- 39 -
Our analysis of the four estimates19 shows them to be
cursory and terse. No explanation is provided for the estimate
listed for each player. The four estimates contain huge
differences and inconsistencies when comparing particular
players. For example, John Elway's contract is estimated as high
as $6,350,000 by the Chicago Bears and as low as $4 million by
the Cleveland Browns. With respect to Steve Busick, the Chicago
Bears estimated $225,000 and the Houston Oilers $1,250,000.
Conversely, the Chicago Bears estimated $100,000 for Britt
Freeman and the Houston Oilers $10,000. We cannot tell whether
these differences reflect the needs of those teams for a
particular player's skills or result from some other
consideration or factor.
The accountant for the partnership, after considering the
estimates respondent relies on, reached a fair market value of
$36,121,385. The value used by the partnership is within the
range of estimates of value by the four NFL teams. We also note
that the $36 million figure is a conservative amount. Under
these circumstances, respondent has not carried the burden of
showing that the fair market value of the player contracts was
more than the $36,121,385 used by the partnership or that the
correct fair market value is the $45,695,000 relied on by
respondent to show that section 732(d) would not apply.
19 A summary of the four estimates was received in evidence
and is attached to this opinion as the appendix.
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