Millers give up ownership of Jazz to assure stability

John Rogers

The Utah Jazz, already recognized as one of the most stable franchises in professional sports, made an unprecedented move last week that may assure its fans that it will stay in Salt Lake City forever. Gail Miller, owner of Jazz parent company the Larry H. Miller Group of Companies, announced that ownership of the Utah Jazz and Vivint Smart Home Arena have been transferred into a legacy trust.

What that actually means is still being figured out by fans and media, but two things are certain: 1. The Miller family has given up all rights to financial gain from the operation or sale of the National Basketball Association franchise, and, 2. Being irrevocable, it takes a unanimous or near unanimous vote — depending on the type of business being transacted — by its board of managers to make decisions. “It is as close as possible to there being perpetual ownership of a professional sports team,” said Greg Miller, son of Gail Miller and the team’s late owner, Larry Miller.

“As a family, we have always considered the Utah Jazz a community asset and it has been our privilege to serve as stewards of this team for more than 30 years,” said Gail Miller. “There have been many opportunities to sell and move the franchise, but from the day Larry and I purchased the Jazz, our goal was to keep the team in Utah. The legacy trust will help to ensure this commitment is kept for generations to come.”

Initially, Gail Miller will serve as the trustee and will eventually cede control of the franchise to a six-person board of managers, composed of members of her family.

Team officials said the transfer of ownership to the trust means all profits from the basketball franchise will be reinvested in the team so that the “trust will not provide any material benefit to the family from the Jazz.”

“It stays within the company,” said former Jazz president Dennis Haslam. “The profit that stays in the company will be used basically as retained earnings for expansion, for player salaries or other operations.”

No other major sports franchise — whether in the NBA, National Football League, National Hockey League or Major League Baseball — has such an ownership arrangement.

Gail Miller also said the trust will have tax benefits for the Miller family. She has been the head of the family’s business empire since her husband’s death in 2009. Forbes named Gail Miller the richest person in Utah, with a worth estimated around $1.7 billion.

“The legacy trust is the capstone of a broader effort to position the Larry H. Miller Group of Companies and its holdings for long-term vitality and success,” the Millers said in a press release. “After a nationwide search, a 12-member board of directors consisting of independent business executives, company officials and family members was formed in 2015. Clark Whitworth, a leader in the companies for more than 28 years, was promoted to CEO.”

“As a family and company, we have always been committed to doing things the right way and working to achieve our mission of enriching lives and giving back,” said Gail Miller. “This trust and our new corporate structure will continue this important legacy in perpetuity and represents our commitment and deep love for the state of Utah.”

The Jazz were founded as the 18th member of the National Basketball Association (NBA) in New Orleans in 1974 and relocated to Salt Lake City in 1979. Larry and Gail Miller purchased 50 percent of the franchise in May 1985 to keep the team from leaving Utah after financial challenges resulted in the franchise being put up for sale. The following year, the Millers acquired the remaining 50 percent and the family has solely owned and operated the franchise since. Originally purchased by the Millers for about $22 million, Forbes valued the team at $875 million last year.

On the court, the Jazz have the third-best record in the NBA over the past 30 years, having won eight division titles and two Western Conference championships along with 14 seasons of 50-plus wins. Away from the court, the Jazz are active in the local community and have assisted a multitude of organizations by providing charitable donations, service and grants through Larry H. Miller Charities. The Utah Jazz also operate the Junior Jazz program, the largest and longest-running youth basketball league in the NBA, featuring more than 50,000 players and an additional 13,000 volunteers who take part annually across seven states.

Larry and Gail Miller built the team’s current home without governmental help — also a novelty in the NBA. It opened as the Delta Center in 1991 and is currently known as Vivint Smart Home Arena. The 19,911-seat facility hosts approximately 1.8 million guests and more than 100 sports and entertainment events annually. The arena is currently in the early stages of a $125 million renovation that is being solely financed by the Millers. The majority of the construction will begin at the conclusion of the current Jazz basketball season with anticipated completion by this fall.