Remember how, when Miami agreed to give a squillion dollars to Marlins owner Jeffrey Loria for a new stadium and in exchange was promised a share of the profits if Loria ever sold the team? Yeah, that’s not gonna happen:
The 2008 county agreement that had Miami-Dade fund the bulk of the $515 million government-owned stadium in Little Havana gave Miami-Dade and Miami the right to 5 percent of any profits Loria and partners might reap if they sold the team within 10 years. But Loria could deduct team debt, certain expenses and taxes tied to a sale, and county officials and team executives privately predicted Loria wouldn’t agree to give up any of his revenue from the October sale to Derek Jeter and partners…
In a brief report sent by Loria’s lawyers, his organization said the terms of the deal resulted in a profit-sharing calculation of zero. The reason? About $280 million in debt that lowered the profits from the $1.2 billion sale, plus an agreed-to underlying value of the franchise of about $625 million, based on it getting more valuable each year. Add in nearly $300 million in taxes tied to the sale by Loria and partners, and Loria’s accountants claim the sale amounted to a loss of $141 million. Loria also deducted the $30 million fee paid to the financial advisors hired to negotiate the deal.
So on the one hand, Loria does have a case here that his windfall profits from selling the team weren’t mostly because of the new stadium, as we’ve covered before. On the other, “Sure I sold my team for a 650% profit, but inflation, and also taxes, so sorry you can’t have any even though I promised” is a spectacular display of chutzpah. Loria may have just cinched his membership in the Evil League of Evil.