Page 2 of 4 FirstFirst 1234 LastLast
Results 11 to 20 of 31

Thread: NFL tells Rooneys it wants Dan to be in control

  1. #11
    Pro Bowler
    Join Date
    May 2008
    Location
    Woooooo!
    Posts
    1,259

    Re: NFL tells Rooneys it wants Dan to be in control

    I don't want to turn this into a political argument but i think it's necessary to point out the issue thats driving this is the estate tax. It's so friggin high that the only way some of the brothers can afford to pay it based on the current value of the steelers is to sell their shares. The tax almost guarantees that parents can't leave valuable items to their children.

  2. #12
    Hall of Famer
    Join Date
    May 2008
    Posts
    3,113

    Re: NFL tells Rooneys it wants Dan to be in control

    Quote Originally Posted by Jom112
    It might not be a bad thing if SD gets part or majority ownership.
    Sorry bro, but No. ... At least, that's my opinion... And I'm sure that there is some sort of plan in place... Or would think so.

  3. #13
    Pro Bowler
    Join Date
    May 2008
    Location
    Delray Beach, FL
    Posts
    1,473

    Re: NFL tells Rooneys it wants Dan to be in control

    What this shows is that Dan has earned the respect of his peers, not bought it - yes, I'm looking at you Jerry Jones & Dan Snyder.
    It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust & sweat & blood...

  4. #14
    Hall of Famer
    Join Date
    May 2008
    Posts
    3,113

    Re: NFL tells Rooneys it wants Dan to be in control

    Quote Originally Posted by starlifter
    I don't want to turn this into a political argument but i think it's necessary to point out the issue thats driving this is the estate tax. It's so friggin high that the only way some of the brothers can afford to pay it based on the current value of the steelers is to sell their shares. The tax almost guarantees that parents can't leave valuable items to their children.
    Sorry brother.... That is really a cop-out.... Do you really think that is what is driving them? They can "pass-down" alot, including part ownership... Yes, estate tax is part of the issue, but not the defining factor... I do not agree with the position that "it's too expensive"... But I do think that they want it NOW, for thier own benefit (not thier children).

  5. #15
    Legend fordfixer's Avatar
    Join Date
    May 2008
    Location
    State of confusion
    Posts
    7,535

    Re: NFL tells Rooneys it wants Dan to be in control

    Quote Originally Posted by Jom112
    Quote Originally Posted by NKySteeler
    Quote Originally Posted by fordfixer
    That's true I don't mind SD getting part as long as Dan has more
    I don't want SD having ANY part.... Consider me "old fashioned", but I like it "in house"...
    It might not be a bad thing if SD gets part or majority ownership. Look at it this way:

    Scenario 1: Dan Rooney ends up buying majority ownership. He's still 76, do you guys know if he has a succession plan? If it's Art Rooney II taking over do you guys trust him to take the franchise over? Also buying up the majority share probably means money will be a little more tight.

    Scenario 2: SD ends up buying majority ownership. He has already stated that he doesn't mind Dan Rooney staying in control for a while longer. Then when SD does eventually take over at least you know that the team will be stable from a financial standpoint. You can hate on people like Steinbrenner, Jerry Jones, Mark Cuban and others but their teams are perennial playoff contenders. As long as SD isn't as eccentric as those other billionaires he might be a good fit for you guys.

    If Dan Rooney does have a solid succession plan in place then just ignore my comments...
    Good points I like the idea of more money going to the team but I still want the Rooney's in control

    Molon labe

    People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf. George Orwell



    American metal pimped by asiansteel
    Only two defining forces have ever offered to die for you 1. Jesus Christ, 2.The American G.I., One died for your soul, the other for your freedom.

  6. #16
    Legend RuthlessBurgher's Avatar
    Join Date
    May 2008
    Location
    Where the Rubber Meets the Road (in NEPA)
    Posts
    21,132

    Re: NFL tells Rooneys it wants Dan to be in control

    Quote Originally Posted by NKySteeler
    Quote Originally Posted by starlifter
    I don't want to turn this into a political argument but i think it's necessary to point out the issue thats driving this is the estate tax. It's so friggin high that the only way some of the brothers can afford to pay it based on the current value of the steelers is to sell their shares. The tax almost guarantees that parents can't leave valuable items to their children.
    Sorry brother.... That is really a cop-out.... Do you really think that is what is driving them? They can "pass-down" alot, including part ownership... Yes, estate tax is part of the issue, but not the defining factor... I do not agree with the position that "it's too expensive"... But I do think that they want it NOW, for thier own benefit (not thier children).
    Isn't estate tax on huge amounts like this taxed extraordinarily heavily, like in the neighborhood of 40-45%? So if one of these guys died, and his 16% of the team was passed down to his heirs, wouldn't those kids have to pony up somewhere in the neighborhood of $70 million to Uncle Sam just to keep Dad's shares (assuming the value of the team as a whole is right around a cool billion). I could be way off on this, though (any accountants in the house?)

  7. #17
    Pro Bowler
    Join Date
    Jun 2008
    Location
    Chicago
    Posts
    1,498

    Re: NFL tells Rooneys it wants Dan to be in control

    Quote Originally Posted by RuthlessBurgher
    Quote Originally Posted by NKySteeler
    Quote Originally Posted by starlifter
    I don't want to turn this into a political argument but i think it's necessary to point out the issue thats driving this is the estate tax. It's so friggin high that the only way some of the brothers can afford to pay it based on the current value of the steelers is to sell their shares. The tax almost guarantees that parents can't leave valuable items to their children.
    Sorry brother.... That is really a cop-out.... Do you really think that is what is driving them? They can "pass-down" alot, including part ownership... Yes, estate tax is part of the issue, but not the defining factor... I do not agree with the position that "it's too expensive"... But I do think that they want it NOW, for thier own benefit (not thier children).
    Isn't estate tax on huge amounts like this taxed extraordinarily heavily, like in the neighborhood of 40-45%? So if one of these guys died, and his 16% of the team was passed down to his heirs, wouldn't those kids have to pony up somewhere in the neighborhood of $70 million to Uncle Sam just to keep Dad's shares (assuming the value of the team as a whole is right around a cool billion). I could be way off on this, though (any accountants in the house?)
    The post-gazette had a good article about the estate tax situation:

    http://www.post-gazette.com/pg/08223/903229-66.stm

    So the estate tax is in the 45% range but it also states that nobody really pays the full 45%. The number is usually around 22%, so if the Steelers are worth say $800 million and one rooney owns 16%, that individual will probably pay around $28 Million. Still a sizable chunk but manageable I would assume.

    Of course things could change over the next several years and taxes could go up.


    For those who want a little more numerical analysis:

    There are "payment plans" the article talked about, one of them was where the taxes would be paid over a 15 year period at a very low interest rate. Lets say for argument one of the brothers children owes $28 Million. The profits from the Steelers brings in about $3.2 Million a year per individual owner ($20 Mil total X 16% ownership = $3.2 Mil). That person would make about $48 Million over 15 years. Subtract those profits from the taxes owed:

    $48 Million - ($28 million in taxes + interest (At 4.25% it would be $1.19 Million) = $18.81 Million

    A profit of a little over $1 million a year. Taxes going up might be equalized with profits going up due to a new CBA and increasing profits for the NFL. So the numbers shouldn't change too much based on outside factors.

    I can kind of see why some of the brothers might want out. Over $1 Million a year would be great for me, but when you get to the Rooney's level I'm sure they have business interest that can generate more profits than that on a yearly basis...

  8. #18
    Legend fordfixer's Avatar
    Join Date
    May 2008
    Location
    State of confusion
    Posts
    7,535

    Re: NFL tells Rooneys it wants Dan to be in control

    Quote Originally Posted by Jom112
    Quote Originally Posted by RuthlessBurgher
    Quote Originally Posted by NKySteeler
    Quote Originally Posted by starlifter
    I don't want to turn this into a political argument but i think it's necessary to point out the issue thats driving this is the estate tax. It's so friggin high that the only way some of the brothers can afford to pay it based on the current value of the steelers is to sell their shares. The tax almost guarantees that parents can't leave valuable items to their children.
    Sorry brother.... That is really a cop-out.... Do you really think that is what is driving them? They can "pass-down" alot, including part ownership... Yes, estate tax is part of the issue, but not the defining factor... I do not agree with the position that "it's too expensive"... But I do think that they want it NOW, for thier own benefit (not thier children).
    Isn't estate tax on huge amounts like this taxed extraordinarily heavily, like in the neighborhood of 40-45%? So if one of these guys died, and his 16% of the team was passed down to his heirs, wouldn't those kids have to pony up somewhere in the neighborhood of $70 million to Uncle Sam just to keep Dad's shares (assuming the value of the team as a whole is right around a cool billion). I could be way off on this, though (any accountants in the house?)
    The post-gazette had a good article about the estate tax situation:

    http://www.post-gazette.com/pg/08223/903229-66.stm

    So the estate tax is in the 45% range but it also states that nobody really pays the full 45%. The number is usually around 22%, so if the Steelers are worth say $800 million and one rooney owns 16%, that individual will probably pay around $28 Million. Still a sizable chunk but manageable I would assume.

    Of course things could change over the next several years and taxes could go up.


    For those who want a little more numerical analysis:

    There are "payment plans" the article talked about, one of them was where the taxes would be paid over a 15 year period at a very low interest rate. Lets say for argument one of the brothers children owes $28 Million. The profits from the Steelers brings in about $3.2 Million a year per individual owner ($20 Mil total X 16% ownership = $3.2 Mil). That person would make about $48 Million over 15 years. Subtract those profits from the taxes owed:

    $48 Million - ($28 million in taxes + interest (At 4.25% it would be $1.19 Million) = $18.81 Million

    A profit of a little over $1 million a year. Taxes going up might be equalized with profits going up due to a new CBA and increasing profits for the NFL. So the numbers shouldn't change too much based on outside factors.

    I can kind of see why some of the brothers might want out. Over $1 Million a year would be great for me, but when you get to the Rooney's level I'm sure they have business interest that can generate more profits than that on a yearly basis...
    Could you say that again you lost me at "The post-gazette"

    Molon labe

    People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf. George Orwell



    American metal pimped by asiansteel
    Only two defining forces have ever offered to die for you 1. Jesus Christ, 2.The American G.I., One died for your soul, the other for your freedom.

  9. #19
    Legend RuthlessBurgher's Avatar
    Join Date
    May 2008
    Location
    Where the Rubber Meets the Road (in NEPA)
    Posts
    21,132

    Re: NFL tells Rooneys it wants Dan to be in control

    Quote Originally Posted by Jom112
    I can kind of see why some of the brothers might want out. Over $1 Million a year would be great for me, but when you get to the Rooney's level I'm sure they have business interest that can generate more profits than that on a yearly basis...
    The yearly profit is only a small portion of the overall value. It seems like the the market value of an NFL team doubles every decade of so. We know that Steelers were started with a couple thousand bucks back in the 30's and are now worth nearly a billion, but it isn't just the guys that have had teams in their families for generations that have seen their investments grow remarkably well. Jerry Jones bought the Cowboys less than 20 years ago for $150 million, and they are now worth over a billion. I don't know how much longer this can go on, but there aren't many investments out there these days that keep rolling over like that.

  10. #20

    Re: NFL tells Rooneys it wants Dan to be in control

    Good news...and I think we have a little more insight into why Dan and Co. always did so much butt kissing and things that didn't always make sense...ie the whole Pat videogate stuff. They were investing politically knowing this day would come. They are cashing in all their political favors and will likely retain control of the Steelers.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •