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Twitter: Stephen Jones on The Ticket Tweetcap - 05/30/14

Discussion in 'News Zone' started by WoodysGirl, May 30, 2014.

  1. Redball Express

    Redball Express All Aboard!!!

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    We have ALL been oversold on this team.

    I really have no idea what Stephen would bring to the table.

    I have no clue as to what the players think of him.

    For a guy who has been training to run the operation his whole adult life..

    he's an enigma.
    ufcrules1 likes this.
  2. dstovall5

    dstovall5 Well-Known Member

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    Drinks? That's it?! Hell I'd at least give everyone here an executive position in the office, I mean we could only get better huh? *jk*
  3. DC Cowboy

    DC Cowboy Active Member

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    take out some inheritance tax insurance
  4. Doomsay

    Doomsay Well-Known Member

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    You can't circumvent estate taxes with a fraudulent conveyance (below market sale) and while I fully believe that Jerry's estate planners have transferred the maximum % of the estate permissible to his kids possible (as you point out), the tax exemption is in the single digit millions not hundreds of millions or billions. There will be a massive tax bill when Jerry (and his wife) dies.
  5. Doomsay

    Doomsay Well-Known Member

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    No doubt that the transition was smooth, but they still have a huge tax burden, just like the little Jones' will.

    http://www.forbes.com/sites/kurtbad...uss-leaves-legacy-as-the-nbas-greatest-owner/
  6. Fredd

    Fredd Well-Known Member

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    This can't be stressed enough...the cowboys "sell" so any controversy that they can find will be utilized to the fullest
  7. BigStar

    BigStar Stop chasing Zone Supporter

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    Not true. They are only obligated to allocate 1/6th of JJ's wealth after the 5M exemption. If they can't manage with 83% of JJ's remaining assets (plus the 5M exempted from taxation) each will receive, that is completely on them (Jones family). :D
  8. Doomsay

    Doomsay Well-Known Member

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    What's this 1/6th?
  9. BigStar

    BigStar Stop chasing Zone Supporter

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    I am no accountant and don't work for the IRS. Just looked into it bc of the discussion topic tbh:D

    "2014 Changes to Estate Tax, Gift Tax, and Generation-Skipping Transfer Tax Laws
    1. New and more favorable estate tax, gift tax and generation-skipping transfer tax exemptions and less favorable tax rates have gone into effect. Under the provisions of ATRA, the federal estate tax exemption has been indexed for inflation and therefore increased to $5.12 million in 2012, $5.25 million in 2013, and $5.34 million in 2014, but the estate tax rate for estates valued over this amount was increased from 35% in 2012 to 40% in 2013 and future years. In addition, the lifetime gift tax exemption has also been indexed for inflation and therefore increased to $5.12 million in 2012, $5.25 million in 2013, and $5.34 million in 2014, and the maximum gift tax rate was increased from 35% in 2012 to 40% in 2013 and future years. Finally, the generation skipping transfer tax exemption has also been indexed for inflation and therefore increased to $5.12 million in 2012, $5.25 million in 2013, and $5.34 million in 2014, and the maximum generation skipping transfer tax rate was increased from 35% in 2012 to 40% in 2013 and future years. These unified exemptions will continue to be indexed for inflation in 2015 and later years but the tax rate will remain at 40%. In addition, the annual exclusion from gift taxes will remain at $14,000 for 2014."

    "Many wealthy families deploy teams of tax planners to circumvent or reduce taxes, including the estate tax. The Tax Policy Center estimates that only 3,780 households (0.14 percent of all estates) will owe estate taxes from 2013. Their average payment will be $3.8 billion on estates worth $227 billion — an effective rate of 16.6 percent. The effective tax rate on estates over $20 million is 18.8 percent. This is far below the 40 percent statutory rate"

    http://wills.about.com/od/2014-Esta...amp-Generation-Skipping-Transfer-Tax-Laws.htm

    JJ is worth 3.1B, (2.3B) from owning the Dallas Cowboys (stadium).

    http://www.forbes.com/teams/dallas-cowboys/

    http://www.forbes.com/profile/jerry-jones/
  10. Doomsay

    Doomsay Well-Known Member

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    So, the first part is only worth single digit millions to the individual kids as I pointed out (collectively $10 mm if Jerry and Wife do it jointly). The 16.6 % is an average for all estates including most that pay nothing because they are completely or mostly covered by the $5 million and $10 million exemption. The top estates paid a marginal rate of about 23%, which is much better than the statutory 40% rate. However, many estates benefited from charitable trust formations and CLAT's etc. and I'm not sure how much cash Jerry has to invest in those instruments or give away given the cash demands of the stadium investment. Most of his net worth is in the franchise and his share of the stadium, both relatively illiquid.

    Even if the kids benefited from the 23% marginal rate (and were unified in wanting to keep some portion of the team), they would still be on the hook for close to $700 million (cash) to the government. It would seem that they would have to sell some part of the team at that point to satisfy the taxes.
  11. BigStar

    BigStar Stop chasing Zone Supporter

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    Thanks for taking the time out to explain that (seriously). I see what you are saying, in that it would still be much harder than most would assume for the team to be a Jones exclusive. You are saying the kids (recipients) would owe the 700M collectively and would have to take on an outside partner to assist in this burden? Not knowing how much JJ invested in these charitable trusts/CLAT's makes it hard to gauge how much they would owe in the end without knowledge of how much JJ allocated towards them. Can the family borrow against the stadium to pay this tax? If they could, it would be manageable. Fairness is a whole other topic.
    Last edited: Jun 3, 2014
  12. Doomsay

    Doomsay Well-Known Member

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    Yeah, they could issue bonds against the private portion of the stadium if some of the other notes have been retired and they could sell minority interests in the club like the Buss family kids might have to. Jerry also has other investments that they could sell, obviously, but that is huge cash outlay anyway you look at it. It will be interesting to see how the kids play together when that happens, of course, Jerry's wife might live a lot longer, and there probably won't be a tax event until she dies.
    BigStar likes this.
  13. Doomsday101

    Doomsday101 Well-Known Member

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    Longtime speculation has been that Stephen, the Cowboys’ 48-year-old chief operating officer and director of player personnel, would eventually assume Jerry’s role.

    That is partly true, Jerry says, pointing out that Stephen already oversees the scouting and player personnel departments, Cowboys Stadium management operations and attends NFL owners meetings.

    But in reality, Jerry sees a continuation of Team Jones management already in place. Charlotte is vice president of brand management and the president of the charity foundation. Jerry Jr. is the chief sales and marketing officer.

    In the early 1990s, Jerry transferred minority limited partnership interests to Stephen, Charlotte and Jerry Jr., giving them what he calls “serious skin in the game,” a daily incentive to fully invest their professional lives.

    “I was fortunate to have put things like that in place long before the Cowboys were worth what they are now,” he says.

    Seldom if ever speculated is the scenario of Gene stepping forward as principal owner, as Georgia Frontiere did when husband and Rams owner Carroll Rosenbloom drowned in 1979.

    Jerry notes that Gene has missed only one game, a preseason game, in 24 seasons. Jerry and Stephen say Gene probably spent more hours on Cowboys Stadium’s planning than anyone.

    “There’s no question that on an ongoing basis she would be involved in everything that has to do with the stadium,” Jerry says. “In the NFL’s view, the stadium and the team are one and the same.”

    Jerry also foresees some or all of his grandchildren joining the franchise, if they so choose, adding, “The way we’re structured here, I don’t ever see this team owned by anyone other than my immediate family.”

    http://www.dallasnews.com/sports/da...as-cowboys-owner-meet-the-next-generation.ece
  14. Doomsay

    Doomsay Well-Known Member

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    death and taxes
  15. Doomsday101

    Doomsday101 Well-Known Member

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    No way around either. But I fully expect the Jones family to be owners of the Cowboys well after Jerry is gone. I think many look at jerry as a fool, I think he is much smarter than people think.
    BigStar likes this.
  16. Doomsay

    Doomsay Well-Known Member

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    He is very financially astute, or at least his people are, but the kids will be in control when that generation is gone and who knows how competent they are or more importantly, how they are going to get along.
    BigStar likes this.
  17. casmith07

    casmith07 I'm the best poster in the game!

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    A journalistic embarrassment.
    5Stars likes this.
  18. Doomsay

    Doomsay Well-Known Member

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    Straw Journalist outrage is alive and well!

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