(07-22-2022, 03:19 PM)RiverRat13 Wrote: While they might not have the cash on hand to put guaranteed money into escrow, they can easily get loans to do so. The field naming rights would probably come close to covering the interest.

I doubt even the richest owners are plopping their own cash into escrow. They are most likely getting loans as they would pay a lower interest rate from a loan than what that money would make in the market. Rob Walter may be worth $60 billion, but he doesn't have $60 billion sitting in the bank.

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(07-22-2022, 01:09 PM)pally Wrote: Unlike some teams you can not separate the Brown family and Bengals' finances.  The family wealth comes from the team and the team only.  

Mike Brown is generally considered the 2nd poorest (relative term) NFL owner next to Mark Davis of the Raiders who shares ownership with his mother. As an only child, when she dies, he should inherit full ownership.

Brown's net worth is estimated to be $925 million. For perspective, Rob Walton, the new Bronco's owner is worth around $60 billion.

How much of Brown's wealth is from outside sources or is liquid is unknown.

As we move into negotiations with the team's biggest stars, cash assets or the ability to access cash is paramount because of the escrow rules.  It is unlikely that the Browns, despite their overall wealth, have the cash on hand to place hundreds of millions of dollars into an escrow account for multiple guaranteed contracts unlike owners like Haslam and Walton. But we really don't know that for sure.

One financial concern that must be at the forefront of the Bengals' planning, is the fact that their principal owner, Mike Brown, will be 87 in 3 weeks.  They have to plan for his death, the transition of ownership, and the impact that will have on the family and team's overall finances.  Granted, having dealt with the whole tax impact of his father's death has taught Mike valuable lessons which I'm sure he has already taken into consideration.  It would not surprise me to find out that Mike has quietly been transferring team stock to his children Katie and Paul to lessen the impact of his death.

So, what do you all think may be the Brown Family and the team's overall financial position?  Is the reluctance to pay out large guarantees due to cash restraints, their contract philosophy, the particular player, or some other reason?
Numerous teams whose principal owner has died (Bills, Titans, Broncos) have had to be sold to satisfy estate issues. What impact do you think Mike Brown's inevitable death will have on the team's finances and management.

Quote:Mike Brown net worth

ESPN reported that Brown, based on Forbes data from 2015, has a net worth of $925 million. It has been several years since the report so there could be some variance, however. That number, adjusted for inflation, would be about $1.09 billion.
According to a 2021 Forbes report, the Bengals, as a franchise, are valued at $2.275 billion, which is actually the second-lowest valuation of any NFL team. Back in 2015, they were valued at just $990 million. Needless to say, Brown's net worth has likely climbed in the years since that last valuation.
By comparison, Rams' owner Stan Kroenke, the owner of Kroenke Sports and Entertainment, has a net worth of $10.7 billion, per Forbes.

(07-22-2022, 03:21 PM)WeezyBengal Wrote: The Bengals only get the first 16.5 million of naming rights to the stadium. The rest goes to the county. 

(07-22-2022, 03:21 PM)WeezyBengal Wrote: The Bengals only get the first 16.5 million of naming rights to the stadium. The rest goes to the county. 

(07-22-2022, 03:30 PM)WeezyBengal Wrote: I saw the new NFL TV deal is going to get teams an estimated 300 million per year per team...so all the talks about not having any money to guarantee should be put to bed...

(07-22-2022, 01:09 PM)pally Wrote: Unlike some teams you can not separate the Brown family and Bengals' finances.  The family wealth comes from the team and the team only.  

Mike Brown is generally considered the 2nd poorest (relative term) NFL owner next to Mark Davis of the Raiders who shares ownership with his mother. As an only child, when she dies, he should inherit full ownership.

Brown's net worth is estimated to be $925 million. For perspective, Rob Walton, the new Bronco's owner is worth around $60 billion.

How much of Brown's wealth is from outside sources or is liquid is unknown.

As we move into negotiations with the team's biggest stars, cash assets or the ability to access cash is paramount because of the escrow rules.  It is unlikely that the Browns, despite their overall wealth, have the cash on hand to place hundreds of millions of dollars into an escrow account for multiple guaranteed contracts unlike owners like Haslam and Walton. But we really don't know that for sure.

One financial concern that must be at the forefront of the Bengals' planning, is the fact that their principal owner, Mike Brown, will be 87 in 3 weeks.  They have to plan for his death, the transition of ownership, and the impact that will have on the family and team's overall finances.  Granted, having dealt with the whole tax impact of his father's death has taught Mike valuable lessons which I'm sure he has already taken into consideration.  It would not surprise me to find out that Mike has quietly been transferring team stock to his children Katie and Paul to lessen the impact of his death.

So, what do you all think may be the Brown Family and the team's overall financial position?  Is the reluctance to pay out large guarantees due to cash restraints, their contract philosophy, the particular player, or some other reason?
Numerous teams whose principal owner has died (Bills, Titans, Broncos) have had to be sold to satisfy estate issues. What impact do you think Mike Brown's inevitable death will have on the team's finances and management.

(07-22-2022, 03:55 PM)Essex Johnson Wrote: I think the issue you are missing is not their finances and future afyer mike, it is the $$$$ that will be offered by the mega rich to relocate...if im Mike i might want to sell to set my family up for a big payday

(07-22-2022, 03:19 PM)RiverRat13 Wrote: While they might not have the cash on hand to put guaranteed money into escrow, they can easily get loans to do so. The field naming rights would probably come close to covering the interest.

I doubt even the richest owners are plopping their own cash into escrow. They are most likely getting loans as they would pay a lower interest rate from a loan than what that money would make in the market. Rob Walter may be worth $60 billion, but he doesn't have $60 billion sitting in the bank.

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(07-22-2022, 04:06 PM)pally Wrote: It is all part and parcel concerning the team's future.

(07-22-2022, 03:52 PM)pally Wrote: There is a 40% tax on estates worth more than a billion dollars.  The Bengals, of which Mike Brown reportedly owns 97%, are worth at least 3 billion dollars, if not more.  

(07-22-2022, 04:33 PM)fredtoast Wrote: Money in an escrow account can still earn interest income as long as the principle is guaranteed.