Losing millions to save his franchise

[Jmac]

Tepper has deep pockets and can take the hit of trashing the whole thing....but would he. Even billionaires say enough is enough and just cut their loses. 

He would lose millions upon millions If cut the cord (not even considering the hit from the bad trades and contracts).

He didn't become wealthy by continuing to throw money at bad business decisions. 

What could he be thinking at this point after a few years in as owner? Might he just say to himself "fug it, I'm out." He has no ties to this town and could bail anytime he wished.

 

What u got?

[Pejorative Miscreant]

Maybe I don’t understand the question.  When u say bail do you me sell the franchise or leave town?  Only reason I have the question was the reference to the ties to the community.  
 

If you mean sell the team my answer is below.
 

The last time I looked at it Tepper paid 2.2 billion and the latest estimate on the franchise value is 2.9 billion.  He is making money long term as I don’t think he has an operating loss of 700 million since 2018.  He doesn’t lose money simply based on win/loss record, and even if he did I don’t think he cares.  No matter what he will come out ahead owning an NFL team. It’s like having a trophy wife that will never cost you money in the long run.  

On another note, I don’t think he would hesitate to fire Rhule tomorrow and eat that contract if he was convinced Rhule wasn’t the answer.  
 

 

Edited November 28, 2021 by Pejorative Miscreant

[BIGH2001]

I would love it but is there any precedent for an NFL owner selling the team unless they are forced to? It’s a huge ego thing for these guys to own a team and it’s way over my head but I’m sure there’s major tax implications as well.

[Pimpdaddy]

to be fair...you have to give Rhule 3 years...but it ain't lookin good....

[ThPantherFan]

37 minutes ago, Jmac said:

Tepper has deep pockets and can take the hit of trashing the whole thing....but would he. Even billionaires say enough is enough and just cut their loses. 

He would lose millions upon millions If cut the cord (not even considering the hit from the bad trades and contracts).

He didn't become wealthy by continuing to throw money at bad business decisions. 

What could he be thinking at this point after a few years in as owner? Might he just say to himself "fug it, I'm out." He has no ties to this town and could bail anytime he wished.

 

What u got?

He could sell it in a heart beat and take it off his taxes.  He can have a great team if he play's it smart with his coaching staff.

[MechaZain]

Sports teams are toys for rich men not investments.

[RJK]

Tepper isn’t selling anytime soon tho I do think it’s entirely possible to sway him by publicly calling for rhules job. He wants to win very badly, and I doubt rhule has a very long leash right now 

[rico6]

Unless Tepper cold turkeys his theme park creation in rock hill, he’s here to stay, fellas

Edited November 28, 2021 by rico6

[Scott12345]

Don’t forget about what he is building in Rock Hill

and his soccer deal starts up next year…gonna be a bigger deal that we think

and he wants to build a stadium 

he is committed to Charlotte 

but I bet he is getting really pissed

[top dawg]

LOL @ Tepper selling the team. 

He's the richest owner in the NFL. He doesn't give a poo about a few million. It's lunch money.

[NanuqoftheNorth]

Tepper is using his purchase price of the Carolina Panthers as a tax write off.  Meanwhile, NFL franchises continue to grow in value.  Dave is reducing his overall tax hit and laughing all the way to the bank.

 

Quote

 

The $2.3 billion Tepper paid would produce amortization expenses of around $140 million per year, according to the IRS’ general guidelines. That annual expense would wipe out any Panthers profits for tax purposes.

The team swung from a large taxable profit before its sale to a tax loss of about $115 million, according to a ProPublica analysis of IRS records, after Tepper’s purchase in 2018. There’s no evidence anything significant about the Panthers’ real-world revenue and expenses changed between 2017 and 2018. The only major difference is the team changed hands, and Tepper now gets a tax benefit through his new entity, Tepper Sports Holdings.

Tepper’s hedge fund is a massive producer of capital gains income — in the past decade, he has often reported more than $1 billion in annual income — so the tax losses produced by the Panthers are extremely valuable to him. A spokesman for Tepper didn’t respond to questions.

 

 

https://www.propublica.org/article/the-billionaire-playbook-how-sports-owners-use-their-teams-to-avoid-millions-in-taxes

 

[L-TownCat]

56 minutes ago, Jmac said:

Tepper has deep pockets and can take the hit of trashing the whole thing....but would he. Even billionaires say enough is enough and just cut their loses. 

He would lose millions upon millions If cut the cord (not even considering the hit from the bad trades and contracts).

He didn't become wealthy by continuing to throw money at bad business decisions. 

What could he be thinking at this point after a few years in as owner? Might he just say to himself "fug it, I'm out." He has no ties to this town and could bail anytime he wished.

 

What u got?

Feels like the football version of Bob Johnson and his "Bob"cats.

[LinvilleGorge]

2 minutes ago, NanuqoftheNorth said:

Tepper is using his purchase price of the Carolina Panthers as a tax write off.  Meanwhile, NFL franchises continue to grow in value.  Dave is reducing his overall tax hit and laughing all the way to the bank.

 

 

https://www.propublica.org/article/the-billionaire-playbook-how-sports-owners-use-their-teams-to-avoid-millions-in-taxes

 

God our tax system is so fuging broken.

[NanuqoftheNorth]

Just to be clear, the title of this thread couldn't be more misleading.  Tepper isn't losing a dime by owning the Panthers, the team is a money making machine that provides Dave with a means to literally write off hundreds of millions of dollars each year (billions over time).

It is a sweet deal for owners.

Quote

 

A little-known tweak to IRS rules in 2004 has allowed new owners to write off nearly all of the purchase price of their teams against profits over 15 years.

The tax break has supercharged the increase in values of all professional sports teams, experts said.

 

https://nypost.com/2017/10/11/nfl-owners-have-made-millions-off-obscure-tax-break/