Zombie Fire Olshey

she inherited the Blazers in one form or another. I have no clue what kind of trust(s) framework and will provisions Paul Allen had in his estate, but the Blazer franchise comes with an inheritance tax encumbrance. I've read that sometimes for multi-billion dollar estates, it can take several years to sort out the transfer of owner-ships and titles. But that encumbrance stands since she was PA's sister rather than spouse. It's the same for the Seahawks. For the two franchises, the valuation is somewhere in the 4-5 billion range. That could leave JA with a tax bill approaching 2B she has to pay, one way or the other, sooner or later. And that will only be a portion of the inheritance tax she owes

I remember reading an article out of a Seattle paper that said the easiest way out of the situation for her was to sell the Blazers in order to raise the cash to pay the tax. And that fit with her being a much bigger fan of the Seahawks than the Blazers

 

I th

Do you think Bert Koldie would be a potential buyer, he's always seemed to enjoy the Blazers along with Paul?

 

I’m fairly certain the team has a negative cash flow. The only way it makes money is through asset appreciation which would require selling the franchise.

 

I’ve been told there is a definite possibility she wants to sell the team. This doesn’t concern me.

 

Nope, just yesterday it was announced that every team had a positive cash flow this season except for the Thunder because they had huge luxury tax payments in previous seasons. Not wanting to head in that direction in future years was likely the reason for cutting payroll though.

 

Gotta link? I find that hard to believe.

 

Here you go:

https://www.forbes.com/nba-valuations/list/#tab:overall

The far right column lists operating income. Business is booming in the NBA.

 

Thanks. However that’s not equivalent to cash flow. Even so it’s better than I expected.

 

Thanks for clearing that up. Thought it was impossible.

 

Should have written definite “interest”. But thanks for policing this place what would we do without you

 

operating income is not profit. It says in that link that it's simply earnings before interest, taxes, depreciation, and amortization (which includes debt service)

for instance, Portland had a 51M operating income last year. From that, Portland would pay interest on any debt they have, principal payments, any property taxes (do the Blazers own the practice facility and headquarters?), any city taxes and franchise taxes, and depreciation

I'm assuming the Blazers and the Moda are separate entities. I'm pretty sure the Blazers are the primary tenant of the Moda, so the property taxes on the Moda wouldn't be coming out of the Blazers operating income. Which would mean the tenant costs are already levied against total revenue before the operating income calculation

so that 51M figure is going to be reduced a lot before landing on profit/loss. I have no clue what kind of debt Portland has, but Forbes lists their debt/value at 7%. For a 1.5B enterprise, a 7% debt/value sounds kind of significant, but maybe one of the financial guys here can define that...I can't

I know there can be all kinds of way to shelter income, so there very likely is some sheltered revenue that doesn't show up in operating income

 

Good initial point, then bad conclusion. You gave the reason why it WON'T be reduced a lot...only by tax on the $51M, and the near-zero interest.

Of course to convert profit to cash flow we need a funds-flow statement, and won't get one. But cash flow matters only if the owner lacks cash, and this one doesn't.

 

"Letting the cake bake."

Another prime year of Dame wasted.

This is Cho/Buchanan level hopelessness.

 

I’m sure another GM would have made sure that 4/5 of the planned starters weren’t injured at this critical time of the season.

 

Evidently Neil reads S2

 

We in the know have known this for quite some time.