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Joseph Robbie was born in Sisseton, South Dakota , on July 7, 1916 . He had a very diverse upbringing with his mother being a second-generation descendant of Irish and Swiss pioneers and his father, a Lebanese immigrant. The family lived a modest life; his father was the manager of the town’s cafe and pool hall while his mother worked as a waitress and pastry cook at the cafe. Things were going fine until the Depression when the family lost the cafe and Joe’s father was forced to become a night watchman. At that point Joe felt he needed to help. He took a year off from high school and served as a member of the Civilian Conservation Corps to help his family make ends meet. He would later return to his high school and graduate with honors in 1935. He then attended Northern State Teacher’s College in Aberdeen and the University of South Dakota ’s Law School . Once again Joe was forced to take time off from him studies, this time to help defend his country in World War II by serving in the U.S. Navy. After the war, Joe graduated law school and became a successful trial lawyer in South Dakota . In the early 1950s, after an unsuccessful campaign for governor, he became head of the Office of Price Stabilization for four states. It wasn’t until 1965 that Robbie and television star Danny Thomas purchased the Miami Dolphins and the Robbie family legacy began.
Joe Robbie was an American success story. He was a successful entrepreneur and co-founder of the Miami Dolphins, a franchise that turned into one of the highest profile and most lucrative teams in professional football. During his span as owner, Robbie and Coach Don Shula led the Dolphins to an unfathomable 14-0 perfect season, won two Super Bowls (1973 and 1974) and built $115 million Joe Robbie Stadium . At the time, unlike any other open-air facility, Joe Robbie Stadium was the first to be constructed entirely with private funds.
Like many owners of family-run businesses, it was Robbie’s dream to have his family follow in his footsteps when he was gone. Unfortunately, Robbie never planned to deal with estate taxes. He died on January 7, 1990. Through the marriage deduction, h e passed to his wife the illustrious franchise and the stadium which bore his name. Unfortunately, his wife passed away soon thereafter, and due to a lack of planning, a staggering estate bill estimated at $47 million was left behind. Differing views amongst his nine children only exacerbated the situation and forced the cash-poor family to sell Robbie's legacy he had worked so hard to build. In 1994, the family sold both the team and the stadium for a total of $138 million. At that time, the sale price, even after estate taxes, was impressive. Today, many would argue that the Dolphins and the stadium -- now known as Pro Player Stadium -- might be worth twice as much. More important, however, Robbie's intentions were defeated; his family was removed from the success he worked so hard to build.
What Could Be Done Differently?
All parents dream about giving their children opportunities that they never had, creating a family legacy. But when it comes to thinking about life insurance, many shun the idea. In many cases life insurance isn’t the answer; in this case, however, Robbie could have bought a survivorship life policy that would have kept the stadium and team in his family. He would have, in essence, been insuring his legacy. Also, he could have encouraged his advisors to not be so defensive and allow him to explore other alternatives. As an advisor myself, the worst phone call we can get is from a client telling us they are working with someone else. But as fiduciaries, if we are not properly equipped to provide a service a client needs, we must be willing to refer clients to someone who can assist them with their unique situations. If we didn’t, we would be blocking the path of people who might help create a better estate plan, and that is what happened in Joe Robbie’s case.
For a free estate planning guide, contact John Petrick at (310) 445-2504 or email him at john.petrick@lpl.com .
This article is not intended to provide specific advice or recommendations for any individual. Consult your financial advisor with questions. John Bennett Petrick and the representatives of Perennial Financial Services are registered representatives with and offering securities through Linsco/Private Ledger (LPL) Member NASD/SIPC. CA Insurance License#0E03441
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