The GOP's proposed spending bill aims to slash tax breaks for future sports team owners by reducing the write-off for intangible assets from 100% to 50%, affecting transactions in the NBA and NFL. This change would raise an estimated $991 million over a decade. While current owners remain unaffected, future acquisitions could decelerate, as evidenced by investor Bill Chisholm’s recent record purchase of the Boston Celtics. NFL owners are lobbying against this provision, which they view as punitive, but the White House argues it promotes fairness for fans by targeting ticket price inflation.
Since 2004, owners of sports teams have been able to write off the entire value of intangible assets like player contracts over 15 years.
The bill is now headed for the Senate where it could cool the rapid pace of dealmaking among billionaires looking to acquire sports teams.
The provision is meant to punish teams for inflating ticket prices, ensuring that sports teams overcharging ticketholders do not receive favorable tax treatment.
Current sports team owners would not be impacted, only future acquisitions, raising concerns about the speed of upcoming deals in the sports industry.
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