Dan Duquette can't get the financial go-ahead from owner Peter Angelos to meet Morales' asking price

[Going Underground]

Jesus... what has changed this year to make Angelos so tight with the budget? I know he always has been, but it seems extra ridiculous this year.

Getting older . Passing it on to his sons to sell or take over.

Maryland is one of only 14 states that taxes the assets left by deceased residents, and one of only seven states that taxes inheritance, the levy heirs must pay on the money left to them, according to an October report by legislative staff. New Jersey and Maryland are the only two states that impose both a tax on the deceased’s assets, and a tax on any money given to heirs.

Maryland now taxes estates worth over $1 million at 16%. The federal government now excludes the first $5 million of estates from taxes, but takes 40% of anything over that.

More than three years after the death of Carl Pohlad, the estate of the billionaire business magnate is mired in a tax dispute with the IRS that has potentially huge financial consequences.

The agency claims that Pohlad’s heirs owe the IRS more than $207 million, largely on the basis of a purportedly low valuation the estate placed on the late patriarch’s most visible asset, the Minnesota Twins. The tax collector also wants $48 million as an “accuracy related penalty” for a total potential tax bill of $255.8 million.

The Pohlad family disputes the IRS position and asserts that the federal agency greatly overvalued Carl Pohlad’s interest in the Twins after he handed most of the control of the ballclub to his sons in the years leading up to his death in 2009. ...

According to the experts hired by the estate, Carl Pohlad’s interest in the Twins was just $24 million at the time of his death in early 2009. The IRS places the value of those assets at $293 million.

The Pohlad estate asserts that Carl Pohlad’s minority ownership of the Twins at the time of his death — with his three sons controlling 90% of the voting shares of the club — is not adequately reflected in the IRS valuation, nor is the Great Recession, which confronted the U.S. economy at the time. ... The Pohlad estate has requested a Tax Court trial in Houston, home of the law firm handling its tax case, Baker Botts. ... At $255.8 million, the dispute would be among the richest pending before the Tax Court. ...

Combined, Carl Pohlad’s financial interest in the Twins was posted at just shy of $24 million, according to the Tax Court petition. The total value of the Twins at the time of Pohlad’s death was estimated at $356 million by Forbes magazine. But [John] Porter, the Baker Botts attorney representing the Pohlads in the IRS matter, said the valuation figures are gross figures that don’t include liabilities such as stadium debt. Moreover, Porter said, the economic environment was not conducive to the sale of sports franchises at the time of Carl Pohlad’s death.

http://marylandreporter.com/2014/01/09/assembly-leaders-agree-on-cutting-estate-taxes/

http://taxprof.typepad.com/taxprof_blog/2013/07/2009-estate-.html

[jabba72]

I agree with Angelos on this, but I would like Angelos to sign a SP. They cant rely on Norris/Gausman and whoever else makes up the back of the rotation.

[UMDTerrapins]

I am not sure "smart baseball guys" are unanimous in their support for a Hardy extension.

True, but that wasn't really my emphasis. The point is that Angelos wouldn't be the type to leak word of an interest in extending Hardy. That would be something the baseball guys would show an interest in, and then advocate to the owner after they have had discussions with his agents. So word about Oriole interest in extending Hardy does not imply that Angelos would necessarily be on board when the time comes.

[UMDTerrapins]

Getting older . Passing it on to his sons to sell or take over.

Maryland is one of only 14 states that taxes the assets left by deceased residents, and one of only seven states that taxes inheritance, the levy heirs must pay on the money left to them, according to an October report by legislative staff. New Jersey and Maryland are the only two states that impose both a tax on the deceased’s assets, and a tax on any money given to heirs.

Maryland now taxes estates worth over $1 million at 16%. The federal government now excludes the first $5 million of estates from taxes, but takes 40% of anything over that.

More than three years after the death of Carl Pohlad, the estate of the billionaire business magnate is mired in a tax dispute with the IRS that has potentially huge financial consequences.

The agency claims that Pohlad’s heirs owe the IRS more than $207 million, largely on the basis of a purportedly low valuation the estate placed on the late patriarch’s most visible asset, the Minnesota Twins. The tax collector also wants $48 million as an “accuracy related penalty” for a total potential tax bill of $255.8 million.

The Pohlad family disputes the IRS position and asserts that the federal agency greatly overvalued Carl Pohlad’s interest in the Twins after he handed most of the control of the ballclub to his sons in the years leading up to his death in 2009. ...

According to the experts hired by the estate, Carl Pohlad’s interest in the Twins was just $24 million at the time of his death in early 2009. The IRS places the value of those assets at $293 million.

The Pohlad estate asserts that Carl Pohlad’s minority ownership of the Twins at the time of his death — with his three sons controlling 90% of the voting shares of the club — is not adequately reflected in the IRS valuation, nor is the Great Recession, which confronted the U.S. economy at the time. ... The Pohlad estate has requested a Tax Court trial in Houston, home of the law firm handling its tax case, Baker Botts. ... At $255.8 million, the dispute would be among the richest pending before the Tax Court. ...

Combined, Carl Pohlad’s financial interest in the Twins was posted at just shy of $24 million, according to the Tax Court petition. The total value of the Twins at the time of Pohlad’s death was estimated at $356 million by Forbes magazine. But [John] Porter, the Baker Botts attorney representing the Pohlads in the IRS matter, said the valuation figures are gross figures that don’t include liabilities such as stadium debt. Moreover, Porter said, the economic environment was not conducive to the sale of sports franchises at the time of Carl Pohlad’s death.

http://marylandreporter.com/2014/01/09/assembly-leaders-agree-on-cutting-estate-taxes/

http://taxprof.typepad.com/taxprof_blog/2013/07/2009-estate-.html

Nice post. To me, this is the whole ballgame with the current day Orioles. Not because I'm prone to conspiracy theory fodder, but because I believe it's most logical in figuring out Angelos and his motivations to "follow the money". This is a very high stakes matter for his family.

[Yardball85]

I'm still waiting to see where the $10 million from the Johnson trade is being reallocated. It better not just be to Angelos' pocket. Counting down the days until we get a new owner...

[Can_of_corn]

True, but that wasn't really my emphasis. The point is that Angelos wouldn't be the type to leak word of an interest in extending Hardy. That would be something the baseball guys would show an interest in, and then advocate to the owner after they have had discussions with his agents. So word about Oriole interest in extending Hardy does not imply that Angelos would necessarily be on board when the time comes.

I don't think it is sensible for any of them to openly discuss it with the media.

[SilentJames]

I find it funny Nick Report came out first then a hour later Buck said "he wants a full time DH".

Its not a REPORT its a TWEET.

Reports from major publications require sourcing and confirmation. Tweets require free time an and audience. I am sure Cafardo heard this from somewhere, could it maybe be from Morales' camp, some interested third party, a guy in the MLB offices making an assumption? Who knows?

I sincerely doubt Buck knew about it, considering I am pretty sure his mobile phone comes with a rotary dial.

[Can_of_corn]

I'm still waiting to see where the $10 million from the Johnson trade is being reallocated. It better not just be to Angelos' pocket. Counting down the days until we get a new owner...

It got reallocated to Webb and Balfour's failed physical.

You think they should spend the money foolishly just to say they spent it?

[VeveJones007]

As I see it, this is the most likely scenario as to how this got leaked:

DD is negotiating with Morales' agent, who knows that DD has indicated that he has at least $15M in payroll available. In response, DD is using Angelos' reputation to negotiate down the asking price.

[Guest]

Its not a REPORT its a TWEET.

Reports from major publications require sourcing and confirmation. Tweets require free time an and audience. I am sure Cafardo heard this from somewhere, could it maybe be from Morales' camp, some interested third party, a guy in the MLB offices making an assumption? Who knows?

I sincerely doubt Buck knew about it, considering I am pretty sure his mobile phone comes with a rotary dial.

He also hears that Orioles executive vice president Dan Duquette. Sounds like that's what he did. 2014 Twitter is where the news is my friend.

[fastball]

Hopeful he needs the team to look financially attractive to sell it.

[El Gordo]

Nice post. To me, this is the whole ballgame with the current day Orioles. Not because I'm prone to conspiracy theory fodder, but because I believe it's most logical in figuring out Angelos and his motivations to "follow the money". This is a very high stakes matter for his family.

Makes a lot of sense to me too.

[Can_of_corn]

He also hears that Orioles executive vice president Dan Duquette. Sounds like that's what he did. 2014 Twitter is where the news is my friend.

As well as a lot of incorrect material. Even folks with reputations as being reliable tweet wrong information in the rush to be first.

You have to learn to separate the wheat from the chaff.

[SilentJames]

He also hears that Orioles executive vice president Dan Duquette. Sounds like that's what he did. 2014 Twitter is where the news is my friend.

My God, you didn't actually read the tweet! You just read the MLTR interpretation of it!

<blockquote class="twitter-tweet" lang="en"><p>Kendrys Morales status: Don't rule out Seattle. Word is Duquette can't get financial go-ahead and Pittsburgh won't part with the draft pick.</p>— Nick Cafardo (@nickcafardo) <a href="

">February 17, 2014</a></blockquote>

<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>

https://twitter.com/nickcafardo/status/435438880548868096

Kendrys Morales status: Don't rule out Seattle. Word is Duquette can't get financial go-ahead and Pittsburgh won't part with the draft pick.

10:41 AM - 17 Feb 2014

not word FROM Duquette, Word is Duquette as in I heard from this guy who's buddy heard from his cousin...

MLBTR

He also hears that Orioles executive vice president Dan Duquette can't get the financial go-ahead from owner Peter Angelos to meet Morales' asking price.

You didn't even read the tweet you are hitching your wagon onto!

[Going Underground]

How does Angelos have the time when he is at the White House for State dinner for French President?

Mr. Peter G. Angelos, Baltimore, MD

Mrs. Georgia Angelos

http://www.whitehouse.gov/the-press-office/2014/02/11/expected-attendees-tonight-s-state-dinner