Utah Jazz Ownership Restructured and Placed in Family Trust

[JAZZGASM]

I heard some stipulation that the trust itself would make no profits from the team--all profits will go back into the Jazz organization. Anyone know of the details on that? That's got the potential to be huge, if accurate, essentially giving the Jazz a substantially larger operating budget than they would have otherwise. (Maybe 50%? I'm not sure what the appropriate number would be.)

Not exactly correct. The profits will not be distributed to the beneficiaries-- i.e., all profits will remain with the trust investment(team) to grow the investment.

Eventually, the Miller family will get this money. The idea is that it will grow and avoid a huge tax bill.

 

[vegas]

[MENTION=870]JAZZGASM[/MENTION] could a trust be setup to have a championship be a priority? Could it be setup so that the Millers could not benefit financially from its sale as advertised?

I had always understood that thanksgiving point was a gift to the community after it's owner sold Wordperfect for $1 bill. Supposedly it was/is a philanthropic endeavor. Is there a reason this trust couldn't accomplish something similar?

 

[JAZZGASM]

[MENTION=870]JAZZGASM[/MENTION] could a trust be setup to have a championship be a priority? Could it be setup so that the Millers could not benefit financially from its sale as advertised?

I had always understood that thanksgiving point was a gift to the community after it's owner sold Wordperfect for $1 bill. Supposedly it was/is a philanthropic endeavor. Is there a reason this trust couldn't accomplish something similar?

You could have a charitable or charitable remainder trust. A legacy trust is designed to keep assets in a family...

 

[vegas]

You could have a charitable or charitable remainder trust. A legacy trust is designed to keep assets in a family...

Thanks and repped

 

[elan_prodigy]

I'm picturing this like that George Cloney movie, The Desendants...

I see it going 1 of 3 ways;

a) In future the franchise may be neglected as efforts and focus switch to enterprises generating profit

b) Money generated by franchise put towards HUGE salaries for family members

c) PEDAL TO THE METAL BABY!!! The Miller family going CHIP HUNTING!

 

[green]

This isn't a big deal. All it is is a way for the young Miller's to avoid a big tax bill when Gail dies.

Just the rich getting richer.

The way we fawn over stuff like this in Utah. Ha ha.

"Oh my god, the Miller's just saved themselves hundreds of millions of dollars, passing that cost into me! I LOVE them!"

 

[vegas]

Some outside info on this:

Second, what is a legacy trust?

A legacy trust, also known as a dynasty trust, is a form of generation skipping trust (GST). This type of trust is normally irrevocable and is intentionally formed to pass assets from the grantor to the grantor’s descendants beyond his/her immediate children (i.e. to grand children, great grandchildren, etc).

Finally, what do we know about the Utah Jazz legacy trust?

1. The trust has the potential to last hundreds of years. Dennis Haslam, who worked with the NBA in order to get the deal done, is quoted as having said, “This has the potential to last hundreds of years, maybe longer.”

In common law, there is what is known as a rule against perpetuities; this rule forbids instruments such as trusts “from tying up property for too long a time beyond the lives of people living at the time the instrument was written.”

Some states by statute have eliminated the rule against perpetuities and some have increased the length of time a trust can hold assets. In Utah, the law allows trusts to last 1,000 years. Assuming the Miller legacy trust utilizes Utah’s maximum time frame for trusts, the Jazz could be owned by the trust for 1,000 years.

This may be why Greg Miller said, "It is as close as possible to there being perpetual ownership of a professional sports team," son Greg Miller said.

2. The trust agreement provides for the profits to stay within the trust. Gail has stated the trust will not provide any "material benefit to the family from the Jazz." There have been some that have wondered how this is possible despite the obvious fact that Gail’s heirs are the beneficiary of the trust.

Again, we go to Dennis Haslam, “The profit stays within the trust. The profit that stays within the trust will be used as retained earnings, for expansion, for player salaries, or other operations. There could be a time period where the Jazz aren't profitable, so we'll stockpile cash. This trust will be well-supported financially, and will be able to survive into the future for generations and generations." From this statement, it appears that the trust agreement provides that the earnings of the Jazz are to be reinvested in the team, and since it is a provision of the trust, the trustee has to follow its directions in administering the trust.

https://www.slcdunk.com/research-statistics-analytics/2017/1/24/14365790/utah-jazz-larry-h-miller-group-of-companies-legacy-trust-tax-law

The Miller family obtained permission from the NBA to transfer ownership to a legacy fund that will be managed by Gail Miller acting as trustee. Following Gail, a six-member board of managers will assume the role of trustee. Those six members will be all be Miller family members, to be chosen in a process outlined in the trust's founding documents.

That board of managers would then vote on those team decisions that would normally go to ownership. For some votes, a majority would be required, for bigger decisions, a supermajority is required.

Miller said the Jazz are the first team the NBA has allowed to set up a legacy trust to keep a team. "To the best of my knowledge, this is unprecedented," said Dennis Haslam, who worked with the NBA in order to get the deal done. The negotiations and clarifications working with the league took over 12 months, according to Haslam.

https://www.ksl.com/?sid=42966429&nid=304&title=utah-jazz-vivint-arena-ownership-transferred-to-perpetual-legacy-trust

"It's part of a big package of estate planning," Gail Miller said of the trust. "But it's one part that's all done and it will last forever, as long as we have people who are willing and able to take care of it."

https://www.sltrib.com/home/4853754-155/utah-jazz-ownership-to-be-restructured

 

[green]

Ha ha. So, the trust will be lead by Miller family members? Another cash grab by the Millers. What a crock. This irks me big time.

Look, I'm ok with the Millers making money off the Jazz. They have every right to do so.

BUT, to sit there and lie to us about all of this...it's embarrassing and shows just how slimy this family is.

"look how great we are, all profits back into the Jazz, perpetual ownership, blah, blah, blah..."

Here is the reality:

By doing the trust, the Millers save hundreds of millions of tax dollars, passing that cost onto the middle class.

By having the board be all Miller family members, they can pay themselves a handsome salary, thereby profiting off the Jazz. Again, there is nothing wrong with all this, but to do this type of press conference, and pretend to do it for the state of Utah, and to put out all the profits bull ****...again, shows how slimy this family is.

Be honest. Set up the trust, and do it quietly, and go on with life. But to use this to somehow proclaim how wonderful you are...slimy.

 

[vegas]

Ha ha. So, the trust will be lead by Miller family members? Another cash grab by the Millers. What a crock. This irks me big time.

Look, I'm ok with the Millers making money off the Jazz. They have every right to do so.

BUT, to sit there and lie to us about all of this...it's embarrassing and shows just how slimy this family is.

"look how great we are, all profits back into the Jazz, perpetual ownership, blah, blah, blah..."

Here is the reality:

By doing the trust, the Millers save hundreds of millions of tax dollars, passing that cost onto the middle class.

By having the board be all Miller family members, they can pay themselves a handsome salary, thereby profiting off the Jazz. Again, there is nothing wrong with all this, but to do this type of press conference, and pretend to do it for the state of Utah, and to put out all the profits bull ****...again, shows how slimy this family is.

Be honest. Set up the trust, and do it quietly, and go on with life. But to use this to somehow proclaim how wonderful you are...slimy.

Look me in the eye and tell me when Larry bought the Jazz 30 years ago it didn't already have all the tax planning that was needed. I spend a fraction of that to purchase an asset and I have a trust.

 

[green]

Look me in the eye and tell me when Larry bought the Jazz 30 years ago it didn't already have all the tax planning that was needed. I spend a fraction of that to purchase an asset and I have a trust.

Again, I don't have any problem with the trust, with the board, with putting family on the board. It's smart. It's what I would do.

The problem I have, is the press conference, the tears, the sobbing over keeping the Jazz in Utah...it's all bull ****. It's nothing more than a slimy family, once again, trying to get people to stroke their ego.

It's pathetic.

 

[vegas]

Again, I don't have any problem with the trust, with the board, with putting family on the board. It's smart. It's what I would do.

The problem I have, is the press conference, the tears, the sobbing over keeping the Jazz in Utah...it's all bull ****. It's nothing more than a slimy family, once again, trying to get people to stroke their ego.

It's pathetic.

I'm saying this probably transferred the Jazz from one trust to another. The tax planning has been taken care of for 30 years, so this was not about taxes at this point. Just my assumption. The Millers can afford a lot better lawyers and accountants than I. I doubt it would take them 30 years to figure out how to address estate taxes on the Jazz.

 

[Witty Username]

I've never liked how the Miller's managed things past Larry. I like the trust, but the concept of it weakens the ownership of the team to the rest of the league.

It's funny, Greg came in and folded quickly. Then it was Gail heading the siege, now it's... Miller family semantics?

Let's be honest, a goddamn trust is heralded by lawyers.