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Utah Jazz Ownership Restructured and Placed in Family Trust

fishonjazz said:
This.
Why do we care? Why the announcement?
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After reading more of this thread and listening to some local talk radio on my way home from work, the correct answer to my question seems to be that this makes it less likely that the team would leave slc. And that is awesome!
 
So if you haven't read Driven, you need to. Since reading, I have been convinced that as long as Gail is around, the team will never leave Utah. Larry would roll over in his grave. I am happy her commitment extends far beyond the reaches of her life. Thanks again Larry!
 
And remember, Gail had to step in when the kiddies started to squabble and really didn't show much interest in basketball. She set up the team to be run by a board instead of Greggy.
I think Gail wants to leave this as a legacy. Why do it now? Because Gail is getting old. No telling when she will go the great courts on high.
 
So wait, this is more of a symbolic move rather than anything that will really change how the Jazz are structured from a business model perspective, right? All the people who were previously in charge of stuff are still in charge of stuff and the same people who sign the bills still sign the bills, right?
 
MDAV28 said:
I don't really know the answer to the specific question but I do think there are really heavy estate and gift taxes when a huge asset like a professional sports team is passed down to an heir. But I think having it is a trust can almost eliminate the tax. Extremely wealthy people do it a lot to transfer assets to family members.
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Ah so wonderful they can avoid supporting our community again with their tax dollars. After just getting a grundle of money from the redevelopment agency


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Saint Cy of JFC said:
So wait, this is more of a symbolic move rather than anything that will really change how the Jazz are structured from a business model perspective, right? All the people who were previously in charge of stuff are still in charge of stuff and the same people who sign the bills still sign the bills, right?
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With the added benefit of meaning the team can't be sold.


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zman1527 said:
This is basically another rich folks tax avoidance scheme isn't it?

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There's no doubt that probably played a part in it. But it also means the heirs don't have to sell the team to pay the inheritance tax.


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bigb said:
With the added benefit of meaning the team can't be sold.


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That really depends. Generally the fiduciary/trustee of a trust has fiduciary duties to diversify assets and maximize value. I imagine the Miller's had their lawyers put in language to avoid those types of issues, and allow the trustee to ignore other offers and the general duty to diversify. But without seeing the trust documents, it is unclear whether this transaction makes it more or less likely that the team will be sold.
 
Saint Cy of JFC said:
How does that work? Is there some kind of time stamp on it? Surely someone could override it if they really wanted to.
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Like I said earlier, I'm not a lawyer, but Gail said in the press conference that it is as close as possible to ensuring ownership in perpetuity. The family receives no material benefit from the trust, so they have no motivation to sell it.


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PG_AB said:
Can someone bless this thread with a TL;DR. Or at least explain why I should read 11 pages on this topic.
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Don't read it, the first like six pages are people guessing what the announcement was going to be. Summary pretty much is just that Gail is trying to make it so future generations of Millers can't sell the Jazz.
 
This makes it so all revenue is reinvested in the team. That has to make going over the luxury tax more likely, correct? Or maybe less likely, huh.
 
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