Attanasio: my kids can take this over some day

[homer]

Found this little tid bit interesting in the JSOnline article about the Brewers' LA connections. If there were any concerns about Mark A cashing in and selling it doesn't look like that's happening:

 

“’I’ve got things set up, where, God willing, my kids can take this over some day,” Attanasio said. “I’m dug in here, for the long haul.”

 

https://www.jsonline.com/story/sports/mlb/brewers/2018/10/10/la-times-brewers-almost-los-angeles-dodgers-themselves/1589393002/

[jjgott]

Let's just hope they're a little better than Wendy Selig Prieb at running the club.

[OldSchoolSnapper]

I don't think it'll ever be fully understood by the community how lucky we got with this guy. The biggest fans may know it but could have gone about 99 others ways and all of them worse than what we got.

[MrTPlush]

I think he understands he is flowing in money. What’s the point in cashing out? Great owner who loves to win. Running a team how it should be ran. As a business, but still understand the toy aspect.

[jerichoholicninja]

He's got to be one of the youngest owners in pro sports I would think. Weren't his kids in high school or younger when he bought the team?

[DuWayne Steurer]

He's got to be one of the youngest owners in pro sports I would think. Weren't his kids in high school or younger when he bought the team?

 

 

He's actually 61 years old.

[jerichoholicninja]

He's got to be one of the youngest owners in pro sports I would think. Weren't his kids in high school or younger when he bought the team?

 

 

He's actually 61 years old.

 

I would guess that still puts him on the young side for an owner of a pro sports team.

[trwi7]

Found this little tid bit interesting in the JSOnline article about the Brewers' LA connections. If there were any concerns about Mark A cashing in and selling it doesn't look like that's happening:

 

“’I’ve got things set up, where, God willing, my kids can take this over some day,” Attanasio said. “I’m dug in here, for the long haul.”

 

https://www.jsonline.com/story/sports/mlb/brewers/2018/10/10/la-times-brewers-almost-los-angeles-dodgers-themselves/1589393002/

 

He can say whatever he wants now but if they don't care about the team, they're going to sell it. Not saying his kids don't want the team but him saying they can take over doesn't mean much.

[homer]

Found this little tid bit interesting in the JSOnline article about the Brewers' LA connections. If there were any concerns about Mark A cashing in and selling it doesn't look like that's happening:

 

“’I’ve got things set up, where, God willing, my kids can take this over some day,” Attanasio said. “I’m dug in here, for the long haul.”

 

https://www.jsonline.com/story/sports/mlb/brewers/2018/10/10/la-times-brewers-almost-los-angeles-dodgers-themselves/1589393002/

 

He can say whatever he wants now but if they don't care about the team, they're going to sell it. Not saying his kids don't want the team but him saying they can take over doesn't mean much.

 

 

Well yeah. I mean he could turn around and sell the team in two years too. Him saying stuff doesn't mean anything. I just found it interesting that passing it to his kids is even in the cards.

[nodakfan17]

It also depends on where the estate tax is sitting at the time of the team owner’s death. Hypothetically, if the estate tax were 50% and the value of the estate’s ownership interest represented more than half the estate’s value, the heirs would have no choice but to sell unless they themselves were independently wealthy.

 

The Steinbrenner Family was exceptionally lucky when George Steinbrenner passed as the estate tax was repealed for one year only in 2010 (a result of a planned phaseout beginning in 2001 that was eventually reversed when political winds shifted ... that’s not intended to be politicall commentary, but rather the facts surrounding an odd tax loophole that ensured the Steinbrenners would control the Yankees for another generation).

[bjkrautk]

He can say whatever he wants now but if they don't care about the team, they're going to sell it. Not saying his kids don't want the team but him saying they can take over doesn't mean much.

 

Is one of his kids still in the analytics department for the team? I mean, yes, nepotism...but at least Mark is trying to instill an understanding of what it takes to keep the team successful.

[Baldkin]

He's got to be one of the youngest owners in pro sports I would think. Weren't his kids in high school or younger when he bought the team?

 

 

He's actually 61 years old.

 

I would guess that still puts him on the young side for an owner of a pro sports team.

 

Robert Pera, owner of the Grizzlies, is 40 -- I believe he is the youngest in the US. The Bucks 3 main owners are all 59.

[FVBrewerFan]

The kids taking over the company, that always works.

[Dean Machine]

My wife for some reason follows one of his kids on instagram and she says after college he wrote he was going to take a year off but it has now been 3 or 4 years of him just traveling the world and partying.

[monty57]

It also depends on where the estate tax is sitting at the time of the team owner’s death. Hypothetically, if the estate tax were 50% and the value of the estate’s ownership interest represented more than half the estate’s value, the heirs would have no choice but to sell unless they themselves were independently wealthy.

 

The Steinbrenner Family was exceptionally lucky when George Steinbrenner passed as the estate tax was repealed for one year only in 2010 (a result of a planned phaseout beginning in 2001 that was eventually reversed when political winds shifted ... that’s not intended to be politicall commentary, but rather the facts surrounding an odd tax loophole that ensured the Steinbrenners would control the Yankees for another generation).

 

There are strategies to avoid the need to sell assets to cover the estate tax cost, and I'm sure the Attanasio's have paid a good estate planning attorney to do just that.

 

As to the 2001 tax cut, it wasn't technically reversed. Any time a tax cut is put into place, if it is not at least "neutral" (meaning that the taxes received by the government are expected to be less than previous), then it needs more than a simple majority vote or there will need to be a "sunset provision" where the tax cut eventually phases out over time. This was the case with the "Bush tax cuts," and it is the case with the recent tax cuts as they pertain to individual tax payers. From the day the 2001 cuts went into place, there were attorneys talking about 2010 suicides as a viable plan for elderly wealthy clients.

 

To topic, I'm glad to hear that Attanasio isn't looking to sell. Like anyone, he has his faults, but he is a vastly superior owner than Selig and probably most other owners out there.It's not an accident that 60% of our playoff appearances have occurred in the relatively short time he's been here, nor that we look to be set up pretty well for the foreseeable future. For better or worse, the direction of any business is a direct result of the actions taken by the person at the top and Attanasio overall has done a good job.

[FVBrewerFan]

My wife for some reason follows one of his kids on instagram and she says after college he wrote he was going to take a year off but it has now been 3 or 4 years of him just traveling the world and partying.

 

Seems to be very common these days. Why couldn't this have been "a thing" back when I graduated!?!?

[nodakfan17]

There are strategies to avoid the need to sell assets to cover the estate tax cost, and I'm sure the Attanasio's have paid a good estate planning attorney to do just that.

 

As to the 2001 tax cut, it wasn't technically reversed. Any time a tax cut is put into place, if it is not at least "neutral" (meaning that the taxes received by the government are expected to be less than previous), then it needs more than a simple majority vote or there will need to be a "sunset provision" where the tax cut eventually phases out over time. This was the case with the "Bush tax cuts," and it is the case with the recent tax cuts as they pertain to individual tax payers. From the day the 2001 cuts went into place, there were attorneys talking about 2010 suicides as a viable plan for elderly wealthy clients.

 

Good color there, thank you. I had incorrectly assumed its reversal was political, given the timing. I have no doubt that Mark A will use all legal remedies to minimize his estate tax bill, but with assets that size, it would still be a significant obstacle for any heir wishing to retain ownership of a pro sports team.

[tmwiese55]

My wife for some reason follows one of his kids on instagram and she says after college he wrote he was going to take a year off but it has now been 3 or 4 years of him just traveling the world and partying.

 

Seems to be very common these days. Why couldn't this have been "a thing" back when I graduated!?!?

 

Were your parents multi-billionaires? haha.

 

I really don't blame people in their situations from not working. I mean, I wish I didn't have to and could just see the world and enjoy myself so I'm not going to judge them. However, that likely means one isn't competent/experienced enough to take over the family business. Of course they could do this for a while and then settle in just fine as a mature adult in the next few years and do just fine taking things over. Who knows. Watch the TV show Succession on the topic

[FVBrewerFan]

My wife for some reason follows one of his kids on instagram and she says after college he wrote he was going to take a year off but it has now been 3 or 4 years of him just traveling the world and partying.

 

Seems to be very common these days. Why couldn't this have been "a thing" back when I graduated!?!?

 

Were your parents multi-billionaires? haha.

 

I really don't blame people in their situations from not working. I mean, I wish I didn't have to and could just see the world and enjoy myself so I'm not going to judge them. However, that likely means one isn't competent/experienced enough to take over the family business. Of course they could do this for a while and then settle in just fine as a mature adult in the next few years and do just fine taking things over. Who knows. Watch the TV show Succession on the topic

 

I know quite a few kids who are doing this, and they're far from billionaires. They find odd jobs here and there as they travel, teach English, etc.

[homer]

The kids taking over the company, that always works.

 

In Japan, CEO's of family companies find capable young men and adopt them. Literally these guys are getting adopted in their 20's. Keeps the "family" company thing going if Junior is like Billy Madison.

[tmwiese55]

Seems to be very common these days. Why couldn't this have been "a thing" back when I graduated!?!?

 

Were your parents multi-billionaires? haha.

 

I really don't blame people in their situations from not working. I mean, I wish I didn't have to and could just see the world and enjoy myself so I'm not going to judge them. However, that likely means one isn't competent/experienced enough to take over the family business. Of course they could do this for a while and then settle in just fine as a mature adult in the next few years and do just fine taking things over. Who knows. Watch the TV show Succession on the topic

 

I know quite a few kids who are doing this, and they're far from billionaires. They find odd jobs here and there as they travel, teach English, etc.

 

 

 

Oh for sure. That's a bit different though. They're scratching by and valuing the seeing the world over gaining wealth. And a very good chance racking up a good amount of debt on the way. Good for them though, live your life how you want. And I see your point that it just wasn't something 20 years ago looked at doing.

 

These types are mega rich with literally no concerns of money, doing whatever they want whenever they want. Probably a bunch of lavish partying along the way. It's a bit different. Hopefully they all keep their nose clean so to speak.

[nodakfan17]

I’m not speaking from experience, but I would imagine teaching English in a foreign country is very different than spending a year on your parents’ dime creating a top-notch Instagram account.

[fondybrewfan]

Any billionaire with any common sense pays lawyers and accountants a lot of money to avoid estate taxes as much as possible. That might including gifting a portion of the ownership to his kids prior to death among a myriad of other options that normal poor schmucks like us can't do because we can afford the lawyers and accountants to do it.

 

Take the recent death of Spanos for the SD Chargers that recently past away. It sounds like the team was passed down to the kids and they owe nothing or next to nothing in taxes.

[Bob Skube Snacks]

I don't think it'll ever be fully understood by the community how lucky we got with this guy. The biggest fans may know it but could have gone about 99 others ways and all of them worse than what we got.

 

That’s the truth. It amuses me when I see complaints about him from short-sighted Brewers fans. Anyone who lived through the Selig years from 1993-05 knows we hit a lottery ticket with Attanasio.

 

Ask Pirates fans how committed their ownership is? Or the Marlins, Reds, Royals (one brief period being an exception to an otherwise skinflint operation), etc.

 

Of the markets our size, Attanasio makes the best commitment to the product on the field. As a fan, that’s all I ask.

[AdvantageSchneider]

Oh boy let's talk estate tax.

 

So Mark A is already employing an Estate tax strategy by not owning 100% of the Brewers. The value of the estate gets a fairly significant discount on the overall value of any businesses that are not 100% owned.

 

Given Mark A's wealth before he acquired the Brewers I'm certain he already has life insurance policies that will cover significant portions of any estate tax liabilities he has. Whole life insurance policies are great ways to transfer wealth for several reasons but mainly because the proceeds of a life insurance policy are not taxable to the heirs.

 

And finally I don't follow estate taxation that closely, but I have never heard of a business ever being sold due to the estate tax. For the simple reason that if a business is valuable enough to be subject to the estate tax it most certainly could qualify for a loan to cover any estate tax due on it. But good stuff. Hope we don't have to talk about this for 30 years. Maybe Tom H. can ask Mark A about his estate planning in the offseason.