Thursday, April 15, 2004
New Owners' Tax Break Losing Value
On Income Tax Day, Darren Rovell of ESPN.com explains why the tax advantages of owning a pro sports franchise have declined in recent years. Although owners can still allocate up to 50% of the purchase price of a club to intangible assets such as player contracts, the IRS has become more aggressive at challenging the club's valuations. The new owners are also wealthier, as a class, than the owners they're replacing.
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On Income Tax Day, Darren Rovell of ESPN.com explains why the tax advantages of owning a pro sports franchise have declined in recent years. Although owners can still allocate up to 50% of the purchase price of a club to intangible assets such as player contracts, the IRS has become more aggressive at challenging the club's valuations. The new owners are also wealthier, as a class, than the owners they're replacing.
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