Franchise value drops

[northernbillfan]

The Bills, along with every other team in the league, saw their values drop last year. Buffalo sits in the bottom five, worth about $799 million. The Jags are the leagues lowest team in terms of value at $725 million.

This raises three questions:

1: How does this affect the value of keeping the team in Buffalo?

2: Does this mean the Wilson family may be able to afford the stupid inheritance tax if Ralphy kicks it soon?

3: Now that they are under 1 billion, can someone inthe community step up to finance the team if the family decides to sell in the event of Ralph's death?

Source

[OpIv37]

Re: Franchise value drops

I think last year they were valued at $850 million. The drop really isn't enough to change anything as far as the long-term viability of the team is concerned.

[northernbillfan]

Re: Franchise value drops

I think last year they were valued at $850 million. The drop really isn't enough to change anything as far as the long-term viability of the team is concerned.

Last year's value was $910 million.

[trapezeus]

Re: Franchise value drops

This raises three questions:

1: How does this affect the value of keeping the team in Buffalo?

2: Does this mean the Wilson family may be able to afford the stupid inheritance tax if Ralphy kicks it soon?

3: Now that they are under 1 billion, can someone inthe community step up to finance the team if the family decides to sell in the event of Ralph's death?

Source

1. Perhaps it's easier to get the phantom Jim Kelly group to pony up $790MM than $910MM.

2. Nope, because if ralph doesn't kick it by December 31, 2010 at 11:59pm, the wilson estate will owe 50% of $910MM or $790MM, whatever the value is to the federal government. I doubt the family has 50% of that value in cash to make the payment. Therefore, they'll need to sell. And if they sell, they'll go to the highest bidder so that after tax they have the most left over.

3. i think this question is similar to 1. It will be easier for cash intensive investors. if the group of buyers have cash to buy it, then its great that the price falls. but if they need financing to a large degree, it doesnt' make much of a difference.

The biggest thing that would help keep the bills in buffalo is if ralph dies this year. it's a sad but true fact. and then there are all sorts of annoying political questions of why estates are allowed to get around this tax when historically it's always been at least 50%. But that debate would better be discussed in the spin zone.

[OpIv37]

Re: Franchise value drops

oh wow, that's a bigger drop than I thought.

Still, the taxes on $799 million are still in the $350 million range and the Wilson family can't afford it. Even if they could, I really think they just don't care enough to run the team.

[Aero II]

Re: Franchise value drops

If ther Bills are 5th lowest, I think there are 4 other teams more likely to move.

[OpIv37]

Re: Franchise value drops

If ther Bills are 5th lowest, I think there are 4 other teams more likely to move.

It's a good thought but the reality is a lot more complex. For example, Jacksonville has this insane stadium lease agreement that would cost about $50 million to break, which means it would be cheaper to buy and move 4 to 5 other teams (including Buffalo), even though the Jaguars would cost less to buy.

[BidsJr]

Re: Franchise value drops

then there are all sorts of annoying political questions of why estates are allowed to get around this tax when historically it's always been at least 50%. But that debate would better be discussed in the spin zone.

Don't you mean why the government gets to tax the family business again for something it has worked for? Not to mention the dollars they have confiscated in profits to Ralph, payouts to the players and taxes on consessions for the last 50+ years?

Sorry but that line of thinking is exactly why we will be SUPER lucky if the Bills end up staying in the State of New York after Ralph passes on.

[DraftBoy]

Re: Franchise value drops

Unless the inheritance tax goes away no value drop is going to be deemed enough to warrant the Wilson family to keep the Bills or ensure they are in Buffalo long term.

[Bufftp]

Re: Franchise value drops

The biggest thing that would help keep the bills in buffalo is if ralph dies this year. it's a sad but true fact. and then there are all sorts of annoying political questions of why estates are allowed to get around this tax when historically it's always been at least 50%. But that debate would better be discussed in the spin zone.

Uh oh some loco is gonna start a billboard....

[Dr. Lecter]

Re: Franchise value drops

There is no inheritance tax if he leaves the team to his wife.

[DraftBoy]

Re: Franchise value drops

There is no inheritance tax if he leaves the team to his wife.

Interesting, how old is she and is she in good health?

[Dr. Lecter]

Re: Franchise value drops

She is ~70. Plays tennis on a competitive level.


Ralph dies, she inherits the team. She then marries me in the next 5 years. When she passes, I get the team.

Boom! Problem solved!

[northernbillfan]

Re: Franchise value drops

There is no inheritance tax if he leaves the team to his wife.

I did not know that little tidbit.

[Dr. Lecter]

Re: Franchise value drops

I am pretty sure on that. I have been told that before.