Elias says the team will have money to invest

[Sports Guy]

There is a lot of bs and fluff in this article but at least he says the resources will be there.  Of course, we don’t know how much.

[interloper]

Not sure why anyone thought otherwise really. He and the Angelos brothers stated as much when Elias was hired. The Orioles have spent in the past. Hopefully when Elias signals it's time, he'll spend the Angelos' money much smarter than it's been spent in the past. 

[NCRaven]

4 minutes ago, interloper said:

Not sure why anyone thought otherwise really. He and the Angelos brothers stated as much when Elias was hired. The Orioles have spent in the past. Hopefully when Elias signals it's time, he'll spend the Angelos' money much smarter than it's been spent in the past. 

When will they begin negotiating Davis's next extension? 

 

[jerios55]

4 minutes ago, NCRaven said:

When will they begin negotiating Davis's next extension? 

 

https://www.spotrac.com/mlb/baltimore-orioles/chris-davis-5397/

I think they said they'd wait until the 2037 deferred money ends and see what shape he's in.

[OsFanSinceThe80s]

2 minutes ago, jerios55 said:

https://www.spotrac.com/mlb/baltimore-orioles/chris-davis-5397/

I think they said they'd wait until the 2037 deferred money ends and see what shape he's in.

Move over Bobby Bonilla, here comes Chris Davis day!

https://www.cnbc.com/2020/07/01/bobby-bonilla-day-why-his-deal-with-the-mets-was-so-lucrative.html

[SteveA]

37 minutes ago, interloper said:

Not sure why anyone thought otherwise really. He and the Angelos brothers stated as much when Elias was hired. The Orioles have spent in the past. Hopefully when Elias signals it's time, he'll spend the Angelos' money much smarter than it's been spent in the past. 

Lots of reasons to think otherwise:   

1) an unprecedented pandemic  that has made deep cuts into revenue.   

2) upcoming estate taxes that will have to be paid upon the very likely death of PGA in the next few years   

3) expiration of Camden Yards lease less than a year away and SO FAR it has not been extended

4) #2 above could lead to a desire/need to sell the team which means there might be motivation to minimize spending to keep the team as profitable as possible

5) trends in broadcasting away from cable which wil eventually make MASN less viable and less profitable

6) several cost cutting measures we have seen in the past few months that are unprecedented in the history of Angelos family owner ship and the franchise in general:   asking arbitration eligible players to defer salary, furloughing employees, coaching staff hiring decisions reported to be $$$-related, massive purge of highest paid veteran broadcasters; and going back beyond a few months, cancellation of the 2019-2020 Fanfest tradition

Regardless of what was said 28 months ago when Elias was hired, there are a lot of reasons for the Orioles to try to decrease spending, and some concrete actions outlined in #6 that seem to indicate it is happening.   Yes, I realize we have increased spending on international free agents and have not scrimped on spending on MLB draftees, so the spending cuts aren't across the board.   But I certainly see a concerning trend.

[ChipTait]

14 minutes ago, SteveA said:

 

5) trends in broadcasting away from cable which wil eventually make MASN less viable and less profitable

 

I'm of the mind that the recent cost-cutting measure at MASN show that maybe they are looking to unload it.  If MASN were to become Fox Sports Mid-Atlantic, it may become a viable channel, with non-baseball programming people would want to watch.

[Can_of_corn]

12 minutes ago, ChipTait said:

I'm of the mind that the recent cost-cutting measure at MASN show that maybe they are looking to unload it.  If MASN were to become Fox Sports Mid-Atlantic, it may become a viable channel, with non-baseball programming people would want to watch.

I'm of the mind that it's the exact opposite.  I don't think cost cutting like this increases the value of the property.  I think they are just pulling all the profit they can out of it.

[Sports Guy]

I’m not worried if they spend money..the question is how much.

They should be able to go to 120-150M.  I’m good with that range.

[wildcard]

1 hour ago, SteveA said:

Lots of reasons to think otherwise:   

1) an unprecedented pandemic  that has made deep cuts into revenue.   

2) upcoming estate taxes that will have to be paid upon the very likely death of PGA in the next few years   

3) expiration of Camden Yards lease less than a year away and SO FAR it has not been extended

4) #2 above could lead to a desire/need to sell the team which means there might be motivation to minimize spending to keep the team as profitable as possible

5) trends in broadcasting away from cable which wil eventually make MASN less viable and less profitable

6) several cost cutting measures we have seen in the past few months that are unprecedented in the history of Angelos family owner ship and the franchise in general:   asking arbitration eligible players to defer salary, furloughing employees, coaching staff hiring decisions reported to be $$$-related, massive purge of highest paid veteran broadcasters; and going back beyond a few months, cancellation of the 2019-2020 Fanfest tradition

Regardless of what was said 28 months ago when Elias was hired, there are a lot of reasons for the Orioles to try to decrease spending, and some concrete actions outlined in #6 that seem to indicate it is happening.   Yes, I realize we have increased spending on international free agents and have not scrimped on spending on MLB draftees, so the spending cuts aren't across the board.   But I certainly see a concerning trend.

I thought there was no estate tax on a trust.

[LTO's]

1 hour ago, SteveA said:

Lots of reasons to think otherwise:   

1) an unprecedented pandemic  that has made deep cuts into revenue.   

2) upcoming estate taxes that will have to be paid upon the very likely death of PGA in the next few years   

3) expiration of Camden Yards lease less than a year away and SO FAR it has not been extended

4) #2 above could lead to a desire/need to sell the team which means there might be motivation to minimize spending to keep the team as profitable as possible

5) trends in broadcasting away from cable which wil eventually make MASN less viable and less profitable

6) several cost cutting measures we have seen in the past few months that are unprecedented in the history of Angelos family owner ship and the franchise in general:   asking arbitration eligible players to defer salary, furloughing employees, coaching staff hiring decisions reported to be $$$-related, massive purge of highest paid veteran broadcasters; and going back beyond a few months, cancellation of the 2019-2020 Fanfest tradition

Regardless of what was said 28 months ago when Elias was hired, there are a lot of reasons for the Orioles to try to decrease spending, and some concrete actions outlined in #6 that seem to indicate it is happening.   Yes, I realize we have increased spending on international free agents and have not scrimped on spending on MLB draftees, so the spending cuts aren't across the board.   But I certainly see a concerning trend.

WBAL just broke the news that the lease has been extended for another two seasons 

[SteveA]

6 minutes ago, wildcard said:

I thought there was no estate tax on a trust.

I don't know anything about that.... I'll leave it to the lawyers and law-savvy people on the site.   Thanks for the info....

[SteveA]

1 minute ago, LTO's said:

WBAL just broke the news that the lease has been extended for another two seasons 

Hmmmm.... is that good news?   Aren't stadium leases usually measured in decades?   To me it still puts us in this mystery zone of when PGA passes away, whether the sons sell the team, and without a longterm lease it opens up the possibility of out of town buyers who might want to move the team.

It does not give me a warm fuzzy feeling, that's for sure.

 

[Frobby]

23 minutes ago, SteveA said:

I don't know anything about that.... I'll leave it to the lawyers and law-savvy people on the site.   Thanks for the info....

It is not nearly that simple.    I’m not a tax lawyer so I can’t cite chapter and verse.    But you can’t avoid estate tax merely by putting your assets into a trust.    

[wildcard]

41 minutes ago, Frobby said:

It is not nearly that simple.    I’m not a tax lawyer so I can’t cite chapter and verse.    But you can’t avoid estate tax merely by putting your assets into a trust.    

Detroit Tigers

How the trust and estate planning has been specifically arranged to shield Ilitch's heirs from a massive estate tax or gift tax bill is unknown.

"A trust is its own legal entity," said George Malis, managing partner with Detroit-based Abbott Nicholson PC and a specialist in estate planning. "If shares of the Tigers are owned by the trust, the trust continues to own them (after Mike Ilitch's death). It now falls into Chris' hands to manages the trust assets."

https://www.crainsdetroit.com/article/20170218/NEWS/170219847/who-owns-the-tigers-family-plan-is-a-matter-of-trust