Author Topic: Shad Khan, Jaguars owner, ends association with One Spark, calls financial ties  (Read 80679 times)

fsquid

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they actually make most of their profit through the media deal.  The Packers have to disclose their financials because they are owned by the fans and the media deal alone was more than their expenses.

fsquid

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from what I've read, the media deals wouldn't be enough to cover the expenses of the league without the public financing.

each team is different.  I'm sure there are some that are propped up.  But when your media money puts $190 million in your kitty and the salary cap is around $130 million, you are already $60 million up before ticket sales, luxury boxes, etc.  That's why the teams are so damn valuable, even the crap ones print money.  Add in the fact that there are many places that will bend over backwards to not lose their team and it becomes even nicer.

spuwho

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Harassing Shahid on not being a supporter of greater Jacksonville is a non starter. Move on.

GoldenEst82

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I wish KYN wasn't the only accelerator in town.
The startup community here suffers, because the people who know investors are not big on exposing them to ideas that are not their own.
It seems to mirror the art community in that way.
KYN did not seem to operate like the startups they served, (bootstrapped and lean) and instead tried to recreate the culture of something like Ycombinator- a accelerator that has launched some extremely successful companies. They should have done some "proof of concept" for themselves, launching a few successful businesses before taking on dedicated space and full salaries. If they had, they would not be in this situation. The majority of the money would have gone to building the companies inside the accelerator, instead of the accelerator itself.
KYN had very little to do with One Spark, and has even less to do with the Jags- why are we talking football in this thread?
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simms3

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Cool, Stephen. I'd simply add that Khan does have quite a bit holding him here. Exclusive membership in a very valuable club and a stadium deal that likely locks him in beyond the period in which a team or teams will be placed in Los Angeles *and* opposition from the Cowboys and Texans to a team in San Antonio.

It is lazily tossed around that he has no investment here. He has more of an investment here than most anyone else in the entire City, and that can't be denied. What he has in abundance, because of his wealth, is the appearance of options. When it comes to moving the Jacksonville Jaguars, appearances lie. Especially if their creative efforts to make the franchise more profitable pan out. That's why the critique of the scoreboards (IMHO) has been so brain-dead.

Good points, but I'd still offer that there is a degree of flexibility in the NFL and that may increase soon after this year (just a hunch) with all of the snafus going on that are hurting PR and hurting teams by alienating fans.

But I digress, Khan doesn't have, nearly to the degree that Rummell has, an emotional attachment to the city.  The success of a OneSpark or downtown real estate really has no bearing on the success of the Jaguars.  Overall, a happy/healthy city will do Khan well.  But we're finding out that it's a (imho) much more difficult game to develop downtown successfully than to ride the nearly guaranteed base returns that ownership of an NFL team provides, and we're finding out that with downtown so far gone, still, that giant scoreboards mostly on the city bed tax's dime make people happy.  So to that end, OneSpark, downtown investment, etc etc are mutually exclusive to the Jaguars, and thus Khan is rooted moreso in a team than the city.  Anything else is a splash gift for PR at this point, and with no players in town, he's held up as some mere god and his every move talked about (in almost entirely a positive light).

The same thing that draws me to post on these forums even though I haven't lived in Jax for 8 years is the same thing that Rummell has that Khan likely never will, even after years of owning the Jags.  That is hometown pride and a true emotional attachment.  Combine this emotional attachment with Rummell's permanent residence there (with his family and kids), his brain, and his money, and you have the ingredients of a much longer term view/investment in the city than someone who just bought the local sports team and so far is all about making a splash.

Anyway, people's comments about KYN are interesting.  KYN itself should have considered themselves a 5th startup and proven out before spending money on overhead.  If they knew they were supposed to bring 4 other startups to the next level, they should have kept overhead to their own somewhat minimal salaries before taking on money for real overhead, or in their business plan they should have laid out that they would need x, y, and z resources to sustain themselves to be able to sustain and grow other businesses at that scale, and taken on that overhead amount plus $1M for the other 4 firms.

What it sounds like is there are 2-3 guys in the entire city willing to shell out what amounts to minimal, minimal money.  A million here and a million there is nothing if there are dozens of qualified, good ideas floating around. 
Bothering locals and trolling boards since 2005

ChriswUfGator

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I don't know what all the confusion is. It seems crystal clear from reading Khan's statement that what he's pissed about is that he donated $X but only a small portion of $X actually made it to the companies he intended to invest in.


strider

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If they are a 501 c 3 ( or 501 anything) they are required to at least make their 990's public if requested.  I do not know how much else, if anything (I have a 501 c 3 and I'm not even sure...), they are required to make pubic but the 990 is without a doubt and will give you what you are looking for:  where the money went.  Often, the 990's are on-line even. If they are refusing to give you the 990's then contact the Feds.
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RattlerGator

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Agreed, ChriswUfGator. This is cause, yet again, for kudos to Shad. He put up real money as a good-faith test. The One Spark people failed the test.

simms3, I get the emotional connection angle and appreciate it. But you have a weird way of talking about Jacksonville (just my personal opinion) and a weird way of doubting a real mover and shaker in our town, Shad Khan. So much so that you personally prefer Rummell on this VC thing but -- as of this writing -- Rummell (and I have nothing against the man; as I've written, I'm for both and anyone else willing to make things happen in Jax) was rolling with these folks who likely weren't delivering the goods as promised.

You prefer that? Clearly not, I hope.

How about giving Shad Khan some damn dap? Some unreserved, genuine dap for making a good-faith effort and then, upon prudent review, alerting the City to a potential problem. Isn't it within you to at least do that?

Though Shad Khan doesn't have a long history in Big Duval, I find any argument that he isn't SERIOUSLY invested here nothing short of bizarre and more than a little nativistic -- which is an odd occurrence, given the politics that periodically bleed through here.

tufsu1

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If they are a 501 c 3 ( or 501 anything) they are required to at least make their 990's public if requested.  I do not know how much else, if anything (I have a 501 c 3 and I'm not even sure...), they are required to make pubic but the 990 is without a doubt and will give you what you are looking for:  where the money went.  Often, the 990's are on-line even. If they are refusing to give you the 990's then contact the Feds.

I'm not sure they ever got the 501/non-profit thing fully ironed out

chrismarkl

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“ Stache’s cash investments in KYN ultimately provided a disappointing level of financial support to the intended startups.”

Anyone can read in this. It says that of the cash he provided, too small a percentage went to the actual startups.

Not an unusual issue when looking for a big donor and then find out that only 25 cents of each dollar given actually went to the startups themselves. The rest went to "administrative overhead".

I would be upset to.

This has been a big concern of mine with One Spark all along. When I requested their 501c3 financials last year they said they weren't prepared to release them yet. Perhaps its time to ask again.

All 501c3 charities are required to provide 990's if you walk into their offices.  If you write them, including email, they must provide access within 30-days. 

http://www.guidestar.org/rxa/news/articles/2003/get-the-facts-990-disclosure-rules.aspx

CityLife

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If they are a 501 c 3 ( or 501 anything) they are required to at least make their 990's public if requested.  I do not know how much else, if anything (I have a 501 c 3 and I'm not even sure...), they are required to make pubic but the 990 is without a doubt and will give you what you are looking for:  where the money went.  Often, the 990's are on-line even. If they are refusing to give you the 990's then contact the Feds.

I'm not sure they ever got the 501/non-profit thing fully ironed out

“ Stache’s cash investments in KYN ultimately provided a disappointing level of financial support to the intended startups.”

Anyone can read in this. It says that of the cash he provided, too small a percentage went to the actual startups.

Not an unusual issue when looking for a big donor and then find out that only 25 cents of each dollar given actually went to the startups themselves. The rest went to "administrative overhead".

I would be upset to.

This has been a big concern of mine with One Spark all along. When I requested their 501c3 financials last year they said they weren't prepared to release them yet. Perhaps its time to ask again.

All 501c3 charities are required to provide 990's if you walk into their offices.  If you write them, including email, they must provide access within 30-days. 

http://www.guidestar.org/rxa/news/articles/2003/get-the-facts-990-disclosure-rules.aspx


Last time I checked, they were a provisional 501c3 (paperwork still under IRS review), so not sure they were required to provide the documentation. I'll try again.

chrismarkl

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Hey guys, back this summer I wrote the economic analysis of one spark that received some minor coverage http://www.onesparkimpact.com

Anyways I enjoy discussing and learning from you all regarding startups - thus when I saw these articles, I decided to write some informal analysis about KYN.  Please know I'm an outsider to KYN so anything I write is speculation. 

But my thoughts can be seen here:

http://socentu.com/2014/10/kyn-jacksonville-accelerator-has-closed/

Cheers

Chris

edjax

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Wasn't KYN to be one of the tenants in the Barnett Bldg?

RattlerGator

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Interesting write-up, Chris. Thanks for the link.

chrismarkl

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If they are a 501 c 3 ( or 501 anything) they are required to at least make their 990's public if requested.  I do not know how much else, if anything (I have a 501 c 3 and I'm not even sure...), they are required to make pubic but the 990 is without a doubt and will give you what you are looking for:  where the money went.  Often, the 990's are on-line even. If they are refusing to give you the 990's then contact the Feds.

I'm not sure they ever got the 501/non-profit thing fully ironed out

“ Stache’s cash investments in KYN ultimately provided a disappointing level of financial support to the intended startups.”

Anyone can read in this. It says that of the cash he provided, too small a percentage went to the actual startups.

Not an unusual issue when looking for a big donor and then find out that only 25 cents of each dollar given actually went to the startups themselves. The rest went to "administrative overhead".

I would be upset to.

This has been a big concern of mine with One Spark all along. When I requested their 501c3 financials last year they said they weren't prepared to release them yet. Perhaps its time to ask again.

All 501c3 charities are required to provide 990's if you walk into their offices.  If you write them, including email, they must provide access within 30-days. 

http://www.guidestar.org/rxa/news/articles/2003/get-the-facts-990-disclosure-rules.aspx


Last time I checked, they were a provisional 501c3 (paperwork still under IRS review), so not sure they were required to provide the documentation. I'll try again.

Please do, and please post them.  You can receive 990s for the last three years, 2011, 2012, 2013.  There is no way around it.  One Spark is listed on the IRS site, link below, as a public charity - thus disclosure is required by law and inability to provide 990s results in daily fines.  Ultimately if they do not provide these finances their 501c3 status can be revoked.  Please know I'm not anti one spark, I just believe in transparency in finances and impact.

 http://apps.irs.gov/app/eos/

45-5473493   One Spark Incorporated   Jacksonville    FL   United States    PC