the team doesn't necessarily have to go to the highest bidder, right? Obviously, Wilson's heirs want as much money as they can get for the team, but is it possible that they would accept less money to be able to keep the team in Buffalo? I mean we are talking about hundreds of millions of dollars here. Would his heirs think about selling the team for 100 million less to keep the team in Buffalo? Would the league disapprove of such a tactic for some reason? In other words, the highest bidder probably won't be from Buffalo or have any interest in keeping the team here...but there is nothing forcing the executor to sell the team to the highest bidder. After all, this isn't an auction, is it?

One thing is for sure: if Wilson's family sells the team to someone planning to move the team to another city just to put outrageous amounts of money in their pocket, they'd better never show their face in my neighborhood. They wouldn't be welcome. At this point, Ralph doesn't seem to care because he'll be dead.

[patmoran2006]

As i said a few days ago.. IM overcritical of the players, coaches and front offices at times, even when its undeserved.. I admit to this.

But when it comes to Wilson, I think I"m pretty spot-on when I say.
**** HIM.

[feldspar]

But when it comes to Wilson, I think I"m pretty spot-on when I say.
**** HIM.

I used to think that saying something like that was taboo.

Not anymore.

[SABURZFAN]

I think Ralphie's ego as a shrewd businessman is stopping him from selling it to Golisano right now. Face it... by not selling the team before he dies he puts this franchise at a HUGE risk of being acquired by someone who wants to move the team. Obviously he's fine with that.



which goes to show that the Old Senile Bastard don't give a rats ass about us fans.......



only our money.

[El Guapo]

Why would he sell it, or any portion of it, now? Think about the financial implications behind such a move. Sell it now and pay taxes on long term capital gains (what, 20%?), only to then pay estate taxes on the remainder upon passing. Remember, his basis in the team is twenty-five thousand dollars ($25,000.00).

Let's keep it simple and say the team is worth one million dollars ($1,000,000.00). If a sale were executed tomorrow, he would pay two hundred thousand ($200,000.00) in capital gains taxes, so he would net eight hundred thousand dollars ($800,000.00). Then, let's say he dies the next day. If he passes the remainder to his wife, no tax consequences. But, if he passes it to his other heirs, then the estate tax kicks in at forty-five percent (45%). So, the net effect for the heir would be four hundred, forty thousand dollars ($440,000.00).

Now, let's play it out the other way. Wilson dies, and the team is valued at one million dollars ($1,000,000.00). His estate sell the team and passes it to his heirs. The estate tax would be due, but the tax effect to the heirs would only be four hundred, fifty thousand dollars ($450,000.00). The net cash after the taxes would be five hundred, fifty thousand dollars ($550,000.00), or a difference of eleven percent (11%).

Assuming the team can command six hundred, fifty million, this difference would be over seventy-one million dollars ($71,000,000.00). That's quite a few reasons to hold off on selling the team. Fans or no fans; city or no city; if I am advising him, I'm telling him to watch the cash.

If there is a tax attorney here who can clarify or refute this, please do. I haven't taken a tax class since law school, so my percentages may be off.

Don't get me wrong, I want them to stay in Buffalo as bad as everybody else. However, we are talking about buckets of cash on the line, and you can't get pissed at the guy for watching out for his own.

[SABURZFAN]

Why would he sell it, or any portion of it, now? Think about the financial implications behind such a move. Sell it now and pay taxes on long term capital gains (what, 20%?), only to then pay estate taxes on the remainder upon passing. Remember, his basis in the team is twenty-five thousand dollars ($25,000.00).

Let's keep it simple and say the team is worth one million dollars ($1,000,000.00). If a sale were executed tomorrow, he would pay two hundred thousand ($200,000.00) in capital gains taxes, so he would net eight hundred thousand dollars ($800,000.00). Then, let's say he dies the next day. If he passes the remainder to his wife, no tax consequences. But, if he passes it to his other heirs, then the estate tax kicks in at forty-five percent (45%). So, the net effect for the heir would be four hundred, forty thousand dollars ($440,000.00).

Now, let's play it out the other way. Wilson dies, and the team is valued at one million dollars ($1,000,000.00). His estate sell the team and passes it to his heirs. The estate tax would be due, but the tax effect to the heirs would only be four hundred, fifty thousand dollars ($450,000.00). The net cash after the taxes would be five hundred, fifty thousand dollars ($550,000.00), or a difference of eleven percent (11%).

Assuming the team can command six hundred, fifty million, this difference would be over seventy-one million dollars ($71,000,000.00). That's quite a few reasons to hold off on selling the team. Fans or no fans; city or no city; if I am advising him, I'm telling him to watch the cash.

If there is a tax attorney here who can clarify or refute this, please do. I haven't taken a tax class since law school, so my percentages may be off.

Don't get me wrong, I want them to stay in Buffalo as bad as everybody else. However, we are talking about buckets of cash on the line, and you can't get pissed at the guy for watching out for his own.


yeah....when the Old Fart croaks,he doesn't lose ****.

[Michael82]

I used to think that saying something like that was taboo.

Not anymore.
Me too. :sigh:

[feldspar]

Me too. :sigh:

It's a shame, isn't it?

Ralph could leave an outstanding legacy, but if the Bills move after he's dead, there won't be too many people in Buffalo that even like him, let alone think highly of him. Ralph giveth and Ralph taketh away...

His family is going to be more than totally set forever if the team stays or goes, so what's stopping him from giving back to the community that did so much for him? He should at least put out some feelers out to see who is interested in keeping the Bills in Buffalo that can afford it. He knows how much the team means to lot of people.

[lordofgun]

Respectfully and without being combative about it.

Why are you not worried about it? What do you see that makes you feel good about the prospects about the next owner of the Bills buying a team that will stay here.
I try not to worry about things I can't control. Until the Bills leave Buffalo, I'll be cheering for them. :up: