Question about Tepper money flow

[PanthersATL]

Question about Rhule's contract and money flow from Tepper to the organization:

Coach contracts are paid for by the Panthers organization, for whatever $$ they happen to be.

If Tepper (or whomever) decides to go out and hire a new coach for $200 million -- I'm assuming that money is coming out of the Panthers operating budget, since the coach would be a Panthers employee.

For such a crazy $$ amount, would Tepper write a personal check to the Panthers to fulfill that contract, or do the Panthers have to find that money on their own in the Panthers BoA reserve account without any backfill from Tepper?

In other words, while we do a lot of talk about "it's Tepper's money"... how much of what we hear about is *actually* Tepper's money vs the organization's funds?  Does he have an automatic investment transfer every month of $1m to cover standard operating costs and utilities at BoA? 

[TheCasillas]

Well he owns the organization. He puts in money to get money out. At the end of the day, it is his money. 
 

don’t forget though there are people like the CFO that manages cost and operation of the franchise and let tepper know what can come from the revenue and what has to come from tepper.

 

seeing what USC just have Riley… it’s fair to say the pool of cash is pretty deep.

[Waldo]

The coaches pay is just a normal expense on the P & L. So more expense would just result in more offset of the income at the end of the year. 

I'm not sure on the cash flow of the organization, I haven't heard how they operate that side at all. It could be there as normal operating activity can cover that, income & expenses, or he could keep all of the cash working in an investment elsewhere instead of sitting idle and put it back when needed. Lots of ways to run the business side and completely depends on how he wants to operate.

Either way, if he put money into the organization then it's just equity he can take out when he wants and however fits his tax planning.

[Floppin]

Since he owns it personally he can essentially do what he wants with regards to adding or extracting equity from the organization and let the accountants work the tax law magic. 

The only time that that's not the case is when a publicly traded company owns an organization ( like the Braves in MLB being owned by Liberty Media) or when the franchise itself is publicly owned like the Packers. Then there's all sorts of laws and regulations that prevent an influx of cash into the organization for various reasons, anti-trust laws, securities laws and the like. 

Here's a pretty good article outlining what goes on with the Braves and it outlines why many Braves fans have had misplaced anger with regards to their payroll since LM bought the team.

https://outfieldflyrule.com/2015/11/13/the-atlanta-braves-liberty-media-and-misplaced-anger/

None of that is the case with Tepper however; he owns the team outright as he bought out all existing partners at the time of sale. So he doesn't even have the sort of partnership restrictions that existed when JR owned the team. 

Edited November 30, 2021 by Floppin

[Cdparr7]

Legend has it he shits 100 bills. He will be fine

[DeeJay]

You know the owners split the revenue 32 ways at the end of the day.

so no matter what hes getting television money...(new amazon deal in the billions soon)

Whatever the food prices are and beer

PSL

[CRA]

I'll buy out Rhule for Tepper.  Just give me the mailing address of where to send this

[PanthersATL]

1 hour ago, DeeJay said:

You know the owners split the revenue 32 ways at the end of the day.

so no matter what hes getting television money...(new amazon deal in the billions soon)

Whatever the food prices are and beer

PSL

right, but that money doesn't necessarily go into Tepper's personal bank account. Some is going to go to the Panthers account.    

For all the talk about "Tepper has tons of money", there should be some fiscal accounting at the Panthers organization level, right?