A "sledgehammer" is going to result in a ton of litigation that could tie this thing up for another five years. Knight and Smolinsky - or another buyer - would be better off using the velvet handshake as opposed to a sledgehammer.
We'll disagree on this one...lot of collateral damage results from burning the village and using sledgehammers...and a lot of time and legal fees wasted.
Paul Allen’s last will and testament does not offer specifics on the late billionaire’s assets, but rather points to a trust established decades ago. Allen’s six-page will was filed with King County on Oct. 24, the same day his sister, Jody Allen, announced she was designated the executor and trustee of his estate. The will puts his assets into a 25-year-old living trust, where their disposition is not expected to be made public. Jody Allen said that “I will do all that I can to ensure that Paul’s vision is realized, not just for years, but for generations.” There you have it in a nutshell. There are also successor plans if Jody dies. The word "generations" is big.
John, you have cleared a lot of smoke from the room with this great piece.
It is apparent that trustee Allen is in it for the fees, which are eye popping. I still don’t know if she has a grudge or pre-disposed opinion of Knight, but it is obvious she doesn’t give a rat’s about Portland and the development scheme Knight and his partner in this effort want to implement. So, it still appears we are stuck with a trustee owner who likes money and power, and will only lose all of that if she sells. To anyone.
Really grateful for your shedding more light on this fiasco!
If the sexual harassment charges are true, isn't that ammunition enough for the NBA commissioner to step in and put some pressure on her, start proceedings to take the franchise from her? Aren't there league rules about this....could the owners vote to remove her?
They’re true, you can follow the evidence, and payoffs, Jody Allen is a sexual predator and she’s allowed to own an NBA team, if she were a man she would have already been canceled, can someone with some character and integrity get her out?
The longer she’s an owner the longer she’s a threat to other people, 15 cases THAT WE KNOW ABOUT, plus who steals Giraffe bones, crazy entitled people, the longer she’s owner the more damage she does to the community and team.
She should be forced to sell like Snyder was from the Commanders.
Management fee for upwards of $100 million? Um, I think we have the smoking gun. Why would she want to give that up??? Dammit, every minute that she is the 'owner' the Blazers are further from being relevant. Man, this sucks! Would love to see what Uncle Phil would do with the franchise..
That management fee is speculative at best. No smoking gun if it is an opinion based go customary fees for trustees. It may well be a flat fee and since we don't have an insider vie of all the trustees responsibilities are, we can't know if what she is being paid is fair or not.
Unbelievable! Jody's in the driver's seat - that ridiculous trust management fee is all the incentive she needs to hang on for maximum selling price. $90-$150MM per year? By the way, trust management fees are a huge scam...trusts that are put together clearly and accurately require next to nothing in terms of "management"... but it is legitimate, unfortunately. She and Kolde are going to spend a ton of time on their gold-plated milking stool and squeeze Knight and Smolinsky, along with other potential buyers, until they're absolutely sure they've got the last dollar possible.
Blazers fans are screwed. Would you be in a hurry if you had an annual incentive of $90-$150MM annually to take your time? I can also see a lot of potential litigation coming from this if anyone tries to squeeze Jody. That could tie things up for another 5 years...but, of course, the bottom-feeder attorneys will love it.
John speculated on the management fee-he doesn't know it, nor does he actually know how the "fee" is utilized.
How much has the Trust increased in value due to her decisions? John said her decision to delay a sale has created a gold mine in increased value for the Trust.
Why-and explain this- when John says third parties are licking their chops to get their paws on the Trust property to develop and make a fortune off of, would a Trustee not seriously consider utilizing the property to generate that gain for the Trust beneficiaries?
Common sense?
A lot of this is entertaining speculation.
We don't have the Trust documents, we don't know what Paul Allen told his sister to do, we don't know the long term objectives of the Trust.
But-it sounds like her decisions have results in a considerable financial gain for the Trust, doesn't it?
The management fee finally explains why the team is not for sale. The only way she sells is when the team is playing to an empty gym and the NBA then forces the sale.
I lost interest in the TrailBlazers many years ago and this situation does nothing to reignite a desire to get behind the team. Mr. Knight has been an outstanding figure in the state of Oregon when it comes to his Ducks (and Beavers to a lesser degree) and could well do the same for pro basketball. It’s too bad the Trustee seems to care very little about those who continue to support the Blazers.
Separately, John, more comments about the demise of the PAC-12. It’s now multiple sources (unnamed) claiming Colorado is gone as soon as the Conference announces the new television package. You’ve told us to be wary of such reports, but this seems different. Is there anything you can add given this seemingly “new” development?
Ahhh, the Madison GC. Don't they serve you root beer floats upon completion of your round? It's the simple things in life........and 46 years ago today, the Blazers won their only title.
If you like a live pianist at the driving range and practice facilities it's perfect...but not my style. I prefer old school...like Pebble Beach. (Even Agate Beach is a ton of fun).
First, you noted the value of the franchise has skyrocketed.
Second, you noted the incredible upside to any purchaser.
It seems to me she has used good judgment in retaining the franchise for the Trust beneficiaries. Had she sold it a couple of years ago, the Trust would have missed out on the incredible increase in value.
Further, why as Trustee would you sell this asset when everyone seems to be aware of the incredible upside for the owner in terms of development, etc? Can you imagine the second guessing by the beneficiaries if she just walks away from that upside without first exploring how to capture it for the beneficiaries?
Her obligation as Trustee (whom her brother clearly trusted and selected) is to the beneficiaries, not the NBA and not local sports fans.
I can’t blame Jody for not selling, given the franchise’s rapid value increase. Think of your own portfolio, would you sell while that value of an asset continues to rise?
I’m probably the minority in saying this, but it also feels dirty that past Jody indiscretions (sexual harassment and illegal wildlife bone transit) are being brought up to discredit her and provide fuel to why she is an unfit owner (and therefore must sell). That’s a slippery slope and IMO, feeds the cancel culture’ brigade.
I don’t like that Jody/Vulcan Inc. won’t sell, but my God does that mean we tear down the person holding out to get our way. Those of you in favor of that, do check your hearts.
Yes as in the Trust is a legal entity that is created by a Settlor.
The Settlor empowers someone he or she trusts (as in Trustee) to follow through on his or her wishes, John. Not the wishes of third parties with their own agenda.
Trusts, in particular business trusts, can take years, even decades, to administer to realize the hoped for value of the Trust's goals.
You do realize the factual presentation you've made supports her decisions as Trustee?
Why would she authorize a sale of an asset you've described as having incredible upside for a lower cost if the Trust has the authority and ability to realize the long term value of that upside?
Do you seriously think this woman is sitting in her parlor making these decisions by reading Taro cards, eating donuts and deciding which outfit to wear to the next game?
Perhaps someone with her obvious sophistication is receiving input from counsel, investment advisors and business pros?
You've got a point. And, if what you've outlined wasn't incentive enough, those "trustee management fees" of $90-150MM per year sure make her life comfortable.
Ummm I dont get this. Assuming the Blazers are NOT filing, going broke, horribly managed....why should outsiders demand Allen sell the team. Trust me, the NBA usually doesnt care about fans and even local markets (see Seattle). I understand that the owner of the Oregon Ducks (Knight) is so worshipped that you all seem to want everything he wants. Claiming the Allen estate represents instability while a new 85 year old owner would represent long term stability is kind of comical. If Knight got his nose into the Blazers to the degree he runs Oregon athletics might well be a "be careful what you wish for" situation.
I think we just found the 4th Stooge! You should stay in your own lane with your ASSUMED thoughts as you really do not have any clue about Blazers or U of O....
Um, because they ARE horribly managed? Any franchise managed from the standpoint of apathy is horribly managed. Fans shouldn't have to deal with that non-sense.
That Oregon fans believe the ownership situation is a mess, Phil Knight is having a tantrum because he wants the team as a trophy before he dies, his partner wants to make money off development around the team but in reality John, there is nothing anybody can do about the situation. What would Uncle Phil do if Jody said fine" Pay the estate $15 billion for 49%?. there is your trophy" Nobody can tell Jody what to value the estate pieces at. She is the trustee. Any project Paul wanted funded she could fund and still hold onto valuable pieces with the argument they have more value than the market place claims. Heck an argument could be made by Jody that pressuring her to sell at $2 billion would have been violating her duty as trustee for selling cheap. Certainly it's worth $4billion+. I firmly believe in local ownership but legally there is nothing anybody can do. I will close with this, bringing up African animal bones and lawsuits about guys in swimsuits is a good way to P** her off. She could decide to sell to Las Vegas interests who want to move the team to las Vegas. And there is nothing anybody could do about it. The mess is not Jody's.
Hey Rip City....want to really protest? Vote with your feet and leave the Moda Center empty and that team will be sold in less than a month.
That didn’t help the Athletics, it allowed a shitty owner to move a great franchise out of state, Jody would and could do the same malicious crap.
Absolutely correct.
Yes but that will hurt the support employees at the Moda Center and the team. Don’t turn into the Oakland A’s drama.
A very nice read to start my week....after reading the article twice carefully I will conclude that a sludgehammer is needed here.
Sometimes you gotta use it.
A "sledgehammer" is going to result in a ton of litigation that could tie this thing up for another five years. Knight and Smolinsky - or another buyer - would be better off using the velvet handshake as opposed to a sledgehammer.
I think the fact that they've gone public answers that...
We'll disagree on this one...lot of collateral damage results from burning the village and using sledgehammers...and a lot of time and legal fees wasted.
Paul Allen’s last will and testament does not offer specifics on the late billionaire’s assets, but rather points to a trust established decades ago. Allen’s six-page will was filed with King County on Oct. 24, the same day his sister, Jody Allen, announced she was designated the executor and trustee of his estate. The will puts his assets into a 25-year-old living trust, where their disposition is not expected to be made public. Jody Allen said that “I will do all that I can to ensure that Paul’s vision is realized, not just for years, but for generations.” There you have it in a nutshell. There are also successor plans if Jody dies. The word "generations" is big.
Generations... indeed.
John, you have cleared a lot of smoke from the room with this great piece.
It is apparent that trustee Allen is in it for the fees, which are eye popping. I still don’t know if she has a grudge or pre-disposed opinion of Knight, but it is obvious she doesn’t give a rat’s about Portland and the development scheme Knight and his partner in this effort want to implement. So, it still appears we are stuck with a trustee owner who likes money and power, and will only lose all of that if she sells. To anyone.
Really grateful for your shedding more light on this fiasco!
Keep in mind... that fee estimate is ONLY for the Blazers portion of the trust... $3B valuation. The entirety of the trust is much, much, much larger.
If the sexual harassment charges are true, isn't that ammunition enough for the NBA commissioner to step in and put some pressure on her, start proceedings to take the franchise from her? Aren't there league rules about this....could the owners vote to remove her?
Feels like the league would be interested.
They’re true, you can follow the evidence, and payoffs, Jody Allen is a sexual predator and she’s allowed to own an NBA team, if she were a man she would have already been canceled, can someone with some character and integrity get her out?
The longer she’s an owner the longer she’s a threat to other people, 15 cases THAT WE KNOW ABOUT, plus who steals Giraffe bones, crazy entitled people, the longer she’s owner the more damage she does to the community and team.
She should be forced to sell like Snyder was from the Commanders.
How long did that take? Years...many years. The lawyers, as usual got rich.
Jody Allen reminds me of the owner of the Indians in Major League
Management fee for upwards of $100 million? Um, I think we have the smoking gun. Why would she want to give that up??? Dammit, every minute that she is the 'owner' the Blazers are further from being relevant. Man, this sucks! Would love to see what Uncle Phil would do with the franchise..
That management fee is speculative at best. No smoking gun if it is an opinion based go customary fees for trustees. It may well be a flat fee and since we don't have an insider vie of all the trustees responsibilities are, we can't know if what she is being paid is fair or not.
John, excellent job of "follow the money!" Play on, Charlie
Unbelievable! Jody's in the driver's seat - that ridiculous trust management fee is all the incentive she needs to hang on for maximum selling price. $90-$150MM per year? By the way, trust management fees are a huge scam...trusts that are put together clearly and accurately require next to nothing in terms of "management"... but it is legitimate, unfortunately. She and Kolde are going to spend a ton of time on their gold-plated milking stool and squeeze Knight and Smolinsky, along with other potential buyers, until they're absolutely sure they've got the last dollar possible.
Blazers fans are screwed. Would you be in a hurry if you had an annual incentive of $90-$150MM annually to take your time? I can also see a lot of potential litigation coming from this if anyone tries to squeeze Jody. That could tie things up for another 5 years...but, of course, the bottom-feeder attorneys will love it.
Whoa whoa whoa.
John speculated on the management fee-he doesn't know it, nor does he actually know how the "fee" is utilized.
How much has the Trust increased in value due to her decisions? John said her decision to delay a sale has created a gold mine in increased value for the Trust.
Why-and explain this- when John says third parties are licking their chops to get their paws on the Trust property to develop and make a fortune off of, would a Trustee not seriously consider utilizing the property to generate that gain for the Trust beneficiaries?
Common sense?
A lot of this is entertaining speculation.
We don't have the Trust documents, we don't know what Paul Allen told his sister to do, we don't know the long term objectives of the Trust.
But-it sounds like her decisions have results in a considerable financial gain for the Trust, doesn't it?
The management fee finally explains why the team is not for sale. The only way she sells is when the team is playing to an empty gym and the NBA then forces the sale.
I lost interest in the TrailBlazers many years ago and this situation does nothing to reignite a desire to get behind the team. Mr. Knight has been an outstanding figure in the state of Oregon when it comes to his Ducks (and Beavers to a lesser degree) and could well do the same for pro basketball. It’s too bad the Trustee seems to care very little about those who continue to support the Blazers.
Separately, John, more comments about the demise of the PAC-12. It’s now multiple sources (unnamed) claiming Colorado is gone as soon as the Conference announces the new television package. You’ve told us to be wary of such reports, but this seems different. Is there anything you can add given this seemingly “new” development?
Ahhh, the Madison GC. Don't they serve you root beer floats upon completion of your round? It's the simple things in life........and 46 years ago today, the Blazers won their only title.
I need to play a round there.
I have.
If you like a live pianist at the driving range and practice facilities it's perfect...but not my style. I prefer old school...like Pebble Beach. (Even Agate Beach is a ton of fun).
Nice read, but two comments caught my eye.
First, you noted the value of the franchise has skyrocketed.
Second, you noted the incredible upside to any purchaser.
It seems to me she has used good judgment in retaining the franchise for the Trust beneficiaries. Had she sold it a couple of years ago, the Trust would have missed out on the incredible increase in value.
Further, why as Trustee would you sell this asset when everyone seems to be aware of the incredible upside for the owner in terms of development, etc? Can you imagine the second guessing by the beneficiaries if she just walks away from that upside without first exploring how to capture it for the beneficiaries?
Her obligation as Trustee (whom her brother clearly trusted and selected) is to the beneficiaries, not the NBA and not local sports fans.
I can’t blame Jody for not selling, given the franchise’s rapid value increase. Think of your own portfolio, would you sell while that value of an asset continues to rise?
I’m probably the minority in saying this, but it also feels dirty that past Jody indiscretions (sexual harassment and illegal wildlife bone transit) are being brought up to discredit her and provide fuel to why she is an unfit owner (and therefore must sell). That’s a slippery slope and IMO, feeds the cancel culture’ brigade.
I don’t like that Jody/Vulcan Inc. won’t sell, but my God does that mean we tear down the person holding out to get our way. Those of you in favor of that, do check your hearts.
On top of that, she's not even the owner. The Trust is and that is a separate legal entity.
yes
Yes as in the Trust is a legal entity that is created by a Settlor.
The Settlor empowers someone he or she trusts (as in Trustee) to follow through on his or her wishes, John. Not the wishes of third parties with their own agenda.
Trusts, in particular business trusts, can take years, even decades, to administer to realize the hoped for value of the Trust's goals.
You do realize the factual presentation you've made supports her decisions as Trustee?
Why would she authorize a sale of an asset you've described as having incredible upside for a lower cost if the Trust has the authority and ability to realize the long term value of that upside?
Do you seriously think this woman is sitting in her parlor making these decisions by reading Taro cards, eating donuts and deciding which outfit to wear to the next game?
Perhaps someone with her obvious sophistication is receiving input from counsel, investment advisors and business pros?
Those beneficiaries haven't seen a dime.
John, we don't know the terms of the Trust or the expectations.
The Settlor trusted and empowered his sister.
You've admitted the value has gone up and that there is property that has incredible development value.
You've got a point. And, if what you've outlined wasn't incentive enough, those "trustee management fees" of $90-150MM per year sure make her life comfortable.
How do you know the actual terms of the Trust? The actual (not some guy speculating) on the payout?
How do you know the costs of administering what is likely one of the largest Trusts?
And who are you to question the Settlor, who selected his sister to deal with these assets?
Ummm I dont get this. Assuming the Blazers are NOT filing, going broke, horribly managed....why should outsiders demand Allen sell the team. Trust me, the NBA usually doesnt care about fans and even local markets (see Seattle). I understand that the owner of the Oregon Ducks (Knight) is so worshipped that you all seem to want everything he wants. Claiming the Allen estate represents instability while a new 85 year old owner would represent long term stability is kind of comical. If Knight got his nose into the Blazers to the degree he runs Oregon athletics might well be a "be careful what you wish for" situation.
Smolinisky is 43.
I think we just found the 4th Stooge! You should stay in your own lane with your ASSUMED thoughts as you really do not have any clue about Blazers or U of O....
Um, because they ARE horribly managed? Any franchise managed from the standpoint of apathy is horribly managed. Fans shouldn't have to deal with that non-sense.
That Oregon fans believe the ownership situation is a mess, Phil Knight is having a tantrum because he wants the team as a trophy before he dies, his partner wants to make money off development around the team but in reality John, there is nothing anybody can do about the situation. What would Uncle Phil do if Jody said fine" Pay the estate $15 billion for 49%?. there is your trophy" Nobody can tell Jody what to value the estate pieces at. She is the trustee. Any project Paul wanted funded she could fund and still hold onto valuable pieces with the argument they have more value than the market place claims. Heck an argument could be made by Jody that pressuring her to sell at $2 billion would have been violating her duty as trustee for selling cheap. Certainly it's worth $4billion+. I firmly believe in local ownership but legally there is nothing anybody can do. I will close with this, bringing up African animal bones and lawsuits about guys in swimsuits is a good way to P** her off. She could decide to sell to Las Vegas interests who want to move the team to las Vegas. And there is nothing anybody could do about it. The mess is not Jody's.
Sell the team!!! Sell the team!!! Sell the team!!!!! Repeat until she sells.
Keep going.