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I have done similar transactions in the past....
Probably would be a separate deal with Haslam's and Gruden in which Gruden would get maybe 1% or 2% ownership in Browns in exhange for "consultative services" or something similar.
It would be taxable to Gruden as income. So if the Browns were worth 1billion and Gruden got 1% of team, that would be worth 10 million and he would need to recognize 10 million in income the year it is transferred....
Not uncommon in corporate deals at all. Uncommon in college coaching but could be used to get Gruden off his endorsement deals with Hooters et al....
sounds about right..i think your hypothetical is a bit unrealistic though. The Browns are never going to be worth a BILLION dollars..
Old law school buddy of Dooley's?
actually orangetex, you are about dead on..Browns are valued at 970 million according to Forbes.. So even 1% ownership would be a sweet deal for Gruden.. Things that make you go hmmmm...
They are right now...
UT Alum 2005. Season Ticket Holder. Bleed Orange. Go VOLS!
I'll hang up and listen.
No idea, but the Browns ownership thing isn't against NCAA? A college coach as a part owner of an NFL club seems like it would violate something?
follow me on twitter: WESinTN
I am with you. I don't understand how someone with an ownership stake in the NFL could be allowed to coach at the NCAA level.
What would stop the Lions from giving coaches ownership stakes to get better access to players? Just seems like a huge can of worms to me.
Still clueless runthroughtheT?
You are correct. You might consider that Gruden and his attorneys might alos require that should the appraised value of the Brown's decline that the value at the close of the deal is guaranteed.
Yes - but in these types of consulting relationships there has to be services rendered of a value at least close to what is given in compensation; otherwise, the excess compensation will be deemed a gift subject to the federal gift tax. Assuming the Haslams have all used up their gift tax exemptions ($5,120,000 per person this year), they could be looking at a steep gift tax if the transaction were examined by the IRS. I cannot imagine the Gruden would be performing services anywhere close in value to his ownership interest. Perhaps you could structure any excess compensation as a charitable contribution from the Haslems to UT, who is then deemed to pay it to Gruden, but that is a risky also.
The whole thing is way too complicated in my opinion to have a remote chance of reality.
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