$55 million credit loan at center of Washington federal probe

[biggie.]

[cp0k2]

18 hours ago, SteelKing728 said:

Sell to Bezos and go back to being the Redskins!

Bald Scalps.

[ramssuperbowl99]

On 2/28/2023 at 7:18 AM, naptownskinsfan said:

Short story: Snyder’s former partners were not aware that Snyder took out a $55 million loan against the team.  Loans like that require the other owners’ knowledge, as well as approval of a board meeting.  Additionally, Goodell’s signature appears on the document, indicating that there was belief on the NFL’s side that Snyder satisfied what he was supposed to do.  

Reading more of the article, Snyder is running the team with a salary north of $10 million, and using the team as a personal piggy bank and now it is cash-poor.  Revenues have also dropped $81 million from 2009 to 2020.  

https://www.espn.com/nfl/story/_/id/35726691/former-partners-say-dan-snyder-used-team-fund-lifestyle-took-improper-loan-their-approval

The interesting thing about this to me is that the fraud was perpetuated using the same bank that is currently selling the team.

Did Bank of America know that Snyder did not have approval for the line of credit? Can they prove that?

 

Because if not, it certainly looks like Snyder either kept BoA in the dark, or is using the commission from the sale of the team as a proxy hush payment for as much cooperation in this investigation as possible.

[y*so*blu]

Another week, another way Snyder is an awful human being, another whole lot of nothing done about it (I expect).

I love capitalism but at some point a basic standard of morality should prevail, don't you think?

Edited March 1, 2023 by y*so*blu

[RuskieTitan]

18 minutes ago, y*so*blu said:

I love capitalism but at some point a basic standard of morality should prevail, don't you think?

lol, you truly don't believe that in this nation, do you?

[Trojan]

If you have a lot of assets you take low interest loans against them because the money is debt and not income therefore not taxed. It's a something near $5,000,000,000 asset and he took a $55,000,000 loan? Who cares? That's basically 1% of the team value.

Oh just read the article a bit and this is back when he owned 60% of the team and the 40% owners at the time weren't in the loop. They wanted to sue and investigate and Goodell shut it down and had them sell their stake instead. The 4.5mil Snyder charged the team to put it's logo on his jet is more insane to me than a loan against his stake in the team unless the terms were craziness or something that put the investment at risk -- which I doubt given how little 50mil is compared to an NFL franchise.

"In spring 2021, the mediation resulted in Snyder paying his partners $875 million for their 40% stake. Nearly two years later, Snyder is seeking to sell the team for up to $7 billion. At that price, the former partners' stake in the team would be worth $2.8 billion."

That is just a stupid price for them to agree to sell in 2021. That's on them. It reminds me a bit of the Subway owner's scheme to pass wealth to his sons where he'd buy a say 100mil property then give both sons a 48% interest as a like $12mil value "gift" then got in trouble with IRS as it should be worth 48mil, and the Subway guy argued and won that it's not worth 48mil because neither is a majority share and thus worth considerably less.  If you took that logic to the Washington team in 2021 the 40% was worth 875mil, but the 60% stake might be worth 4bil because it's the actual majority stake that has value.

[Mox]

On 2/28/2023 at 8:06 AM, SteelKing728 said:

Sell to Bezos and go back to being the Redskins!

Or at least "The Football Team". Anything other than the trash they have now.

[wackywabbit]

this freaking guy indeed

[NudeTayne]

On 3/1/2023 at 11:41 AM, Trojan said:

If you have a lot of assets you take low interest loans against them because the money is debt and not income therefore not taxed. It's a something near $5,000,000,000 asset and he took a $55,000,000 loan? Who cares? That's basically 1% of the team value.

Oh just read the article a bit and this is back when he owned 60% of the team and the 40% owners at the time weren't in the loop. They wanted to sue and investigate and Goodell shut it down and had them sell their stake instead. The 4.5mil Snyder charged the team to put it's logo on his jet is more insane to me than a loan against his stake in the team unless the terms were craziness or something that put the investment at risk -- which I doubt given how little 50mil is compared to an NFL franchise.

"In spring 2021, the mediation resulted in Snyder paying his partners $875 million for their 40% stake. Nearly two years later, Snyder is seeking to sell the team for up to $7 billion. At that price, the former partners' stake in the team would be worth $2.8 billion."

That is just a stupid price for them to agree to sell in 2021. That's on them. It reminds me a bit of the Subway owner's scheme to pass wealth to his sons where he'd buy a say 100mil property then give both sons a 48% interest as a like $12mil value "gift" then got in trouble with IRS as it should be worth 48mil, and the Subway guy argued and won that it's not worth 48mil because neither is a majority share and thus worth considerably less.  If you took that logic to the Washington team in 2021 the 40% was worth 875mil, but the 60% stake might be worth 4bil because it's the actual majority stake that has value.

This. This is entirely it. I'm not sure what the majority are talking about in here. This is it. The investigation over such a small amount is the tip of the iceberg. Folks want it to stick. It probably won't. Bigger games are being played.

On 3/1/2023 at 11:18 AM, y*so*blu said:

Another week, another way Snyder is an awful human being, another whole lot of nothing done about it (I expect).

I love capitalism but at some point a basic standard of morality should prevail, don't you think?

What is being talked about isn't really capitalism at all, though. It's purely a discussion of corruption, outside of any particular system.

There are systems with their rules and then there are loopholes/monopolies enforced by those in power. It's illegal, but if the ones controlling the justice system itself are the ones abusing it, there tends to be no recourse. This looks like an example of that in practice. The same would be true with socialism, which also arguably is a just system if it were followed to its own tenets.

I won't discuss further, as it's a football site and such talk tends to get shut down. I did my best to not put any personal opinions of which I prefer etc.

TL;DR both capitalism and socialism can be virtuous or abused by tyrants, and both are; at that point the better description is tyranny, not whatever system has been hijacked by those in control

 

$0.02