[gamerMark]

Johnson relinquishes ownership of Jets, local recycling innovator Murphy wins auction

The Associated Press
Phil Harnett (AP Sports Writer) July 1, 2014 1:08 AM

NEW YORK, N.Y. (AP) -- Facing a federal indictment and pressure from the other 31 NFL owners, Woody Johnson has given up control of The New York Jets. Federal prosecutor’s re-opened an investigation earlier this year upon receiving new evidence of Johnson’s participation in a sham tax shelter. Johnson had previously testified in 2006 before a Senate panel regarding the allegations which resulted in a settlement with the IRS. The new evidence has now revealed that Johnson was not only a participant, but that he was the lead conspirator in the tax evasion plan. It is charged that Johnson, through his company Johnson Company Inc., used purchases of approximately $2 billion in capital gains losses to erase taxable gains garnered from stock sales. As a result, the U.S. treasury lost an estimated $600 million in revenue. With immense back tax penalties, fees, and a possible criminal prosecution on the horizon, the NFL owners held an emergency meeting and unanimously agreed that Johnson was no longer fit to continue his ownership of the Jets. Soon after being informed of the decision, a desperate and demoralized Johnson agreed to step down and allow the NFL to auction off his franchise.

A statement released late Monday night by the NFL’s commissioner’s office announced the winning bid for the ownership of the New York Jets. New Jersey businessman Mark Murphy won the competition with a staggering $2 billion bid, the largest purchase price for a NFL team to date. A Long Island native and resident of Wychoff, N.J., Murphy (45) is a graduate of the U.S. Coast Guard Academy where he earned a mechanical engineering degree while playing defensive back for the football team. Following graduation and five years of active duty service as a helicopter pilot, Murphy began working for his Uncle, the late Norman Nicholls, at Nicholl Paper Mills located in Elmwood Park, N.J. Upon the passing of his Uncle in 2009, Murphy assumed control as Chairman and CEO of the company and led its transformation into the industry leader in recycled paper products. Murphy is also owner of Greenland Inc., a timberlands and real estate investment company.

Murphy was reached for comment following the announcement and said, “Our family is blessed to have this opportunity. As lifelong fans of the Jets, we are committed to being a first class organization in every way and most importantly, winning the Super Bowl.”

The sale is subject to approval by a three-quarters majority of the NFL’s other 31 owners which will be expected to come at league meetings July 15. With deep pockets and an impeccable reputation, it’s considered by insiders as a formality as the NFL looks to move on quickly from the disgraced Johnson.