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Monday, October 09, 2017

Dade County Wants Its Cut of Marlins Sale

Accountants: sharpen your pencils!

Loria’s 2008 deal with Miami and Miami-Dade included payout provisions if he sold the team within six years of the 2012 opening of a county-owned ballpark built with more than $400 million in public dollars and about $150 million from the team. The deal requires the Marlins to pay the two governments 5 percent of the proceeds of a sale.

Five years and six months later, the bill may be coming due. But with Loria able to deduct both debt and taxes paid on the sale, it’s not known whether he plans on notifying local governments that they’re entitled to any dollars from the transaction.

Bote Man Posted: October 09, 2017 at 09:37 PM | 8 comment(s) Login to Bookmark
  Tags: jeffrey loria, loria, marlins, miami, money, taxpayers, team sales

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   1. BDC Posted: October 10, 2017 at 10:11 AM (#5548654)
Why not just give Dade County Giancarlo Stanton, and solve both problems.
   2. Jose is an Absurd Doubles Machine Posted: October 10, 2017 at 10:33 AM (#5548676)
Five years and six months later, the bill may be coming due. But with Loria able to deduct both debt and taxes paid on the sale, it’s not known whether he plans on notifying local governments that they’re entitled to any dollars from the transaction.


Two thoughts here;

1. "five years and six months"...I'd bet a large sum of someone else's money that Loria had a bunch of lawyers explain to him in great detail how that was going to actually be counted as "six years" when the reckoning came due.

2. "whether he plans on notifying local governments..." Do the local governments not know that the Marlins have been sold? That seems like the kind of thing they would be aware of and I'd hope the notification would work the other way around with the local government informing Loria that he owes them money.

Loria is a lot of things and stupid ain't one of them. I'm pretty certain that when all is said and done a whole bunch of lawyers got rich making sure that Loria gets to keep his money and the people of Dade County get a big steaming pile of jackshit.
   3. Misirlou doesn't live in the restaurant Posted: October 10, 2017 at 10:44 AM (#5548689)
1. "five years and six months"...I'd bet a large sum of someone else's money that Loria had a bunch of lawyers explain to him in great detail how that was going to actually be counted as "six years" when the reckoning came due.


I'm sure the wording in the contract is more precise than "within 6 years." Somethin like "if the sale is closed on or before a certain date..." The reporter paraphrased it as "within 6 years."
   4. Misirlou doesn't live in the restaurant Posted: October 10, 2017 at 10:48 AM (#5548694)
But with Loria able to deduct both debt and taxes paid on the sale, it’s not known whether he plans on notifying local governments that they’re entitled to any dollars from the transaction.



Again, the devil is in the details, but Loria bought the Marlins for $160 mil, and sold them for $1.2 billion. I'd like to see Loria claim that debt and taxes ate up the whole $1.04 billion gain.
   5. Bote Man Posted: October 10, 2017 at 12:13 PM (#5548803)
Well, it has been widely reported that the Marlins are absolutely drowning in debt, the poor things, so it's unlikely that Loria will make a penny himself. He'll be left a pauper.
   6. Walt Davis Posted: October 10, 2017 at 07:15 PM (#5549254)
Again, the devil is in the details, but Loria bought the Marlins for $160 mil, and sold them for $1.2 billion. I'd like to see Loria claim that debt and taxes ate up the whole $1.04 billion gain.

As everyone notes, it depends what the contract says. But even if he can't get it down to $0, if he can get enough writeoffs, etc. to get it down to $100-$200 M profit, then he'd owe them a measly $5-10 M.

Also it would seem a bit odd to "invest" in 2011-12 but claim a right to gains dating back to 2002. I would think "proceeds from the sale" would relate to the 2012 value (determined however the contract stipulates or maybe specified in the contract). It's presumably twice as easy for accountants to make $500 M of profit disappear than it is to make $1 B disappear.

But heck, even if he gets whacked at 5% of the full billion, that's only $50 M in exchange for a $400 M public investment. That's still quality swindling.
   7. The Yankee Clapper Posted: October 10, 2017 at 07:46 PM (#5549275)
The Marlins have hired Gary Denbo as VP of Scouting & Player Development. Long history with Jeter, and seems to be highly regarded.
   8. Count Vorror Rairol Mencoon (CoB) Posted: October 10, 2017 at 08:51 PM (#5549315)
####, I was afraid that would happen.

Surprised the Yankees didn't match or beat the offer, since it basically seems a lateral move.

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