Trump Administration Considers Eliminating Sports Team Owners' Tax Breaks
Washington D.C., [Date] - In a significant move aimed at cracking down on tax loopholes for wealthy sports owners, President Donald Trump met with House Republicans on Thursday night to discuss the first budget of his second term. While details remain scarce, press secretary Karoline Leavitt hinted at a major change that could have multibillion-dollar repercussions in the world of professional sports.
According to current law, sports team owners are eligible for substantial tax breaks by using "amortization," which allows them to deduct the cost of buying a team over 15 years from their taxable income. This method has been widely criticized as unfair and disproportionately benefits wealthy sports owners.
For example, when Steve Ballmer purchased the Los Angeles Clippers for $2 billion in 2014, he saved approximately $140 million in taxes through amortization. The former Microsoft CEO now boasts a net worth of over $120 billion, raising questions about the fairness of this tax break.
Sports team valuations have skyrocketed over the past decade, reaching an average value of $5.7 billion for NFL franchises in 2024, according to PwC reports. Experts argue that eliminating amortization for sports owners could result in significant lost revenue for teams and the sports industry as a whole.
"This is not just about sports; it's about fairness," said Joshua Horowitz, CPA and partner at Withum. "With sports teams, you're essentially paying an upfront premium for an intangible asset – TV rights and player contracts – which makes it difficult to carve out exceptions."
Industry experts predict that the proposed change could also have significant implications for publicly financed stadiums and arenas, including tax-exempt bonds that finance their construction.
"Eliminating this tax break could raise up to $100 billion over the next decade," said a deficit-reduction group. "That alone would cover nearly 2% of the cost of the tax cuts proposed by President Trump."
While details about the proposed change remain unclear, one thing is certain – the sports world is bracing for what is expected to be a significant shift in taxation policies that could impact owners and teams across the league.
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