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Bills leaving Buffalo?


Rudyc80

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The Bills would/will stay in Buffalo because of its history and fan support etc... That being said there are maybe two people who could afford the Bills--Golisano if he sells the Sabres and J Jacobs if he sells the Bruins. Jacobs is a very good guy but in Boston they cannot stand his frugality. Danny Wegman does not have 600 million dollars to buy a franchise! Nobody in WNY does now. Golisano will not sell Paychex to buy the Bills it just won't happen! He spent about 60-70 million for the Sabres after a lengthy negotiation. Now multiply that by 10!! He is not giving up his business to buy a football team. Maybe he sells the Sabres, takes the 70 million in cash as a down payment and finances the rest--not a great option. The Bills would likely be bought by someone outside the area who wants a football team or J Jacobs. He could sell the Bruins (if the NHL ever plays again) for a hefty sum and come up with backing for the other 400-500 million. My bet is on someone outside the area buying the team and keeping them in Buffalo!

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The Bills would/will stay in Buffalo because of its history and fan support etc...  That being said there are maybe two people who could afford the Bills--Golisano if he sells the Sabres and J Jacobs if he sells the Bruins.  Jacobs is a very good guy but in Boston they cannot stand his frugality.  Danny Wegman does not have 600 million dollars to buy a franchise!  Nobody in WNY does now.  Golisano will not sell Paychex to buy the Bills it just won't happen!  He spent about 60-70 million for the Sabres after a lengthy negotiation.  Now multiply that by 10!!  He is not giving up his business to buy a football team.  Maybe he sells the Sabres, takes the 70 million in cash as a down payment and finances the rest--not a great option.  The Bills would likely be bought by someone outside the area who wants a football team or J Jacobs.  He could sell the Bruins (if the NHL ever plays again) for a hefty sum and come up with backing for the other 400-500 million.  My bet is on someone outside the area buying the team and keeping them in Buffalo!

Dan Snyder bought the Redskins for $800M, in conjunction with several partners ranging from publishing execs to his family who owned stock in his company. It's not a matter of plunking down $637M in one lump sum, all paid by Golisano or Jacobs.

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Several factors make the Bills future situation tricky, the largest one being Ralph's age and the impending estate tax when he passes away. The government applies a 50% estate tax upon death on any assets exceeding 1.5 million. If the franchise is valued at 637 million then Ralph would owe 317 million dollars to uncle Sam on just the Bills franchise. That figure does not even include Ralph's other assets which I'm sure are pretty substantial.

 

Now I'm sure Ralph took a lot of this hit into account with his attorney and planed accordingly. Loop holes can be found to protect assets from the government, I'm also pretty confident he has a substantial amount of insurance to help off set the estate tax.

 

Regardless of the how well Ralph did his estate planing the sheer magnitude of the estate tax he will face leads me to believe his daughter will be forced to sell the team. What we have going for us is a profitable franchise and a good fan base, and if his daughter can find a buyer who agrees to keep the team in Buffalo we will be fine. I'm sure his daughter will try and honor Ralph's legacy by searching for a buyer who would make this arrangement.

 

The problem arises if she can't find a buyer that agrees to keep the team in Buffalo. Remember she will be forced to sell the team to pay the estate tax, if she can only find a buyer that wishes to relocate she will be forced to make that deal. It's really not a matter of her intentions, it's a matter of the buyers intentions. The future basically comes down to one simple factor, the person that buys the team when Ralph passes away must want to keep the team in Buffalo.

 

As a side note I am not an attorney and don't know the specifics of Ralph's estate planing, however I did stay at a Holiday Inn last night.

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Just to be clear, selling tickets is only one reason a team stays in a city.  The other reasons are market size (i.e advertising money) and corporate sponsorship.  Buffalo is a bottom feeder in both categories.  Every city sells tickets when a team wins.   

 

There's a lot of denial on this board, and that's okay if it makes people feel better, but the honest truth is there is only one reason the Bills are in Buffalo.  That reason is Ralph Wilson.  Sadly the Bills will be gone from Buffalo within 5 years after his death unless a WNY buyer steps forward.  List all the justifictions you want, but there are numerous communities better suited than Buffalo to support a NFL franchise (for weather, population and financial reasons).  Whoever buys the Bills will move the team to their pet location.  Just the way it is.

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I'll agree that I'm in denial...While a move of the franchise is definitely a possibility, how many cities are left that can support an NFL franchise? All the major market cities are taken except for LA. If LA doesn't get an expansion team (expansion teams pay huge franchise fees to NFL owners), then Buffalo is a possiblity for relocation to LA, but are Arizona, San Diego, New Orleans, and Indy less of a possibility that Buffalo?

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Several factors make the Bills future situation tricky, the largest one being Ralph's age and the impending estate tax when he passes away. The government applies a 50% estate tax upon death on any assets exceeding 1.5 million.  If the franchise is valued at 637 million then Ralph would owe 317 million dollars to uncle Sam on just the Bills franchise. That figure does not even include Ralph's other assets which I'm sure are pretty substantial.

 

Now I'm sure Ralph took a lot of this hit into account with his attorney and planed accordingly. Loop holes can be found to protect assets from the government, I'm also pretty confident he has a substantial amount of insurance to help off set the estate tax.

 

Regardless of the how well Ralph did his estate planing the sheer magnitude of the estate tax he will face leads me to believe his daughter will be forced to sell the team.  What we have going for us is a profitable franchise and a good fan base, and if his daughter can find a buyer who agrees to keep the team in Buffalo we will be fine. I'm sure his daughter will try and honor Ralph's legacy by searching for a buyer who would make this arrangement.

 

The problem arises if she can't find a buyer that agrees to keep the team in Buffalo. Remember she will be forced to sell the team to pay the estate tax, if she can only find a buyer that wishes to relocate she will be forced to make that deal. It's really not a matter of her intentions, it's a matter of the buyers intentions. The future basically comes down to one simple factor, the person that buys the team when Ralph passes away must want to keep the team in Buffalo. 

 

As a side note I am not an attorney and don't know the specifics of Ralph's estate planing, however I did stay at a Holiday Inn last night.

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I'm not an attorney either but I think the tax law is about to change -hope Ralph stays alive long enough. LONG LIVE RALPH!
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Several factors make the Bills future situation tricky...

Like I said, there are several suitors for the Bills who have the resources, desire, and ties to WNY to keep the Bills in Buffalo. And I agree that Ralph probably told his daughters that he wants the team to remain in Buffalo. I also wouldn't be surprised to learn that he has instructed his daughters to provide financial assistance/partial ownership to the new owner to ensure a successful bid.

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Like I said, there are several suitors for the Bills who have the resources, desire, and ties to WNY to keep the Bills in Buffalo.  And I agree that Ralph probably told his daughters that he wants the team to remain in Buffalo.  I also wouldn't be surprised to learn that he has instructed his daughters to provide financial assistance/partial ownership to the new owner to ensure a successful bid.

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Unless the estate tax laws change, I doubt Wilson's daughters will care one bit who buys the Bills. They'll want the IRS off their backs as quickly as possible. If your WNY White Knight comes up with as much cash as a buyer from one of the growing Sunbelt communities, then Buffalo has a chance to keep the Bills. If that doesn't happen, they're gone.

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Like I said before my guess is someone from outside the area comes in and buys the team but keeps them in Buffalo. Yes Jacobs, Golisano and Rich could all pony up the 700 million together but I think that is very unlikely because they don't have that much in expendable" assets that can be liquidated. Some multi-billionaire from outside the area may buy the team, but keep it in B'lo. Why move another team to LA? They NEVER support the damn team. How many failed franchises have they had? Two? Three?

Also, in regards to estate tax laws. If Ralph gives everything to his wife my understanding is that the assets are not subject to the 55% estate tax. But if they go to his estate they are subject to that ridiculous tax minus the first 1.5 million that is exempt. So the family much like the Robbie family of Miami would have to sell the franchise to pay the IRS.

However, no matter what your political views, with a Republican controlled Congress they may be repealing the estate tax altogher and it would be a moot point.

Keep going Ralph. He looks in great shape for an octogenarian!

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Like I said before my guess is someone from outside the area comes in and buys the team but keeps them in Buffalo.  Yes Jacobs, Golisano and Rich could all pony up the 700 million together but I think that is very unlikely because they don't have that much in expendable" assets that can be liquidated.  Some multi-billionaire from outside the area may buy the team, but keep it in B'lo.

Dan Snyder had a group of 5 people made up of 2 ad execs, himself, and 2 family members plunk down $300M to purchase the Redskins, although the final cost was $800M. So Golisano et. al. will likely have to plunk down the same percentage for the Bills, which is around $239M. I'd say that's very doable.

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Like I said before my guess is someone from outside the area comes in and buys the team but keeps them in Buffalo.  Yes Jacobs, Golisano and Rich could all pony up the 700 million together but I think that is very unlikely because they don't have that much in expendable" assets that can be liquidated.  Some multi-billionaire from outside the area may buy the team, but keep it in B'lo.  Why move another team to LA?  They NEVER support the damn team.  How many failed franchises have they had?  Two? Three? 

Also, in regards to estate tax laws.  If Ralph gives everything to his wife my understanding is that the assets are not subject to the 55% estate tax.  But if they go to his estate they are subject to that ridiculous tax minus the first 1.5 million that is exempt.  So the family much like the Robbie family of Miami would have to sell the franchise to pay the IRS. 

However, no matter what your political views, with a Republican controlled Congress they may be repealing the estate tax altogher and it would be a moot point. 

Keep going Ralph.  He looks in great shape for an octogenarian!

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If Ralph gives the Bills to his wife then the estate tax would not be applied until she passes away.

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BTW. here is a little financial background on the Bills' future owner:

 

http://www.forbes.com/finance/lists/54/200...datatype=Person

 

Notice that lasy year he was the 126th richest man in the US. This year he's the 356th richest person in the world. And you think HE can't afford to buy the Bills, put together an investment group or secure collateral, or doesn't have the political power to ensure the NFL approves the sale to him?

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DONT SHOOT THE MESSENGER...got this froma nother site

"Add the Bills to the short list of teams being mentioned as relocation candidates for Los Angeles. They join the Vikings and the Saints. Scratch the Colts, who are close to a deal with the city of Indianapolis for a retractable-roof stadium."

-- Philadelphia Daily News

 

 

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Hopefully I will be able to say....

 

 

...good riddens

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List all the justifictions you want, but there are numerous communities better suited than Buffalo to support a NFL franchise (for weather, population and financial reasons).

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I'd like to hear what the "Numerous communites" are? LA yes, but besides that don't see too many others. Times have also changed. These days there doesn't appear to be a bunch of cities lining up with sweetheart deals either. There are enough larger NFL cities struggling these days too that would likely make other cities take note about offering great deals to move a team. If Indy, or Minn, or New Orleans can't make a go of it, why should some other city spend millions to get a team to end up in ten years in the same boat as these other places. LA is the one exception as the population there is so much larger. But besides that, there aren't many other cities currently without teams and that have massive populations that can support a team.

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ADD SAN DIEGO CHARGERS TOO. THE CITY IS A PLAYING HARDBALL WITH THIS TEAM HERE

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This is probably the reason why:

 

http://www.keepmedia.com/acct/QuickRegSubm...id=aRql29S3fbX-

 

"SAN DIEGO -- This laid-back city seems to have it all -- stunning beaches, best weather this side of Honolulu, a national image as a vacation playground and top convention destination.

 

A new ballpark and condo towers in the trendy Gaslamp Quarter, a Skid-Row section turned upscale shopping and dining, gives "America's Finest City" a lively, urban feel.

 

San Diego is also known as a tightwad. City Hall's Web site proclaims it "the most efficiently run big city in California." Howard Jarvis, architect of Proposition 13, California's landmark 1978 ballot measure capping property taxes, once said that if all cities were as financially prudent as San Diego, there'd be no need for a tax revolt.

 

That was then. This is now: a financial mess dragging the nation's seventh-largest city toward insolvency, federal investigators looking for evidence of corruption, a $1.7 billion gap in city workers' pension fund and retiree medical benefits brought on by years of mismanagement and alleged sweetheart deals. "

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