The Mystery of the NBA Team That Billions Can’t Buy

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Phatguysrule said:
Was this article a way of threatening to sick the NBA on Jody? Like, make the deal before the NBA forces it?
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Sounded like it. Eventually Silver is going to help his boy Phil Knight somehow with that clause stating a trust must sell to an owner within a reasonable time
 
Sloth said:
Knight is old as dirt and not sure how long his dreams would take and if he would live to actually see any of them through. As another poster said, a contingency plan would need to be put in and I think there would be one; say what you want about Knight, he is a very shrewd businessman.

I'm pretty ambivalent about the whole thing tbh. If Jody does not want to sell right now for whatever reason, that's her business as long as she continues to be the solid owner which I think she has been since taking over. On the flip side of that, if she does say heck with it and sells in the next couple years, that will be fine too.

I cheer on the Blazers regardless of who the owner is.
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I don't think Jody's incentives align with our incentives. Jody didn't care about the Blazers before Paul Allen died. This is just a job for her.

I could be wrong, I'd just feel better with Knight as owner.
 
Since PA died and Jody & The Vulcans took over, I have not seen any move or transaction that made me think they cared at all about contending. Not one time

yeah, Jody was front & center in 2019 when the Blazers beat OKC on Dame's walk off three...and she was there when they beat Denver in the next series. But what happened in that off-season? Olshey replaced Kanter-Aminu-Harkless-Curry-Turner-Layman-Meyers with Whiteside-Melo-Bazemore-Tolliver-Hezonja-Skal

geeeeezuzzz...losing in the WCF is a time for upgrading the roster the following season and perhaps paying some tax. Instead, the Blazers massively downgraded, cut costs all over the floor and in the Blazer offices, and sucked the life out of any hope the run to the WCF generated. And since 2019, whenever Portland seemingly had a choice between upgrade=tax vs downgrade=no-tax, they have chosen downgrade

in my view, it's not just Jody Allen in charge...it's Jody & the Vulcans in charge and what controls is a Vulcan mindset that's only interested in the cash-cow component of the Blazers. It's bad ownership in my view; fuck Seattle

in fact, AFAIC, it's the combo of Olshey-malpractice + new ownership that has soured Dame on the organization
 
SlyPokerDog said:
Per federal law, a family trust can remain open for up to 21 years.

Also, a family trust is started when the person or family is still alive. So the Blazers (along with other assets and possessions) were in a trust when Paul Allen was still alive.

The Blazers were transferred from a legal entity to a different legal entity. All teams are legal corporations, one person may own the corporation but it's never a sole proprietorship.

Nothing has changed with the ownership of the Blazers since Paul Allen died.

The NBA may want new owners for the Blazers but I don't see them having a leg to stand on in this. This isn't a Donald Sterling situation or even a Seattle Sonic situation. The team is free from (major) scandal and is financially healthy.
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The 21 year rule isn't from when the trust is formed - its after the death. Since Paul Allen died in 2018 that would be 2039.

I'd suspect theres ways around this and Jody wouldn't be forced to sell the team by then, but even if that rule was completely in effect we have at least 16 more years.
 
Fairly-Hard said:
This might be worth reading. These are things i have wondered about quite a bit.

  • That said, I had an interesting conversation two weeks ago with a source at Vulcan, Inc. There’s apparently another reason for Jody to slow-play the liquidation of her brother’s estate — she is collecting a management fee to be trustee. Unlike Kolde, Jody Allen won’t make a dime when the NBA team is sold. But In the state of Washington, trustees are allowed to take a reasonable annual fee. The figures vary, but I checked with a couple of estate attorneys who told me it wouldn’t be unusual to see a trustee annually collect 3-5 percent of the value of the estate to manage the trust. Let’s assume the Blazers are worth $3 billion. Jody could reasonably collect $90 million to 150 million per year on the team’s value alone. Could this help explain why she’s not in a hurry?
  • Jody Allen may posture as though she’s heavily involved and interested in the Trail Blazers, but we all know better. Multiple ex-team executives tell me she didn’t show much interest in the NBA franchise while Paul was alive. She even sometimes chided her brother for spending so lavishly on the team. I’m told she’s far more interested in the NFL’s Seahawks, but let’s extinguish the possibility that she’s holding Portland’s NBA franchise in a chokehold because she loves it dearly. She doesn’t.
These issues could be fabricated and I don't know but it sure seems plausible. Think of the money she is making just by holding onto the Seahawks and Blazers. Now multiply that by 10. Now multiply that by 20. It's just good business to make as much as she can. 3 billion for the Blazers and the Seahawks are worth almost 5 billion. that is over 300 million a year. If she holds these teams she becomes a true Billionaire in her own right very soon. I wonder if it was not set up by Paul Allen himself to be that way? In thinking of that the proceeds from the sales could go to his philanthropy and she would be taken care of many times over. This kills two birds with one stone so to speak?
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Yes I think this is why Jody won't try to sell the team anytime soon. Hopefully something such as the 21 year rule forces her to sell in 2039. That will be 21 years of her earning 90-150 million per year as "CEO". Does anyone really think Jody brings 3x the value to the Blazers as Dame? Its ridiculous she's pulling out so much money personally. Over those 21 years she'll potentially pocket between 2.0 - 3.1 BILLION in todays value personally from the franchise, if values and profits remain flat. If profits and values go up maybe she gets closer to 5-7 billion as "CEO"? When the team is sold she gets nothing.

I can't believe Paul Allen set his sister up with full control as custodian and such a massive conflict of interest. The guy made some amazing business moves obviously, but so many stupid moves with the Blazers and other wastes of money.

So get ready Blazer fans - we have 16 more years of Jody pinching pennies, ducking the tax, and pulling out hundreds of millions for herself. By that time Shaedon Sharp will be 36.

Makes decisions such as keep Dame - trade #3 - trade Dame - keep #3 - draft X player, sign player Y, Cronin job performance grade, etc all just totally irrelevant.
 
The big problem is what can us fans or the league even do?

Lets say were going to boycot Jody until she sells. Blazers attendence revenue is way down. Local TV revenue is flat. Well Jody can just cut all nonplayer costs, keep players salary at the 90% floor, use the national TV revenue etc, and continue to pay herself ~90-150 million per year. There is nothing we can do as fans, even if every journalist both local and national tried to force her to sell.

Even if we found a buyer who was willing to spend 10 billion it wouldn't matter because Jody doesn't get any of that - she'll want to retain power as custodian to get her annual 90-150 million paycheck.

Only exception might be if the league has power to force the trust to sell or remove her or something. I doubt thats the case, would probably end up in a nasty years long legal court battle. But its much more likely they have some power here - as the fans have none.
 
Also - looking at this 21 year rule, after that time period passes its just that the assets in the trust are characterized as a "deemed distribution" for federal tax purposes. I don't see that there is any legal requirement for assets to be transferred or a legal action to happen with the trust.

Would be great to actually see a copy of the trust agreement but I doubt we ever will be able to.
 
Phatguysrule said:
I don't think Jody's incentives align with our incentives. Jody didn't care about the Blazers before Paul Allen died. This is just a job for her.

I could be wrong, I'd just feel better with Knight as owner.
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I appreciate what he's done for PDX. But Jody is putting the money into the franchise, and has a plan to improve the Moda Center with a major renovation before the Women's final 4 in 2030. If she wasn't all in , she'd be already going on the cheap, and wouldn't have OK'd the moves for Grant, and the extensions for Dame & Ant. I can tell she's getting more involved and cares. Joe is educating her on the game's intricacies . I know Phil loves the U of O, and the State of Oregon. But he wasn't a passionate fan of the Blazers when i was friends with his son. He's a businessman who's done a ton right, for sure. But if Paul didn't trust his sister, he surely wouldn't have put her in charge of overseeing his favorite team. Jody keeping the team for now doesn't doom the franchise. And Phil and some LA real estate dude doesn't guaranty that they will bring it to the promised land.
 
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wizenheimer said:
Since PA died and Jody & The Vulcans took over, I have not seen any move or transaction that made me think they cared at all about contending. Not one time

yeah, Jody was front & center in 2019 when the Blazers beat OKC on Dame's walk off three...and she was there when they beat Denver in the next series. But what happened in that off-season? Olshey replaced Kanter-Aminu-Harkless-Curry-Turner-Layman-Meyers with Whiteside-Melo-Bazemore-Tolliver-Hezonja-Skal

geeeeezuzzz...losing in the WCF is a time for upgrading the roster the following season and perhaps paying some tax. Instead, the Blazers massively downgraded, cut costs all over the floor and in the Blazer offices, and sucked the life out of any hope the run to the WCF generated. And since 2019, whenever Portland seemingly had a choice between upgrade=tax vs downgrade=no-tax, they have chosen downgrade

in my view, it's not just Jody Allen in charge...it's Jody & the Vulcans in charge and what controls is a Vulcan mindset that's only interested in the cash-cow component of the Blazers. It's bad ownership in my view; fuck Seattle

in fact, AFAIC, it's the combo of Olshey-malpractice + new ownership that has soured Dame on the organization
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Totally agreed! This is often my criticism of "Cronin". Technically I should probably call it a criticism of "Cronins moves as restricted, influenced, demanded, or changed by Jody/Vulcan". Beyond disturbing to hear Jody is yanking out 90-150 million per year for "managing" the franchise.
 
tykendo said:
I appreciate what he's done for PDX. But Jody is putting the money into the franchise, and has a plan to improve the Moda Center with a major renovation before the Women's final 4 in 2030. If she wasn't all in , she'd be already going on the cheap, and wouldn't have OK'd the moves for Grant, and the extensions for Dame & Ant. I can tell she's getting more involved and cares. Joe is educating her on the game's intricacies . I know Phil loves the U of O, and the State of Oregon. But he wasn't a passionate fan of the Blazers when i was friends with his son. He's a businessman who's done a ton right, for sure. But if Paul didn't trust his sister, he surely wouldn't have put her in charge of overseeing his favorite team. Jody keeping the team for now doesn't doom the franchise. And Phil and some LA real estate dude doesn't guaranty that they will bring it to the promised land.
Click to expand...

How do you claim Jody is putting money in if she's pulling out 90-150 million per year personally to "manage" the team? Anyone with an ounce of common sense can see she has no basketball/NBA/Blazers/ knowledge or competency and is only pulling out this money to personally benefit. Do you think another team would pay her even $1 million per year? Hell no, she is not worth 90-150 million per year.

Yeah the team pays for GLeague things and promotions but those might be expenses that are believed to increase the profit long term so she can yank even more money out of the team. When people own compaines only to yank out profits the companies still have huge expenses - its necessary to get the revenue and get the owners more profits. Its not out of the goodness of their hearts.
 
WesleyMatthews said:
Lets say were going to boycot Jody until she sells. Blazers attendence revenue is way down. Local TV revenue is flat.
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You have to watch out pushing too far on this? This is how teams are moved sometimes.
 
WesleyMatthews said:
The big problem is what can us fans or the league even do?

Lets say were going to boycot Jody until she sells. Blazers attendence revenue is way down. Local TV revenue is flat. Well Jody can just cut all nonplayer costs, keep players salary at the 90% floor, use the national TV revenue etc, and continue to pay herself ~90-150 million per year. There is nothing we can do as fans, even if every journalist both local and national tried to force her to sell.

Even if we found a buyer who was willing to spend 10 billion it wouldn't matter because Jody doesn't get any of that - she'll want to retain power as custodian to get her annual 90-150 million paycheck.

Only exception might be if the league has power to force the trust to sell or remove her or something. I doubt thats the case, would probably end up in a nasty years long legal court battle. But its much more likely they have some power here - as the fans have none.
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It's Paul's sister. You make her sound like a pariah. I think Paul would be proud of how his sister is really getting into the team. Maybe he wouldn't be as proud of Bert. Who knows. But i doubt he'd be begging for Phil to buy it ASAP. Especially when , team additions, arena and surrounding area improvements, and a new TV Deal, the team may triple in value by 2030. They don't need to sell this minute. And maybe Dame can get in on the ownership group after he retires. Broncos owner Pat Bowlen tried to get Elway to have a piece of the team instead of salary. Not taking the offer cost Elway 900 million dollars.
 
tykendo said:
I appreciate what he's done for PDX. But Jody is putting the money into the franchise, and has a plan to improve the Moda Center with a major renovation before the Women's final 4 in 2030. If she wasn't all in , she'd be already going on the cheap, and wouldn't have OK'd the moves for Grant, and the extensions for Dame & Ant. I can tell she's getting more involved and cares. Joe is educating her on the game's intricacies . I know Phil loves the U of O, and the State of Oregon. But he wasn't a passionate fan of the Blazers when i was friends with his son. He's a businessman who's done a ton right, for sure. But if Paul didn't trust his sister, he surely wouldn't have put her in charge of overseeing his favorite team. Jody keeping the team for now doesn't doom the franchise. And Phil and some LA real estate dude doesn't guaranty that they will bring it to the promised land.
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It's not her money. It's the money of the trust.

The Grant move did not put us over the luxury task. That's the key point. We are making moves, but we are not going over the luxury tax. We have been deliberately making decisions to keep the team below the tax. Taking back a bunch of 2nd rounders instead of Wiseman, dumping Norm for nothing, etc etc etc.
 
And you can take your boycott idea and stick it where the sun don't shine.
 
tykendo said:
And you can take your boycott idea and stick it where the sun don't shine.
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I don't understand this stance.

You think he's being unreasonable for being unhappy with the ownership situation? And what recourse do fans have if they're unhappy with the status quo?
 
Natebishop3 said:
It's not her money. It's the money of the trust.

The Grant move did not put us over the luxury task. That's the key point. We are making moves, but we are not going over the luxury tax. We have been deliberately making decisions to keep the team below the tax. Taking back a bunch of 2nd rounders instead of Wiseman, dumping Norm for nothing, etc etc etc.
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They did that for flexibility. Helloooooooooo. Now if they don't make moves to improve the team, and go after key veterans, then you will be correct. I just don't see them standing pat and doing nothing. They'd look like buffoons. I get you want Knight. I don't. I sat next to him at a game and he was the least passionate person about the Blazers i have ever sat next to.
 
Natebishop3 said:
I don't understand this stance.

You think he's being unreasonable for being unhappy with the ownership situation? And what recourse do fans have if they're unhappy with the status quo?
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They're trying to improve the team. If Olshey was still here, doing nothing, saying his hands were tied, i'd agree. But Jody is letting Joe, and his staff , enact a course for major improvement.
 
I'm not saying everything is perfect, but they're trying to set a course for a major turnaround.
tlongII said:
That's probably a good reason right there. He IS a big fan of Portland though. Not being a huge fan of the team may keep him from over-valuing our players as well.
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That's fine and dandy. Unless they're wearing Nike's of course.
 
WesleyMatthews said:
How do you claim Jody is putting money in if she's pulling out 90-150 million per year personally to "manage" the team?
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You've referenced this a few times in this thread, but I'm not sure where that information is coming from. Is that referenced in the article or somewhere else?
 
PtldPlatypus said:
You've referenced this a few times in this thread, but I'm not sure where that information is coming from. Is that referenced in the article or somewhere else?
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Don't cringe too hard when you see this link.

https://www.johncanzano.com/p/canzano-digging-up-bones-in-the-trail

  • That said, I had an interesting conversation two weeks ago with a source at Vulcan, Inc. There’s apparently another reason for Jody to slow-play the liquidation of her brother’s estate — she is collecting a management fee to be trustee. Unlike Kolde, Jody Allen won’t make a dime when the NBA team is sold. But In the state of Washington, trustees are allowed to take a reasonable annual fee. The figures vary, but I checked with a couple of estate attorneys who told me it wouldn’t be unusual to see a trustee annually collect 3-5 percent of the value of the estate to manage the trust. Let’s assume the Blazers are worth $3 billion. Jody could reasonably collect $90 million to 150 million per year on the team’s value alone. Could this help explain why she’s not in a hurry?

  • Jody Allen may posture as though she’s heavily involved and interested in the Trail Blazers, but we all know better. Multiple ex-team executives tell me she didn’t show much interest in the NBA franchise while Paul was alive. She even sometimes chided her brother for spending so lavishly on the team. I’m told she’s far more interested in the NFL’s Seahawks, but let’s extinguish the possibility that she’s holding Portland’s NBA franchise in a chokehold because she loves it dearly. She doesn’t.

  • Jody Allen’s track record isn’t a great one and I’m thinking the NBA commissioner can’t be comfortable with her as the “acting owner” of the franchise. In 2012, body guards claimed in sworn depositions that Jody sexually harassed them, purchasing tight, Euro-cut swim trunks and allegedly requesting they perform a “fashion show” for her. The guards claimed under oath that she directed them to smuggle animal bones out of Africa and Antarctica. At least 15 ex-members of the personal security detail filed civil suits against the Allen family, with more than a dozen settling out of court. The Allen family attorneys called the accusations “meritless.” USDA records, however, reveal that inspectors destroyed 72 pounds of giraffe bones belonging to Vulcan, Inc.
 
tykendo said:
They did that for flexibility. Helloooooooooo. Now if they don't make moves to improve the team, and go after key veterans, then you will be correct. I just don't see them standing pat and doing nothing. They'd look like buffoons. I get you want Knight. I don't. I sat next to him at a game and he was the least passionate person about the Blazers i have ever sat next to.
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What flexibility? Provide examples. If anything it hurt our flexibility because we don't have any contracts to include in trades.
 
Natebishop3 said:
Don't cringe too hard when you see this link.

https://www.johncanzano.com/p/canzano-digging-up-bones-in-the-trail

  • That said, I had an interesting conversation two weeks ago with a source at Vulcan, Inc. There’s apparently another reason for Jody to slow-play the liquidation of her brother’s estate — she is collecting a management fee to be trustee. Unlike Kolde, Jody Allen won’t make a dime when the NBA team is sold. But In the state of Washington, trustees are allowed to take a reasonable annual fee. The figures vary, but I checked with a couple of estate attorneys who told me it wouldn’t be unusual to see a trustee annually collect 3-5 percent of the value of the estate to manage the trust. Let’s assume the Blazers are worth $3 billion. Jody could reasonably collect $90 million to 150 million per year on the team’s value alone. Could this help explain why she’s not in a hurry?

  • Jody Allen may posture as though she’s heavily involved and interested in the Trail Blazers, but we all know better. Multiple ex-team executives tell me she didn’t show much interest in the NBA franchise while Paul was alive. She even sometimes chided her brother for spending so lavishly on the team. I’m told she’s far more interested in the NFL’s Seahawks, but let’s extinguish the possibility that she’s holding Portland’s NBA franchise in a chokehold because she loves it dearly. She doesn’t.

  • Jody Allen’s track record isn’t a great one and I’m thinking the NBA commissioner can’t be comfortable with her as the “acting owner” of the franchise. In 2012, body guards claimed in sworn depositions that Jody sexually harassed them, purchasing tight, Euro-cut swim trunks and allegedly requesting they perform a “fashion show” for her. The guards claimed under oath that she directed them to smuggle animal bones out of Africa and Antarctica. At least 15 ex-members of the personal security detail filed civil suits against the Allen family, with more than a dozen settling out of court. The Allen family attorneys called the accusations “meritless.” USDA records, however, reveal that inspectors destroyed 72 pounds of giraffe bones belonging to Vulcan, Inc.
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So, speculation from a muckraker? Got it.
 
tykendo said:
They're trying to improve the team. If Olshey was still here, doing nothing, saying his hands were tied, i'd agree. But Jody is letting Joe, and his staff , enact a course for major improvement.
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They're trying to improve the team to a point. They won't go past the luxury tax. They keep making moves that don't make sense from a winning standpoint, but they make perfect sense if you're trying to save money.
 
I heard a podcast where the guy said Jody gets 190 million a year from the team but won't get a penny from the sale..(I think hoopsjock was the guest) .she's already worth 24 plus billion...might be 27 by now..she sold all Paul's Beverly hills properties including the mansion and music studio and last 100 acres of undeveloped land in Hollywood...she sold the yacht and submarine as well. Jody isn't hurting for money whether she sells the team or not. I read that Paul Allen's beef with Phil was political...Phil pumps tons of money into the republican party in Oregon and I don't think Paul liked that at all.
 
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WesleyMatthews said:
The 21 year rule isn't from when the trust is formed - its after the death. Since Paul Allen died in 2018 that would be 2039.

I'd suspect theres ways around this and Jody wouldn't be forced to sell the team by then, but even if that rule was completely in effect we have at least 16 more years.
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I know that. I have an estate trust.
 
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