Padres and Pints: The Podcast! Episode 36 with Jonah Keri

Padres and Pints: the Podcast! semi triumphantly returns with old friend Jonah Keri. Rick and Chris get down to business chatting about the Wil Myers contract extension, the state of the Padres farm system, plus the snoozefest that is the 2017 Padres promotional lineup.

Jonah joins to discuss the history of Tim Raines Hall of Fame candidacy plus Trevor Hoffman’s chances next year. Jonah also spits an amazing rant on owner Dean Spanos’ “work” building a stadium to save the San Diego Chargers.

Check out Jonah’s podcast here.

Also, shout out to friend honorary family member of the podcast Megan Olivi for her appearance in this week’s episode of Always Sunny in Philadelphia!

(Outro music is Lipstick by Not My Weekend)

Discussed things:

San Diego Padres top prospects chat with Kyle Glaser of Baseball America

Chargers’ greed-driven L.A. move puzzling given several reasonable options to stay by Jonah Keri

If you have any questions or comments, leave them down below or e-mail us.

 

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  • ballybunion

    My take on the Chargers’ owners’ “greed” might be considered nuanced, or BS – take your pick. But I noticed in 2013 the Chargers were valued at $970 million, and the family fortune at $1.2 Billion. The non-Chargers $230 million value was all the A.G. Spanos Companies.

    Back when Alex bought the team, his company was worth about $600 million and had ample cash flow for his less-than-$100 million Chargers investment. Today, Stockton is built out and the company built heavily in Las Vegas, still a black hole of underwater home loans. As a result, A.G. Spanos is making no money, and the Chargers are producing all the cash flow.

    Now that they’re in L.A. the team is valued by Forbes at $2.07 billion, and the family fortune at $2.4 billion. The bulk of Alex Spanos fortune is the Chargers, and moving up north doubled it. That’s important because when 93 year old Alex passes on, the inheritance/estate tax is more than the family can pay – the team will have to be sold.

    You can call that greed, but once Dean Spanos loses his father, he’ll lose the team too, and see the distribution to Alex four kids and multiple grandchildren each reduced to less than half Justin Bieber’s net worth. Alex should have set up a family trust like the Kennedy’s to protect it from taxes and keep the family members wealthy – but he didn’t.

    So I don’t begrudge Dean Spanos from making the move, especially after he said his father was suffering from advanced dementia, an endgame sign for someone 93. Dean just didn’t have much time left to work a deal, and he made the only decision he could. I’ll still hate him for moving the Chargers, but I can understand why he had to do it.

    • I’m not that well-versed in any of this, but wouldn’t one of Jonah’s ideas—the Spanos’ selling a large portion of the team but maintaining majority ownership—solved a bunch of issues, giving the Spanos’ more cash flow to potentially cover the inheritance tax and help build a new stadium?

      Under that scenario, maybe the Spanos’ aren’t quite as rich, but seemingly everyone’s a bit more happy—and still in decent shape financially.

      • ballybunion

        Well, nobody’s really well-versed, because the NFL is like MLB – nobody really knows the actual financials. There’s reason to believe Alex Spanos was generous to his kids and grandkids, either with cash or pieces of A.G. Spanos Companies and/or the Chargers. Some observers have said as much.

        How that transfer was made, what the tax ramifications are, and how much of the Chargers Alex actually owns (with Dean holding power of attorney), nobody knows. I’m operating on the assumption that the majority of the Chargers and the family business is owned by Alex, and that should add up to over $1.2 billion, using the Forbes $2.4 billion total family net worth.

        The federal estate tax rate after exclusions is 40%, and that could add up to $400-$500 million minimum, not counting possible deferred tax on any portion of ownership gifted to relatives. I’m pretty sure the family doesn’t have that much cash lying around.

        It’s possible the family members’ shares of Chargers ownership could be retained, with Dean selling a large minority interest to pay the taxes, and still retain a family majority position in the team, but there would be no operating capital, and any minority buyer would want an option to buy the rest. It’s just a matter of time before the Spanoses divest the club.

        It just seems the simplest course is to liquidate the main asset – the Chargers – at tax time, and distribute the after-tax proceeds to the individual family members.