Just a Rumor

[OriolesMagic83]

1 minute ago, EricK said:

Correct.  But this could be part of the negotiations.  MLB would love to have an owner's group that could dissolve the MASN agreement.

Well if the replacement network had O's, Nats', Capitals' and Wizards' games that would be an upgrade. 

[murph]

5 hours ago, casadeozo said:

could someone provide a refresher on what the implications would be if JA and family were to sell now versus after Peter passes away? I assume there would be major estate tax implications though admittedly dont know the workings of that.

From my quite limited understanding, if they sell before Peter passes.   They are taxed on all of the gains from the original purchase price.  Some hundreds of millions (can’t remember) so much more gain.

 

But if the kids sell after inheritance, they get what is called stepped up basis and are taxed on the gains from the current valuation to the purchase price.    No idea how the current valuation is proved to the IRS.  

Edited November 15, 2023 by murph

[Frobby]

2 minutes ago, murph said:

From my quite limited understanding, if they sell before Peter passes.   They are taxed on the all of the gains from the original purchase price.  But if the kids sell after inheritance, they get what is called stepped up basis and are taxed on the gains from the current valuation to the purchase price.    No idea how the current valuation is proved to the IRS.  

You get an appraisal from a credible appraiser, knowing that the IRS may challenge its reasonableness.  

The fact that Georgia Angelos is alive, and may live a long time, may defer the “inherited basis.”
 

[murph]

16 minutes ago, Frobby said:

You get an appraisal from a credible appraiser, knowing that the IRS may challenge its reasonableness.  

The fact that Georgia Angelos is alive, and may live a long time, may defer the “inherited basis.”
 

Thanks.

The inherited bases would be the stepped up basis, correct?  
 

Edit: Nevermind.   Understand you are saying the original purchase price now.   Didn’t know there was a statute of limitations of a sort on that. 
 

if there is a way around paying the gains on the original purchase price, it has a huge tax implication, which was my understanding of why or one of the reasons why they have not sold yet    

Edited November 15, 2023 by murph

[Frobby]

1 minute ago, murph said:

Thanks.

The inherited bases would be the stepped up basis, correct?  
 

if there is a way around paying the gains on the original purchase price, it has a huge tax implication, which was my understanding of why or one of the reasons why they have not sold yet    

It’s likely.  However, there are estate taxes to pay on the current value of the estate, separate from the income tax.  That caps out at 40% federal, 16% Maryland.   So whether or not income taxes are due, the estate taxes will be so high that a sale may be required to raise the cash.  

[One eyed Bird]

6 hours ago, Keygans said:

Sorry didn’t mean to imply that the source was the same.    Highly unlikely they are the same.   Just passed along what I heard.  
 

At this point, I’m almost thinking where there’s smoke there’s fire… but we can only hope!   Hell, it would be the best Christmas gift in a long time!  

Yea pretty much best since the first Christmas, a little over 2000 years ago

[accinfo]

3 hours ago, spiritof66 said:

How much of the team Peter Angelos owns is one of those things John Angelos told the media he would tell them about "next week." 

I've seen reports that Peter owns about 75 percent. John said, I'm pretty sure, that it's 70 percent. In either case, Peter can make the decision to sell the team. The minority owners can sue if they think the price is inadequate.

Peter Angelos doesn’t have the capacity to make any decisions.  This isn’t speculation but fact.  

[Gurgi]

I remember that George Steinbrenner had the good sense to die when the Congress let the inhertance laws lapse.  The sons didnt have to pay tax on Yankees at all.  

 

[Billy F-Face3]

13 hours ago, Tryptamine said:

So take it with a grain of salt, but a guy who has repeatedly proven to be accurate with his insider information regarding the Mets is apparently claiming that a deal has been made but wont be announced for a while where the Orioles have been sold to the Carlyle Group for 1.4B. Why he would have this particularly info as a Met fan(though he is from Balitmore), I do not know, but he's been tremendously accurate with this stuff in the past so I'm just throwing it out there. 

 

 

The line about Peter Angelos is suspect. His mind has reportedly been comatose which is why his wife appointed John to run the team.

With that said, the fact this is coming from New York does make some small amount of sense. New York is the center of the universe when it comes to all things finance, and inside information on major acquisitions.  Steve Cohen, owner of the Mets, made his billions by cleverly leveraging information to build his hedge fund and acquire the wealth he has. He still has those connections, so it's possible he might know something.

 

The New York / Mets part can make sense to me. But I don't know. It seems to have come out of nowhere and the Peter Angelos thing doesn't make any sense.

[One eyed Bird]

3 hours ago, accinfo said:

Peter Angelos doesn’t have the capacity to make any decisions.  This isn’t speculation but fact.  

Been that way for 20 plus years when it comes to making decisions concerning the Os, Ol Pete sucks

[drjohnnyfever1]

I'm not sure why some seem to be hung up on Peter's capacity.  Certainly, he had some kind of Power of Attorney.  If he is "completely" out of it or on the path leading there, the family has probably already invoked that.  But from reading the other thread about the lease, my questions are how much, if any control, the family - JA - would retain in the development around the Park and whether the lease would transfer to new ownership.  The "rumor" could explain why it still hasn't been signed yet in both regards.

[Keygans]

Good morning....got a non-update update:

Apparently, we might as well put this rumor to rest for now.   Yes, there is an offer and it is from that group, and they do have an "agreement in place"...BUT....they are waiting for PA to leave us before anything happens.   @Frobby might be able to explain, but apparently there are MAJOR MAJOR TAX implications here in terms of estate planning and $$.   PA's health is declining rapidly supposedly so that is why the news is leaking out...if its news at all. 

Please don't shoot the messenger, and I will shut up as to not end up like the other "insiders'' of the past.     Back to the off-season boys. 

[Keygans]

7 hours ago, accinfo said:

Peter Angelos doesn’t have the capacity to make any decisions.  This isn’t speculation but fact.  

This is 100% accurate and bears repeating .  

[AlbNYfan]

I swore I would never get into the hate "Angelos" discussions (not really a discussion, but a hate therapy session), but here I am. Peter was (is) not a great owner. He failed in many aspects of the game. The why's and how comes can be discussed. Now, it's not in PA's court, but his family (always a problem with the wealthy).

The team should be sold IMO.....but I prefer some group with a strong, local connection including charitable contributions. Someone that considers Baltimore their home and not some way to increase their wealth (which will likely matter no matter what). I know nothing about the Carlyle group... but if it is a hedge fund group the hairs on the back of my neck stand up...I want a person, not a stockholder group to be responsible for the Orioles.

The grass is always greener..be careful what you wish for, Change for the sake of change is not the way. I'm out of cliches!!

 

[sportsfan8703]

Peter catches a lot of hate on here but at least there would be a chance he would spend with this core. He did it in 1997/1998. He did it in 2005. He did it again with the Buck teams. He even brought in Albert Belle. 

It’s the sons that won’t spent. I do not see this investment group wanting to win a sentimental WS and instead just wanting their bottom line to be the highest. Hope this falls through. 

Isn’t there some billionaire out there that wants to get in on this run?  

Edited November 15, 2023 by sportsfan8703