Forbes is reporting that the estate of Al Davis may have to pay a huge inheritance tax bill on the Oakland Raiders once ownership of the franchise is settled.
According to Davis’ partnership agreements and last Will, majority ownership of the Raiders is being left to his wife Carol.
Sources say Davis’ widow isn’t in good health and she may eventually leave ownership of the Raiders to their son Mark.
If that move comes to pass, Mark Davis could end up paying millions in estate taxes based on the Raiders current value of $761 million.
Davis bought a 10 percent interest in the Raiders in 1966 for $18,500 and over the years increased his ownership percentage of the team through separate legal actions.
In 1972, Davis drafted a revised partnership agreement that made him the new managing general partner and forced out F. Wayne Valley, one of the Raiders’ three general partners.
In 2003, he settled a lawsuit with the daughter-in-law and great grandson of Edward W. McGah, one of the original partners that owned the Raiders.
The settlement helped Davis acquire an additional 31 percent in the Raiders and brought his total stake in the franchise to 67 percent.
But in 2007 Davis sold 20 percent of the Raiders to three investors for $150 million, a move most believe was made to provide operating capital for one of the NFL’s lowest revenue producing franchise’s.
Forbes columnist Mike Ozanian speculates that the possibility of facing such a huge tax burden will force Carol Davis to sell the Raiders within the next year.
Sources tell Ozanian that former San Francisco 49ers owner Eddie DeBartolo is interested in purchasing the Raiders.
