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Francesa hearing “rumblings” Woody Johnson might sell the team.


T0mShane

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1 minute ago, TuscanyTile2 said:

Even though it would be great to have our own stadium, I think it would be a gigantic waste of money/resources to build a 2nd stadium to play a maximum of 13 games a year (a maximum of 2 preseason, 9 regular season, and 2 postseason).

What's really disappointing is that the Jets and Giants spent $1.6B and built an oversized air conditioner.  Compare that to some of the other new stadiums (e.g. Rams, Raiders)

It's Jersey.

Probably close to half of that went to Union heads and local politicians. 

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6 hours ago, Sperm Edwards said:

Well I already gave a couple reasons to wait, starting with there’s nothing in it for him to sell.

He can always step down as CEO, retain ownership, and still be better off $-wise. He’s retained his CEO title because he enjoys it. He doesn’t want to wash his hands of it — if only that were so.

Also people tired of “the circus” don’t sign up for another one while still owning this one.

The Circus thing goes away if we finally get a franchise QB If we got Tom Brady and Belichick stayed here Robert Kraft up in NE gets the clown role and he certainly would have . We were close and I can't understand why Bill Resigned but he did and that was a turning point. When you win, everything changes and Woody has tried to win, he has tried to make the right choices for GM and HC, he's just missed the mark. 

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1 hour ago, Smashmouth said:

The Circus thing goes away if we finally get a franchise QB If we got Tom Brady and Belichick stayed here Robert Kraft up in NE gets the clown role and he certainly would have . We were close and I can't understand why Bill Resigned but he did and that was a turning point. When you win, everything changes and Woody has tried to win, he has tried to make the right choices for GM and HC, he's just missed the mark. 

Even if the circus went away I don't think there would be any guarantee of championships, considering how loaded the AFC is with FQBs:

Josh Allen

Lamar Jackson

Deshaun Watson

Joe Burrow

Patrick Mahomes

Justin Herbert

Russell Wilson

[Potentially Trevor Lawrence if the hype is legit]

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13 minutes ago, TuscanyTile2 said:

Even if the circus went away I don't think there would be any guarantee of championships, considering how loaded the AFC is with FQBs:

Josh Allen

Lamar Jackson

Deshaun Watson

Joe Burrow

Patrick Mahomes

Justin Herbert

Russell Wilson

[Potentially Trevor Lawrence if the hype is legit]

Plenty of Great QB"s who only won 1 SB some didn't win any. QB is the biggest part to the puzzle but it's not the only one. Keep in mind with the defense we have and the skill players on offense if we had Tom Brady in his prime we are easily a contender for not just the playoff's but the SB as well. Thats why its so easy for analysts to hate on the Jets because they know we don't have that one big part.

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9 hours ago, Sperm Edwards said:

Well I already gave a couple reasons to wait, starting with there’s nothing in it for him to sell.

He can always step down as CEO, retain ownership, and still be better off $-wise. He’s retained his CEO title because he enjoys it. He doesn’t want to wash his hands of it — if only that were so.

Also people tired of “the circus” don’t sign up for another one while still owning this one.

A lot of money, a big profit is whats in it for him. Being extremely wealthy doesn't mean that isn't a big motivation. In fact, many would argue its an even larger motivation for someone that wealthy. 

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21 hours ago, y2k8 said:

Woody is 75 with a wife in her 50s and two school age sons.

It would be negligent of him not start considering possible sale of the team as part of an estate plan strategy. 

What makes you think Woody Johnson is capable of anything above negligence?

Serious question.

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1 hour ago, pointman said:

A lot of money, a big profit is whats in it for him. Being extremely wealthy doesn't mean that isn't a big motivation. In fact, many would argue its an even larger motivation for someone that wealthy. 

My very point is he already has access to those profits without selling it, and further makes still more in the form of asset appreciation. 

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3 hours ago, y2k8 said:

I dunno, but I assume she's a big fan of maximizing her and her children's inheritance when the old man croaks...

But who knows, maybe she wants to be the next Georgia Frontiere.

If she's smart and resourceful enough, she can have the entire fortune tomorrow if she wants.

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12 hours ago, y2k8 said:

I dunno, but I assume she's a big fan of maximizing her and her children's inheritance when the old man croaks...

But who knows, maybe she wants to be the next Georgia Frontiere.

The kids don’t make more by him selling the team before they inherit it. They’d inherit less. Billions less.

You’re proposing the idea that they inherit more if he first pays a billion dollars in capital gains taxes and further accumulated capital gains made on the leftover amount? I don’t see it.

Just for simple math, say the team’s presumed value and sale price are the same, at around $4BN more than Woody initially paid. If he sells it now, what is that, like $1BN in capital gains taxes (again, really rounding off here)? So they’d effectively inherit $1BN less, because (I think) they only pay the amount the asset appreciates starting after the latter parent’s death. 

Doesn’t nearly stop there…

Further, they’d lose the additional (after-tax) amount of the accumulated team income amounts every year, plus the interest that money made via investing it (don’t presume he stuffs it under his mattress in cash). The Jets had an operating income of $136MM last year.

  • That amount further rises with each subsequent network deal & price increases for seats & luxury boxes & merch sales, but just for easy math say it’s $100MM profit clear of taxes.
  • Being unrealistically conservative, say that amount never rises, which is absurd.
  • If the longer-living parent dies just 20 years from now, that’s an additional $2BN over time. Except that’s only in the unlikely event they then place & keep it in a zero-interest checking account; factoring in the compounded interest on that $ over time it’s surely at least hundreds of millions more, if not another cool billion for investors of his magnitude that get in on IPOs or other opportunities not offered to typical investors.
  • Call it half that, or a net $2.5BN of after-tax cumulative operating income amounts. The kids lose that additional $2.5BN (minus estate taxes, assuming they sell it all upon inheriting the team, or more likely, the trust the team’s put into).

So we’re already up to $3.5BN less the kids would inherit, again being unrealistically conservative, and it doesn’t end there.

On top of that, they’d further lose the additional 20 years of appreciation on the value of the franchise itself, which has appreciated some $4BN over the prior 20 years (which itself was a continuous 20-year period of relatively low inflation we’re not presently in). If it merely appreciates another $4BN over the next 20 years despite greater inflation from this past FY itself, add that to the losses. However, selling it now surely would’ve resulted in different but still positive investment on the after-tax amount, so I don’t know, cut it in half at $2BN.

What’s that now, another $5.5BN less they’d inherit (minus the estate taxes on that amount), if the longer-surviving parent only lives another 20 years.

I’m struggling to see the estate planning advantage in selling it now.

@southparkcpa not to drag you into this, but just for my own curiosity do I have any of this right? I do frequently talk out of my…flagellum. ;) 

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1 hour ago, Sperm Edwards said:

The kids don’t make more by him selling the team before they inherit it. They’d inherit less. Billions less.

You’re proposing the idea that they inherit more if he first pays a billion dollars in capital gains taxes and further accumulated capital gains made on the leftover amount? I don’t see it.

Just for simple math, say the team’s presumed value and sale price are the same, at around $4BN more than Woody initially paid. If he sells it now, what is that, like $1BN in capital gains taxes (again, really rounding off here)? So they’d effectively inherit $1BN less, because (I think) they only pay the amount the asset appreciates starting after the latter parent’s death. 

Doesn’t nearly stop there…

Further, they’d lose the additional (after-tax) amount of the accumulated team income amounts every year, plus the interest that money made via investing it (don’t presume he stuffs it under his mattress in cash). The Jets had an operating income of $136MM last year.

  • That amount further rises with each subsequent network deal & price increases for seats & luxury boxes & merch sales, but just for easy math say it’s $100MM profit clear of taxes.
  • Being unrealistically conservative, say that amount never rises, which is absurd.
  • If the longer-living parent dies just 20 years from now, that’s an additional $2BN over time. Except that’s only in the unlikely event they then place & keep it in a zero-interest checking account; factoring in the compounded interest on that $ over time it’s surely at least hundreds of millions more, if not another cool billion for investors of his magnitude that get in on IPOs or other opportunities not offered to typical investors.
  • Call it half that, or a net $2.5BN of after-tax cumulative operating income amounts. The kids lose that additional $2.5BN (minus estate taxes, assuming they sell it all upon inheriting the team, or more likely, the trust the team’s put into).

So we’re already up to $3.5BN less the kids would inherit, again being unrealistically conservative, and it doesn’t end there.

On top of that, they’d further lose the additional 20 years of appreciation on the value of the franchise itself, which has appreciated some $4BN over the prior 20 years (which itself was a continuous 20-year period of relatively low inflation we’re not presently in). If it merely appreciates another $4BN over the next 20 years despite greater inflation from this past FY itself, add that to the losses. However, selling it now surely would’ve resulted in different but still positive investment on the after-tax amount, so I don’t know, cut it in half at $2BN.

What’s that now, another $5.5BN less they’d inherit (minus the estate taxes on that amount), if the longer-surviving parent only lives another 20 years.

I’m struggling to see the estate planning advantage in selling it now.

@southparkcpa not to drag you into this, but just for my own curiosity do I have any of this right? I do frequently talk out of my…flagellum. ;) 

Sounds fairly reasonable but there is no way we know all the facts and issues. I am sure the team is owned in a Trust by the family members and the family in doing estate planning is looking at the whole picture. The one glaring ite I bolded. While correct, on death each would pay a staggering Estate Tax which is double the Capital Gains tax BUT should really be a wash in the end. So.. who knows.

When you look at it your way, which is very probable, he's be a fool to sell.  

 

 

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On 9/16/2022 at 11:12 AM, TuscanyTile2 said:

Even if the circus went away I don't think there would be any guarantee of championships, considering how loaded the AFC is with FQBs:

Josh Allen

Lamar Jackson

Deshaun Watson

Joe Burrow

Patrick Mahomes

Justin Herbert

Russell Wilson

[Potentially Trevor Lawrence if the hype is legit]

Forgot to put Zach Wilson on the list

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On 9/15/2022 at 3:56 PM, y2k8 said:

Woody is 75 with a wife in her 50s and two school age sons.

It would be negligent of him not start considering possible sale of the team as part of an estate plan strategy. 

Woody sells the jets. He makes a $2billion profit and we might actually be a competitive team again

 

Everyone wins.

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On 9/14/2022 at 12:24 PM, T0mShane said:

Interesting stuff because Francesa hobnobs with the extremely monied class. 35 minute mark.

Bonus: Him and Tannenbaum think Saleh is on a doomed path.

https://podcasts.apple.com/us/podcast/the-mike-francesa-podcast/id1615588712?i=1000579467398

mark cuban looking for NFL team

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On 9/16/2022 at 1:44 PM, JetPotato said:

I am blown away on the length of a thread about something that is an obvious attention-grabbing fabrication from a talk-show buffoon.

Its like somebody saying they have inside info the stock you bought is about to go through the roof.

You believe it because you want to believe it.

But really you lost lost your kid’s college fund and Woody Johnson is keeping the Jets and moving them to London.

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