Are you tired of writing checks to the government every year at tax time? I mean hey, who enjoys that? Well, good news – if you’re looking for ways to reduce next year’s tax liability, you may want to check out buying a pro sports team. Granted, the barriers to entry are pretty high, but if you have deep pockets and the right connections, this could be a big tax saver for you.
Just ask hedge fund manager David Tepper (you have his cell number, right?). Tepper was recently approved by the NFL ownership group to purchase the Carolina Panthers for $2.3 billion, a new record for NFL franchises. Due to a provision in the tax code allowing for the intangible assets of a sports team to be amortized and deducted over a 15-year period, he’ll be able to write off nearly all of the $2.3 billion purchase price. This works out to approximately $150 million per year of deductions that Tepper will be able to use to offset other sources of income for the next 15 years.
Tepper earned over $1.5 billion in 2017, so the Panthers are unlikely to completely offset his tax bill in the coming years. But hey, every little bit helps, right?
Austin Bradley, CPA