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The NBA's latest multi-millionaires?

ya-ta-hey

Mayor
Ozzie and Danial Silna. Seems these two guys bought an ABA francise, moved it to St. Louis, with the intention of merging their team into the newly forming NBA. The NBA only accepted 4 of the 7 ABA teams. To make the Silna brothers go way, in 1976, the NBA granted the Silna's 1/7th of the 4 ex-ABA teams tv revenues, virtually nothing for the San Antonio Spurs, Brooklyn Nets, Denver Nuggets, and Indiana Pacers, $17M for the 2010/2011 season.

Looks like the NBA is finally going to buy them out for $500M.

http://finance.yahoo.com/news/nba-pay-two-brothers-500-165704100.html

Who says capitalism ain't a grand thing?
 
Capitalism is simply the way we move money around to keep us all going. It's nothing more than that and one day it will be improved. Right now, capitalism is failing miserably in some places, excelling in others. I am neither for or against it, it simply exists as the way America operates in my lifetime. Personally, I am hoping for a future more like Star Trek than Escape from New York.
 

ya-ta-hey

Mayor
Capitalism is simply the way we move money around to keep us all going. It's nothing more than that and one day it will be improved. Right now, capitalism is failing miserably in some places, excelling in others. I am neither for or against it, it simply exists as the way America operates in my lifetime. Personally, I am hoping for a future more like Star Trek than Escape from New York.
Mr. wooley,

I'm thinkng more of the Brave New Worlds scenario.
 

Craig

Senator
Supporting Member
Ozzie and Danial Silna. Seems these two guys bought an ABA francise, moved it to St. Louis, with the intention of merging their team into the newly forming NBA. The NBA only accepted 4 of the 7 ABA teams. To make the Silna brothers go way, in 1976, the NBA granted the Silna's 1/7th of the 4 ex-ABA teams tv revenues, virtually nothing for the San Antonio Spurs, Brooklyn Nets, Denver Nuggets, and Indiana Pacers, $17M for the 2010/2011 season.

Looks like the NBA is finally going to buy them out for $500M.

http://finance.yahoo.com/news/nba-pay-two-brothers-500-165704100.html

Who says capitalism ain't a grand thing?
Latest?

They have been multi-millionaires for quite some time, even prior to their ownership of the St Louis Spirits.

I will admit, they negotiated a helluva deal for themselves. This would also be an excellent example of unearned income.
 

ya-ta-hey

Mayor
Latest?

They have been multi-millionaires for quite some time, even prior to their ownership of the St Louis Spirits.

I will admit, they negotiated a helluva deal for themselves. This would also be an excellent example of unearned income.
Mr. Craig,

How do you mean unearned income? Isn't that an oxymoron?
 

ya-ta-hey

Mayor
They produced nothing. They made nothing. No work was performed for their recompense.
Mr. Craig,

They produced an ABA basketball team. They made a deal for TV rights. They worked very hard to get the deal, for which they are now being compensated.

Again, what you said was an oxymoron. By definition, all income is earned.
 

Craig

Senator
Supporting Member
Mr. Craig,

They produced an ABA basketball team. They made a deal for TV rights. They worked very hard to get the deal, for which they are now being compensated.

Again, what you said was an oxymoron. By definition, all income is earned.
And they produced nothing.

135? I don't think so.


No, by definition, not all income is learned.

Definition of 'Unearned Income'

Any income that comes from investments and other sources unrelated to employment services.

Investopedia explains 'Unearned Income'

Examples of unearned income include interest from a savings account, bond interest, alimony, and dividends from stock. As long as this income is "realized" then it is taxable.
 

Craig

Senator
Supporting Member
Mr. Craig,

They produced an ABA basketball team. They made a deal for TV rights. They worked very hard to get the deal, for which they are now being compensated.

Again, what you said was an oxymoron. By definition, all income is earned.
More on unearned income.

Social Security Handbook

2136. What is “unearned income”?


  • Private pensions and annuities;
  • Periodic public payments such as Social Security benefits, Railroad Retirement benefits, Department of Veterans Affairs pension and compensation payments, civil service annuities, workers' compensation, unemployment compensation, and payments based on need involving Federal funds;
  • Life insurance proceeds and other death benefits, to the extent that the total amount is more than the expenses of the deceased person's last illness and burial paid by the individual;
  • Gifts and inheritances;
  • Support and alimony payments in cash or in-kind;
  • Prizes and awards;
  • Dividends and interest;
  • Rents and royalties (except those royalties defined as earned income); and
  • Certain payments not considered wages for Social Security purposes:
    1. In-kind payments to certain agricultural workers;
    2. Tips under $20 per month;
    3. Jury fees;
    4. Money paid to individuals who are residents, but not employees, of institutions.
Last Revised: Feb. 24, 2009





http://www.ssa.gov/OP_Home/handbook/handbook.21/handbook-2136.html
 

ya-ta-hey

Mayor
And they produced nothing.

135? I don't think so.


No, by definition, not all income is learned.

Definition of 'Unearned Income'

Any income that comes from investments and other sources unrelated to employment services.

Investopedia explains 'Unearned Income'

Examples of unearned income include interest from a savings account, bond interest, alimony, and dividends from stock. As long as this income is "realized" then it is taxable.
Mr. Craig,

Sorry, I'll go with the IRS definition, rather than some fly by night internet web blog:

http://www.irs.gov/Individuals/What-is-Earned-Income?
 

Craig

Senator
Supporting Member
Mr. Craig,

Sorry, I'll go with the IRS definition, rather than some fly by night internet web blog:

http://www.irs.gov/Individuals/What-is-Earned-Income?

Works for me...From your link...

Examples of Income that are Not Earned Income:
  • Pay received for work while an inmate in a penal institution
  • Interest and dividends
  • Retirement income
  • Social security
  • Unemployment benefits
  • Alimony
  • Child support.
http://www.irs.gov/Individuals/What-is-Earned-Income?


Got any more laughs?
 

ya-ta-hey

Mayor
More on unearned income.

Social Security Handbook

2136. What is “unearned income”?


  • Private pensions and annuities;
  • Periodic public payments such as Social Security benefits, Railroad Retirement benefits, Department of Veterans Affairs pension and compensation payments, civil service annuities, workers' compensation, unemployment compensation, and payments based on need involving Federal funds;
  • Life insurance proceeds and other death benefits, to the extent that the total amount is more than the expenses of the deceased person's last illness and burial paid by the individual;
  • Gifts and inheritances;
  • Support and alimony payments in cash or in-kind;
  • Prizes and awards;
  • Dividends and interest;
  • Rents and royalties (except those royalties defined as earned income); and
  • Certain payments not considered wages for Social Security purposes:
    1. In-kind payments to certain agricultural workers;
    2. Tips under $20 per month;
    3. Jury fees;
    4. Money paid to individuals who are residents, but not employees, of institutions.
Last Revised: Feb. 24, 2009



http://www.ssa.gov/OP_Home/handbook/handbook.21/handbook-2136.html
Mr. Craig,

Glad you agree with me. None of the money the good brothers earn falls in any one of those catagories.
 

ya-ta-hey

Mayor
Works for me...From your link...

Examples of Income that are Not Earned Income:
  • Pay received for work while an inmate in a penal institution
  • Interest and dividends
  • Retirement income
  • Social security
  • Unemployment benefits
  • Alimony
  • Child support.
http://www.irs.gov/Individuals/What-is-Earned-Income?


Got any more laughs?
Mr. Craig,

Exactly, a percentage of revenues in not any of those. Like I said, I'm glad we could come to an agreement.
 

Craig

Senator
Supporting Member
Mr. Craig,

Glad you agree with me. None of the money the good brothers earn falls in any one of those catagories.
Royalties...

Of course, your initial assertion was that unearned income did not even exist, that it was an oxymoron.
 

Craig

Senator
Supporting Member
Mr. Craig,

Exactly, a percentage of revenues in not any of those. Like I said, I'm glad we could come to an agreement.
See how wrong you are?

Again, what you said was an oxymoron. By definition, all income is earned.
 

ya-ta-hey

Mayor
Royalties...

Of course, your initial assertion was that unearned income did not even exist, that it was an oxymoron.
Mr. Craig,

Royalties for use of property, use of intellectual or artistic property, or licensing of a product are a good example of unearn income.

14% Ownership of all TV revenues is not a royalty, dividend, or interest, but rather, makes them participating partners in the business, and as defined by the IRS, it is earned income.
 

Craig

Senator
Supporting Member
Mr. Craig,

Royalties for use of property, use of intellectual or artistic property, or licensing of a product are a good example of unearn income.

14% Ownership of all TV revenues is not a royalty, dividend, or interest, but rather, makes them participating partners in the business, and as defined by the IRS, it is earned income.

Unearned income???...Why that's impossible... downright impossible...there is no such thing..if I am to believe you. You told me there is no such thing...and in no uncertain terms. Now you give me examples of what you said did not exist. I find I cannot trust the information you provide, and most certainly not your analysis of it.
 

ya-ta-hey

Mayor
Unearned income???...Why that's impossible... downright impossible...there is no such thing..if I am to believe you. You told me there is no such thing...and in no uncertain terms. Now you give me examples of what you said did not exist. I find I cannot trust the information you provide, and most certainly not your analysis of it.
Mr. Craig,

That's the IRS definition that they use to determine the level of taxation. In reality, there is no such thing as "unearned" income. By definition, if you receive an income, it is something that you have earned. If you didn't earn it, you would not have received it.

For example, I just receive a quarterly dividend on my UGI stock of $140. This was something I earned by researching the company, fitting it into my investing plan, then purchasing shares.
 

Craig

Senator
Supporting Member
Mr. Craig,

That's the IRS definition that they use to determine the level of taxation. In reality, there is no such thing as "unearned" income. By definition, if you receive an income, it is something that you have earned. If you didn't earn it, you would not have received it.

For example, I just receive a quarterly dividend on my UGI stock of $140. This was something I earned by researching the company, fitting it into my investing plan, then purchasing shares.
You're being quite ridiculous. By definition you have given me examples of unearned income...and linked to the IRS site where the also give examples of unearned income. Then you argued as to what exactly constitutes unearned income, i.e royalties, and yet you continue to try and tell us there is no such thing as unearned income. It's a silly game.

Anyhoo...it was a helluva deal, millions in unearned income and done by guys who were multi millionaires when they bought the team.
 
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