Sports Owner Tax Perk in Crosshairs As Bill Moves Forward

Irwin Kishner, co-chair of Herrick's Sports Law Group and co-chair of Herrick's Corporate Department, spoke with Front Office Sports about the “One Big Beautiful Bill Act,” which contains a provision that would eliminate certain tax breaks for new owners of professional sports teams.

In particular, the current bill as proposed limits amortization, which, according to the article, is the primary way for owners to save money on their tax bills. Team owners can currently deduct the cost of buying a team over 15 years from their taxable income, which significantly reduces the amount paid on taxes – even for a profitable team. Amortization is used by sports owners for deductions that are “‘intangible’ assets such as player contracts and broadcasting rights.”

The bill recently passed the House and now moves to the Senate for a vote. “If the bill clears the Senate, it may alter the appeal of buying a pro sports franchise,” according to Irwin.

“In effect, you would have to recognize more taxable income,” Kishner stated. “So therefore, the value of what you’re buying is less now.”

The article further discusses whether the costs will ultimately be passed on to fans to “make up for the difference.”

Read the full article in Front Office Sports here. Access may require a subscription.