No owner is selling until these expansion franchises hit. When the league expands, as it’s been rumored to for a few years, every owner will be given a check for close to or possibly north of 200 million dollars. The new owners have to pay an expansion fee that is shared amongst the current owners. That money isn’t shared with players or front office or coaching staff it is 100% the owners. Even though this cheap bastard investment has tripled in value he isn’t selling until he gets his free 200 million. I want him to sell as much as the next person, but I highly doubt he sells until that happens.
Inherited assets tax basis is valued at step-up basis. In simplified terms this means the tax basis “steps up” to the fair market value. Your taxable income for a sale is determined by the sale price less the tax basis (oversimplified).
To explain in more detail:
If Gores sells now:
-Tax Basis of Pistons (purchase price): $325M
-Current Fair Value: $3.08B
-Taxable Value on sale: 2.7 Billion
If Gores inheritor sells the team:
-Current Fair Value of the Pistons: $3.08B
-Tax Basis (step-up basis): $3.08B
-Taxable Value on the sale: $0
If he dies the tax basis of the Pistons will equal its fair value and the gain on sale will, in theory, be $0 for them if they sell immediately.
Sports teams are a fantastic way for Billionaires to pass wealth to their children tax free, which is why so many wealthy people hold on until death. Only in the US can one of the richest human beings alive sell a $3 Billion asset for $2.7 Billion in profit and not have to pay any taxes on that sale. If Gores owns this team for financial planning purposes he won’t be selling.
We were fucked the moment Mrs. D cashed the check. He’s not selling. Ever.
She was no picnic either. We were fucked when Mr D kicked the bucket. Not sure why his kid Ethan didn’t take over…he was pre-occupied with flighty things at the time, but I heard he regrets it now. But his stepmom had control, unfortunately, probably because Mr D saw his son had no interest.
I’m not even sure why people blame Gores. He landed player-agent Arn Tellem and folks praised the move and thought his connections would attract free agents. He hired high-profile Van Gundy and everybody thought it was a coup. Then he hired up and comer Weaver and everybody praised the move and worshipped Weaver on this very forum until very recently. Then he pursued and made a hot coaching hire with Monty Williams and made him the league’s highest paid coach, luring him to Detroit. What else does this guy need to do? Everyone around him has just not measured up when given the opportunity.