Billionaire Sports Ownership…not just for getting the taxpayers to build ’em stadiums anymore
Nothing begats success more than owning an unsuccessful franchise. A few months ago Steve Ballmer purchased the Los Angeles Clippers (lifetime .379 winning percentage) for $2 billion or so.
What’s he get out of is other than being a dancing fool?
Buying a team isn’t like buying a factory full of machines; Ballmer got few physical assets for his $2 billion. Instead, he paid top dollar
to join a successful league and acquire the rights to a star-studded roster.
The IRS offers specific tax breaks to any business loaded with such intangible assets.
So, in addition to taking a normal deduction for Paul’s annual salary, Ballmer could claim the point guard is worth additional millions in
terms of selling tickets and driving broadcast revenue.
This added value, he could say, was part of the original purchase price. The IRS would then allow him to amortize a significant portion of the $2 billion
over 15 years in much the same way a factory owner depreciates aging machinery.
Must be tough making such a sacrifice…and who needs to treat people like people, when you can treat them like deductible commodities?